Final Business 101

question

When managers evaluate a decision and determine that it is not meeting the goals of the organization, the decision-making process may become cyclical.
answer

TRUE
question

Almost all businesses are organized the same way, in a vertical, hierarchical structure.
answer

False
question

The control system that helps measure the plans an organization sets in place to carry out its goals and objectives of the organization generally forms a cycle.
answer

True
question

Ensuring that meetings have a clear agenda can help with time management.
answer

True
question

Web-based tools like Meeting Wizard can help with time management.
answer

True
question

Managers do not need to be comfortable with technology because they can delegate those tasks to their information technology (IT) staff.
answer

FALSE
question

The skills of a manager and the process a manager goes through will be entirely different if the organization is a simple working group instead of a multibillion-dollar company.
answer

False
question

________ are broad, long-term accomplishments an organization wants to achieve and ________ are short-term targets designed to help achieve them.
answer

Goals; objectives
question

An organization where power is distributed and employees work in groups or teams is a ________ organization.
answer

horizontal
question

Only for-profit companies use mission statements.
answer

False
question

Once long-term goals and objectives have been determined, middle management generates ________.
answer

tactical plans
question

Which is NOT a primary function of management?
answer

marketing
question

A mission statement identifies what a business wants to be in the future.
answer

False
question

When is the annual budget for an organization developed?
answer

during tactical planning
question

________ reflect the personality of a company.
answer

Mission statements
question

A ________ is a graph that displays the values of two variables to see if there is a relationship between the variables.
answer

scatterplot
question

Organizational structure depends on a variety of factors NOT including ________.
answer

the location(s) of business operations
question

Tactical plans are made with a six-month to one-year horizon in mind.
answer

False
question

Despite their benefits, traditional pyramidal management has been criticized as being ________.
answer

inflexible
question

If a computer virus spreads rapidly through a company’s computer system and threatens to shut down all internal and external lines of communication, the company will likely put a(n) ________ into effect.
answer

contingency plan
question

At what stage in the decision-making process would managers be most likely to seek customer or market opinion?
answer

when choosing the best plan of action
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The specifics of carrying out tactical plans are ________.
answer

operational plans
question

Which of the following processes BEST describes how managers identify unseen problems?
answer

analyzing data and searching for trends
question

Xerox maintains a flat organizational structure organized by product category and by region.
answer

TRUE
question

The BEST way to describe the conceptual skills that a good manager must develop is to state that these skills must include understanding the relationships between ________.
answer

the different parts of the organization
question

Diane Pollock was recently promoted to middle management based on her excellent interpersonal skills. These skills help her because one of the primary roles of a middle manager is to ________.
answer

act as a liaison among different groups in the company
question

In an organizational chart for a company, training will generally fall under what division?
answer

human resources
question

Once a company’s vision and mission statement have been articulated, management must assess a company’s SWOT, which stands for ________.
answer

strengths, weaknesses, opportunities, and threats
question

Reebok only designs and markets its products. The company does not actually produce any products. This is an example of a ________.
answer

network organization
question

What represents the highest level of planning in an organization?
answer

strategic planning
question

A vision statement is a current description of an organization’s purpose, basic goals, and philosophies.
answer

False
question

When Boeing recently produced its latest airplane, the Boeing 787, parts of the plane were manufactured by a firm in Italy, other parts were manufactured by a firm in Wichita, Kansas, and all of the elements of the plane were shipped to Everett, Washington, where the final assembly was completed. This is an example of a ________ organization.
answer

network
question

A(n) ________ organization consolidates decision making in the hands of a few people.
answer

vertical
question

There are several steps that are crucial to effective time management. Which of the following steps will NOT improve the productivity of a business?
answer

answering all emails as soon as they arrive
question

Goals are broad accomplishments that an organization wants to achieve within a certain time frame; in most companies this is about _______.
answer

five years
question

A network organization is an emerging business structure in which ________ collaborate.
answer

a group of companies
question

Juan is frustrated with his job of five years. He feels like nothing he does has any effect on the company’s success or failure. He believes that his personal successes probably will not benefit him and, if there is any benefit, it will be very small. According to Vroom, Juan has ________.
answer

low motivation
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Global Tech, Inc. has employees all over the world. Employees have face-to-face meetings on occasion, but they mostly communicate with each other via conference call, email, and webcasts. These employees form a virtual team.
answer

True
question

Emi has worked as a computer programmer for the same company for five years. She is actively looking for another job and spends a great deal of her work day scanning want ads, making phone calls, and chatting with her coworkers. She completes none of her work tasks and is secretly pleased to negatively affect the company with whom she is employed. According to the Q12, Emi is classified as ________.
answer

actively disengaged
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The Q12 identified Sarah as an employee who is not engaged. According to the Q12, which of the following statements is MOST LIKELY TRUE?
answer

Sarah makes little contribution to the company.
question

For her psychology project, Melissa has decided to study the production levels of cooks at a local fast food restaurant. She expects the cooks in her study group to outperform the cooks in her control group because of ________.
answer

the Hawthorne effect
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The vice president at Steve’s company recently assigned him a very challenging project. Steve successfully completed it on time and within budget. The feeling of satisfaction he has for this job well done is an extrinsic motivator for Steve.
answer

False
question

Rosa has a challenging job at a company that she respects. Her only regret is that her supervisor does not seem to appreciate her accomplishments and work ethic. According to Maslow, Rosa will strive to satisfy her esteem needs before addressing her self-actualization needs.
answer

True
question

The most important aspect of Stephen Covey’s Seven Habits model is thinking in terms of win-win because most achievements are based on cooperative efforts.
answer

True
question

After accepting a new job and moving to a new city, Tania felt isolated and unhappy. After a few months, she became friends with some of her coworkers and joined a book club. According to Maslow, Tania fulfilled her need for ________.
answer

belonging
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Antonio owns a small auto body shop. He is concerned with apathy among his employees and decides to add some extrinsic motivators in hopes of increasing performance. Which of the following is NOT an extrinsic motivator Antonio may try?
answer

offering work employees may find more satisfying
question

Which statement about a Theory Y management style is FALSE?
answer

People mainly want security in their jobs.
question

Mario works as an accountant for a large firm. He frequently sends email messages to coworkers that contain jokes about disgruntled employees and their difficult bosses. He interrupts meetings with random complaints about the company and often tries to coax fellow accountants to join him for long lunches. According to the Q12, Mario is an “actively disengaged” employee.
answer

True
question

Anna, a psychology major, has decided to specialize in the study of how to create a workplace that fosters motivation and productivity among employees. This is known as ________ psychology.
answer

organizational
question

Luis works as a marketing manager for a consumer products company. He feels strongly about the product lines he manages and is dedicated to the company’s mission and ideals. Luis’ product lines are among the best sellers in the company. According to the Q12, Luis is classified as ________.
answer

engaged
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The need for affiliation in McClelland’s “three-needs” theory most closely resembles which need in Maslow’s hierarchy?
answer

belonging
question

In which type of business would you most likely find a Theory X style of management?
answer

mass manufacturing company
question

InfoTech offers its employees long-term employment with a focus on individual responsibility. As a result, its workers are loyal to the organization, are highly productive, and have strong morale. The management style InfoTech most likely is applying is ________.
answer

Theory Z
question

Which of the following best defines McClelland’s need for achievement?
answer

It is the need to accomplish something difficult on one’s own.
question

Karen is an accountant for a large construction company. Her supervisor decides to reward Karen’s excellent performance with a one-time bonus. To Karen, this could be a(n) ________.
answer

extrinsic motivator
question

According to Maslow, which need are people striving to satisfy when they seek to maximize their own potential?
answer

self-actualization
question

Chelsea is a marketing manager and receives a lump sum payment from her company based on the company’s higher-than-normal profits from last year. This compensation is called a ________.
answer

bonus
question

Greg is 57 years old and is looking for a new job even though he knows many companies prefer not to hire older workers. Which of the following is likely a disadvantage of hiring Greg?
answer

expectation of a fairly high salary
question

Midori was searching for a new job. An employment agency contacted her about a job that was perfect for her skill set. Midori was hired. Midori’s new company was performing ________.
answer

external recruiting
question

Suki earns $52,000 per year for her work as an associate marketing manager. Suki’s compensation is called a ________.
answer

salary
question

Janet is the human resource manager for a large consumer products company. She has a great many job responsibilities. Which of the following is most likely NOT an aspect of her job?
answer

asset management
question

Marvin has worked for his company for five years and feels it is time to increase his level of responsibility and stature in the company. Marvin is seeking a ________.
answer

promotion
question

Barney is an HR manager and would like to see a more diversified workforce at his company. He decides the best way to do this is to follow a plan that requires the company to employ a certain number of minorities and women. This plan is otherwise known as ________.
answer

affirmative action
question

When plumbers from a local union stopped working during negotiations, management hired replacement plumbers so the effects on their business would be lessened. These replacement plumbers are called ________.
answer

strikebreakers
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Archie is a new HR manager and knows that a diverse workforce can benefit his company. The best way for Archie to create a motivated, diverse staff is to follow an affirmative action plan that prescribes a certain number of minorities and women.
answer

False
question

Johanna decides she is bored with her current job and is ready to quit. She wants to take some time off and then look for a new job in a different city. Her coworker tells Johanna to check the company handbook to make sure her reasons for quitting are acceptable. Johanna knows this is not necessary because of the legal doctrine, ________.
answer

employment at will
question

Kathleen wants to be a nurse manager at a local children’s hospital. She is studying for this position through a distance learning program and is taking a class offered by a university in another state. The type of training Kathleen is experiencing is ________.
answer

online
question

What is the retirement age in the United States?
answer

whenever the employee stops participating full-time in his/her career
question

Joshua is paid the minimum hourly rate for his work as a lifeguard. Joshua’s compensation is called a ________.
answer

wage
question

Sydney recently saw a notice in her company newsletter about a new job opening within her company. Since it would be a promotion for her, she applied later that day. In this example, Sydney’s company recruited externally.
answer

False
question

What is the difference between performance management and performance appraisals?
answer

Performance management is an ongoing process while a typical performance appraisal happens once per year.
question

Recently, negotiations between a local housepainters union and their employer came to an impasse. The employer felt he had a legitimate position in the negotiations and refused to allow union member painters from entering the premises. This is called a ________.
answer

lockout
question

Bella has two young children and a full-time job. Her day care provider cannot work on Fridays. Bella’s employer allows her to work Mondays through Thursdays, as long as she puts in ten hours each day. From this example, we know Bella’s employer allows ________.
answer

a compressed workweek
question

While training for a new job, Vincenzo was given a computerized, multiple-choice test, which provided him immediate feedback regarding his answers. Vincenzo experienced a(n) ________.
answer

programmed learning approach
question

Nicholas works for a marketing firm, which is looking to cut staff due to financial hardships. Since Nicholas is nearing 70 years old, the company decides to encourage him to retire by offering him various financial incentives. This worker buyout is also known as a(n) ________.
answer

golden parachute
question

Elizabeth saw a posting for a new job on her company’s intranet. She was interested in the new challenges this job could provide her, so she applied right away. Elizabeth’s company was performing ________.
answer

internal recruiting
question

Teresa just received a quarterly statement from the Vanguard Group, which shows earnings from investments using her pretax dollars. Teresa contributes a percentage of her salary to the plan and her company matches it. Teresa has a 401(k) plan.
answer

True
question

When Iris was trained for her new job, she was asked to respond to questions on a computerized multiple-choice test. Iris’ company used the apprentice training approach.
answer

False
question

Felix is concerned about saving money for retirement. His company offers him a plan that requires him to contribute a specific amount of money each year through payroll deductions. At retirement, Felix will receive the monies he contributed as well as the fund’s investment earnings. Felix is contributing to a(n) ________.
answer

pension plan
question

Daniel is due for his regularly scheduled performance appraisal. This is the time when Daniel receives an official evaluation of his performance, feedback about his work, and areas where improvements should be made.
answer

True
question

Ricardo supervises a group of computer programmers. One of his employees, Natalia, frequently tells him about another employee’s tardiness and penchant for two-hour lunches. After a few months, Ricardo fires this employee based on Natalia’s information. Because Ricardo can back up his accusations with Natalia’s statements, he is guaranteed to be protected in a wrongful discharge lawsuit.
answer

False
question

Benjamin has a full-time job and has decided to work toward earning his master’s degree at a local university. Some days he works from 7:00 A.M. until 3:30 P.M. so he can leave in time to attend his 4:00 P.M. classes. The rest of the week, Benjamin works from 8:00 A.M. until 4:30 P.M. From this example, we know Benjamin’s company allows ________.
answer

flextime schedules
question

Gabrielle is in charge of hiring new employees for her company. She decides she needs to assess the future demand for employees through forecasting and sets out to learn more about it. Which of the following statements about forecasting does Gabrielle discover is FALSE?
answer

Forecasting considers the role of antidiscrimination policies at present.
question

Ramona’s company has taken a new approach to the appraisal system. They combine goal setting, performance appraisals, training, and feedback into an ongoing process. This approach is called performance management.
answer

True
question

Roseanne is in the process of hiring a new administrative assistant. What is the last step in this hiring process?
answer

monitor through probationary period
question

The local library system offers some employees the opportunity to work five days per week for four hours each day. These employees also receive the same health insurance and paid time off plans that the employees working 40 hours per week receive. From this example, we know the library system is offering ________.
answer

permanent part-time schedules
question

Veronica is reentering the workforce after years away caring for her elderly parents. She is making many assumptions about today’s workplace. Which of Veronica’s assumptions is FALSE?
answer

Women receive pay equal to their male counterparts.
question

Which of the following is NOT a part of a typical management development program?
answer

workforce profiles
question

Oscar works in pharmaceutical sales. His base compensation is fairly low, but it is enhanced with compensation directly tied to his sales results. The incentive-based payments Oscar receives are called ________.
answer

commissions
question

Yvette was recently hired as a restaurant manager for McDonald’s and must attend classes at Hamburger University. This is an example of the programmed learning approach.
answer

False
question

Yoshiko owns a greeting card store and recently hired a new daytime clerk. The new clerk is learning job skills by performing them under Yoshiko’s informal direction. Yoshiko is conducting a(n) ________.
answer

on-the-job training program
question

Which of the following is NOT a problem typically encountered with performance appraisals?
answer

There is much administrative pressure due to the high frequency of an individual’s performance appraisals in one year.
question

________ involves tricking a person into entering sensitive personal or financial information into a form on a website or in an email, typically by convincing the person that she is dealing with a site she normally interacts with, such as her bank.
answer

Phishing
question

Terrell urgently needs to take care of some personal business using the Internet, but he is afraid that he might jeopardize his job if he is found using the company network for personal use. Which corporate practice is causing Terrell to most likely feel this concern?
answer

electronic monitoring
question

Google’s AdSense advertising is a form of contextual advertising.
answer

True
question

UPS has a(n) ________ that allows businesses to examine UPS services and prices and track shipments.
answer

company website
question

What is MOST important for cloud computing?
answer

Internet
question

Business intelligence software can help managers ________.
answer

identify which factors are the greatest contributors to bad debt
question

Which of the following BEST describes how businesses convert raw data into information?
answer

organizing the data in a way that helps make decisions
question

Molave Furniture Company plans to launch a new website. Lila, the company’s CIO, thinks that the company can better reach its customers through an interactive site that allows customers to view pictures of all furniture items, schedule an appointment with a sales consultant, or order items online. Which of the following areas of responsibility is Lila most specifically addressing?
answer

e-commerce
question

________ refers to the application of products like Facebook in a corporate setting.
answer

Enterprise social networking
question

Employers use electronic monitoring to ________.
answer

gather information about an employee’s activities while on the job
question

As a chief information officer, Bob looks for ways that his company’s technological resources can generate bigger returns on its information technology investments. Which aspect of the CIO’s role is he addressing?
answer

budget
question

IT departments must ensure that companies use the newest technology that is available.
answer

False
question

The following are all functions of a chief information officer (CIO) EXCEPT ________.
answer

overseeing the accounting office
question

Of the following, which is harmed MOST by current regulations governing the collection of sales taxes on Internet purchases?
answer

state governments that charge sales taxes
question

Which of the following uses of social media would be MOST likely to hurt rather than promote one’s business?
answer

Which of the following uses of social media would be MOST likely to hurt rather than promote one’s business?
question

Which of the following is a function of a company’s IT department?
answer

managing the use of mobile computing
question

Phishing is commonly used to steal credit card numbers.
answer

True
question

The person in charge of technology-enabled information processing in companies is most often called the ________.
answer

chief information officer
question

What does a management information system (MIS) do that an IT system would typically not do?
answer

focus on applying IT to solve business problems
question

Technology’s ability to process and document large amounts of data has better enabled people to understand interpersonal communication.
answer

False
question

Online analysis packages (OLAPs) enable very quick analysis of multiple sources of business information in order to present a clearer picture of the state of the business.
answer

True
question

The unit in a company that is most often responsible for the hardware components, software programs, and networking strategies of a business organization is ________.
answer

information technology
question

What best describes a data mart?
answer

What best describes a data mart?
question

Technology BEST supports whistle-blowers by ________.
answer

making it possible for people to report a business’s ethical violations anonymously
question

The chief information officer is responsible for the technology of a business, including the management and evaluation of the budget allotted for such technology.
answer

True
question

Viral marketing is most effective when it targets people who spend little or no time on the Internet.
answer

False
question

Hilde’s company wants to develop an understanding of the demographics of people purchasing its new product. The company wants to target its marketing at this demographic of people. The marketing department has used a database management system to identify the characteristics of buyers. Which of the following will be MOST useful for identifying the appropriate demographic group at which to target marketing?
answer

data mining
question

Most states are pleased that their residents buy products online.
answer

False
question

The online advertising acronym PPC stands for ________.
answer

pay-per-click
question

eBay is an example of which type of e-commerce transaction?
answer

C2C
question

Which of the following statements is TRUE about the impact of technology on employee privacy?
answer

Technology allows companies to access information about employees’ behavior on the job
question

Ben receives an email purporting to be from his bank, advising him that new passwords are being distributed. The email asks him to enter his current password, as well as other personal information. Ben sends the requested information and then notices the next day that funds have been withdrawn from his account without his knowledge or consent. Upon contacting the bank, Ben learns that the original email was a fraud. Ben is a victim of ________.
answer

phishing
question

Although electronic monitoring offers some advantages to a company, it may also result in disadvantages. Which of the following is the MOST significant disadvantage of electronic monitoring of employees?
answer

Electronic monitoring can result in increased employee stress and anxiety.
question

A marketing plan is best provided as an oral presentation so that employees can grasp concepts through visual aids and ask questions in a question-and-answer session.
answer

False
question

When competition for customers became more intense during the sales era, businesses began to ________.
answer

undertake aggressive sales tactics to “push” their products
question

When U.S. soldiers returned home from World War II, they influenced the marketing of products by ________.
answer

getting married, starting families, and having the willingness to spend money
question

Social media sites such as Facebook and Twitter are unreliable sources of market research data because few customers use such sites to discuss business issues.
answer

False
question

The ideal marketing objective is ________.
answer

time specific, realistic, and quantifiable
question

How does marketing MOST benefit consumers?
answer

by responding to needs in an effort to satisfy those needs
question

Marketing has evolved over which general eras?
answer

production, sales, marketing, societal marketing, customer relationship
question

The more loyal a traveler is to a certain hotel chain, the more sensitive he or she is to the room rate at hotels in that chain.
answer

False
question

Which of the following is a typical characteristic of a business-to-business market?
answer

complex buying decisions
question

Secondary marketing data, which has already been collected and processed, is usually more expensive to obtain than primary data.
answer

False
question

When we interview for a job, we are marketing ourselves.
answer

True
question

The first step in the marketing process is to ________.
answer

identify a market need
question

Prudent firms follow domestic markets exclusively in order to keep their focus on immediate sales and to avoid the additional expenses incurred in the global marketplace.
answer

False
question

________ is the process of surveying the market environment to assess external threats and opportunities.
answer

Environmental scanning
question

Marketers need to be aware of cultural and social differences before launching their products and campaigns.
answer

TruE
question

The middlemen in a distribution channel are sometimes called ________.
answer

wholesalers
question

In the age of identity theft, customers feel that marketers are violating their privacy when they ________.
answer

resell information collected in marketing surveys without permission
question

A target market is a group of people who have completed surveys, questionnaires, or other response forms and have indicated an interest in the production of a new product.
answer

False
question

Environmental influences are variables under the direct control of an organization.
answer

False
question

Which of the following is NOT one of the most common consumer market segmentation classifications?
answer

home ownership
question

Which of the following is NOT a good way to develop rapport with clients?
answer

providing high quality products without a money-back guarantee
question

A rising inflation rate increases the purchasing power of money.
answer

False
question

There are many more consumer markets than business-to-business (B2B) markets.
answer

False
question

The most visible part of the marketing mix, which can be very expensive, is ________.
answer

promotion
question

Which of the following is NOT an example of how not-for-profit organizations use marketing?
answer

The Red Cross is investigating the use of alcohol-based drugs for children’s diseases.
question

Which of the following is NOT a criticism of marketing?
answer

catering to an exclusively upscale clientele
question

The marketing process is different for B2B markets than it is for consumer markets.
answer

False
question

The automobile industry is an example of a business that skips the wholesaler in the distribution channel.
answer

False
question

The era when companies believed that a good quality product would simply sell itself ran ________.
answer

from the industrial revolution until the 1920s
question

The market mechanism benefits society by ensuring that ________.
answer

scarce resources are channeled into products most desired by society
question

The two basic elements of a marketing strategy are the market research and the marketing mix.
answer

False
question

Snow blowers are sold in areas where there is a longer cold season and the likelihood of snow. The consumer market for snow blowers is an example of ________.
answer

geographic segmentation
question

A consultation with a world-famous surgeon is an example of a(n) ________ service.
answer

specialty
question

A group of similar products marketed to one general market is called a product ________.
answer

line
question

If a package prevents tampering with a product, which purpose of packaging is being performed?
answer

to contain and protect the product
question

The package design, shape, color, and texture influence buyers’ perceptions, but do NOT influence buying behavior.
answer

False
question

In order for customers to acquire a total product offering, the customer must offer the ________.
answer

price
question

Ford offers several categories of vehicles: cars, minivans, trucks, and SUVs. All of these vehicle categories together make up Ford’s product ________.
answer

mix
question

Price ________ involves charging a high price for a product initially, then lowering the price over time.
answer

skimming
question

A company that announces a manufacturer’s suggested retail price and then offers a discount off that price is using ________ pricing.
answer

reference
question

An agreement between the owner of a brand and another company or individual who pays a royalty for the use of the brand in association with a new product is brand ________.
answer

licensing
question

The blue Tiffany & Co. box is an example of which purpose of packaging?
answer

to promote the product
question

An advertising campaign that attempts to reposition its product is an example of ________.
answer

creating a new vision
question

Sheets of copper shipped to a factory for plumbing pipes are an example of ________.
answer

raw and processed materials
question

A bag of snack food says, “Walmart’s Corn Chips.” This is an example of a(n) ________ brand.
answer

private
question

The process of distinguishing a product from its competition in real or perceived terms to attract customers is called product ________.
answer

differentiation
question

A legally protected brand is called a(n) ________.
answer

trademark
question

A whole supermarket shelf of snack food bags is marked, “Frito-Lay.” This is an example of a(n) ________ brand.
answer

family
question

Which of the following is a consumer product classification?
answer

unsought goods and services
question

The two functions of labels are to ________.
answer

inform and persuade
question

A manufacturer of yachts sets its prices high above its competitors. This is an example of the pricing objective of ________.
answer

creating an image
question

An augmented product consists of the core product and the actual product plus other real or perceived benefits that provide additional value to the customer’s purchase.
answer

True
question

A bulldozer is an example of ________.
answer

equipment
question

Each of the following is a form of discount EXCEPT ________.
answer

packaging discounts
question

A new freelance writer who sets a price at a level to generate just enough revenues to pay expenses is using the pricing objective of ________.
answer

covering costs to survive
question

All of the following are steps in new product development EXCEPT ________.
answer

brand awareness
question

A store that sets its prices at the same level as the store across the mall is using the pricing objective of ________.
answer

status quo pricing
question

Use and convenience are unimportant when planning packaging for products.
answer

False
question

The many product lines at Procter & Gamble are an example of product ________.
answer

mix width
question

A theoretical model describing a product’s sales and profits over the course of its existence is known as the product ________.
answer

life cycle
question

A brand assigned to each product within a company’s product mix is a(n) ________ brand.
answer

individual
question

A snack food bag is white with plain black letters spelling, “Corn Chips.” This is most likely an example of a ________ brand
answer

generic
question

Branding increases the risks involved in some purchases for which buyers are unable to determine quality objectively.
answer

False
question

A package contains a snack food bag with a manufacturer’s brand and a container of dip with the brand of a different manufacturer. This is an example of a(n) ________ product.
answer

co-branded
question

Packaging milk in a sealed bag that does not require refrigeration is an example of creating new markets.
answer

False
question

Last year Huge TV Corp. had net income equaling $5 million. At the end of the year, the corporation had 4 million shares of stock outstanding. The company’s earnings per share were ________.
answer

$1.25
question

Accounting is important for ________.
answer

organizations of all sizes and types
question

Your boss asks you to email a spreadsheet that is similar to a checkbook register, since it reflects changes in the company’s cash position last month. When sending the email, you MOST LIKELY will attach the file named ________.
answer

Statement_of_Cash_Flows
question

The clothing and accessories at New Fashion Stores, Inc. are an example of ________ assets.
answer

current
question

Your boss asks you to email a spreadsheet that shows what the company owns and what it has borrowed (owes) at a fixed point in time and shows the net worth of the business. When sending the email, you MOST LIKELY will attach the file named ________.
answer

Balance_Sheet
question

The statement of cash flows tells how efficiently management generates and uses cash.
answer

True
question

Jason Prows’ job this week is to prepare a spreadsheet that shows his company’s long-range plans and outlines the expected financial needs for significant purchases such as real estate, manufacturing equipment, plant expansions, and technology. Jason is preparing a(n) ________ budget.
answer

capital
question

The amounts that New Fashion Stores, Inc. owes to clothing manufacturers are an example of ________.
answer

liabilities
question

When New Fashion Stores, Inc. paid a dividend to its shareholders, it recorded to outflowing cash in the ________ activities section of its statement of cash flows.
answer

financing
question

The longest period covered in financial accounting reports is three months.
answer

False
question

Government and not-for-profit accounting refers to the accounting required for organizations that are not focused on generating a profit, such as legislative bodies and charities.
answer

True
question

The Sarbanes-Oxley Act established the Public Company Accounting Oversight Board, which is responsible for overseeing financial audits of public companies.
answer

True
question

Leverage is the amount of debt used to finance a firm’s assets.
answer

True
question

Current assets at New Fashion Stores, Inc. are $20 million, and current liabilities are $10 million. The company’s current ratio is ________.
answer

2.00
question

Assets are the amounts that a company owes to its creditors.
answer

False
question

Financial statements represent what has happened in the past.
answer

True
question

When New Fashion Stores, Inc. built 100 new stores, it recorded to outflowing cash in the ________ activities section of its statement of cash flows.
answer

investing
question

GAAP stands for ________.
answer

generally acceptable accounting principles
question

An airline’s long-term leases of its jets are examples of current liabilities.
answer

False
question

Joseph Coulter needs long-term financing for his company. He contacts Funders Group, which is willing to provide funding in exchange for an ownership stake, an active role in management of Joseph’s company, and an opportunity for a large return on its investment. Funders Group is offering ________ capital.
answer

venture
question

Tracking a business’s income and expenses through a process of recording financial transactions is called ________.
answer

accounting
question

In her work as an accountant, Sandra Garcia recognizes that for every transaction that affects an asset, an equal transaction must also affect either a liability or owners’ equity. Sandra is using ________ bookkeeping.
answer

double entry
question

Your boss asks you to email a spreadsheet that reflects the profitability of the company by showing its revenue and operating expenses. When sending the email, you MOST LIKELY will attach the file named ________.
answer

Income_Statement
question

Depreciation helps keep the accounting equation in balance by matching the expense of a liability with the revenue that liability is expected to generate.
answer

False
question

Housing Repair Co. has total revenue of $100,000. COGS is $40,000. The company’s gross profit margin is ________.
answer

0.60
question

Mark Lewis manages a corporate department that reviews and evaluates the accuracy of financial reports. Mark works in ________.
answer

auditing
question

Liquidity is the speed at which assets can be turned into ________.
answer

cash
question

The financing activities section of a statement of cash flows includes cash used or provided by the actual business of the company.
answer

False
question

Commercial banks are financial institutions, credit unions, and savings-and-loan institutions that raise funds from businesses and individuals in the form of checking and savings accounts and use those funds to make loans to businesses and individuals.
answer

True
question

Accounting involves a great deal of precision and some degrees of interpretation; therefore, accounting is ________.
answer

both an art and a science
question

You are a financial manager. Your assistant tells you that there will be a cash flow gap next month, meaning that cash outflows are expected to be ________ cash inflows.
answer

greater than
question

Long-term financing generated by the owners of a company is called ________ financing.
answer

equity
question

Kay Alden manages a department that prepares annual reports. Kay works in ________.
answer

financial accounting
question

Accounts receivable is an example of a fixed asset.
answer

False
question

If a company has negative working capital, its current assets ________ its current liabilities.
answer

are less than
question

New Fashion Stores, Inc. received 1,000 t-shirts on the first of the month. By the end of the month, the company had sold 743 shirts. The difference is ________.
answer

inventory

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