Intro to Business Final ` – Flashcards
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If your company uses a nonprice competition strategy, what should you focus on?
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Differentiation
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As a factor of production, how is capital created?
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NOT by using labor to create services
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what does scarcity force people to do?
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NOT increase inflation
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a market economy is regulated by the interactions between which two things?
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Producers and consumers
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In a planned economy, prices of commodities are controlled by
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The government
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Which of the following is an indirect competitor for a company that makes chocolate chip cookies?
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A company that makes cookies
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What is a commodity?
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Something of value that can be bought, sold, or traded
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A producer is someone who _____________.
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Makes a commodity available for sale or exchange
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What is an increase in competition likely to do to the demand?
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NOT Increase the demand
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Which of the following is a sign of a strong economy?
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An increase in GDP
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Which of the following is a variable cost for a company that makes bread?
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Bread ingredients
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Which of the following is part of the cost of goods or services sold for a company that paints people's homes?
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Providing a delivery service
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If productivity increases significantly and demand is not very elastic, what is likely to happen?
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Fewer workers will be needed.
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Which of the following is a fixed cost for a company that sells greeting cards online and mails the printed cards to customers?
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A paper cutting machine
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A computer game that can be purchased online and played right away has good ________ utility.
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Time
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Your company buys a car, and its value goes down over time. What is that process called?
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Depreciation
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How is the value of a product determined?
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By the amount a consumer is willing to pay for it
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If your company has a large production-related task, such as assembling an airplane, what strategy could help you increase productivity
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Division of labor
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Economies of scale give an advantage to what type of company?
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A company that makes many sales
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Eggs, toilet paper, and candy bars are examples of __________.
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Convenience goods
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A company that is organized by function will group its employees into teams based on what?
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The type of work they do
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Which of the following describes a saturated market?
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Most potential buyers already have a product that satisfies this need or want.
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Which of the following types of business ownership has the advantages of pass-through taxation and liability protection?
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An LLC
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Which of the following business ownership structures is the simplest and easiest to set up?
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A sole proprietorship
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Which of the following business ownership structures offers the best liability protection but higher taxes?
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A C corporation
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____________ is a way to turn a company into a parent company with smaller retail outlets owned by independent operators.
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Franchising
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Why can a bank afford to pay an interest rate on a savings account?
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NOT Because the bank puts the money into equity investments
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If you plan to take money out of the bank frequently, what type of account should you get
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A checking account
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If your bank is a member of the FDIC, what does that mean for you?
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Your money is protected by insurance up to a specific amount.
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A good investment should do one or both of which two things?
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Grow in value or produce income
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If you want to compare two different investments, what should you calculate?
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NOT The compound interest
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As a unit of measure, money makes it easier for consumers to do what?
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Compare prices of different products.
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What is most likely to happen if the Fed prints too much currency?
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An increase in inflation
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Which of the following is an example of an equity investment?
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A company's stock
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If you want to take advantage of compound interest, what should you do when an investment produces interest?
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Reinvest the interest.
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What does an exchange rate tell you?
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How much one unit of currency is worth when converted to another currency
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A company sells a car to a consumer and helps the consumer set up a loan with regular set payments. What type of credit is this?
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Installment credit
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Which type of tax provides income for retired and disabled people and their families?
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Social Security tax
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When you pay more than you owe in taxes and the IRS gives you money back, that money is called _________.
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A.
A tax refund
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What do you need to provide in order to get secured credit?
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A.
An asset
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How is a line of credit similar to a credit card?
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NOT The interest rates are the same
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Why are companies required to perform payroll withholding
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To make sure employees can pay their taxes
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If you use credit, what are you creating?
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Debt
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Which of the following things can help you get a lower interest rate when you receive a loan?
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Collateral
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Which of the following is a strategy for using credit wisely while improving your credit score?
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Pay off your credit card in full each month.
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Which of the following tips can hurt your cash flow?
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Pay your bills early.
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In the accounting equation, assets are equal to which two things?
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Liabilities + equity
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Which of the following statements describes GAAP?
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GAAP recommends accrual basis accounting.
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If you want to know whether a company had a profit or a loss during a specific period of time, which financial statement would be most helpful
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Income statement
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Money that your company has in the bank in case of unexpected financial needs or in case sales slow down is called ____________.
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A cash reserve
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Which type of risk is most likely to be insurable?
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Pure risk
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What is the opportunity cost of an investment?
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The value of the next most valuable opportunity
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If you wanted to make sure a company has enough money available to pay its bills, which financial statement would be most helpful
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Cash flow statement
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In double-entry accounting, where should you record money that is leaving your company to pay bills?
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In the credits column
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Which of the following is a type of liability?
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Accounts payable
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Which of the following is an example of promotion?
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C.
An advertisement
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If your company increases its market penetration, what is happening?
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More people in the target market are buying the company's product
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Which of the following is a benefit of a hat?
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It makes the wearer look cool.
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If you collect personal information about your customers, what should you do?
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Tell customers how you will use and protect their information.
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When you gather primary or secondary data, what part of the market information management process are you participating in?
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Market research
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In the five C's, how is cost different from price?
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It includes all of the costs related to the product.
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Which type of data does your company collect from customers or potential customers?
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Primary data
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Which of the following is an example of secondary data?
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Your company collects and analyzes data from the U.S. census.
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What is data mining?
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Analyzing data to detect patterns of shared characteristics
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Which of the following is an example of an advertisement?
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A billboard
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Which of the following types of promotion is usually the least expensive for a company
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Publicity
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Word of mouth promotion is also known as what?
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Viral marketing
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Which of the following types of promotion includes a two-way conversation?
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Personal selling
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Which of the following types of advertising is the most difficult for consumers to ignore?
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Product placement
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Which of the following marketing messages are consumers most likely to trust?
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An article about the company in a city newspaper
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Which of the following types of ads is most likely to feel personal?
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A radio ad that is read by a trusted radio host
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Which of the following can help you evaluate the performance of your ads and other marketing strategies?
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Asking customers how they found out about your company or product
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A company's PR efforts are often aimed at doing what
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Getting publicity.
