SMC Business 101 Final Exam Review

Flashcard maker : Lily Taylor
What was the Sarbanes Oxley act intended for?
To ensure that firms accurately report their financial records. Think Enron.
What happens to the earnings in a general partnership?
They are divided equally
What happens if a company doesn’t take action against a disgruntled employee?
Employees become less motivated
What is a work station?
A physical location on a product line where work is done.
What is a performance evaluation?
An evaluation of an employee’s work performance.
Why should businesses adapt to the culture of the country for which they are going into to do business?
Every country has different norms that need to be abided by. You could accidentally offend someone. Think Japan business cards.
What is a chain of command?
The order of power and authority in a business.
What did the Civil Rights act of 1991 protect against?
What are some methods for promoting your business?
Advertising, personal selling, sales promotion, public relations, press release, and press conference.
How does competition affect demand?
When there is lots of competition, demand for your product can go down.
True or false: Doing business internationally helps stabilize their business?
What is a full-service retail store?
My favorite type of store, where they help you make purchase decisions. Example: Neiman Marcus
What are information systems?
Data system: system consisting of the network of all communication channels used within an organization
If interest rates decline over time…firms that commonly obtain loans will likely experience a what in interest rates over time?
What is bookkeeping and how is it different than accounting?
Bookkeeping represents a process of recording actual transactions of a business. Accounting summarizes and interprets the data.
What are key advantages for businesses that are “socially responsible”?
They get positive publicity and reviews for their business.
What are some of the positions that represent “middle management”?
Managers, supervisors
Which form of business has the most limited access to funding?
When demographics change, this represents a change in which type of environment?
Which type of management makes long-term decisions?
Upper/top management
What is cost push inflation?
A type of inflation caused by substantial increases in the cost of important goods or services where no suitable alternative is available.
What is an initial public offering of stock?
When stock is offered to be bought from the public for the first time.
What is managerial accounting?
Concerned with providing information to the managers instead of stockholders, IRS, etc.
What are customer service skills?
Being able to associate well with people, and have good people skills.
What are some disadvantages of being an entrepreneur?
Might not get to see your family much, working long hours, stress, and depression.
What is business risk?
The possibility that a company will have losing profits, or will fail for any other reason.
If a business decides to maximize its environmental responsibilities, it may _______ its expenses and _______ its profits?
Increase, Decrease
What is a code of responsibilities?
What is product differentiation?
Making your product seem different than all the rest.
What is intensive distribution?
A firms attempt to sell product through as many outlets as possible.
What is selective distribution?
Limits the number of outlets where product will be sold.
What is exclusive distribution?
Item is sold only in one or a few outlets in a given area.
What is decentralized authority?
An organization structure in which decision-making authority is delegated to lower-level managers
What is centralized authority?
What does an income statement represent?
How the revenue is transformed into net income. Represents a period of time, unlike a balance sheet which is only for a moment in time.
What are the stages of the product life-cycle?
Introduction phase, growth phase, maturity phase, and decline phase.
What is demand pull inflation?
Inflation caused by an increase in demand or in the supply of money.
What are the steps of personal selling?
Prospecting and qualifying
Planning the sales call (preapproach)
Approaching the prospect
Making the sales presentation and demonstration
Negotiating sales resistance or buyer objections
Confirming and closing the sale
Following up and servicing the account
What are the methods of departmentalizing?
Function, Product, Geographical regions, Process, and Customer.
What is Herzberg’s job satisfaction survery?
The things that make people happy at work, and the things that made them unhappy have two separate themes.
What is a limited partnership?
Two partners running the business, but only one of them is responsible for paying if the company goes under.
What is a disadvantage of financing with debt?
Higher risk for bankruptcy.
Why do creditors look at a company’s debt?
They don’t want to lend you money if you haven’t been paying off your debt, or if you have significant debt, they don’t want to add to it.
What is institutional advertising?
Advertising to promote an institution or business rather than a product.
What is a capital budget?
Long-term budget.
What is a firm’s revenue minus its expenses?
What is at the intersection of the supply curve and the demand curve
What countries have had trade barriers reduced?
North America, South America, and Europe.
Name three things that are part of production control.
Purchasing, inventory, and quality control.
What does organizational structure show?
The structure of a company and the relationships and interactions of employees and management.
Who controls the U.S money supply?
The federal reserve
Wholesalers can offer what services to manufacturers?
Warehousing, sales expertise, and delivery to retailers.
Wholesalers can offer what services to retailers?
Credit, promotion, and warehousing.
What is the “accounting equation”?

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