summer busines – Flashcards
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Accounting and investments are specialized areas within financial management.
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Railroad and truck carriers team up to provide a form of transportation called camelback
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The cost of running out of inventory is referred to as a holding cost.
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Trade credit is the most popular form of short-term financing available for most businesses.
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The ability to see the big picture is at the heart of a manager's interpersonal skills.
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An essential aspect of the marketing concept is ensuring that the firm has adequate production capabilities to satisfy future demand.
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Maria's Flower Emporium specializes in growing delicate plants for wealthy consumers around the world. Because of the fragile nature of the products, they need to spend as little time as possible in transit. Maria should use trucks to transport her products.
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Seasonal discounts provide price incentives to customers during peak selling seasons.
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Reinforcement theory is based on the premise that behavior that is rewarded is likely to be repeated.
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For a manufacturer, it is impossible to have cash-flow problems before peak sales periods.
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The evolution of customer orientation started with businesses having a strong sales orientation, followed by a production orientation, and finally a customer orientation.
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One major reason for improving product safety is the consumer's demand for safe products
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Packages have marketing value but no functional value.
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Managers should view cultural diversity as an opportunity rather than as a limitation.
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Determining the location and demographics of people in the advertising target, the content of the message, and the characteristics of the audiences reached by various media is done when creating the advertising message.
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A general-merchandise wholesaler carries a select group of products within a single line of merchandise.
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SCORE is a group of retired businesspeople who volunteer their services to small businesses through the SBA.
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Intensive distribution is the use of only a portion of the available outlets for a product in each geographic area.
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A reduction of the value of a nation's currency relative to the currencies of other countries is called a currency devaluation.
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Appliances, stereos, and furniture are all considered specialty products.
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Price competition occurs when a seller makes its product stand out from the competition by distinctive product quality and customer service.
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limited-liability company is taxed like a corporation.
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A wiki is an online collaborative working space.
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Delegation is the act of distributing work and power to subordinates.
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No product can be marketed successfully by using the undifferentiated approach.
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After getting her bachelor's degree in business, Mary Wilson realized she was much more productive at her job than she had been before. Mary's degree helped her to become a better employee.
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A product may be a good or a service but not an idea.
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Trade restrictions limit choices for consumers but have no effect on the prices charged for the products
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A process layout is used when all products undergo the same operations in the same sequence.
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Public warehouses will hold and issue receipts for goods used as collateral for borrowed funds.
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The collection of data on prevailing wage rates within an industry or geographic area is referred to as a wage
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Sales are only forecasted in the long range, covering more than five years.
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In terms of total freight carried, trucks are the most important of transportation.
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Generic brands are becoming more popular with today's price-conscious shoppers.
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According to Maslow's theory, safety is the most basic and the most important need.
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Shareholders of an S-corporation are taxed as if they were owners in a partnership.
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Off-price retailers are self-service, general merchandise outlets that sell goods at lower-than-usual prices
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An aspect of the strategic planning process is to allocate resources to achieve an organization's goals and objectives
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Marketers are most interested in discretionary income because consumers have the most choice in spending it.
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Strengths and weaknesses are the external factors of a company SWOT analysis.
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Common names for top-level managers are vice president, chief executive officer, and chief operating officer.
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The marketing process involves eight major business functions.
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When translated, caveat emptor means "let the buyer beware."
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A supervisor may delegate all accountability to subordinates.
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Typically, the majority of the data gathered for an MIS come from external sources.
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One way to segment a market is according to whether the purchaser is a consumer or a business-to-business user.
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Operations managers refer to the development of a plan for converting a product idea into an actual product as design planning
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Inventories and accounts receivable are the assets most commonly used as collateral for short-term financing.
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An affirmative action program is designed to ensure that minority employees are represented in about the same proportion as their representation within the community.
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Performing is the stage where the team begins to focus strongly on the assigned tasks.
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International business includes all business activities that involve exchanges across state boundaries.
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A businessperson can take some comfort when faced with an ethical dilemma by talking openly about it with management because ethical decisions will always withstand scrutiny.
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Webinars are a social media tool used most often to sell to other businesses.
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Time, place, and possession utility have no real value in terms of money.
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Management is the process of coordinating people and other resources.
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Multiple-unit pricing is packaging together two or more complementary products and selling them for a single price.
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As with a sole proprietorship, one disadvantage of a partnership is a lack of continuity.
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The factors of production include natural resources, labor, government assistance, and entrepreneurship.
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Older, larger firms producing and selling various products base departmentalization on function.
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Relationships with customers and coworkers rarely create ethical problems.
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The process of preparing managers and other professionals to assume increased responsibility in present and future positions is called employee training.
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A firm's direct investment in international business involves building a new plant or buying an existing plant in a foreign country to produce its own products, or it may involve buying an existing firm in a foreign country.
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For the majority of businesses, newly-proposed financial reforms by the U.S. House of Representatives and the Senate will likely increase the time and cost of obtaining financing.
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Because today's employees are better educated, they want greater flexibility and independence, competitive compensation, and a better quality of life.
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The branding strategy in which a firm uses the same brand for all or most of its products is called individual branding.
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A list of skills, abilities, education, and experience required for a position is called a job analysis.
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A frequent-user incentive is a gift that a producer offers a customer in return for using its product.
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In a monopoly situation, there is no close substitute for the product or service.
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The basic premise of reinforcement is that behavior that is rewarded is likely to be repeated and behavior that is punished is less likely to recur.
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Markup pricing is easy to apply, although it is difficult to determine an effective markup percentage.
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The strategy of charging the highest possible price for a product during the introduction stage of its life-cycle is called price skimming.
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For those who like dealing with people, small business is the place to be.
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The wage structure is almost always developed on the basis of job evaluation.
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During the 1980s, very few organizations created and implemented ethics codes.
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One of the most important priorities for someone interested in careers in finance is honesty.
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A variation of an existing product, such as freeze-dried coffee, is an example of product imitation.
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One of the consequences of trade restrictions is misallocation of international resources.
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The major resource or resources that comprise the major input for a conversion process is often referred to as the focus.
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False and misleading advertising is illegal and unethical.
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The terms 2/10, net 30 are used with most promissory notes.
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An investor who is considering investing in Diane's Burger Bar would not likely want to see her business plan.
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The matrix organizational structure facilitates greater communication between employees.
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The only kind of utility created by production is time utility, because the producer makes that product available to the customer at the time it is needed.
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Setting prices for organizational buyers is very similar to setting prices for consumers.
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Because of small-business competition, large companies must become more efficient and responsive to consumers'
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Reseller markets consist of intermediaries such as wholesalers that buy finished products and sell them for a profit.
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Social media is used by businesses to interact with existing consumers not to gain new consumers.
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Form utility is created by making a product available at a location where customers wish to purchase it.
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The two main purposes of employment applications are to identify candidates for further consideration and to provide background information for interviewers.
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Because markup pricing is difficult to use, few retailers and wholesalers use it.
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An informal group in an organization is formed by the line managers of that organization.
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Because of limited liability, individuals are more willing to invest in corporations than in other forms of business.
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For a corporation, the owners' equity amount is the total value of stock minus the retained earnings that have accumulated to date.
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Owners' equity is the dollar value that remains after the total liabilities of a business are subtracted from its total assets.
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The Sarbanes-Oxley Act of 2002 deals with corporate responsibility, conflicts of interest, and corporate accountability.
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Since computers have been invented, materials requirements planning (MRP) is an outdated method of controlling inventory.
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Informal groups are never powerful within an organization.
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A limit on the amount of a particular good that may be imported into a country during a given period of time is called an import quota.
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A company's product mix usually must be changed to stay competitive.
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Dividing current assets by current liabilities gives the current ratio.
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One of the major dangers of competition-based pricing is that it often results in price wars.
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Middle managers implement the strategy developed by top management.
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Social responsibility is good business, but it does cost money.
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Target has several layers of management in between the entry-level management position and CEO. This implies that the span of management for each manager is relatively narrow and the organizational height of Target is tall.
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The effectiveness of a total quality management program is directly related to top management's commitment to its success.
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Karl Marx is known as the father of communism.
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Reading comments on social media sites about companies or products rarely offers valid insight into how consumers are reacting to products or services.
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Bonds from a single issue that have staggered maturity dates are called serial bonds.
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A common planning horizon for operational plans is one year.
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Human resources planning and recruiting are two of the activities carried out during the development phase of human resources management.
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Pricing whereby the buyer absorbs all or part of the freight costs is freight absorption pricing.
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A letter of credit is issued in favor of the importer.
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A depression is a severe recession that lasts longer than a recession.
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The income an individual receives from all sources less the Social Security taxes that the individual must pay is called personal income.
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Maslow's hierarchy of needs includes psychological needs, safety needs, social needs, security needs, and selfimportance needs.
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In a forum, members of a community keep content updated and accurate.
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Differential pricing means different buyers pay different prices for the same quality and quantity of a product.
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There are a very limited number of ways that a business can interact with other businesses as well as consumers through social media.
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An international bank that makes short-term loans to countries experiencing balance of payment deficits is called a multilateral development bank.
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Theory Y is a set of assumptions that is consistent with scientific management.
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The process of establishing an organization's major goals and objectives and allocating the resources to achieve them is called tactical planning.
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Because of unlimited liability, it is easy for sole proprietors to borrow large sums of money.
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An early-bird special offered by a restaurant during off-peak hours is an example of a secondary-market pricing strategy.
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Countertrade is losing its importance in international trade.
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Major advances in consumerism have come through federal legislation.
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A limited-liability company extends the concept of personal-asset protection to small business owners.
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Top managers rely a great deal on technical skills.
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Small businesses operate only in the service industry, not in manufacturing.
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Legislation regarding personnel practices has been primarily in the areas of employee rights, job safety, and elimination of discrimination.
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The average length of an SBA loan is about twenty-five years.
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Small businesses account for all nongovernment employment.
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The makeup of a promotion mix depends on many factors, including a firm's promotional resources and objectives, the target market, the product characteristics, and the feasibility of various promotional methods.
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Middle managers are generally responsible for developing an organization's mission.
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A consumer usually will go through all of the steps of the consumer buying decision process for every purchase.
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One way a social responsibility program can be funded is by passing on the cost to the consumer in the form of higher prices.
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Entrepreneurial spirit is the desire to create a new business.
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The growth of the Internet has created some new customer needs that did not exist before the creation of the Internet.
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Because information rules must be checked out before a decision can be made, they lengthen the time required to analyze choices.
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Without the audit function and GAAP, there would be very little oversight or supervision of corporate accounting practices.
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A letter of credit is issued by the transport carrier to the exporter to prove that merchandise has been shipped.
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Missionary selling consists of processing the purchases of customers who have essentially decided what they wish
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Subjective appraisal methods use some measurable quantity, such as dollar volume of sales, as the basis for assessing performance.
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The hard-core unemployed are made up of mentally ill individuals and those with prior criminal convictions.
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The assumptions underlying Theory X generally agree with Frederick W. Taylor's concepts of scientific management.
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Articles of partnership are a legal document issued by the secretary of state.
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Compensation and benefits are related to employee motivation.
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