Intro to business

(TCO 1) _____ refer to a resource or capability a company must have before it can start competing in a given market.
Assets
Economies of scale
Barriers to entry
Technological requirements
Fixed costs
(TCO 1) Free-market capitalism is characterized by _____.
The right of few sellers dominating the market
The right to bear and keep arms
The right to freedom of competition
The right to invest in foreign stock markets
The right to serve on juries
(TCO 1) Home-based entrepreneurs should focus on _____.
Seeking a short-term payoff
Creating a long-term vision
Accepting security
Getting a line-of-credit from a foreign bank
Understanding financial ratios on their balance sheet
(TCO 1) A technique that combines all the promotional tools into one comprehensive, unified promotional strategy includes which?
The creation of a positive brand image
Meeting the needs of the consumer
Meeting the strategic marketing goals of the firm
Meeting the promotional goals of the firm
Meeting profit expectations of external investors
(TCO 1) You own a hardware store in the small town where you live. A big-box, multiline competitor has just opened. You see the following as your advantages of maintaining your market share and continued sales revenue.
Quickly adapting to the market
Providing improved customer service
Increasing your inventory levels
Opening a branch store across the street from the big box
Providing free expert advice and consultation to your customers
(TCO 1) You are fairly good at various and sundry home repairs. You aren’t very good at electrical things or anything having to do with plumbing. But you’re great with painting, patching, and general maintenance on a home. You’re contemplating starting a home repair business in your town. What are some issues that you can influence and should be concerned with in launching a new small-business start-up?
Undercapitalization
Competitors and competition
Government control
Collecting and remitting sales and use taxes
Training for what you don’t know how to do
(TCO 1) The latest economic news is not very positive. Unemployment rates are higher than expected, consumer confidence has fallen, and companies are reporting layoffs are in order. The Federal Reserve chairman acknowledges the economy is in a recession. What actions might the federal government and the Federal Reserve take to give the economy a boost? What are these policies called?
(TCO 3) A small business is defined as a company that _____.
Is newly launched and has fewer than 100 shareholders
Is dominant in its field and employs fewer than 1,500 employees
Has a revenue of less than $750,000
Is independently owned and operated and not dominant in its field
Is funded through personal lines of credit and has fewer than 1,000 employees
(TCO 1) You own Wash This Way Laundromat in a busy part of town. ABC Laundry, a chain store competitor, opened across the street in a busy shopping strip. You decide to improve your business by adding an internet café offering free Wi-Fi. Why?
To promote private ownership of businesses
To improve quality of life
To exceed customer expectations
To expand your market
(TCO 2) Some regulation of business seems necessary to ensure fair and honest dealings with the public. The impact of this statement can best be explained by which of the following?
Consumers and investors have called for increased government regulation in the financial sector
U.S. businesses will need to work with government to create a competitive environment that is fair
Future financial crises will not be as severe as previous ones
Businesses won’t have to worry with future healthcare insurance regulations
Global competition will steadily decline over time
(TCO 2) A conscious plan that represents and encourages a unique set of values includes which?
Our elected representatives
Our communities
our competitors
our employees
Our customers
(TCO 2) The Uniform Commercial Code includes which?
Laws that cover promissory notes and checks
Legally enforceable agreements between two or more parties
Bills of Lading
Something of value
Forms of commercial paper
(TCO 2) It is always best to put a contract in writing, even though oral contracts can be enforceable under contract law. A contract should _____.
Specify the extent of profits expected by the original party
Be recorded at the secretary of state’s office
Contain a clear offer and agreement
Have only one party to the contract sign and date it
(TCO 3) One disadvantage of free trade is _____.
Domestic companies can lose their comparative advantage
Uninterrupted flow of capital provides for lower interest rates
Workers will be given across-the-board pay increases
A company’s productivity grows when it has an absolute advantage
Domestic workers can be trained for additional jobs
(TCO 3) What are the advantages of corporations?
Has the power to own property and conduct business
It is owned by shareholders
It has stock which can be public or private
All statements are true
(TCO 2) Which category of business law originates from legislative action?
Administrative Law
Common Law
Statutory Law
Civil Law
(TCO 3) Nations and companies trade internationally for any of the following reasons:
Expanding into new markets to increase sales revenues
Pursuing economies of scale to achieve lower production costs
Acquiring materials, goods, and services not available at home
All of the above
(TCO 3) Nations rely on a number of key indicators to measure global trade. These include which?
The total value of a nation’s exports compared to its imports measured over a particular period
the total value of a nation’s imports compared to its gross domestic product over a particular period
The total value of a nation’s exports compared to the value of the International Monetary Fund
The difference between money coming into a country and money leaving the country
The difference between money leaving the country and its imports measured over a particular period
(TCO 3) in 1948, a global forum was created whose purpose it was to reduce trade restrictions on goods, services, ideas, and cultural programs. The results of the efforts of this organization include which?
The creation of regional alliances
Reduction of tariffs and average of 38% worldwide
Expansion of new trade rules to areas like agriculture
The protection of patents
Overcoming constraints and decrease business opportunities
(TCO 3) Strategies for reaching global markets include which?
Licensing
Importing
Direct marketing
Franchising
Contract manufacturing
(TCO 4) Consumers have needs for living and wants, which are desires and to know them helps businesses to meet market demands. From the following list, identify which combination is just needs, or just wants.
Food and Big Mac
Motorcycle and car
Shelter and condo
Water and Coca-Cola
(TCO 4) A system that captures, organizes and capitalizes on all the interactions that a company has with its customers is referred to as:
Customer Schmoozing
Customer Respect Pandering
Customer Rated Loyalty
Customer Relations Management
(TCO 4) When someone regrets making a purchase immediately after making it this is known as?
Wants and needs
Cognitive dissonance
Exchange process
Behavior
(TCO 4) The disadvantages of sole proprietorships are which?
Risk of personal success
Risk of personal loss
Unlimited financial resources
Few or no fringe benefits
Unlimited life span
(TCO 4) A limited liability company has which of the following advantages?
Limited liability
Choice of taxation
Flexible ownership rules
Self-employment taxes
Fewer incentives
(TCO 4) To look at problems and/or passions and see opportunities in them, which of the following questions should be asked?
What do I want but can never find?
What services would improve society?
What products would improve my life?
What irritates me, and what product would help?
What products would improve all mankind?
(TCO 5) What is a primary responsibility of individual employees in contrast to management in creating workplace motivation?
Employees have the ethical obligation to find the motivation to do their job
Employees are required to accept positive reinforcement that is provided by management
Employees are responsible to help other employees meet their management objectives
It is the responsibility of employees to understand Maslow’s Hierarchy
(TCO 5) Electronic wireless technology continues its move toward ubiquity. Such media inculcates which of the following? (Select all that apply.)
Sweepstakes promotional information
News and sports information
Client information
Company information
Competitor information
(TCO 5) You are an independent Internet marketing consultant. You have an excellent track record of assisting small- to medium-sized companies fully realize their marketing potential through an improved and enhanced presence on the Web. Mr. Top Hatt, the owner of a small pet-grooming salon (Hatt’s Cat Grooming Emporium), specializes in the care and grooming of cats and only cats and has just called you. Mr. Hatt has heard of the Internet but doesn’t know much else. He would like for his cat grooming business to grow by using the Internet but doesn’t know what to do. Your recommendations include which of the following?
Building and improving relationships with customers
Online advertising to get potential customers to the website
Announcing weekly sales promotions so customers will make a purchase
Infomercials provided via video streaming to the Web
Printable discount coupons printed right from the website
(TCO 5) In this digital age, setting up shop online is vital for most retail businesses. But having only an online presence that customers can access at home isn’t enough anymore. Now consumers have an array of smartphones and digital tablets that can get them online from anywhere. For social networks and retailers alike, the mobile market has already enjoyed tremendous growth. Given this information as a sales manager for Always Better Car Sales (ABCS), your concerns include which of the following?
Migrating to the mobile medium shouldn’t be a problem
Making the leap from laptop to touchscreen is an option at this stage of your efforts
Social media is one option to enter the mobile market
Using a service such as a mobile commerce platform is an option
Economists estimate that as much as 51% of the total consumer spending may go through social networking sites
(TCO 6) The relationship between a PERT chart and a Gantt chart includes which of the following?
A Gantt chart is used for forecasting sales
A PERT chart is used for measuring progress
They are both considered to be control-procedure monitors
Both use a critical path to delineate the flow of materials
A PERT network can be made up of thousands of events over many months
(TCO 6) Which does a mission statement address?
A company’s organizational philosophy
A company’s organizational psychology
A company’s organizational efficacy
A company’s organizational phenomenology
A company’s organizational social responsibility
(TCO 6) Imagine a world that is populated by 9 billion people. In order to maintain our current quality of life, such a world would require 2.3 planets’ worth of resources. In order to sustain the U.S. way of life, businesses and the government must plan for 30% more people living across the globe. Most of those people will be in developing countries, and the demand will be great for energy, food, and healthcare. Your concern is that you and your production team have been asked by your leadership to create a scorecard to measure your firm’s efforts in sustainability. Your team’s scorecard should necessarily include which?
Water use
Recyclables
Waste
Greenhouse gases
Information technology
(TCO 6) Mining Group Gold is a team process that includes a method for processing and analyzing which? (Select all that apply.)
Feelings
Facts
Solutions
Falsities
Paradoxes
(TCO 7) Financial accounting includes which one of the following?
The preparation and distribution of an a periodic report
A summarization of the costs of production
The preparation of departmental budgets
Compliance with the Financial Accounting Standards Board (FASB) guidelines
Reviewing and evaluating the information used to prepare a company’s financial statements
(TCO 7) Imagine that you have just earned your business degree and have been hired as a hospital administrator at a small hospital that, like many others, is experiencing financial problems. A suggestion that you would make to help improve the financial position of the hospital and correct the financial problems is to
Improve the efficiency of the hospital’s cash management system
Use a carefully planned lawn care service
Continue the hospital’s large stockpile of drugs
Cease using a just-in-time inventory system
Use a carelessly planned inventory control system
(TCO 7) A cellular or modular layout can accommodate changes in design or customer demand. This includes which?
Not necessarily a strictly linear approach
Scheduling work operations
Different customers with similar needs
One station in the factory sending completed items to two or more next stations
Processes that are used to produce large quantities of a few types of products
(TCO 7) Some of the characteristics of lean systems include which of the following?
They take twice the human effort
They have the same defects in the finished product
They require half of the engineering effort
They use half the floor space for the same output
They carry 50% more inventory
(TCO 7) Mass customization means
Tailoring products to meet the needs of a large number of individual customers
Fewer and fewer manufacturers are learning to customize their products
Manufacturing companies may become service companies over time
More and more manufacturers are learning to customize their products
Operations management concepts are not applicable to the service sector
(TCO 8) If there is one thing that advertisers agree upon, it is the growing importance of social media in product promotion. Given this information,
Investing in social media hinders a company in reaching its goals
Social media needs to work hand in hand with other channels
Social media reaches old audiences that have new devices
Nontraditional audiences are the new target for social media
Social media and direct mail are complementary to one another
(TCO 8) One scarce item in the future will be water. Which is the least expensive way to get water from places of abundance to places of need?
Pipeline transmission
Air transportation
Truck transportation
Ship transportation
Train transportation
(TCO 8) the marketing manager is responsible for choosing how to implement which?
Product
Place
Promotion
Profit
Price
(TCO 9) Technology can provide significant increases in productivity and efficiency. However, less than stable technology-based systems can significantly impact businesses at the most inopportune times. Issues that are inadvertently and unexpectedly created in such instances include which?
Overly complex software
Loss of client and customer confidence
Decrease in sales revenue
Interruption of shipments
Overly complex networking equipment
(TCO 9) Collaboration software allows multiple users to work on the same document at the same time. It also facilitates videoconferencing so that participants can see and hear each other regardless of where they are. The advantage of using such software is which?
A single location for the information being edited and saved
Multiple copies of the information so backups are not necessary
The software being considered shareware and therefore not copyrighted
The software being considered public domain software and free for the taking
Multiple locations where the information is stored providing quick access
(TCO 9) Web 3.0 can be characterized by which of the following statements?
It is known as the semantic web
It is known as the virtual world
It is known as the mobile web
It is known as the static web
It is known as the immersive Internet
(TCO 10) The role of information technology has changed since the days when it was known as data processing. You have been hired as the new manager of the IT department for Megalopolis Corporation. Megalopolis Corporation manufactures and sells barbecue grills to the middle-upper end of the market. Demand continues to be strong for all products. However, providing service (both warranty and no warranty) continues to be a challenge. In essence, having the right parts at the right place at the right time is not an easy task. Given this information, your set of “must-do-first” priorities includes which?
Reviewing current operations in the IT department to determine processes that can be made more efficient
Exploring the possibilities of providing real-time manufacturing and shipping data to the expediters in the factory via handheld wireless devices
Reviewing the information that is gathered by the customer relations staff that might assist in improving existing customer relationships
Reviewing the ordering process (both warranty and no warranty) to streamline ordering and improve communications with suppliers and customers
Exploring new markets through an improved online presence of the company
(TCO 10) An accounting system includes which?
Tax return information
Balance sheet information
Summarization of accounts information
Compliance information
Eleemosynary information
(TCO 10) Which of the following financial management functions are a part of financial planning?
Understanding and allocating operational needs
Establishing a capital budget
Creating a long-term forecast
Establishing a strategic planning vision
Creating a short-term forecast
(TCO 2) Identify and discuss the social responsibilities of Home Depot to three different stakeholder groups.
(TCO 3) How do downsizing and outsourcing influence the number of small businesses?
Business start-ups often soar when the economy sours. During…
(TCO 3) Discuss the positive aspects of globalization, and contrast these with the negative aspects of globalization from the perspective of a small business. Be sure to address the pros and cons of outsourcing in your response.
(TCO 4) Identify the four Ps of marketing, and give an example how each of the four Ps can be used to market your favorite product or service.
(TCO 4) Identify and explain the incentives for entrepreneurship. Address why someone would willingly take the numerous risks associated with running a business. Also, discuss the major attributes necessary for a successful entrepreneur.
(TCO 5) Discuss the advantages and disadvantages of work specialization.
Work specialization can improve organizational efficiency by…
(TCO 5) Aside from retail sales and marketing, identify and discuss two ways that a business could reduce costs or increase profits by using the Internet or web applications.
(TCO 6) Businesses try to create systems that deliver goods or services to customers as efficiently as possible. This often involves multiple steps and systems that hopefully work together to accomplish that goal. Explain the systems perspective, and identify at least five principles of systems thinking that can improve your skills as a manager.
The seven principles of systems thinking that can help every manager are…
(TCO 7) What is a balance sheet? Why is it called a balance sheet?
A balance sheet is a statement of a firm’s financial position on a particular…
(TCO 7) Given the following companies—Boeing (airliner manufacturer) and Dell Computer (computer manufacturer)—which facility layout would be the most suitable for each? Justify your response. How would each company determine the location of its facilities? List the specific needs and requirements of each company when determining location.
(TCO 8) Identify the four Ps of marketing, and give an example how each of the four Ps can be used to market your favorite product or service.

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