Finance
2. When the stock market rises, people are more confident and willing to spend, which leads to
A. economic growth.
B. recession.
C. deflation.
D. fewer loans.
2. A Economic growth.
People generally view a rising stock market as a signal that the economy is strong. Therefore, they have confidence and are more likely to spend their money. This, in turn, causes the economy to grow. The rising of the stock market does not typically lead to recession, fewer loans, or deflation.
2. Which of the following statements is an example of a measure of central tendency:
A. Twelve members of the community swim team are 15 years old.
B. The average U.S. male buys frozen pizza four times every 30 days.
C. Morrow County gasoline taxes have increased 15% in 6 months.
D. The distance between point A and point B is 55 kilometers.
2. B The average U.S. male buys frozen pizza four times every 30 days.
A measure of central tendency is a term used in marketing research that indicates the center of distribution. The number represents a value derived by a sample taken that falls between the lowest and highest value rating, which can be measured as mode, mean, or median. A mean is an average. The mean is determined by adding the sum of the data values and dividing by the number of values in the set (e.g., sample size). Specific distances between two points, members of a swim team, and increases in gasoline taxes state exact values and do not necessarily represent or state data in terms of averages.
1. To sell sweatshirts, jackets, and T-shirts imprinted with ABC University's logo, the Collegiate Sportswear Company pays royalties to the university. What type of business ownership does this situation exemplify?
A. Business-format franchise
B. Licensing agreement
C. General partnership
D. Multilevel marketing
1. B Licensing agreement.
A licensing agreement is a business structure that requires the authorization or permission from an owner to another entity to use trademarked (e.g., logo, name), copyrighted, or patented material for a specific activity, during a specific time period, for the profit of both parties. In the example, the sportswear company pays the university to use its logo, so the business arrangement involves a licensing agreement. A business-format franchise is a franchise arrangement in which the franchisee must operate under the trade name of the parent company that provides continuous assistance in setting up and operating the business. Multilevel marketing refers to a business, usually well-known, that pays commissions on sales earned to people at two or more levels. The sales representatives usually work independently of the company. A general partnership is a form of business ownership in which two or more individuals own the business, and each partner shares responsibility for the business's liabilities.
2. What is often the best way for a business to increase its profit?
A. Lower taxes
B. Raise prices
C. Reduce expenses
D. Improve sales
2. C Reduce expenses.
Decreasing expenses is perhaps the best way that businesses can help increase profit. Businesses have control over many of their expenses and can take measures to reduce them. For example, they can eliminate some free services and encourage workers to turn off lights and equipment when not being used, in order to save money on energy costs. Raising prices will not increase profits unless customers are willing to pay the higher prices. Tax rates are regulated by government. If businesses improve sales, they might increase their profits if the rate of sales is proportionately higher than the expense involved.
11. One reason it is important for a business to develop a marketing plan is that the plan
A. provides guidelines for personnel to meet the company's objectives.
B. allows the business to focus on short-term goals instead of long-term goals.
C. reduces the need to implement corrective action or contingency plans.
D. increases the business's financial security in an unpredictable environment.
11. A Provides guidelines for personnel to meet the company's objectives.
A marketing plan is a set of procedures or strategies designed to attract target customers to a business. A comprehensive marketing plan identifies the specific actions and activities that a company will use to attract its target customers. Therefore, the marketing plan provides guidance for employees who are carrying out the marketing activities. Because internal and external factors change, a marketing plan does not reduce the need for a business to develop corrective action or contingency plans, nor does it increase its financial security. Marketing plans contain both short-term and long-term goals.
14. An example of price competition is a hotel's promotion of its
A. airport shuttle bus.
B. special weekend room rates.
C. trained service staff.
D. sauna and exercise equipment.
14. B Special weekend room rates.
The hotel promotion encourages customers to book a reservation by offering them a reduced price for a weekend reservation. Trained service staff, an airport shuttle bus, and sauna and exercise equipment are hotel services that could be used in nonprice competition.
3. The EFG Company verifies that its customers would like to receive promotional information digitally. This is an example of
A. online cookies.
B. instant messaging.
C. unsolicited junk mail.
D. opt-in email.
3. D Opt-in email.
Opt-in email refers to the electronic promotional messages that are sent with a recipient's permission and allows the recipient to request removal from the subscriber list at any time. Opt-in email is a good way for a business to promote goods and services because it allows the business to send information to customers who request the information. This method is also a quick and inexpensive way to send promotional messages. Unsolicited junk mail refers to promotional messages that customers do not request. Cookies are text files that are put on a website visitor's computer hard drive and then later retrieved during subsequent visits to the site in order to track internet behavior. Instant messaging is the ability to send, receive, and respond to computer messages in real-time.
6. While opening a large box of office supplies, Kendall accidentally cut her finger with the box cutters she was using. Another employee, Jorge, was helping Kendall at the time and witnessed the accident. What is the first thing that Jorge should do?
A. Fill out an accident report
B. Put the office supplies away
C. Call Kendall's doctor
D. Administer first aid
6. D Administer first aid.
If someone you are working with cuts or scratches themselves, the first thing that you should do is administer first aid. Jorge, for instance, should help Kendall treat her cut. If the injury is serious, you should also call the paramedics and have the worker taken to the hospital for medical treatment. It is not necessary to call the coworker's doctor. After the worker's injury has been treated, you will both need to fill out an accident report. If someone is injured, you should help them, not ignore them and continue with your work.
4. Ron has developed the habit of evaluating his goals on a monthly basis. During this time, he checks off goals that he has achieved and modifies others as necessary. Ron is very good at choosing goals that are realistic, attainable, and challenging. He can set up steps to achieve them. Unfortunately, Ron only achieves 25% of his goals. Ron could improve his rate of goal attainment by ________.
A. describing the benefits of setting goals.
B. telling others about his goal.
C. lowering his standards and setting unrealistic goals.
D. avoiding writing down goals.
4. B Telling others about his goal.
Ron will greatly improve his ability to achieve his goals if he involves supportive people in the process. People who will encourage Ron to achieve his goals will benefit him greatly. Describing the benefits of setting goals won't help Ron achieve them. Writing goals down greatly increases the chance of attainment. Lowering standards and setting unrealistic goals will not improve goal attainment.
20. Which of the following decreases as production increases in a business that has economies of scale:
A. Income taxes
B. Pay rates
C. Net profits
D. Fixed costs
20. D Fixed costs.
Economies of scale are characteristics that allow a business to increase output without experiencing a comparable increase in the cost of production. The fixed costs of production are spread over more units so the overall cost of producing more and more products actually decreases. For example, once an electric plant is built, the cost of producing electricity decreases because the cost of building the facility is spread over more and more units of electricity. In a business that has economies of scale, net profits may increase, which will lead to an increase in income tax. Pay rates usually do not decrease as a result of economies of scale.
22. Which of the following are examples of deposit-taking financial institutions:
A. Commercial banks, corporations, and mutual savings banks
B. Credit unions, savings and loan associations, and commercial banks
C. Commercial banks, credit unions, and brokerages
D. Savings and loan associations, mutual savings banks, and insurance firms
22. B Credit unions, savings and loan associations, and commercial banks.
Deposit-taking financial institutions accept funds from customers (depositors) and pay interest on the funds. Credit unions, commercial banks, savings and loan associations (banks), and mutual savings banks are types of deposit-taking financial institutions. A corporation is a form of business ownership that is owned by stockholders who have purchased units or shares of the company. Brokerages are financial intermediaries that sell securities. Insurance firms sell insurance and securities. Corporations, brokerages, and insurance firms are not types of deposit-taking financial institutions.
26. When assessing risks associated with an upcoming event, sports/event organizations should acquire input from all levels of management and
A. financial consultants.
B. public relations agencies.
C. local personnel inspectors.
D. vertical staff members.
26. D Vertical staff members.
Vertical staff members refers to all employees who are not in management. Ticket takers, security guards, guest relations representatives, and merchandise sales personnel are examples of employees who might provide insight when conducting risk assessment. For example, sales personnel can provide information regarding shoplifting and its risks. By gathering as much information as possible from staff members, sports/event organizations can conduct comprehensive risk assessments in many areas and develop appropriate procedures to handle each situation or issue. Public relations agencies are hired by a business to develop and manage public relations activities for the business. Financial consultants are hired by a business to manage the business's financial matters. Local personnel inspector is not a term widely used by sports/event organizations.
11. Supply chain network design improves service and reduces cost by aligning purchasing, production, warehousing, inventory, and
A. marketing.
B. transportation.
C. the sales force.
D. promotion.
11. B Transportation.
Supply chain network design aligns purchasing, production, warehousing, inventory, and transportation. Supply chain network design does not incorporate marketing, promotion, or the sales force.
40. Jenny wants to talk to her parents about a raise in her allowance, but then she finds out that her mother has just been laid off from her job. If she asks for the money anyway, which communication barrier is likely to result?
A. Environment
B. Bad timing
C. Language
D. Information overload
40. B Bad timing.
If Jenny asks for a raise in her allowance right after her mother has been laid off from her job, the communication barrier of bad timing is likely to result. Jenny's parents may want to give her the money but just may not be able to at the time. The communication barriers of language, environment, and information overload would not result from this situation.
33. Ad-blocking software and spam filters help individuals avoid
A. direct print mail.
B. unsolicited publications.
C. unwanted digital advertising.
D. telemarketing calls.
33. C Unwanted digital advertising.
Ad-blocking software and spam filters help individuals avoid unwanted advertising while they are online. They do not prevent individuals from receiving unsolicited publications, direct print mail, or telemarketing calls. Adding your phone number(s) to a Do-Not-Call registry can stop telemarketers from contacting you.
40. What are the two major sections of a statement of changes in stockholders' equity?
A. Capital stock and retained earnings
B. Net income and retained earnings
C. Capital stock and dividends declared
D. Net income and total stockholder's equity
40. A Capital stock and retained earnings.
The statement of changes in equity, also known as the statement of changes in stockholders' or shareholders' equity, indicates changes in stockholders' equity accounts during a specified time period. The capital stock section of a statement of changes in stockholders' equity shows the current value of stocks issued, while the retained earnings section shows the value of any net income retained for business expansion minus any dividends declared as distributions to stockholders. Net income, dividends declared, and total stockholders' equity appear within the statement of changes in stockholders' equity, but they are not the most significant or major sections in that financial statement.
32. Which of the following would be most appropriate for mass marketing:
A. Diapers
B. Toothpaste
C. Winter coats
D. Toy trucks
32. B Toothpaste.
Mass marketing is designing products and directing marketing activities to appeal to the whole market. Of the items listed, toothpaste is the most likely to be marketed in this manner because it appeals to and is used by many types of consumers. The market for diapers would be limited to those with babies and toddlers. The market for toy trucks would be limited to children and teens. The market for winter coats would be limited to individuals who live and work in cold climates.
45. Lakshna is buying a new car. There is a vehicle she likes at Dealership A, but before she makes her purchase, Lakshna visits three other dealerships to look at similar vehicles to make sure she is getting the best deal. This is an example of _______.
A. currency speculation.
B. merchandising.
C. comparison shopping.
D. impulse spending.
45. C Comparison shopping.
Comparison shopping is the act of visiting other businesses to learn what competing stores are selling and the prices they charge in order to get the best price for the product(s) or service(s) you want or need. Lakshna demonstrated comparison shopping by visiting multiple businesses to compare prices before making a purchase decision. Currency speculation means buying, selling, or holding currencies in an effort to profit from fluctuations in exchange rates. Merchandising is a career involving the selection of products so that the right goods are in the right place at the right time to make a profit. Impulse spending is spending that is the result of an on-the-spot decision and not part of an overall spending plan.
72. Eugenia is using presentation software to prepare slides for her next workshop. In addition to putting the name and date of the workshop on the title slide, where else could Eugenia include this information in her presentation?
A. Transitions
B. Footers
C. Animations
D. Bibliography
72. B Footers.
A footer is a line of text appearing at the bottom of a presentation slide. A presenter may choose to include the name and date of their presentation in the footer to remind viewers of the focus of the presentation. Slide numbers are also often included in footers for the presenter's and viewers' reference. A header is a line of text or other data that appears at the top of a presentation slide or word processing document. The bibliography slide contains links and sources relevant to the presentation and does not typically have the name or date. Animations are movements added to objects (e.g., text, images) on presentation slides. Transitions are animations added to slides. Transitions dictate how one slide is removed from the screen and replaced with another. The presentation name and date are not typically included in animations or transitions.
56. Arthur's boss asked him to study his company's sales data from the previous five years to see if there were any trends. After his research, Arthur presented his findings to his boss along with his predictions for the future. This is an example of the process of ______.
A. customer retention.
B. data mining.
C. the selling process.
D. competitive analysis.
56. B Data mining.
Data mining is the process of sorting through data to discover underlying connections and predict future trends. By studying his company's sales data from the previous five years, Arthur was engaging in data mining—not the selling process, competitive analysis, or customer retention. The selling process is the process used by salespeople to convince customers to make a purchase. Competitive analysis involves researching a company's competitors and comparing the competition's strengths and weaknesses to the company's strengths and weaknesses. The overarching activity of customer retention is not generally defined by a single process.
45. Ford Motor Company purchased tires from one tire company to be put on all automobiles in its manufacturing plants. This is an example of __________ purchasing.
A. resale
B. retail
C. dispersed
D. industrial
45. D Industrial.
Industrial purchasing is the process of buying goods and services for internal consumption in the business or conversion into a final product. Retailers purchase goods for resale to the ultimate consumer. Dispersed buying is purchasing from many vendors, which can lead to merchandise variety, alternate sources of supply, and competition between sources.
100. Co-branding works best when two brands are
A. owned by the same parent company.
B. complementary and more or less equal in stature.
C. fierce competitors.
D. in the same industry segment.
100. B Complementary and more or less equal in stature.
Two brands join forces as "co-brands" for the purpose of increasing sales and market share for both. Each benefits from the other's brand equity. Co-branding works best when the two brands "go together," or are complementary, serve similar markets, and are essentially equal. The co-branding arrangement of Starbucks and Barnes & Noble exemplifies co-branding principles and has been extremely successful. Successful co-branding does not require that the brands be in the same industry segment. The two brands should actually not be competitors, nor must they be owned by the same parent company.
93. Which of the following is a way in which business profits benefit society:
A. Profits indicate trends in consumer preferences.
B. Profits enable businesses to compete with other businesses.
C. Profits encourage business owners to conserve resources.
D. Profits provide an incentive to entrepreneurs.
93. C Profits encourage business owners to conserve resources.
Profits encourage business owners to make their businesses more efficient so that they will make even more profits. Conserving resources is one way of being more efficient. Conservation of resources benefits society because it means more resources will be available for future consumers. All of the other alternatives are ways in which profits benefit businesses.
100. What can you do if you are unable to obtain the amount of financial support you need to complete the project?
A. Eliminate the project
B. Lower expectations
C. Cut costs
D. Decrease time
100. C Cut costs.
In some cases, the amount of money you think you will need will not be possible to obtain. When this happens, the most realistic approach is to look for ways to cut costs. If your ideal budget is based on getting everything you want or would like to have, consider substituting inexpensive materials for costly ones or making do without some supplies. By cutting costs, you will be able to proceed with the project. It is not necessary to lower your expectations because, in most cases, you will be able to complete the project by making some substitutions. Decreasing the amount of time that is allotted for the project will not necessarily make up for a lack of funding. Eliminating the project is not a good choice, either.
100. What is a primary factor that small-business owners should consider when deciding to hire additional staff members?
A. Product standards
B. Payroll expenses
C. Training methods
D. Interview techniques
100. B Payroll expenses.
A small-business owner considers many factors when determining if they should hire an employee. Payroll tends to be the largest expense for a business, so the small-business owner must determine how much or if they can afford to pay an employee. Payroll expenses include the employee's salary, taxes, health and disability insurance, benefits, etc. After the small-business owner decides to hire additional staff, they can determine the appropriate interview techniques and training methods to use. Product standards are a product management consideration rather than a staffing consideration.