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A customer enters a store and an employee greets them with a friendly “Hi! Let me know if I can help you find anything.” What concept is the employee demonstrating?
Customer service, customer loyalty, personal selling, customer feedback
Customer service
A business sells a product for $20 even though it cost the business $12 to make. What term describes the amount added to the cost to help determine the selling price?
price increase, markup, profit, sale
Markup
A clothing store posts pictures of its new products on Instagram to encourage people to buy them. What marketing activity is this?
Promotion, market research, distribution, product development
Promotion
A customer buys a pair of shoes and the salesperson asks, “Would you like to add socks for $5?” What sales technique is being used?
Customer service, suggestive selling, consultative selling, relationship selling
Suggestive selling
A student notices that many students at school forget to bring breakfast. They decide to start selling affordable breakfast items before school. What is this an example of?
Competitive advantage, business ownership, entrepreneurial opportunity, market segmentation
Entrepreneurial opportunity
An entrepreneur notices that competitors sell basic notebooks, but students want notebooks with customizable designs. The entrepreneur decides to offer personalized notebooks. What is the entrepreneur identifying?
Fixed cost, business risk, market opportunity, revenue stream
Market opportunity
A customer complains that their order arrived damaged. The employee apologizes, fixes the problem, and makes sure the customer is satisfied.
Complaint handling, suggestive selling, customer prospecting, relationship marketing
Complaint handling
A pizza business offers a unique ordering system that lets customers completely customize their pizzas while competitors don't offer the same feature. What does this give the business?
Target market, competitive advantage, market share, fixed cost
Competitive advantage
A business owner realizes that their company could lose money if customers don't buy enough products. What is this uncertainty called?
Market segmentation, competitive advantage, business risk, profit margin
Business risk
A business owns a computer, delivery van, and $5,000 in cash. What do these items have in common?
Assets, liabilities, expenses, revenue
Assets
A business owner wants to see the company's assets, liabilities, and owner's equity at a particular point in time. Which financial statement should they examine?
Balance sheet, income statement, cash-flow statement, sales forecast
Balance sheet
A business earns $50,000 in revenue and has $38,000 in total expenses. What is its net profit?
$12,000
A company purchases a delivery vehicle for $40,000. Over several years, the vehicle's recorded value decreases because it is being used and becomes older. What concept explains this decrease?
Amortization, depreciation, appreciation, inflation
A company calculates that it must sell 2,000 units before its total revenue equals its total costs. What has the company calculated?
Profit margin, market share, return on investmen, break-even point
Break-even point
A business needs to determine whether it has enough short-term resources to pay its upcoming bills. What financial characteristic is it evaluating?
Profitability, liquidity, leverage, market share
Liquidity
A company invests $10,000 into a marketing campaign and earns an additional $15,000 in profit as a result. Management wants to determine how effectively the investment generated returns. What concept should they examine?
Current ratio, return on investment (ROI), gross margin, accounts receivable
ROI
A company reports $50,000 in profit for the year. However, many customers purchased products on credit and haven't paid yet. The company doesn't have enough cash to pay its employees this week.
Lack of revenue, negative owner's equity, excessive depreciation, cash-flow problem
Cash-flow problem
A manager notices that two employees keep performing the same task because neither knows who is responsible for completing it. The manager creates clear job responsibilities for each employee.
Delegation, span of control, division of labor, employee empowerment
Division of labor
A company requires every major decision to be approved by executives at headquarters. Store managers have very little authority to make decisions on their own.
Centralization, decentralization, delegation, empowerment
Centralization
An employee reports to one supervisor, who reports to a department manager, who reports to the company's director.
Span of control, delegation, chain of command, departmentalization
Chain of command
A manager constantly checks an employee's work, tells them exactly how to complete every task, and requires approval before the employee can make even minor decisions.
Micromanagement, overpowering, aggression, indecisiveness
Micromanagement
A company discovers that 8% of its products are being shipped with defects. Management creates inspections throughout the production process to catch problems before products reach customers.
Quality control, operations improvement, itemization, channel stuffing
Quality control
Jared was just hired for a new job. The employee who interviewed him and hired him works in...
Operations management, marketing management, banking services, human resources management
Human resources management
An arrangement that allows customers to purchase and use goods or services and pay for them at a future time is referred to as a ___ sale.
budget, credit, cash, future
Credit
One of the roles of ethics in information management involves an individual's right to
Equity, safety, privacy, dignity
Privacy