Marketing
Any positive or negative mention of a restaurant or its product in the mass media, other than in the form of a paid advertisement, is an example of:
A. Positioning
B. Publicity
C. Personal selling
D. Special incentives
B. Publicity
(Publicity is any nonpersonal presentation of ideas, goods, or services that is not paid for by the company that receives it. Positive publicity can benefit a restaurant, while negative publicity can do it harm. Positioning is the perception of a company or a product in the minds of consumers.)
Which of the following is a type of intangible business property that is protected by law:
A. Acreage
B. Inventory
C. Trademark
D. Equipment
C. Trademark
(A trademark is a symbol, design, or word used by a business to identify a good or service and is registered with the government to prevent its use by others. A trademark is an example of intangible business property. Federal law protects a business's intangible property from being used by competitors. A business's inventory, acreage, and equipment are types of tangible property.)
Which of the following types of laws is most likely to affect students:
A. Child labour laws
B. Copyright laws
C. Personal injury laws
D. Corporate tax laws
A. Child labor laws
(Child labor laws are important to students because if they were to get a job as a minor, they should know the laws that affect their employment. Students are not as likely to be affected by copyright laws, personal injury, and corporate tax law)
Which of the following is an example of a customer inquiry related to a business's policies:
A. "Can you send me a catalog to my business address?"
B. "Does that product come in any other sizes or colors?"
C. "Do you have two of the Model XY8 and nine of the Model ZK7 available in stock?"
D. "What type of discount will my company receive if the invoice is paid within 30 day
D. “What type of discount will my company receive if the invoice is paid within 30 days?”
(Because customers ask different types of questions, employees should be knowledgeable about many areas of the business. Sometimes, customers want information about the business's various policies or rules. Businesses develop policies that address issues related to credit, payment, discounts, returns, etc. To help customers obtain the information they desire, employees should know these policies or be able to find out about them from someone else within the company. In the example, the customer wants to know about discounts in relation to payment policies. Inquiries about colors, sizes, availability, and catalogs relate to the business's products)
Which of the following is an example of a capital good:
A. A cashier
B. A highway
C. Coal
D. A pine forest
B. A highway
(Capital goods are manufactured or constructed items that are used in the production of goods and services. Highways enable producers to distribute goods to consumers. A pine forest and coal are examples of natural resources, items that are found in nature and used to produce goods and services. A cashier is someone who works to produce goods and services, or a human resources.)
Which of the following is an area of promotion that is affected by pricing:
A. Choice of channels
B. Product research
C. Advertising budget
D. Customer decision
C. Advertising budget.
(Restaurants that sell menu items at low prices will not have as large an advertising budget as restaurants that sell menu items at high prices.None of the other alternatives is an area of promotion.The choice of channels is a place decision.Customer decisions and product research are product- related decisions)
Which of the following is an example of a consumer market:
A. Workers buying lunch at a local restaurant
B. Businesses buying vehicles for salespeople
C. Schools buying chairs for classroom use
D. Companies buying equipment for a machine shop
A. Workers buying lunch at a local restaurant
(The consumer market is composed of customers who purchase goods or services to satisfy their personal desires. The other alternatives are examples of the industrial market that purchases items for use in the operation of a business, for resale, or for making other goods.)
Which of the following is an economic factor that affects business trends:
A. The business cycle
B. Lifestyle changes
C. An aging population
D. Emergence of social media
A. The business cycle
(The business cycle refers to the periods of expansion and contraction in economic activities. Changes in the business cycle affect the way businesses operate. For example, during a period of expansion, business production levels tend to increase, the unemployment rate tends to decrease, and consumer confidence and spending tend to increase. During times of economic contraction, the opposite occurs — business production tends to decrease, the unemployment
rate tends to increase, and consumer confidence and spending tend to decrease. Demographic and psychographic changes may indicate trends that affect how a business relates to its target market. Demographic factors are the physical and social characteristics (e.g., age) of a population. Lifestyle changes are psychographic factors that affect business activities. The emergence and wide - spread use of social media is a technological trend)
A legally binding contract comes into being:
A. Whenever someone promises to do something in exchange for something.
B. Only if drawn up by a lawyer.
C. When someone promises to give something to someone else.
D. Only when money is involved
A. Whenever someone promises to do something in exchange for something.
(This exchange of money, things, time, ideas, etc., is what distinguishes a contract from a gift. Promising to give something to someone else is not a contract because no exchange occurs. Contracts can be binding whether or not money is involved, or whether they are drawn up by a lawyer or private individuals.)
The prices of goods and services remaining fairly steady is an indication that the economy is:
A. Depressed.
B. Stable.
C.Elastic.
D. Risky
B. Stable
(Price stability means that price levels remain fairly constant. When prices are stable, they don't drastically fluctuate up or down. Price stability is one way to measure the condition of a country's economy. If prices are stable, the economy is also stable. Large upswings or downswings in pricesindicate that the economy is not stable and may be depressed. Elastic is a form of demand for products in which changes in price correspond to changes in demand. Steady prices are not an indication that the economy is risky.)
Which of the following words most accurately describes arbitration:
A. Biased
B. Nonconsensual
C. Confidential
D. Temporary
C. Confidential
(Arbitration is the procedure when an arbitrator (an independent person or body officially appointed to settle a dispute) to settle a dispute. Arbitration is private and not open to the media, so parties may choose arbitration if they want to keep information confidential. Arbitration is consensual. Both parties must sign an agreement assenting to arbitration. Arbitration is neutral, not biased. Arbitration is final and binding, not temporary.)
In a contract, what one party gives or receives in exchange for something else is an example of:
A. Acceptance.
B. Agreement.
C. Compensation.
D. Consideration.
D. Consideration
(In a contract, consideration is what one party gives or receives in exchange for something else. In order for a contract to be legally binding, something of value must be exchanged. For example, one party might sell a product to another party and receive monetary payment. Both the product and the monetary payment have value. What one party gives or receives in exchange for something else is not an example of agreement, compensation, or acceptance.)
Which of the following words most accurately describes arbitration:
A. Biased
B. Nonconsensual
C. Confidential
D. Temporary
C. Confidential
(Arbitration is the procedure when an arbitrator (an independent person or body officially appointed to settle a dispute) to settle a dispute. Arbitration is private and not open to the media, so parties may choose arbitration if they want to keep information confidential. Arbitration is consensual. Both parties must sign an agreement assenting to arbitration. Arbitration is neutral, not biased. Arbitration is final and binding, not temporary. )
Brix Beauty Salon used a celebrity's name and photograph in a recent newspaper advertisement, even though the celebrity had not given Brix permission to use her name and likeness. What tort did Brix Beauty Salon commit?
A. Defamation
B. Wrongful interference
C. Appropriation
D. Conversion
C. Appropriation
(Torts are civil wrongdoings that cause harm or injury to another party. Appropriation, wrongful interference, defamation, and conversion are four kinds of torts. Appropriation, which Brix Beauty Salon committed, involves a business or person who uses — without permission — another person's name, likeness, and other unique characteristics for the benefit or gain of the user. Brix Beauty Salon used the celebrity's name and picture to attract customers to the salon. Unfortunately, Brix had not obtained permission to use the celebrity's name or likeness. As a result, the celebrity could sue Brix for appropriation. Wrongful interference consists of predatory behavior undertaken by a business to draw either customers or employees away from a competitor. Defamation involves making false, malicious statements about a person or organization. Conversion occurs when personal property is taken from the owner and given to someone else to use.)
A critical aspect of financial planning involves:
A. Investing money in high risk securities.
B. Obtaining several credit cards.
C. Saving money for unexpected situations.
D. Setting broad financial goals
C. Saving money for unexpected situations
(Financial goals are objectives measured in terms of money. Setting financial goals involves financial planning, which is the determination of how to achieve the financial goals. An important aspect of financial planning involves saving money for unexpected situations. Saving money for unexpected situations provides you with funds to pay your bills if you are unable to earn an income for some reason, such as job loss or illness. Obtaining and using several credit cards is problematic if you cannot pay the balances due in a timely manner. The level of investment risk depends on many factors including the individual's comfort level with risk, income level, and age. Financial goals should be specific rather than broad)
What type of law is violated when a supplier requires intermediaries to enter into tying agreements?
A. Zoning
B. Antitrust
C. Probate
D. Infringement
B. Antitrust
(A tying agreement is an illegal arrangement that occurs when a business requires a customer to buy other products in order to obtain the goods and services that the customer really wants. To protect individuals and businesses, many governments develop regulations known as antitrust laws that protect individuals and businesses from unfair practices that restrain trade and competition.
Probate laws involve estate issues.
Zoning laws regulate property uses.
Infringement laws address intellectual property issue)
Which of the following is an example of an acceptable question to ask potential employees during an interview in order to select the best candidate:
A. What is your age and date of birth?
B. Have you ever been issued a parking ticket?
C. Are you married and do you have children?
D. Do you have previous military experience
D. Do you have previous military experience?
(During the interview, the interviewer asks a wide range of questions in order to verify information on the application form and learn more about the applicant's qualifications. It is acceptable to ask questions about an applicant's military history. However, interviewers may not ask an applicant's age, date of birth, marital status, children, or arrest record unless it is job related.)
Supply chain networks are often:
A. Unimportant.
B. Eliminated.
C. Redesigned.
D. Unprofitable
C. Redesigned
(A supply chain network is a strategic, data-driven approach to optimize the flow of goods, information, and finances across a business's entire supply chain (a network of individuals and companies that are involved in creating a product and delivering it to the consumer). Factors such as changing laws, new companies, companies going out of business, and material availability can cause companies to redesign their supply chain networks often. Supply chain networks should not be eliminated because they are not unimportant. A properly designed supply chain network should help a company become more profitable)
One reason that businesses use a matrix organizational design is to:
A. Share human resources.
B. Improve employee productivity.
C. Segment areas of expertise.
D. Standardize business tasks.
A. Share human resources
((A matrix organization is a company structure where teams report to multiple leaders. The matrix organizational structure involves integrated departmental functions with product or project orientation. For example, a technology specialist, a marketing researcher, a financial advisor, and a manufacturing line supervisor are members of different departments but often work together to develop a product or improve a process. The advantage to businesses of using this organizational structure is that the business is applying its resources efficiently because a representative from each of the major departments provides a unique set of skills and knowledge to achieve the business's goals. Often, workers have two or more supervisors in the matrix organizational design. The matrix organizational design may improve the business's overall efficiency, but it does not always improve an individual's productivity. Departmental organizational design segments employees by their areas of expertise (e.g., accounting, sales, and production). Policies and procedures are developed to standardize various business activities and tasks in all types of organizational designs.))
When Marlon buys a new oven for his bakery, he receives a three-year warranty from the oven company. If the oven breaks or has any problems within three years, the company promises to repair or replace it free of charge. This is an example of ___________ business risk.
A. Avoiding
B. Transferring
C. Preventing/controlling
D. Retaining
B. Transferring
(Contractual agreements, such as warranties, are one way to transfer risks to another person or business. This option enables businesses to move forward with their decisions without bearing the risks involved. Marlon might not be able to afford to pay for a new oven if this one breaks, but because he's transferred the risk to the oven company, he knows they'll replace it if he has any problems.
Avoiding risk is demonstrated by not taking a chance, as a risk not encountered presents no danger.
Preventing or controlling a risk happens when a business takes measures to prevent or reduce the risk.
Businesses retain a risk if they do nothing to reduce or eliminate it.)
Which stage of production involves diminishing returns?
A. Third
B. Fourth
C. First
D. Second
D. Second
(During the first stage of production, the company sees increasing returns.
During the second stage of production, the total product is still increasing, but not as quickly. The company sees diminishing returns.
During the third stage, it sees negative returns.
There is no fourth stage of the product.)
Ethan is developing common size financial statements so that he can compare financial performance across several different companies. Ethan is conducting __________ analysis.
A. Horizontal
B. Vertical
C. Ratio
D. Trend
B. Vertical
(When conducting vertical analysis, an individual calculates each individual item on a financial statement as a percentage of the total. After doing so, the analyst can develop common- size financial statements that allow him/her to compare performance across several years for a single company or across several different companies. Horizontal analysis, which is sometimes known as trend analysis, involves analyzing dollar amounts on financial statements for a single company across several years. Horizontal analysis does not involve the development of common - size financial statements. Ratio analysis involves the calculation of ratios based on a company's financial data. It allows analysts to compare numbers within a financial statement and determine the relationships among numbers on different financial statements. It can also be used to compare the performance of multiple companies.)
On what type of purchase order are you most likely to find the following information:
"This order covers the MRE Manufacturing Company's purchase of ½ "rubber gaskets, Model # 62376 metal washers, and "Y" PVC piping beginning April 10, 2016 through March 31, 2017. The prices stated in your quotation dated January 31, 2014 are effective until March 31, 2017"
A.Referral
B. Custom
C. Service
D. Blanket
D. Blanket
(A blanket order is an order that covers all or part of a business's product requirements for a certain period of time. A special order is a request for a custom product or a product that a vendor does not normally carry in stock. A service order is a request for service, such as an equipment repair or installation. A referral is a recommendation rather than a type of purchase order.)
Which of the following is commonly used to reduce an investor's capital gains tax burden:
A. Value stocks
B. Short-term investments
C. Puttable bonds
D. Capital losses
D. Capital losses
(An investor's capital gains are their earnings from the appreciation of investments. Most federal governments collect taxes from investors on these capital gains. One way to reduce an investor's capital gains tax burden is to subtract their capital losses (money that they have lost from the depreciation of investments) from the capital gains. They would only pay taxes on the difference, if it is positive. If their capital losses are greater than the capital gains, then they wouldn't pay any capital gains tax at all. Long - term, rather than short - term, investments help investors to reduce their capital gains tax burden, especially in the United States where long - term capital gains are taxed at a lower rate than short - term capital gains. Puttable bonds and value stocks typically have no impact on an investor's capital gains taxes)
The president of an international company tells reporters at a press conference that the company is doing well and will be meeting quarterly projections. Investors jump on the stock as a sound investment, driving the price of the stock up. On the side, the president sells her/his shares in the company. When the company's financials are released, the truth comes out: the company is in bad financial shape. The president of the company is guilty of:
A. Phishing.
B. Pyramid scheme.
C. Affinity fraud.
D. Insider trading
D. Insider trading
(The president was selling the company's stock on the basis of information that had not been made public. This is an unlawful practice. A pyramid scheme is a fraudulent activity in which people recruit others to pay them for the chance to earn money from those below them in the hierarchy. With affinity fraud scams, the scammer appeals to members of groups to invest. Investors falsely believe they can trust the scammer, and they lose their investments. Phishing is an identity-theft scam in which people receive official looking emails asking that they go to a website and provide sensitive, personal information such as their Social Security number, account numbers, etc. People follow the scammer's instructions and have their identities stolen.)