Business Environment
Ch 1-3
Creating a Business
Ch 6-7
Financing a Business
Ch 8-9
Marketing a Business
Ch 11-13
Managing a Business
Ch 14-16
100
03-162. The stock market, housing foreclosures, and unemployment rates are all part of an organizations’s ____ environment. a) competitive b) global c) economic d) social
What is c) economic
100
14-115. Justin Rolando decided to operate his own web design firm and is leaning toward organizing it as a sole proprietorship. One factor Justin should realize is that by choosing this form of business he would be a) creating a business that was legally separate and distinct from himself. b) incurring the problem of double taxation. c) exposing himself to unlimited personal liability for the company’s debts. d) required to fill out special forms and pay proprietorship fees to get the company legally established.
What is c) exposing himself to unlimited personal liability for the company’s debts.
100
45-137. The _____ indicates whether a firm earned a profit or suffered a loss over the past accounting period. a) balance sheet b) income statement c) statement of cash flows d) cash budget
What is b) income statement
100
32-131. Peter is starting a new business. He recognizes that before developing his marketing strategy he must identify similar characteristics, attributes, and behaviors of his total market, and then group his customers according to these characteristics, attributes, and behaviors. This process if referred to as a) target marketing. b) a customer satisfaction program. c) a full partnership. d) market segmentation.
What is d) market segmentation.
100
29-124. _____ is/are the raw facts and figures businesses collect. a) Data b) Information c) Push technology d) Warehousing
What is a) Data
200
10-95. Since 1946, advances in technology and the overall decline in worldwide trade barriers have resulted in a) more market opportunities but companies are experiencing greater market competition. b) countries like China and India have experienced no economic growth. c) trade in commodities such as oil and corn is becoming nonexistent as all countries move to produce technology-related products. d) the U.S. has experienced persistent balance of payments surplus.
What is a) more market opportunities but companies are experiencing greater market competition.
200
19-125. Small business start-ups are likely to find that getting commercial loans is a) hard to do, because commercial lenders are reluctant to make loans to firms that don’t have an established record of successful performance. b) one of the easiest and most flexible sources of financing, because local bankers are usually eager to establish relationships with new companies. c) is fairly easy, but usually entails much higher financing costs than other sources. d) the best way to obtain 100 percent of the financing they need, but only if they give the lender an ownership stake in the company.
What is a) hard to do, because commercial lenders are reluctant to make loans to firms that don’t have an established record of successful performance.
200
48-110. Return on equity and earnings per share are both classified as _____ ratios. a) liquidity b) profitability c) asset management d) current
What is b) profitability
200
38-142. The career field called _____ involves planning and coordinating the flow of goods—from the raw materials to the final consumers. a. supply chain management b. tactical shipment coordination c. logistics d. product staging
What is a. supply chain management
200
26-126. Kace Grelly is an HR manager with Danze Enterprises, a mid-sized consulting firm. She will soon be recruiting workers to fill some new positions. Before doing so, she wants to review the specific responsibilities associated with each job. She can find this information in each position’s a) job description. b) job metric. c) expectations statement. d) job specification.
What is a) job description.
300
11-118. When the total value of exports is higher than the total value of imports, a country experiences a a) trade exchange. b) trade surplus. c) trade deficit. d) countertrade.
What is b) trade surplus.
300
18-117. Robin is an entrepreneur. As such, she is likely to a) be very superstitious. b) view uncertainty as something that can be turned to her advantage. c) have a hard time coping with failure. d) look objectively at her own abilities and shortcomings.
What is b) view uncertainty as something that can be turned to her advantage.
300
42-117. Tiny Timber Tree Farms applied to United Bank for a business loan. Which financial statements would the loan officer of the bank be most likely to request? a) balance sheets, income statements, and cash flow statements b) journals, ledgers, and trial balances c) total debits and total credits d) the prospectus, statement of retained earnings, and total liability statement
What is a) balance sheets, income statements, and cash flow statements
300
34-106. With their extended hours and numerous locations in a given community, 7-Eleven stores offer _____ to consumers, who find it easy to stop in and make this type of purchase. a) unsought products b) shopping products c) specialty products d) convenience products
What is d) convenience products
300
27-140. To reduce costs, companies often use _____ to fill in workload gaps during high production times. a) contingent workers b) disabled workers c) young workers d) women workers
What is a) contingent workers
400
06-103. After the collapse of the dot com bubble and the 9/11 terrorist attacks, the stock market depreciated and unemployment increased leading many to fear that the country was on the brink of a full-blown recession. In order to stimulate the economy the Federal Reserve Bank a) lowered taxes in an effort to increase spending. b) lowered interest rates from 6.5% to 1.25% in an effort to increase spending. c) increased taxes in an effort to increase spending. d) increased interest rates from 1.25% to 6.5% in an effort to increase spending.
What is b) lowered interest rates from 6.5% to 1.25% in an effort to increase spending.
400
15-157. A(n) _____ occurs when one firm buys another firm. a) conglomeration b) joint venture c) merger d) acquisition
What is d) acquisition
400
44-129. _____ is/are what the firm owes its creditors. a) Retained earnings b) Owners’ equity c) Liabilities d) Assets
What is c) Liabilities
400
33-162. Primary data is _____ and _____ to gather than secondary data. a) costlier; more difficult b) less costly; less difficult c) costlier; less difficult d) less costly; more difficult
What is a) costlier; more difficult
400
24-136. The top companies in Fortune magazine’s 100 Best Companies to Work For in 2011 emphasize a) cash incentives as their motivator for employees. b) using coercion as their motivator for employees. c) working longer hours to get more perks. d) a positive culture to motivate their employees.
What is d) a positive culture to motivate their employees.
500
08-127. Recently, I.B. Rheele read in the newspaper that the Federal Reserve chairman had expressed concern about inflation and indicated the Federal Reserve would be taking some action in order to prevent inflation from spiraling out of control. The Federal Reserve could use all of the following tools EXCEPT a) selling government bonds in the open market. b) increasing the discount rate. c) increasing banks reserve requirements. d) increasing government spending on roads and bridges.
What is d) increasing government spending on roads and bridges.
500
20-133. A venture capitalist firm is most likely to be interested in investing in a a) big, well-established corporation that has fallen on hard times. b) large, successful corporation that has several divisions that can be spun off to earn a quick profit. c) small new company with the potential for rapid growth. d) small new company in a mature sector of the economy with the potential for slow but steady long-term growth.
What is c) small new company with the potential for rapid growth.
500
49-113. At Chips and Dips, a local convenience market, an increase in the inventory turnover ratio would indicate that it was a) at risk of holding too much inventory. b) selling its merchandise more quickly. c) relying heavily on credit sales. d) more likely to face a cash flow problem.
What is b) selling its merchandise more quickly.
500
36-154. As the head of a new product development team at McDonald’s, you’ve worked hard to come up with healthy new foods to put on the company’s menu. Now you want to promote your new menu options. In order to differentiate your new menu from the competition, your _____ must reflect your vision for a healthier lifestyle. a) big idea b) positioning statement c) personal selling effort d) discontinuous innovation
What is b) positioning statement
500
25-105. The practice of outsourcing a) currently only affects workers in low-skill, low-wage jobs. b) has failed to catch on in the United States as much as it has in Europe and Asia. c) only occurs when a firm contracts with foreign producers. d) has begun to impact high-tech, high-pay positions as well as low-end jobs.
What is d) has begun to impact high-tech, high-pay positions as well as low-end jobs.
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