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Which of the following is an example of a conflict response mode:
A. Frustration C. Mediation
B. Avoidance D. Exclusion
Avoidance. The ways that people react to conflict are called conflict response modes. One of these modes is avoidance, which is the effort to avoid conflict. This type of behavior might include ignoring the situation or pretending that it doesn't exist. Avoidance behavior will not resolve conflict. Frustration is a negative effect of conflict rather than a response mode. Mediation is a method of resolving conflict. Exclusion is feeling left out or excluded from an activity.
Tim and his classmates all feel that their teacher's grading scale is unfair. While everyone else sits around and grumbles about it, Tim decides to ask his teacher for a meeting to discuss the grading scale. Which characteristic of a change leader is Tim displaying in this situation?
A. Knows how to coach others
C. Loves to learn new things
B. Persuasive
D. Not afraid to “go for it”
Not afraid to “go for it.” Instead of sitting back with the rest of the class and complaining about the unfair grading scale, Tim decides to take action. He is not afraid to “go for it.” Change leaders are people of action. They're not satisfied with sitting on the sidelines. They stand up for what they believe in and aren't afraid to challenge the status quo (the way things exist right now). Change leaders are also persuasive, love to learn new things, and know how to coach others, but these are not the characteristics Tim displays in this situation.
Because the United States is made up of people from all parts of the world, it has many different
A. governments. C. courts.
B. cultures. D. sanctions.
Cultures. The cultures of ethnic groups from all parts of the world are the customs, habits, and traditions that have been developed over time. Many people whose ancestors are from other countries retain their cultures and celebrate different holidays. The United States has one government that is a democracy which includes many different courts; but these were established to carry out different kinds of legal functions, not because U.S. citizens are from all over the world. Sanctions are trade restrictions placed by one country against another country that is violating international law.
Which of the following statements about understanding your spending habits is true:
A. A key aspect of opening a bank account
C. The first step in creating a financial plan
B. A key aspect in exceeding financial goals
D. The last step in creating a financial plan
The first step in creating a financial plan. Knowing how you spend your money—understanding your spending habits—is the first step in creating a financial plan. Knowing your spending habits does not guarantee that you will exceed your financial goals. Although it's helpful to know how many checks you expect to write in a month, you don't need to understand your spending habits to open a bank account
The Chrysler Theater is hosting the road show of "Annie." In which of the following cases would the theater be liable for damages:
A. A guest trips on loose carpet in the hallway and sprains an ankle.
B. During intermission, one attendee accidentally spills a drink on someone.
C. An attendee's car parked in a city lot gets broken into during the performance.
D. People complain that the theater-goers in front of them blocked their view of the show.
A guest trips on loose carpet in the hallway and sprains an ankle. The theater is responsible for making sure the facility is safe and free of obstacles; therefore, it would be liable for damages. A car damaged in a parking lot owned by the city would not be the theater's responsibility. Complaining about someone blocking one's view would not bring about damage relief. The drink being spilled was an accident and is between the individuals involved.
Business managers use accounting information to help them to
A. reduce insurance premiums.
C. calculate excise taxes.
B. allocate their funds.
D. pay labor union dues.
Allocate their funds. Managers use the accounting information that tells them the amount of funds available in order to develop operating budgets. These budgets specify how much money may be spent for such expenses as rent, salaries, insurance, etc. Insurance premiums are the monies paid to cover a contractual agreement in which one party will pay for specified losses incurred by the other party. Excise taxes are determined by government. They apply to certain items, such as gasoline, and are paid by the buyer. Labor union dues are paid by the union members.
A business's buying buildings, vehicles, and equipment is an example of money flowing out in order to acquire
A. products. C. staples.
B. assets. D. supplies.
Assets. Business owners must spend money to obtain assets, which are anything of value that the business owns. This results in money flowing out of a business. Some examples of business assets include land, buildings, vehicles, and equipment. Supplies are industrial goods that are constantly being purchased and used up in the operation of a business. Products are goods and services. Staples are goods for which there is constant demand.
Benny's Bike Shop manufactures bicycles for its customers during the year. Benny's purchases sprockets from Spikes Sprockets, tires from Tiny's Tires, and frames from Freddie's Frames. The expense of purchasing these items is known as
A. gross profit.
C. revenue.
B. operating expenses.
D. cost of goods sold.
Cost of goods sold. Cost of goods sold includes all costs used in obtaining or producing the goods or services that a business sells, such as materials and supplies. Operating expenses are all other expenses in operating the business such as wages, advertising, insurance, rent, and utilities expenses. Gross profit is revenue minus cost of goods sold. Revenue is the total amount of money earned by a business.
Which of the following is a measure of how well a business generates cash flow:
A. Capital structure C. Return on capital
B. Accounts receivable D. Accounts payable
Return on capital. Return on capital is a measure of how well a business generates cash flow. It is a key component of managing working capital. Accounts receivable refers to money owed to the business by others. Capital structure refers to a business's mix of financing. Accounts payable refers to the money the business owes to others.
Which of the following is a desired characteristic of the format of a particular budget report:
A. Is flexible and unimportant
C. Can change to meet a manager's needs
B. Is standardized and does not change
D. Is unique to each department and manager
Can change to meet a manager's needs. The format of a particular budget report can change to meet a manager's needs. Depending on what the manager wants to know, s/he may need to see only the current budget, the current budget and past budgets, or budgeted and actual figures. The format, then, is not standardized and can change. It is flexible and is very important in providing a manager with just the right information. Formats are not necessarily unique to each department and manager.
In what way might a human resources manager be involved in employee benefits?
A. Selecting an employee's personal plan options
B. Determining eligibility and costs of benefits
C. Collecting insurance payments from employees
D. Choosing an employee's vacation days
Determining eligibility and costs of benefits. A human resources manager might be involved in employee benefits by developing a benefits plan and determining eligibility and costs for employees. An HR manager would not be responsible for selecting an employee's personal plan options, collecting insurance payments from employees, or choosing an employee's vacation days.
A wholesaler breaks down a large shipment of a product and sells portions of it to several retailers. The wholesaler is reducing a discrepancy of
A. installation. C. quantity.
B. assortment. D. promotion.
Quantity. The wholesaler is reducing a discrepancy of quantity by breaking down a large quantity of a product into smaller quantities for retailers to buy and sell to final customers. Reducing a discrepancy of assortment means making a variety of related products available in one place. There is no such thing as a discrepancy of installation or a discrepancy of promotion.
As Justin is cooking, his sister reads the recipe directions to him out loud. Justin isn't sure if she said one teaspoon of vanilla or two. He gives her a puzzled look, and his sister reads the directions again. Which of the following steps for following directions does this situation illustrate:
A. Accept responsibility
B. Acknowledge directions verbally or nonverbally
C. Take notes
D. Eliminate distractions
Acknowledge directions verbally or nonverbally. When Justin gives his sister a puzzled look so she knows he didn't understand her directions clearly, he is acknowledging her nonverbally. It's important to let the speaker know you hear and understand what s/he is saying by nodding your head or saying you understand. If you don't understand the directions, use your nonverbal signals to alert the person so s/he can clarify things for you. These signals include raising your hand, shaking your head, or even looking at the speaker with a puzzled look. In this situation, Justin is not taking notes, accepting responsibility, or eliminating distractions.
Which of the following Internet-based marketing-research methods is most likely to raise an ethical issue regarding the users' right to privacy:
A. Scan portals C. Browsers
B. Cookies D. Banner ads
Cookies. Cookies are text files that are put on a web-site visitor's hard drive and then later retrieved during subsequent visits to the site in order to track shopping and buying behavior. As a result, Internet users often feel that their right to privacy is compromised. Portals are sites that are popular starting points for surfing the Web. Scan portal is not a term that is widely used to describe activities and concepts related to the Internet. A browser is the software that is needed for surfing the Internet. Banner ads are promotional messages appearing on the WWW, usually at the top of the web sites.
Using a database to track its customers' preferences and buying habits can usually help a business
A. build strong, loyal customer relationships.
B. obtain additional deductions for its semi-annual tax return.
C. reduce unnecessary operational expenses.
D. decrease the need for personnel to analyze marketing activities.
Build strong, loyal customer relationships. When a business understands what its customers like and dislike about its goods and services, it can incorporate activities to maintain, improve, or expand its products. When customers see that the business is showing interest in meeting their needs and wants, they are more likely to continue the relationship with the business. A business's tax deductions are not generally based on its ability to track its customers' buying behavior. Operational expenses refer to all of the expenses (costs) of running the business. A database can facilitate efficient use of a business's resources, but does not necessarily reduce operating expenses, nor does it necessarily decrease the need for personnel to analyze marketing activities.
The observation method of collecting marketing-research data involves
A. surveying consumers by mail.
C. watching what consumers do.
B. test marketing new products.
D. calling consumers on the telephone.
Watching what consumers do. Observation is a marketing-research method that gathers data by watching consumers. This can be carried out by using cameras, by assigning people to watch consumers' actions, or by using scanners that record what consumers buy. Test marketing new products is part of the experiment method of collecting data. Calling consumers on the telephone and surveying consumers by mail are part of the survey method of collecting data
Advertisers that use concept testing to obtain feedback from potential customers are conducting
A. focus group analysis.
C. target readership evaluation.
B. primary market research.
D. pretest idea measurement.
Primary market research. Concept testing involves exploring the concept, or idea, for a product in order to obtain feedback. Concept testing is one way to conduct primary market research, which results in obtaining new information specifically for the project at hand. The benefit of conducting primary market research is that it provides information that is relevant to the concept being tested. Other ways to conduct primary market research include analyzing focus groups, evaluating readership, and pretesting.
What do businesses create to help answer the research problem?
A. Objectives C. Procedures
B. Strategies D. Activities
Objectives. There is a strong relationship between the research purpose and the research objectives which are the goals of the research. Businesses create research objectives to help answer the research problem. For example, if the problem is service, one objective might be to determine customer satisfaction with delivery. Strategies are plans of action, or activities, for achieving goals and objectives. A procedure is the step-by-step process personnel follow in performing a specific task.
How might a business use the information in salespeople's lost-business reports that indicates that customers are dissatisfied with the business's credit policies and service?
A. To identify its target market
C. To revise its marketing strategy
B. To change its operating goals
D. To update its promotional techniques
To revise its marketing strategy. Businesses monitor lost-business reports because they usually contain an explanation of why customers no longer buy from the business. The reports might indicate that customers are dissatisfied with the product, dissatisfied with the business's credit policies, or are getting better prices and more service from competitors. A business might use this information to make changes to its marketing strategy in an attempt to regain customers or to prevent other customers from taking their business elsewhere. The more information a business obtains from lost-business reports, the better able it is to make useful and effective marketing decisions. Businesses do not use the information in lost-business reports to change their operating goals, identify their target markets, or update their promotional techniques.
Which of the following is an example of a business developing a code for answers to survey questions in order to process and analyze marketing information:
A. Results are tabulated according to date received.
B. Questions are numbered in chronological order.
C. Each survey contains an identification number.
D. Each answer has a specific numeric value.
Each answer has a specific numeric value. Businesses often develop surveys to obtain marketing information. To process and analyze that information, businesses often develop a code for the answers to survey questions. Coding is the process of assigning a numeric value to the various responses on a marketing questionnaire or survey. For example, there are five possible answers to a question, and the first answer has a numeric value of one. The second answer has a numeric value of two, the third answer has a numeric value of three, and so on. By using a code, businesses can quickly process the results to determine which response is selected the most or the least. Coding does not involve numbering questions in chronological order, or tabulating results according to date received. Although each survey may contain a unique identification number, that is not an example of coding
In addition to the wording on a questionnaire being clear, the wording should be
A. ambiguous and complex.
C. concise and objective.
B. complex and concise.
D. objective and adaptable.
Concise and objective. A questionnaire is a set of written questions designed to gather information. So that a business can obtain the most reliable information possible, questionnaire developers should make sure that the questionnaire is clear, concise, and objective, or free of bias. If the questionnaire is designed in a way that it is ambiguous (vague), complex, or adaptable, the business risks not obtaining reliable data.
Businesses that offer revolving charge accounts and send customers updated statements showing the status of their accounts are following which federal law?
A. Equal Credit Opportunity Act
C. Fair Credit Billing Act
B. Truth-in-Lending Act
D. Fair Credit Reporting Act
Truth-in-Lending Act. The Truth-in-Lending Act requires businesses to provide credit customers with all the information that applies to their accounts and send customers regular updated statements showing the status of their accounts. The purpose of the Equal Credit Opportunity Act is to make the granting of credit fair by prohibiting the denial of credit based on the applicant's gender, race, age, marital status, or national origin. The Fair Credit Billing Act requires businesses which extend credit to respond within 30 days to any customer's complaint or inquiry about a billing error. The Fair Credit Reporting Act gives consumers the right to inspect the files of their credit history at any credit agency and to have any mistakes corrected.
Because of customer requests, a business decides to reorder a product that it had stopped selling. The business is using the
A. distribution process.
C. production process.
B. promotional-mix concept.
D. marketing concept.
Marketing concept. The marketing concept is based on satisfying the needs and wants of customers. By reordering a discontinued product, businesses are satisfying their customers' requests. The production process is the activity of producing goods and services. The promotional mix is the combination of communication channels a business uses. The promotional-mix concept does not result from providing previously discontinued products. Distribution involves moving, storing, locating, and/or transferring ownership of goods and services.
The XYZ Corporation has set a goal to increase profitability by 15% within the next two years. To achieve that goal, the corporation has decided to open a new location. This strategy is the corporation's
A. plan of action. C. type of risk.
B. marketing mix. D. financial plan.
Plan of action. Businesses determine a plan of action for achieving their goals and objectives. This plan of action in marketing is known as a marketing strategy. In this example, the goal is to increase profitability, and the plan for achieving that goal is to open a new location. Marketing mix is the combination of the four elements of marketing. Although risk is involved with every plan of action, the plan of action is not a type of risk. Financial planning involves developing budgets, which includes predicting the company's sales and expenses for a specific period
Which of the following is an example of an external change that could affect a business's sales forecast:
A. A new sales rep has been hired to develop the company's territory in Texas.
B. The population of a town increases when a new hospital opens in the community.
C. The company plans to modify its approach to mailing catalogs to customers.
D. A company plans to raise prices on its products.
The population of a town increases when a new hospital opens in the community. External changes occur outside the business, and the business has no control over these changes. Examples of external changes that may affect sales forecasts are population changes, economic changes, competitive changes, and market changes. Internal changes, on the other hand, are circumstances that occur within a business over which the business has some degree of control. Such factors would include changes in personnel, promotion, and pricing.