Business Communication - Ch. 5
The various ways in which a message can be sent, ranging from one-on-one in-person meetings to Internet message boards, are called__________.
Communication Channels
When a singer owner actively manages the company, this is what form of business ownership:
Sole Proprietorship
The primary reason people choose to become entrepreneurs is to:
Earn more money
A project should be rejected with a negative ____________________ since the expected future cash flows from the project are less than the cost of the investment.
net present value
__________is a form of communication that does not involve the use words.
Nonverbal Communication
Olivia, the CEO of a company, uses words such as "she" and "her" to refer to a manager or an employee in the general sense. She also uses feminine examples in all her emails to the entire company. As a result, the male employees of the company feel excluded. Given this information, it can be concluded that Olivia shows _____.
Gender Bias
Glossamer Inc., a company owned by George and Alex, faces huge debts and is eventually shut down due to bankruptcy. The company's financial loss affects Alex personally, and his house and other personal assets are seized by the bank. However, George's personal assets are not affected. This is most likely because George is a(n) _____.
Limited Partner
Lois wants to start an art gallery. However, because of lack of adequate funds, she decides to borrow money from a bank. The bank is hesitant to give money to Lois because it cannot verify whether her business would be able to earn enough profit to repay the borrowed amount within the stipulated period. However, after a thorough research, the bank grants her the money. In the given scenario, Lois uses _____ to fund her business.
Loan
One of the major sources of equity financing for corporations is _____.
Retained earnings
A(n)__________, a type of divestiture, occurs when a company issues stock in one of its own divisions or operating units and sets it up as a separate company—complete with its own board of directors and corporate officers.
Spin-off
Ron, an employee of Rock Corporation, is involved in various fraudulent activities. Recently, his team members found out about Ron's behavior and reported it to their manager, Jaden. Jaden decides to discuss this issue with Ron. In this scenario, which of the following communication channels is Jaden most likely to use?
Face-to-Face
Joe is appointed by a nine-member board of directors of a real estate company to manage the company on a daily basis. The board ensures that Joe acts in a manner that is consistent with the interests of the stockholders. Given this information, Joe is most likely a _____.
CEO
Herbert gained most of the capital for his new start-up project by posting a small demonstration of his product on a website that he created especially for the project. Many people showed genuine interest in his product and donated money to help him launch it. In the given scenario, Herbert:
Crowdfunding
Tusken Thaw, a shipping industry, plans to expand its customer base to other countries. To facilitate this process, Tusken Thaw seeks financial assistance from Jermino Bank. The bank agrees to lend a specified amount of money; however, it mandates Tusken Thaw to return the amount with interest in a regular schedule of fixed payments. Which of the following sources of long-term funds is being used by Tusken Thaw in the given scenario?
Term Loan
A corporate restructuring in which one firm purchases another.
Acquisition
Jim, the CEO of a management firm, needs to deliver a presentation on work ethics to his employees. He has a thorough knowledge of his employees' educational backgrounds. He uses this knowledge to create a presentation that would convey the message to his employees. In the given scenario, which of the following communication guidelines is Jim following?
Analyze your audience
CofBean Corp. and Coffeedust Inc. are leading producers and distributors of coffee beans. They join together to become the world's largest distributor of coffee. This association allows the amalgamated company to increase its size and market power within the coffee industry. This is an example of a(n) _____.
Horizontal Merger
Gemini Inc., a large conglomerate, offered Timothy's new logistics company the much required financial support in exchange for a 40% ownership in the company. It also provided Timothy with an experienced group of people to help him make crucial decisions for the company. In the given scenario, what is Gemini Inc.?
Venture Capital Firm
Gotwing Inc., a multinational company, issues promissory notes to big corporations. As the company has strong credit ratings, it easily finds buyers without having to offer a substantial discount for its debt. Which of the following short-term financing options is being used by Gotwing Inc. in the given scenario?
Commercial paper
_____________ are used to assess the financial strengths and weaknesses of their firm.
Financial Ratios or Financial Ratio Analysis
__________has a high channel richness, and especially with state-of-the-art equipment, it conveys much of the richness of actually being there.
Videoconferencing
Vester Corporation does not face the problem of double taxation as the Internal Revenue Service (IRS) does not tax the earnings of the company separately. Instead, taxes are only levied on the personal income of the stockholders. A limitation, however, is that the company is only allowed to have a maximum number of 100 stockholders at a time. Given this information, Vester Corporation is a(n) _____.
S corporation
In low-income countries, a high percentage of entrepreneurs launch a business because it is their only economic option. They are known as
Necessity entrepreneurs
What ratio is the most commonly used liquidity ratio?
Current Ratio
The funds uses to acquire assets and finance operations is known as
financial capital