Business Administration Core (Principle Events)
What is a key to effective note-taking?
A. Capturing every detail
B. Active listening
C. Creative thinking
D. Using an outline
B. Active listening. To take meaningful notes, you must listen to what the speaker is saying. To pick up on
the key points, you must actively listen. Effective note-taking does not involve capturing every detail of
the presentation, nor does it involve the use of creative thinking techniques. And although it may be
helpful for some individuals, effective notes do not need to be formatted as an outline.
While filing a homeowner's insurance claim, Mrs. Ramirez was accidentally disconnected from the call
center representative who was helping her. When Mrs. Ramirez called back, she didn't know whom to
ask for, because she couldn't remember the name of the representative who had been assisting her.
What type of Customer Relationship Management (CRM) data would be most helpful in identifying the
representative?
A. Self-provided data
B. Demographic data
C. Interaction data
D. Historical data
C. Interaction data. Customer Relationship Management (CRM) data warehouses typically contain several types of data. Interaction data contain details regarding written and/or phone solicitations made to a customer, visits that the customer made to the business, and instances when the customer contacted the call center for assistance. Demographic data include gender, age, race, ethnicity, income level, and other basic customer information. Self-provided data are pieces of information that the customer has voluntarily shared with the business. Historical data include old sets of data reviewed and used for new purposes
One way for an audience to show that it supports a speaker's opinion is by __________ the speaker.
A. applauding
B. heckling
C. ignoring
D. tolerating
A. Applauding. When the audience applauds, or claps, it is showing that it supports what the speaker is
saying. Applause encourages the speaker to continue expressing their thoughts. Heckling or making fun
of someone is an action that indicates disapproval. When people ignore the speaker, they are not actively
listening to the speaker and not indicating their support. If a person tolerates another individual's opinion,
they do not necessarily agree with the opinion, but they do support the individual's right to express that
opinion.
Arielle knows that she would be a good entrepreneur because she
A. can withstand ups and downs.
B. likes to see immediate results of her work.
C. is easily interested by many different ideas.
D. depends on others to get work done.
A. Can withstand ups and downs. One of the most important traits of an entrepreneur is resiliency—the
ability to recover from setbacks or obstacles. If Arielle can withstand ups and downs, she is resilient,
which would make her a good entrepreneur. Seeing immediate results of your work is not associated with
entrepreneurship; sometimes it takes years for hard work to pay off when starting a new business.
Entrepreneurship also requires a high degree of focus, so if Arielle is easily interested in different ideas,
she might not have the focus necessary to be an entrepreneur. Finally, entrepreneurs need to be
independent and able to do much of the necessary work alone. If Arielle depends on others to get work
done, she might not be well-suited as an entrepreneur.
1. What is a common consequence that comes with a civil lawsuit?
A. Paying a fine
B. Serving time in prison
C. Performing community service
D. Attending counseling sessions
A. Paying a fine
In a private enterprise economy, business growth is driven by
A. risk.
B. governmental regulations.
C. profit and competition.
D. price.
C. Profit and competition. A private enterprise economic system is one in which individuals and groups own
or control the economic resources used to produce goods and services. In a private enterprise system,
businesses strive for profits by being better than the competition. These are two factors that encourage
business growth by motivating businesses to be innovative and efficient. Governmental regulations do
not drive business growth in a private enterprise economy. Risk and price are factors that are involved in
a private enterprise economy, but they do not necessarily drive business growth.
What type of economic indicator are stock market returns commonly considered to be?
A. Lagging
B. Leading
C. Coincident
D. Exploratory
B. Leading. Stock market returns are commonly considered to be leading economic indicators because they
often decline in advance of an economic decline and improve prior to positive movement in the overall
economy. Lagging economic indicators such as the unemployment rate do not change direction until after
the general economy improves or declines. Coincident economic indicators move simultaneously with the
overall economy. Exploratory economic indicators are fictitious
What does a business develop during the marketing planning process?
A. Products
B. Advertisements
C. Strategies
D. Prospects
C. Strategies. Marketing planning is the process of determining how to attract the target customer to the
business. Strategies are specific plans of action the business takes to achieve the objectives (goals) in
the marketing plan. Businesses develop advertisements after the marketing plan is in place. Product
development is an ongoing process for many businesses, not only during the marketing planning
process. Prospects are potential customers or qualified leads.
Which of the following forms of business ownership must obtain a charter from the state(s) in which it
operates:
A. Corporation
B. Sole proprietorship
C. Partnership
D. Consolidation
A. Corporation. To incorporate a business in the United States, you must apply for a charter with the state
government where the business is located. To obtain a charter, a document containing information about
the firm, called Articles of Incorporation, must be filed with the state. A sole proprietorship is owned and
managed by one person. A partnership is a business owned by two or more persons. Neither of these
forms of ownership requires a charter. Consolidation is the joining of two or more companies to form a
new company
2. The goal of many governmental agencies is to protect the
A. barriers to trade.
B. rights of business.
C. target market.
D. monetary policy.
B. rights of business.
A store's written policy concerning returns states that "Refunds will be issued when a receipt is presented; other returns will be given store credit." Mrs. Garcia, a regular customer, returns a product without a receipt, complains about the store's return policy, and is given a full refund even though she doesn't have a receipt. Another customer overhears the conversation and asks for a refund without a receipt, but the store denies that request. How would enforcing the return policy have a positive impact on the business?
A. Ensure fair treatment of employees
B. Reduce misunderstanding and ill will
C. Eliminate consistent behavior
D. Guide customers' actions and protect their decisions
B. Reduce misunderstanding and ill will. Clear business policies that are consistently enforced reduce
misunderstandings that often cause bad feelings. In this case, the second customer may resent being
treated differently than Mrs. Garcia and decide to shop elsewhere. Business policies are used to guide
employee actions, not customer actions. Business policies are intended to ensure that all customers are
treated the same. Business policies are intended to provide fair and consistent treatment of customers.
One factor that contributed to financial globalization was the shift of many developed countries from
__________ exchange rates to __________ exchange rates.
A. fixed; floating
B. floating; fixed
C. pegged; declining
D. declining; pegged
A. Fixed; floating. To enable capital to flow more freely internationally, countries around the world have reduced or eliminated many regulations and restrictions. For example, many developed countries shifted their exchange rates from being fixed to floating. Fixed exchange rates are set by the government, while
floating exchange rates are determined by market supply and demand for currency. Although fixed
exchange rates are still popular in some parts of the world, most developed countries have floating
exchange rates. A pegged exchange rate is a fixed exchange rate. Declining exchange rates have not
significantly contributed to financial globalization.
The first step in deciding which information to monitor for marketing decision making is to
A. obtain facts, figures, and other data.
B. identify the information needs of the organization. C. update the files as needed.
D. distribute information reports to marketing managers.
B. Identify the information needs of the organization. The first step in deciding which information to monitor
for marketing decision-making is to determine the information needs of the organization. This will identify
which type of information needs to be monitored. The alternatives are the subsequent steps involved in
operating a marketing-information system that take place after the information needs have been
identified.
What is one of the reasons why a supervisor might prepare a formal business report?
A. To compile sales expenses
B. To request pricing information
C. To analyze marketing trends
D. To schedule training sessions
C. To analyze marketing trends. Complicated and important topics, such as marketing trends, are analyzed
in formal business reports. The purpose of formal reports is to define a specific topic or problem area,
present and interpret data, draw conclusions, and make recommendations. Supervisors prepare formal
business reports to gather all the pertinent information that will help them in making important decisions.
They generally use shorter memos to request pricing information and to schedule training sessions.
Compiling sales expenses is an accounting function.
3. From a legal standpoint, hospitality and tourism customers have the right to expect businesses in this industry to take
industry to take
A. total responsibility for accidents.
B. no risks.
C. insurance out of each customer.
D. reasonable care.
D. reasonable care.
Making a product more useful by altering or changing it in some manner creates __________ utility.
A. possession
B. place
C. time
D. form
D. Form. An example of form utility would be turning cotton into fabric. Place utility is usefulness created by
making goods or services available at the place where they are needed or wanted by consumers. Time
utility means to make products available at the time they are needed or wanted by consumers.
Possession utility is created when ownership of a good is transferred from the seller to the person who
will use it.
Financial globalization helps investors reduce their exposure to
A. speculative bubbles.
B. business cycle risks.
C. regulatory liberalization.
D. capital appreciation.
B. Business cycle risks. By investing their funds in many different countries, investors are able to diversify
their risk and reduce their exposure to business cycle risks. However, financial globalization seems to
increase the risks of “speculative bubbles” and “herd behavior” of investors. Liberalization is the removal
of government regulations on the flow of capital and international trade. Many countries around the world
have reduced or eliminated limits on foreigners' access to their financial markets. Capital appreciation
occurs when stock that a person owns becomes worth more than what the person paid for it. Capital
appreciation is a positive aspect of investing, not something to avoid.
Which marketing career is usually in charge of writing press releases?
A. Customer service
B. Marketing research
C. Marketing operations
D. Public relations
D. Public relations. People in public relations are in charge of creating a good image for their business or
organization. Part of this includes writing and sending out press releases. Marketers in marketing
research, marketing operations, and customer service do not generally write press releases.
Which of the following is an operations activity in business:
A. Selecting media
B. Contacting customers
C. Obtaining resources
D. Analyzing investments
C. Obtaining resources. Resources refer to any person or item that the business uses to accomplish an
objective. Operations management is the process of planning, controlling, and monitoring the day-to-day
activities required for the company to function. This includes obtaining and allocating the appropriate
types and amounts of resources to do the work, such as employees, equipment, and supplies.
Contacting customers is a sales activity. Selecting media is a promotional activity. Analyzing investments
is a financial activity
A coffee shop wants to appeal to young, technology-savvy consumers. To appeal to this demographic, the business should consider
A. instituting a minimum amount for credit card payments.
B. accepting mobile credit card payments.
C. gathering analytics from credit card payments.
D. purchasing a receipt printer.
B. accepting mobile credit card payments.
Camille is conducting research for a report that she is writing about the mercury levels in fish. Which of
the following is the most reliable source for Camille to use:
A. A recent blog entry that was written by Dr. Harold Corning, a retired brain surgeon
B. A chapter from a high school physics textbook that was published in 2001
C. An online article that was written last month by a well-known marine biologist
D. A 2019 newsletter from a nonprofit organization that studies the effects of air pollution
C. An online article that was written last month by a well-known marine biologist. An important consideration when evaluating the usefulness, validity, and timeliness of written information is the topic at hand and the author's expertise. A marine biologist studies aquatic life forms, so an article written by this individual is more likely to contain information about fish than a physics textbook, a retired brain surgeon's blog entry, or a newsletter from an organization that studies the effects of air pollution.
Reinhardt Manufacturing and Burke Manufacturing both seek to eliminate waste and streamline their business processes. Reinhardt Manufacturing, however, believes that waste results from unnecessary steps in the production process, while Burke Manufacturing asserts that waste comes from variations within the production process. Reinhardt Manufacturing is practicing __________ methodology, while Burke Manufacturing is practicing __________ methodology.
A. Lean; Six Sigma
B. Six Sigma; Lean
C. Sustainability; Lean
D. Lean; Sustainability
A. Lean; Six Sigma. Lean and Six Sigma are both quality control methodologies that focus on maximizing customer value while minimizing waste. The key difference between the two methods is where waste is believed to come from. In Lean methodology, waste is believed to arise from unnecessary steps in the production process. In Six Sigma methodology, waste is believed to arise from variations within the production process. In this example, Reinhardt Manufacturing is practicing Lean methodology, while Burke Manufacturing is practicing Six Sigma methodology. Sustainability is a primary goal of both Lean and Six Sigma; however, there is no methodology called "Sustainability."
Hailee receives a survey in the mail. At first, she thinks the survey is just market research to find out her cleaning product preferences. However, as she nears the end of the survey, she realizes it is actually attempting to sell her a specific brand of cleaning product. The survey comes from a company engaging in
A. frugging.
B. sugging.
C. self-regulation.
D. CAN-SPAM
B. Sugging. Selling under the guise of research (sugging) occurs when organizations administer surveys to gain customers or make sales, not to conduct market research. This practice is generally frowned upon because it is deceptive, and it may make consumers skeptical of actual market research. Fundraising under the guise of research is known as frugging and occurs when an organization tries to obtain donations by claiming to collect market research. CAN-SPAM is a U.S. law that sets rules and establishes standards for commercial email. This is not an example of self-regulation.
Which of the following parts of a business plan includes the history of the business:
A. Strategy and implementation
B. Market analysis
C. Company description
D. Executive summary
C. Company description. The company description accurately portrays the new company or venture,
provides a history of the company, and shows the current business structure, among other things. In the
market analysis, you see how the market has responded (or is likely to respond) to the new company or
product/venture. The strategy and implementation section shows how the business intends to do what it
has planned. The executive summary gives an overview of the entire document.
Which of the following "adaptable" strategies seeks to strengthen an organization by bringing employees together as well as by empowering them as individuals:
A. Slack resources
B. Marketing orientation
C. Organizational learning
D. Competitive aggression
C. Organizational learning. Organizational learning is a strategy that seeks to strengthen an organization by
bringing employees together as well as by empowering them as individuals. It includes concepts such as
systems thinking, team learning, shared organizational vision, mental modeling, and personal mastery.
Marketing orientation is a strong focus on meeting customer needs and wants. Slack resources are
resources that go above and beyond what is needed to operate an organization. Competitive aggression
is a drive to win scarce customer dollars in the marketplace.