Bus 1010 Final Study Flashcards
What is the point at which the supply curve and the demand curve intersect on a graph?
Equilibrium price
What are profits?
Difference between revenues and expenses.
In a small town of 3,000 people, the number of car washes has grown from two to five in the last two months. Which result will likely occur?
The increase in supply will lead to a decrease in the equilibrium price.
Which of the following is characterized by having few sellers, similar prices among sellers, and difficult market entry?
Oligopoly
Which of the following is the most likely pricing approach for a monopoly?
Charge a price that will not cause consumer demand to drop.
What is the condition in an economic system in which the amount of money available and the number of goods and services produced are growing at about the same rate?
Stability.
Which economic system emphasizes the private ownership of most factors of production?
Capitalism
Which of the following measures indicates the prices of typical products purchased by American consumers living in urban areas?
Consumer price index
What is the price at which the quantity of goods demanded and the quantity of goods supplied are equal?
The market price
What occurs when the quantity demanded exceeds the quantity supplied?
Shortage.
Advertising for which of the following products is most likely to have ethical ramifications?
Alcohol
Which of the following occurs when someone uses confidential information to gain from the purchase or sale of stocks?
Insider trading
Which of the following would NOT be included among the primary agents of interest with regards to a company’s ethical behavior?
Bloggers
When Jordan takes credit for a software program that someone else wrote, which of the following is true about Jordan’s decision?
It raises questions about his personal ethics.
What is it called when two or more firms agree to collaborate on wrongful acts?
collusion
What is the term used to describe a situation when increased demand leads to overly steep and often unwarranted price increases?
Price gouging
What is the term for an employee who detects and tries to put an end to a company’s unethical, illegal, and/or socially irresponsible actions by publicizing them?
Whistle-Blower
What is a social audit?
An analysis of a firm’s success in using funds earmarked for meeting its social responsibility goals.
A couple desire to run their gym in a socially responsible way. What should they certainly avoid?
Purchase of substandard gym equipment
What act was passed in 2002 as a response to a number of highly publicized accounting scandals?
Sarbanes-Oxley Act
Small Business Administration (SBA)
Government agency charged with assisting small business.
Small Business
Independently owned business that has relatively little influence in its market.
Entrepreneur
Businessperson who accepts both the risks and the opportunities involved in creating and operating a new business venture.
Entrepreneurship
The process of seeking businesses opportunities under conditions of risk.
Business Plan
Document in which the entrepreneur summarizes his/her business strategy for the proposed new venture and how that strategy will be implemented.
Franchise
Arrangement in which a buyer (franchisee) purchases the rights to sell the good or service of the seller (franchiser).
Venture Capital Company
Group of small investors who invest money in companies with rapid growth potential.
Small-Business Investment Company (SBIC)
Government - regulated investment company that borrows money from the SBA to invest in or lend to a small business.
Small Business Development Center (SBDC)
SBA program désigne to consolidate information from various disciplines and make it available to small businesses.
Sole Proprietorship
Business owned and usually operated by one person who is responsible for all of its debts.
Unlimited Liability
Legal principle holding owners responsible for paying off all debts of a business.
General Partnership
Business with two or more owners who share in both the operations of the firm and the financial responsibility for its debt.
Limited Partnership
Type of partnership consisting of limited partners and a general (or managing) partner.
Limited Partner
Partner who does not share in a firm’s management and is liable for its debts only to the limits of said partner’s investment.
General (or active) Partner
Partner who actively manages a firm and who has unlimited liability for its debts.
Master Limited Partnership
Form of ownership that sells shares to investors who receive profits and that pays taxes on income from profits.
Cooperative
Form of ownership in which a group of sole proprietorships and /or partnerships agree to work together for common benefits.
Corporation
Business that is legally considered an entity separate from its owners and is liable for its own debts; owners’ liability extends to the limits of their investments.
Limited Liability
Legal principle holding investors liable for a firm’s debts only to the limits of their personal investments in it.
Tender Offer
Offer to buy shares made by a prospective buyer directly to a target corporation’s shareholders, who then make individual decisions about whether to sell.
Double Taxation
Situation in which taxes may be payable both by a corporation on it profits and by shareholders on dividend incomes.
Closely Held (or private) Corporation
Corporation whose stock is held by only a few people and is not available for sale to the general public.
Publicly held (or Public) Corporation
Corporation whose stock is widely held and available for sale to the general public.
S Corporation
Hybrid of a closely held corporation and a partnership, organized and operated like a corporation but treated as a partnership for tax purposes.
Limited Liability Corporation (LLC)
Hybrid of a publicly held corporation and a partnership in which owners are taxed as partners but enjoy the benefits of limited liability.
Corporate Governance
Roles of shareholders, directors, and other managers in corporate decision making and accountability.
Multinational (or transnational) Corporation
Form of corporation spanning national boundaries.
Joint Venture
Strategic alliance in which the collaboration involves joint ownership of the new venture.
Stockholder (or shareholder)
Owner of shares of stock in a corporation
Board of Directors
Governing body of a corporation that reports to its shareholders and delegates power to run its day-to-day operations while remaining responsible for sustaining its assets.
Officers
Top management team of a corporation
Professional Corporation
Form of ownership allowing professionals to take advantage of corporate benefits while granting them limited business liability and unlimited professional liability.
Strategic Alliance
Strategy in which two or more organizations collaborate on a project for mutual gain.
Spin-of
Strategy of setting up one or more corporate units as new, independent corporations.
Employee Stock Ownership Plan (ESOP)
Arrangement in which a corporation holds its own stock in trust for its employees, who gradually receive ownership of the stock and control its voting rights.
Institutional Investor
Large investor, such as a mutual fund or a pension fund, that purchases large blocks of corporate stock.
Merger
The union of two corporations to form a new corporation.
Chief Executive (CEO)
Top manager who is responsible for the overall performance of a corporation.
Acquisition
The purchase of one company by another.
Divestiture
Strategy whereby a firm sells one or more of its business units.
What are products that are created domestically and transported for sale abroad?
Exports
Which country is the world’s largest marketplace and most stable economy?
The United States
Which country dominates the Pacific Asia region economically?
China
When the value of one country’s currency relative to that of another varies with market conditions
Floating exchange rate
Which of the following buys products in foreign markets and then sells them for resale in its home country?
Importer
Which of the following denotes the practice of protecting domestic business at the expense of free market competition?
Protectionism
Which of the following nations is NOT contained within a major world economic marketplace.
Honduras
Which of the following treaties sought to eliminate trade barriers such as tariffs and quotas?
General Agreement on Tariffs and Trade
Which of the following exists when a country can produce something more cheaply and/or of higher quality than any other country can?
Absolute advantage
The U.S. government forbids the importation of cigars from Cuba. What is this practice called?
Embargo
Titles such as plant manager, operations manager, and division manager designate which level of management?
Middle managers
An accountant’s ability to audit a company’s records is an example of what type of skills?
Technical skills
Which level of management sets general policies, formulates strategies, approves all significant decisions, and represents the company in dealings with other firms and with government bodies?
Top managers
Steve motivates employees by rewarding them with additional vacation when standards are achieved. This is an example of which function in the management process?
Leading
Which element of an organization is defined by shared experiences, stories, beliefs, and norms?
its corporate culture
If Kodak sets out to increase its share of the 35-mm film market by 10 percent during the next eight years, what kind of goal is the organization setting?
A long-term goal
What type of skills requires defining problems and selecting the best course of action to take?
Decision making skills
Which aspect of the management process involves determining what the organization needs to do and how best to get it done?
Planning
Camille Graham is a manager who works well with people and makes them feel excited about their work. What type of skills is she illustrating?
Human relations skills
Which of the following managers are responsible for planning and overseeing the firm’s accounting functions?
Financial managers
Which type of business constituent has titles such as President and CEO?
Top managers
Which of the following is the amount of a product that a company can produce under normal working conditions?
Capacity
Which of the following is the ability of a product to satisfy a human want or need?
Utility
Thousands of empty jugs move down a conveyor belt before stopping to be filled and moving on to be labeled. What type of layout is utilized?
Same-steps
Which of the following is NOT a major objective of JIT production?
Increasing stop and go production
Which of the following refers to the receiving, storing, handling, and counting of all raw materials, partly finished goods, and finished goods?
Inventory control
What name is given to the process by which a company analyzes another company’s product to identify desirable improvements in its own product?
Competitive product analysis
Which of the following is another term for the supply chain?
The value chain
Which of the following is a component of materials management?
Warehousing
3M uses which strategy for attracting customers?
flexibility
Which program certifies improvements in environmental performance?
ISO 14000
Which of these is one of the big five personality traits?
Openness
When does turnover occur?
When people quit their jobs
Which would an employee who is productive but keeps to himself be lacking in?
Organizational citizenship
The extent to which people are self-aware is an aspect of which of the following?
emotional intelligence
Which of the following aspects of the psychological contract is provided by the organization?
Status
Which of the following aspects of the psychological contract is provided by the employee?
skills
If an employee need to feel that she is a part of a team and yet her position involves working alone, which of the following may not be right?
The person-job fit
What is the Hawthorne effect?
The conclusion that workers are more productive if management pays attention to them
Which of the following lists Maslow’s Hierarchy of Human Needs in order, starting with the most basic?
Physiological, security, social, esteem, self-actualization
According to Maslow’s model, a set of needs will be a motivator until which of the following occurs?
The needs are satisfied
Which of the following helps explain why some people do not work as hard as they can when their salaries are based purely on seniority?
Expectancy theory
Terry generally likes her job and works hard. However, Terry’s level of effort has declined recently. Terry became aware that a new employee, with far less experience, was hired at Terry’s current salary. Terry’s lack of motivation can best be described by which theory of motivation?
Equity
What type of variables are lifestyle, opinions, interests, and attitudes referred to as?
Psychological variables
What is the term for intangible products, such as time, expertise, or an activity that can be purchased?
Services
Which of the following identifies products that are dissimilar from those of competitors but can fulfill the same need?
Substitute products
What do marketers call groups of people with similar wants and needs?
Target markets
What is the decision process by which customers come to purchase and consume products?
Consumer behavior
What type of behavior do consumers exhibit by regularly purchasing products because they are satisfied with their performance?
Brand loyalty
What is selling the rights to place a brand name on products such as t-shirts referred to as?
Licensed branding
A product’s benefits include all of the following EXCEPT which?
The time required to purchase the product
What type of marketing do insurance companies, airlines, investment counselors, health clinics, and public accountants typically engage in?
Service marketing
Which of the following is the best example of an emotional motive in consumer purchasing?
A major shoe company purchases the latest designer styles in order to please customers
What type of marketing is a “loyalty banking” program an example of?
Relationship marketing
What is data warehousing?
The process of collecting, storing, and retrieving data in electronic files
A company decides to introduce a line of golf gear designed specifically for women. What environmental trend is the company responding to?
Sociocultural
What are fitness programs and drug regimens to lower cholesterol both an example of?
Substitute products
Which is usually the first step in the marketing strategy?
Product differentiation
Which of the following terms refers to any economic resource that is expected to benefit a firm or individual who owns it?
Asset
Which of the following terms refers to the amount of money that owners would receive if they sold all of a company’s assets and paid all of its liabilities?
Owners’ equity
Which of the following refers to the financial statement detailing a firm’s assets, liabilities, and owners’ equity?
Balance sheet
Which of the following best describes depreciation?
The process of reducing the value of fixed assets equally over time
Which of the following describes assets such as patents and trademarks?
Intangible assets
What are the major categories within an income statement?
Revenues, cost of revenues, operating expenses, and net income.
Which of the following documents would most likely come from a planning strategy meeting?
budget
Which of the following are the three categories on a company’s cash flow statement?
Operating activities, investing activities, financial activities.
Which of the following terms refers to the examination of a company’s accounting system to determine whether its financial reports fairly represent its operations?
Audit
Which of the following describes assets such as land, building, and equipment?
Fixed assets
Which of the following terms refers to the comprehensive system for collecting, analyzing, and communicating financial information?
Accounting
Which of the following terms refers to the interest level at which member banks can borrow money from the Federal Reserve System?
Discount rate
Which of the following indices indicates the relative strength of the currencies of two countries?
Exchange rate
Currently, the U.S. dollar is weak compared to the Canadian dollar. Which of the following would be in Toyota’s best interest?
Build the cars in the United States and sell them in Canada
Which of the following best describes the portability characteristic of money?
It is light and easy to handle
Which of the following affects the value of money?
How much currency has been saved
Which of the following financial institutions earn profits from loans taken from the funds in each of its depositors’ accounts?
Commercial banks
Which of the following best describes two of the three primary functions of the Federal Reserve System?
Aiding banks in conducting business and managing the U.S. money supply and interest rates.
Which of the following statements best describes why U.S. Treasury securities have always been considered risk-free investments?
They are backed by the U.S. government
Money frees society from a system of barter. In doing so, money is performing which of the following functions?
Medium of exchange
Which of the following agencies guarantees the safety of all of its members’ bank accounts?
Federal Deposit Insurance Corporation
Which of the following receives and executes buy-and-sell orders for other people in return for commissions?
Stock brokers
Which of the following are stocks, bonds, and mutual funds representing secured, or financially viable, claims on the part of investors?
Securities
New stocks and bonds are sold in what market?
Primary market
What value of a stock is calculated by dividing total shareholders’ equity by the total number of shares of stock issued?
Book value
Lito is working with a discount broker. Which service would Lito NOT be likely to receive?
Face-to-face consultations
Hugh is an investor who opts for no risk U.S. Treasury Bills and intermediate term high grade corporate bond. What kind of investor is Hugh?
Conservative
What is the formula for measuring a firm’s working capital?
Working capital=current assets-current liabilities
What is a stock’s market value?
The current price of a share of stock in the stock market.
Lisa decided to withdraw 10,000 from her savings account and invest it in stocks. She wanted to invest in in such a way as to minimize her risk. Which one of the following strategies makes the most sense for a new investor like Lisa?
Invest 10,000 in a large-cap mutual fund
What is the term for buying several different kinds of investments rather than just one?
Diversification
Diamond Electronics has ascertained that it has positive working capital. Which of the following must be true of Diamond Electronics?
The firm’s current assets are large enough to pay off current liabilities.
Which of the following is the name for a portion of the ownership of a corporation?
Stock
The time it takes to double an investment can be estimated by using which of the following?
The Rule of 72
A firm makes bookcases, bicycles, soft drinks, armored cars, and novelty dishes. What do these items make up?
Product mix
The marketing staff has said that the company’s plan to develop and market waterproof perfumes might be hindered by a lack of experience in the perfume field. Which of the following is the BEST response to that weakness?
Hire a chemist to develop the fragrances
Some products can be sold abroad with virtually no changes. Which of the following is an example of such a product?
Coca-Cola
During the product life cycle, when do sales begin to slow down while profit levels are high?
Maturity
LiveLong Company provides volunteer participants with new products to try and then asks them to share the information with their friends, family, coworkers, and others in their social network. What is this type of marketing called?
Buzz marketing
