PF Intro to Business Combined Exams Study Guide Flashcards
The idea that countries should produce and sell goods that they produce most effectively and efficiently, and buy goods that other countries produce most effectively and efficiently, is known as
A. comparative advantage theory.
B. absolute advantage theory.
C. free trade.
D. efficiency balanced trade.
Consider two used-car dealers: Bob’s Better Wheels and Dewey, Cheatum, and Howe Motors. Their prices are basically the same for similar vehicles even as their advertising screams that their products are different. Which kind of competition is going on here?
Monopolistic competition
The _______, created in 1995, is assigned the task of mediating international trade disputes.
WTO
In global trade, when the difference between money coming into a country from exports and money leaving a country due to imports or money flows from other factors is known as the
balance of payments
The EU is an example of a trading bloc, or _______, that has a common external tariff and no internal tariffs, and that coordinates laws to facilitate trade between member countries.
common market
Often, the _______ the risk, the _______ the rewards.
higher; higher
Typically, the quantity of products people are willing to buy will _______ when prices _______.
decrease; increase
In general, a person who owns and operates his or her own business can be thought of as a/an
entrepreneur.
Which statement best characterizes Adam Smith’s concept of the “invisible hand”?
The quest for personal gain works for the common good.
Uniform product codes are also known as
bar codes.
Calendula, Inc. sells its herbal teas at a lower price in foreign countries than those charged to consumers in Calendula’s home nation. In global trade, this is known as
dumping
_______ is the study of how to increase resources and create conditions that will make better use of resources.
Resource development
Americans are often accused of being ethnocentric. This means that
Americans feel their culture is superior to other cultures.
Which of the following about a capitalist system is correct?
It relies on honesty, integrity, and high ethical standards.
In a _______, consumers ultimately decide what should be produced.
free market system
The _______ denotes a common pattern wherein there’s a period of rapid growth in the economy when supply and demand stimulate each other, alternating with a period of decline accompanied by diminishing demand and supply.
business cycle
The number of businesses owned by immigrants, minority groups, and women has _______ in recent years.
increased
The trend toward two-family income has led to
flexible work schedules, pregnancy benefits, and elder-care programs.
The five factors of production include land, _______, capital, entrepreneurship, and _______.
labor; knowledge
To help employees become more effectively productive, companies may form cross-_______ teams that draw on people from different departments to work on a special project.
functional
Fair pay, respect for persons, and faithfully kept promises are characteristics of social responsibility to
employees.
In any company, _______ must guide and inspire the implementation and enforcement of an ethics code.
managerial leadership
Which of the following statements about the Revised Uniform Partnership Act is correct?
It’s a default agreement for establishing such things as how partners will divide profit.
Without doubt, the biggest disadvantage to franchising is
the startup cost.
In the world of business, a _______ is made up of a group of people or organizations who have unsatisfied wants and needs and the resources to fulfill those wants and needs.
market
The employees of Abs “R” Us, which includes 12 fitness parlors in and around the metro area, feel they can improve the performance of the company. They decide to pool their resources to purchase the company. This would be called a _______ buyout.
management
Some equivalent of the Golden Rule, which says we should treat others the way we wish to be treated, is found
in all major religious and philosophical systems.
As derived from the Markkula Center for Applied Ethics, which of the following should be one of eight guiding principles?
Preventing harm to others and to the world around us
It looks a lot like a corporation and can sell stock, but it’s taxed like a partnership. This would be a/an
master limited partnership.
The major disadvantage of a sole proprietorship is
unlimited liability.
A/An _______-based ethics code emphasizes preventing unlawful behavior through controlling behavior and punishing wrongdoers.
compliance
Xerox has a program called Social _______ Leave that allows employees to take leave for up to a year, at full pay and benefits, to work for a nonprofit organization.
Service
Respecting corporate social responsibility, Ronald McDonald Houses provides an example of corporate
philanthropy.
You learn that your friend has cheated on a final exam. If you decide to follow your text’s five-step process for making ethical decisions in your personal life, your first
recognizing that an ethical issue exists.
A social _______ is a systematic evaluation of a company’s progress in implementing socially responsible programs.
audit
According to your text, our main sources of ethical standards are religion and
culture.
The idea of providing the greatest good for the greatest number would best apply to the _______ approach to establishing ethical standards.
utilitarian
You’re in search of a type of company organization that provides limited liability, management flexibility, a choice of taxation schemes, and freedom from the hassles of selling stock or holding annual meetings. You would almost certainly choose to organize as a/an
LLC company.
True or False about the Sarbanes-Oxley Act?
It offers some protection to whistleblowers.
True
According to the _______ approach as a basis for ethical standards, you’ll make an ethical decision based on respecting and protecting the moral rights of those who will be affected by your decision.
rights
Which of the following statements about Maslow’s needs hierarchy is correct?
A. Self-actualization is a growth need
B. Social needs are considered more
C. Esteem needs must be satisfied before one strives to fulfill social needs
D. Safety needs are more basic than physiological needs
A
Based on a ______ statement, a company sets long-term ______ mutually agreed on by workers and management and, from these, sets specific short-term _____
mission; goal; objectives
Under a flextime plan, _____ time is a period of the workday during which employees are expected to be present and busy in the workplace
core
When you find your work personally satisfying - what is this known as
intrinsic reward
Manager Joe presents problems to his work group and gets suggestions before making a decision. Joe’s management style is
participative/democratic
In a three-year study of bricklaying, Frank and Lillian Gilbreth developed a principle of motion _____ by which every job could be broken down into elementary motions called therbligs
economy
When hired by Imp, Inc, Jake immediately began his job as an inventory clear. He was learning by doing in an approach to employee training called
on-the-job-training
In an organization hierarchy, which position is most likely to come under the category of first-line management
factory foreman
Among pay systems, the term variable pay usually applies to people who are paid
based on a percentage of their sales
In a line-and-staff pattern of organization, which position is most likely to serve a staff function?
A. shift supervisor
B. plant manager
C. chief financial officer
D. director of marketing research
While ___ leaders plan activities and timelines and keep the group on task, ___ leaders h help diffuse conflicts and encourage cooperative effort.
task; social
The concept of reasonable accommodation is directly associated with
the Americans and Disabilities Act of 1990
The researchers conducting the Hawthorne plant studies found that
the workers in the test room saw themselves as a social group
According to Herberg’s research to his two-factor theory, the highest ranked motivating factor turned out to be
sense of achievement
The American Federation of Labor was formed under the leadership of
Samuel Gompers
On an organizational chart, span of control refers to the
number of subordinates a manager supervises
The idea that people working at a similar jobs requiring the same levels of education, skills or training should receive equal pay is called _____ worth.
comparable
True or False about Theory Y - most people like work and find it as natural as play or rest?
True
If you carry out a SWOT analysis - you know that the O stands for
opportunities
What is SWOT
strengths, weaknesses, opportunities, threats
Within an organization, the first step in human resource planning is
preparing an employee inventory
Today, government and corporate security officials are most worried about
cyber terrorism
A ____ is a private data network that creates secure connections or ‘tunnels over regular internet lines
virtual private network (VPN)
For a newly developed product - Product X - Lo-Cal, managers calculate the item’s production cost plus an acceptable profit margin to set the prices. By contrast, one of their competitors Hi-Cal chooses a target costing approach. If Lo-Cal’s item price is based on cost, what is the basis for Hi-Cal’s pricing approach?
demand
Illustrating examples of ____ competition, Borders Books and Toys R Us are thought of as category killers
selection
If your marketing emphasis is on retaining customers over time by offering ever new products and services that exactly meet customer requirements, you’re engaged in ____ marketing
relationship
The 4Ps of marketing are
product, price, place and promotion
Vending is a form of ___ that succeeds by offering convenient locations, like airports, office buildings and service stations
retailing
Lorne & Greene has come up with a new product for its line of decorative flower pots, Lorne & Greene managers decide to use a break-even analysis to estimate how many of these new pots must be sold per month to make the company profitable. Using the break-even point (BEP) equation, they come up with a figure that’s a sum of rent, electricity, phone, and website hosting costs. This figure is a money amount called ____ in the BEP equation
total fixed cost
Wi-Fi stands for
wireless fidelity
The process of moving goods and materials from one place to another is called _____ chain management
supply
Prospecting and qualifying make up the first step in the ____ process
selling
Promotional strategies for B2B are most likely to include
portfolios for salespeople and trade shows
Among pricing strategy objectives, loss leaders are generally associated with
building traffic
To affect market ___, a company’s framework could be geographic, demographic, psychographic or benefit-based
segmentation
When a firm is working out its advertising budget, chances are good that the amount allocated to ____ will be the largest
television
PDQ company’s management decides to place its products in as many retail stores as possible. This is an example of _____ distribution
intensive
Among limited-function merchant wholesales, _____ keep title to the goods-displays delivered to retailers
rack jobbers
The term that refers to doing any kind of business online is
e-business
The XYZ company has come out with a new product - the Bee-Z2. It’s so novel that the competition will be nil, at least for a while. Therefore, XYZ management prices the Bee-Z2 high to gather profits while the sun shines. XYZ has adopted a ____ strategy.
skimming price
Which project would be best suited to a spreadsheet program
recording sales figures from several different stores and calculating profits
The first public offering of a corporation’s stock is called a/an _______, and it’s handled by the _______ market.
IPO; primary
An index fund is a mutual fund that
invests in stocks that follow Moody’s or other rating indexes.
The major completely electronic securities exchange in the United States is the
NASDAQ.
A specialized accounting book in which information is posted into specific categories so managers can find information about one account in the same place is called a
ledger.
In referring to the money supply, which of the following can be accessed quickly and easily and includes coins and paper money as well as checks?
M-1
The primary function of the Fed’s Board of Directors is to
set monetary policy
The first step in the accounting cycle is
analyzing and categorizing documents
The primary purpose of accounting is to
help managers and other stakeholders make informed decision
Carmen Santiago works for a number of businesses as a “consultant.” She has helped design accounting systems, provided accounting services, and analyzed the financial strength of her clients’ businesses. Carmen is working as a
public accountant
The first step in taking control of your finances is
taking an inventory of your assets.
Regarding bonds, which statement is most accurate?
Bond holdings are nearly always converted to common stock.
When planning for your future, an investment in a college education will, above all,
improve your earning potential
When a European coffee maker becomes less expensive to buy in the United States, you could probably say that we’re experiencing a _______ dollar.
rising
The _______ reports a firm’s financial condition on a specific date.
balance sheet
With respect to the Federal Reserve, the discount rate is the
interest rate charged for loans to member banks
When the Fed increases the reserve requirements - which is true
A. Banks have less money to lend.
B. Interest rates go down.
C. Inflation tends to go up.
D. Banks have more money to lend.
A
Earnings per share, return on sales, and return on equity are all _______ ratio
profitability
The _______ Act legislated new government reporting standards for publicly traded companies.
Sarbanes-Oxley
Which of the following statements about the money invested in a traditional IRA account is correct?
It isn’t taxed until it’s withdrawn.
Gross profit (gross margin) is equal to
A. cost of goods sold minus operating expenses.
B. revenue minus cost of goods sold.
C. gross sales minus net sales.
D. operating expenses minus taxes.
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