Quarter 3 Final Exam Flashcards
A limited partnership allows an individual in invest and make management decisions in a business without incurring the liability associated with a regular partnership
False
The quantity to be purchased with minimizes total cost
Economic Order Quantity
A group of potential customers having purchasing power and unsatisfied needs is called a market
true
In business, a reduction of selling price below the original selling price is referred to as
Markdown
Partnership property is not protected against creditors of one partner
False
A BFOQ is
A qualification that is absolutely necessary
An unfavorable marketing sign would be the inability of residents to find local jobs
true
Which of the following is NOT included on the employment application
Applicant’s sex
WHich is a disadvantage of the Limited Liability Company form of business
If improperly structured, can be taxed as a “C” corporation
The Census of Population, Census of Business, and Census of Housing are all sources of published market data
true
The main objective in a market survey is
to determine where the potential customers are
A favorable marketing sign would include construction activity and the lack of vacant buildings
true
Which of the following is normally NOT a source of published market data
Census of banking
The process of determining by observation and study, pertinent information about the nature of a specific job is known as job analysis
true
A summary of how a business intends to organize and implement activities required in order to be successful
Business Plan
An individual owning a funeral home as a proprietor reports business income on his own income tax returns and is generally not liable for debts incurred by the business
false
A document that lists the major responsibilities and tasks of a job is known as
Description
A partnership is not a legal entity for most purposes
false
Purchasing power is the potential personal or family income available for the purchase of consumer goods
true
A partnership is limited to two individuals who both participate in the profits of the business according to some agreement
false
A business with growth potential that is small compared to large companies in an industry
Small business
Competition is the practice of trying to obtain something that is being sought by others under similar circumstances at the same time
true
In a business, the number of time the average inventory is sold or used up can be referred to as
Inventory Turnover
The wealth produced in or near a community that provides employment and income to the local population is known as the
economic base
The difference between merchandise cost and the selling price is known as the
mark-up
Which of the federal laws affecting employment concerns prohibits wage discrimination based on the sex of the worker?
Equal Pay Act of 1963
When a business provides a particular service to its customers it is aptly referred to as a
Service Business
A business organization that has a distinct existence separate and apart from existence of its individual members
Corporation
Comfort, convenience, and economy are three types of customer buying motives
true
A buying unit, or customers, are always described as a geographical area
false
If a prospective business owner attempts to statistically study such factors as human population size, density, distribution, and wealth, we would refer to this as
Demographics
The statistical study of human populations with respect to their size, density, distribution composition, and income is known as
demographics
A plan which provides inducements to potential purchasers of products and/or services is called
Sales Promotions
The art of making the public aware of the services or commodities that the business has for sale is known as public relations
false
Deciding how to make your product distinctive so that it will offer more value to your customers than your competitor’s products is a problem common to all businesses, large and small
true
Determining what can be done to make sure customers perceive the superior value of one’s products is a problem unique to small businesses
false
Which of the following is NOT used to measure the success of advertising
Income trends in the community
The practice of trying to get something that is being sought by other’s under similar circumstances at the same time is known as
Competition
Which of the following statements is TRUE concerning consumer credit
Credit customers are more interested in quality and service than price
The art of making the public aware of one’s products and/or services that are for sale can be referred to as
Advertising
Small Business
A business with growth potential that is small compared to large companies in an industry, has geographically localized operations, is financed by only a few individuals, and has a
small management team.
Entrepreneur
A person willing to create value, in either a new or an existing business, while assuming both the risks and the rewards for his/her efforts
Functions of Management
Planning
Organizing
Directing/Actuating
Evaluating/Controlling
Planning
- That function of determining in advance what needs to be accomplished to achieve a particular goal
- Developing a Mission Statement
- Setting Goals
- Setting Objectives
Organizing
Using all resources; human resources, materials, processes etc. to meet goals
- Specifics are decided
- Creates team environment
Directing/Actuating
- A process in which the managers instruct, guide, and oversee the performance of the workers to achieve predetermined goals.
- This can be achieved by removing obstacles, creating a pleasant environment, and placing the proper resources in place.
Evaluating/Controlling
- Compares organizational and individual performance with predetermined standards or expected results
Manufacturing Business
A business that makes finished goods from raw materials by hand or machinery
Merchandising Business
A business that purchases finished goods for resale
Service Business
A business that provides a service as opposed to a product
Sole Proprietorship
A business owned by one person, who bears unlimited liability for the enterprise
- AD:Simplest and cheapest way to start a business
- AD: Owner holds title to all firm’s assets and receives all the firm’s profits
- DIS: Owner is subject to claims of creditors
- DIS: Owner must bear all risk, pays all debts
- DIS: Death of owner terminates business
- DIS: Owner bears unlimited liability
Partnership
A legal entity formed by two or more co-owners to operate a business for profit
AD: Faster business setup
AD: All aspects of business are shared
DIS: Share profits and losses equally (unless agreed to a different ratio)
DIS: Owners share unlimited liability
DIS: Personal conflicts
DIS: Decision-making may be harder
DIS: Owners must share equal parts
Corporation
A business organization that exists as a legal entity and provides limited liability to its owners
AD: Continuity in existence
AD: Ease of ownership
AD: Limited Liability
AD: Large Financial Capability
DIS: Legal restrictions on activities
ownership in a corporation is readily
transferable upon death
DIS: Separation of ownership/control
DIS: Lack of personal interest
DIS: Double taxation of earnings
Limited partnership
A partnership with at least one general
Limited Partner
A partner in a limited partnership who is not active in its management and whose liability is limited to his or her investment.
C Corporation
An ordinary corporation, taxed by the federal government as a separate legal entity.
S Corporation
- subchapter S corporation
- A corporation that offers limited liability to its owners and passes taxable income or losses on to stockholders.
Limited Liability Company
A form of organization in which owners have limited liability but pay personal income taxes on business profits
