business essentials mid term

hardest thing ever have to pass😬

When should customer relations skills, such as courtesy and friendliness,
be emphasized during a business’s activities?

.	during marketing research
•	during technology planning
•
•	during facilities design

during the hiring process

How can positive customer relations boost productivity?

•	by avoiding wasted time and resources
•	by ensuring proper bookkeeping
•	by creating new manufacturing processes
•	by cutting down on equipment costs

by avoiding wasted time and resources

An office supply company provides discounts to teachers to make them
feel important. The company is modeling which activity?

•	communication skills
•	positive customer service
•	technology upgrade
•	business planning

positive customer service

what is a true statement about making promises to customers?

•	It is better to over-deliver.
•	Businesses should not make promises to customers
•	Customers do not remember broken promises
•	It is better to over-promise

It is better to over-deliver

The accounting document that shows a business’s revenue and expenses
is a

•	balance sheet
•	income statement.
•	statement of owner’s equity
•	cash flow statement

income statement

What should employees understand about each customer in order to
develop positive customer/client relations?

	the customer is a unique individual
•	The customer is in a hurry
•	The customer is a possible problem
•	The customer is like most others.

The customer is a unique individual.

The Happy Toys Company Board of Directors has decided to give some of
its profits from the year to its shareholders. It has decided to pay a:

•	tax
•	dividend
•	bribe
•	liability

dividend

When someone says that a business has good internal relations, this
means the business has which?

•	strong managers
•	satisfied customers
•	happy employees
•	business partners

happy employees

How are salespeople who practice good customer relations primarily
benefiting a business?

•	They are developing repeat customers
•	They are preventing customer objections.
•	They are segmenting the business’s market

They are developing repeat customers

Isabelle owns a home cleaning business. She invoices her customer and
records the transaction as soon as she finishes each home cleaning.
Which type of accounting method is Isabelle using?

•	cost
•	cash
•	accrual
•	managerial

accrual

Cash is an example of:

•	equity
•	liabilities
•	expenses
•	assets

assets

The finance activity regarding how to source income is called:

•	accounting
•	acquiring funds.
•	administering assets.
•	making capital investment decisions.

acquiring funds.

Which represents the inflow of funds into a business?

•	cash
•	debt
•	liabilities
•	expenses

cash

Kathy wants to know whether her boutique made or lost money this
month. The financial document she should view is her

•	cash flow statement.
•	income statement. (correct answer, your response)
•	balance sheet
•	statement of owner’s equity

income statement.

What is the primary reason customers give for not returning to a
business?

•	lack of available parking
•	lack of courtesy from salespeople
•	lack of advertised merchandise
•	lack of customer-service personnel

lack of courtesy from salespeople

The purpose of having accounting standards is to.The purpose of having accounting standards is to

•	produce documents that look professional.
•	create jobs for people.
•	avoid experiencing employee conflicts.
•	create uniformity between financial statements

create uniformity between financial statements

In the human resource management process, what is the first task to be
completed for staffing? 

1	screening and selecting applicants
2	determining job descriptions
3	recruiting
4	determining need

determining need

2. A group of individuals wants to open a museum that will display items
   from early settlers of the area. The group will charge just enough
   admission to pay the museum’s operating expenses. Will the museum be
   a business?
   
   

   1	Yes, the museum will be a not-for-profit business
   2	No, the museum will be a charitable institution.
   3	Yes, the museum will be a for-profit business.
   4	No, the museum will not be considered a business

Yes, the museum will be a not-for-profit business

What is one reason human resources management is important to the
success of a business?

1	Human resources is responsible for reducing wasted inventory
2	Human resources is responsible for eliminating jobs for the company
3	Human resources is responsible for staffing the business
4	Human resources is responsible for customer complaints

Human resources is responsible for staffing the business

4. A manager who helps an employee count the money in a cash drawer and
   prepare a bank deposit is demonstrating which workplace ability?
   

   1	natural talent
   2	technical skill
   3	creativity
   4	aggressive behavior

technical skill

When Caring Companions and Smiling Pets merged two years ago, what
was the most likely effect on the primary business activities of both
companies?

1	All of the primary business activities combined into two distinct activities.
2	Each primary business activity combined with the matching activity of the other firm.
3	All of the primary business activities were unaffected.

Each primary business activity combined with the matching activity of the other firm.

Which activity demonstrates information management?

1	researching customers’ needs
2	hiring appropriate employees
3	storing and retrieving employee payroll data
4	conducting employee evaluations

storing and retrieving employee payroll data

7. How can information management be a challenge?
   

   1	No one wants to participate in it.
   2	There is only one right way to do it.
   3	Many people do not understand what it is
   4	There is often not enough data to organize.

Many people do not understand what it is

8. Ian works in the marketing department. What is the primary business
   objective of his department?
   

   1	to prepare for long-term success by planning and organizing
   2	to hire qualified employees to perform complex job duties
   3	to help its corporation merge with another company
   4	to meet customers’ needs by offering appropriate products

to meet customers’ needs by offering appropriate products

What is the main purpose of management?

1	to create accurate financial statements
2	to reach a specific level of customer
3	to accomplish the business’s goals
4	to obtain the needed resources

to accomplish the business’s goals

10. Shannon is the manager and he ensures proper work effort by setting:
    

    1	hiring objectives
    2	Diversity quotas
    3	job standards
    4	expense budgets

job standards

Which is a reason that the role of human resources management is
changing?

1	The workforce is younger than ever.
2	There is greater diversity in the workforce
3	Employees place a greater emphasis on personal lives
4	Business costs are going down

There is greater diversity in the workforce

12. Which U.S. law relates to information management?
    

    1	The Taft-Hartley Act
    2	The Landrum-Griffin Act
    3	The Sarbanes-Oxley Act
    4	The Landrum-Griffin Act

The Sarbanes-Oxley Act

13. Which is an important function of human resources management?
    

    	capital investment
    	domain development
    	employee recruitment
    	social media

employee recruitment

Which statement is true about a management information system (MIS)?

	It may be one part of the overall business information program
	It does not assist with a business’s information management program
	It is the same thing as an information management program.
	It includes people, processes, and practices

It may be one part of the overall business information program

Which action is a part of information management?

	disseminating information for decision-making
	customer service protocols
	management of technology
	management of security operations

disseminating information for decision-making

Which is a trend in proper information management?

	increased number of workers in an office
	decreased competition
	increased compliance of laws and regulations
	decreased number of electronic documents

increased compliance of laws and regulations

Which behavior best describes the primary business activity of
operations?

	planning for future success
	keeping accurate financial records
	hiring qualified employees
	producing goods and services

producing goods and services

18. Which is a characteristic of human resources management?
    

    	creating inventory list
    	evaluating sales
    	working with people
    	scheduling production orders

working with people

19. Why is information management necessary for strategic information in a
    business?
    

    	to create sales presentations
    	to develop a short-term advertising campaign
    	to write an annual report
    	to make long-term decisions

to make long-term decisions

1. All Care pays for all of its expenses this fiscal year. The amount left over
   after all expenses have been paid is called what? 
   

   	debt
   	capital
   	profit
   	loss

profit

Negative events which an organization or company has no control over are:

	debits
	speculative risks.
	pure business risks.
	credits

pure business risks

In 1890, Congress passed a law that prevents monopolies from forming
and hinders price fixing. What law is this

	Celler-Kefauver Antimerger Act
	Sherman Antitrust Act
	Clayton Act
	Robinson-Patman Act

sherman antitrust act

A business decides against opening a store in the next town because its research shows the location will be unprofitable. What form of risk management is this? (1 point)

	avoidance
	retention
	transfer
	reduction

avoidance 

5. In some places, a company can have exclusive control of the supply of a good or service such as the trash service. This is an example of (1 point)
   

   	price competition.
   	nonprice competition
   	price discrimination
   	a regulated monopoly.

a regulated monopoly

Competition helps create a healthy society by (1 point)

	increasing the money supply
	creating new jobs
	making new government regulations.
	replacing small businesses with large businesses.

creating new jobs

A market structure that features no barriers to entry and has an unlimited
number of businesses selling the same products is a/an: (1 point)

	monopolistic competition.
	oligopoly
	perfect competition
	regulated monopoly

perfect competition

9. Arc Electric Company holds regular safety training meetings for its employees. What form of risk management is this?
   (1 point)
   

   	capital
   	reduction
   	retention
   	transfer

reduction 

10. What is the amount of money paid for raw materials and products sold? (1 point)
    

    	cost of goods
    	operating expense
    	gross profit
    	net profit

cost of goods

11. R & R Real Estate company buys errors and omissions liability insurance. What form of risk management is this? (1 point)
    

    	retention
    	transfer
    	avoidance
    	reduction

transfer

8. What is the name for markets with only a few sellers, such as the markets for
   automobiles, pharmaceuticals, or oil? (1 point)
   

   	perfect competition
   	monopolies
   	oligopolies
   	monopolistic competition

oligopolies

1. What is the economic basis for the private enterprise economic system? (1 point)
   

   	the motive of profit
   	competition
   	the marketplace
   	manufacturer supply chain

the motive of profit

2. What economy is based on public or governmental ownership of the production and
   distribution of goods? (1 point)
   

   	socialist
   	capitalist
   	mixed
   	traditional

socialist 

3. A small business is defined as a business employing fewer than how
   many people?
   (1 point)
   

   	500
   	1,000
   	1,500
   	750

500

4. The economic system that adopts the fewest new ideas or improvements is: (1 point)
   

   	socialist
   	traditional
   	communist
   	market

traditional

5. In a socialist economy, what determines how basic economic questions are answered?
   (1 point)
   

   	resources
   	products
   	government
   	retailers

government

Which factor is a barrier to small-business and entrepreneurial success? (1 point)

	having a clear strategic vision
	poor management
	having a surplus of employees
	no vision for expansion

poor management

Under which type of economy does the government own the basic means of production, but with some private ownership of businesses?
(1 point)

	communism
	entrepreneurship
	socialism
	command

socialism