Foundations of Business (Jihna Lee)

Omar and Sam are physical therapists who work together. Their office is on the first floor of a building Omar owns. They need protection for their personal assets as well as for themselves in case of any errors their partner may make. Which business structure would best suit their company?

An LLC

Which of the following would be a reason a business is structured as a C corporation?

The corporation can continue if any one or more of the owners are no longer affiliated with the business.

The mission and purpose of a _____ organization is to further a social cause and provide a public benefit.

Nonprofit organization

Jackson Eats is a partnership owned by Jesse and Robert Jackson. They need additional capital to expand to a new location, so they have decided to bring in Sean, who will only contribute capital. Sean would best be considered as a(n) ___________________.

limited partner

Which of the following is an advantage of a sole proprietorship?

There is little paperwork involved in starting up.

Which of the following corporate structures does not offer limited liability for its owners?

A sole proprietorship

A group of people elected by a firm's shareholders to oversee the operation of a corporation are _______________.

the firm's board of directors

Which of the following is a benefit of cooperatives?

The power of the group enables the cooperative to negotiate for goods and services at favorable prices.

Dad's Camping Equipment Co. buys tents from Daughter's Outdoor Tent Co. If Dad's company merges with Daughter's company to form Family Outdoor Equipment Store, which of the following best describes the type of transaction that occurred between the two companies?

A horizontal merger

The management team of Company A has contacted the shareholders of Company B, encouraging them to replace their current managers with a new group who are more in line with the goals of Company A. Company A is launching a ___________________.

proxy fight

Any business can elect to be an S corporation.

False

Liabilities incurred in a sole proprietorship have no impact on the owner's personal income.

False

A small, privately owned company can be structured as a corporation.

True

Some business owners incorporate to give their start-up business an air of legitimacy.

True

A partnership agreement should include procedures that outline how a partner's departure from the business will be handled as well as how new partners are to be brought in.

True

A database management system (DBMS) ____________________.

collects tables of data for analysis

MIS differs from IT because ________________.

MIS focuses on applying IT to solve business problems

DSSs are used most often by ___________________.

managers who want to predict the impact of business decisions

Data warehousing is _________________.

the storage of petabytes of transaction data

The IT department is often responsible for _________________.

security, network design and management of mobile computing resources

Pay-per-click advertising ________________.

All the choices are correct.

Social media monitoring is best described as ___________________.

staying aware of the messages posted about your products in cyberspace

Phishing can be used to ___________________.

steal identity information from unsuspecting clients

Business-to-business transactions include _______________.

both brokering sites and specialized industry portals

The modern workplace faces security challenges that include ___________________.

All the choices are correct.

Contextual advertising means that the advertisement is related to the search just made.

True

The company chief information officer (CIO) is responsible for data center operations as well as security policies.

True

Viral marketing can be prevented by using the proper spyware.

False

Enterprise social networking is the application of social network tools to education.

False

Crowdsourced funding is the use of social networking to acquire capital for a new venture.

True

Which continuous production system moves a product sequentially from one work center to the next as the product is built?

Assembly line

Mass customization is achieved by using which type of system?

Flexible manufacturing

Which production process strives to reduce waste and improve production flow?

Lean production

If the Ford Motor Company wants to understand the aerodynamics of a new auto body, which of the following would be used to create a virtual three-dimensional model of the auto body?

CAD

Which of the following is a set of environmental quality standards that can be applied to any organization?

ISO 14001

An inventory control system that keeps the smallest amount of inventory on hand and reorders inventory only when need is called ________________.

a just-in-time system

Which feature best describes a PERT chart?

It identifies the critical path of tasks in a project.

Radio frequency identification is used to _________________.

keep track of the status and quantity of each inventory item

Which type of facility layout uses small teams who move through their workstations to assemble a product from start to finish?

Cellular layout

Which best describes Six Sigma?

It obtains near perfection through continuous improvement.

Robots can work around the clock with good accuracy and in potentially hazardous conditions.

True

CAD refers to combining design and manufacturing functions along with other automated functions.

False

Supply chain management refers to the process of delivering the supplies necessary for manufacturing.

False

The make-or-buy decision determines what part of the production process needs to be outsourced.

True

Because the United States is more of a service-based economy, manufacturing is not a contributor to the GDP.

False

Which marketing era reflects the marketing philosophy of companies that give away a product to someone in need for every product purchased?

Societal marketing era

When a car is purchased, 
time utility
refers to the value customers receive from _________________.

ensuring the car is available when the customer wants it

When a car is purchased, 
time utility
refers to the value customers receive from _________________.

ensuring the car is available when the customer wants it

Which of the following would not normally appear in a marketing plan?

An outline of sales goals and objectives

Tenitia Reynolds opened a small community bookstore several years ago. When a new book comes out, Tenitia e-mails those clients that will enjoy it based on their past purchases. Which part of the marketing process does Tenitia's actions reflect?

Building positive customer relationships

Bill Wertz runs a transportation service that caters exclusively to the residents of retirement communities. Bill's business is taking advantage of which of the following marketing environments?

The sociocultural environment

Which of the following does not define a B2B market?

The market consists of small-volume purchases in a geographically dispersed area.

Market segmentation based on lifestyles, personality traits, motives, and values is called _______________.

psychographic segmentation

Which of the following represents a shift from the four Ps to the four Cs of marketing?

All three are correct

Which of the following best describes digital marketing?

Using e-mail, social media, and mobile applications

Which is not an example of secondary data?

Focus group results

The main difference between the B2B and B2C markets is that B2B markets have fewer buyers that purchase many more individual quantities.

True

Purpose is one of the four Ps in the marketing mix.

False

A market niche is a narrowly defined market segment.

True

Societal marketing is a corporate philosophy in which social marketing aims at changing consumer behavior.

False

Not-for-profit companies do not need marketing campaigns.

False

When you order take-out pizza, which represents the actual product?

Crust with tomato sauce and cheese

Which of the following is 
not
an example of a product line length?

Honda Civic, Honda lawn mower, and Honda marine engine

Which of the following is not an example of a product line length?

Honda Civic, Honda lawn mower, and Honda marine engine

An automobile would be classified as what type of product?

Shopping

Suppose you are a huge fan of Starbucks coffee. You use the mobile app to order online and earn free rewards, post about your experience with baristas and your reactions to new flavors, and you only use mugs with Starbucks' logos. Which level of brand equity have you reached?

Brand relationship

Spotify and Uber have partnered so users can play music from their Spotify account directly through the Uber app. This is an example of which type of branding?

Co-brand

Siobhan Clark just bought a Chicago Cubs jersey with player Jon Lester's name and number on the back, as well as a hat and jacket that display the Cubs logo. The type of branding strategy used for these products is ____________.

brand licensing

In which stage of the product life cycle would a company with radically rising sales and who attracts innovators despite high costs per customer be in?

Growth

Stephanie Ling has been asked to conduct a breakeven analysis. In which category would cost of rent for the manufacturing facility be placed?

Fixed cost

Those who shop only at Walmart believe they will receive the lowest price, quality service and products, and without hassles. This type of pricing strategy is known as __________ pricing.

everyday low

Sally and Brian only go shopping on Tuesdays because they can get the senior discount. Which pricing strategy are they taking advantage of?

Price segmentation

The actual product is the primary benefit or service that motivates a consumer's purchase.

False

A local pizza joint increased its prices, so now you buy pizza elsewhere. Pizza is therefore an inelastic good.

False

The local small appliance store has microwave ovens for sale at a price of $149.95. The price tag notes that the manufacturer's suggested retail price is $160. This type of pricing is referred to as reference pricing.

True

B2B products have different marketing strategies than B2C products.

True

A product's packaging is used only to provide protection of the good's contents.

False

Which of the following would not be a step involved in a promotional campaign?

Determine the warehousing costs

Starbucks sends a text announcing that today is your double stars day. This is an example of ________.

direct marketing

Your college professors take on what kind of sales role when they select books for their class?

Order influencer

Ryobi tools are sold in Home Depot and Black + Decker tools are sold at Lowe's. What kind of distribution strategy is being used by Ryobi and Black + Decker?

Selective

Your grocery store most likely purchases Oreos and other Nabisco products from a(n) _______________.

wholesaler

Which type of distribution logistics is involved in bringing raw materials, supplies, and information from suppliers to the producer?

Inbound

Which of the following is 
not 
an example of a nonstore retail outlet?

A factory outlet

American Idol
judges often have tall glasses embossed with Coca-Cola's logo on their desks. This advertising strategy is known as _______________.

product placement

Which of the following is a B2B sales promotion tool?

Sales contests

QR codes, text messages, and apps are part of what kind of promotional strategy?

Mobile marketing

The product itself can be considered part of the promotional mix because samples of it can be given away to demonstrate its features.

True

Finding the best way to communicate the benefits of a product and persuade customers to buy it is a critical job of distributors.

False

Personal selling is the least expensive part of the promotional mix and, therefore, should always be used.

False

Using marketing intermediaries often adds efficiency to the supply chain.

True

Products being returned back to the producer when they are defective is considered inbound logistics.

False