Intro to Business Management Exam Study Guide

Lifestyle is identified by which of the following?

Activities, interests and opinions

Efficient companies have increased their specialization and technology.

True

Which form of advertising media is the most inexpensive?

Newspapers

Which category of risk can be predicted and occur when there is a change of either a profit or loss?

Speculative risks

Which of the following is an economic system in which businesses are privately owned and product development is proportionate to the accumulation and reinvestment of profits gained in free market?

Capitalism

What is the term used to describe the ability to achieve a desired result without wasted energy, for example producing goods/services quickly and at a low cost?

Efficiency

______________ is any form of communication a business or organization uses to inform, persuade or remind individuals about its products or services.

Promotion

Which of the following is defined as two or more consecutive fiscal quarters of decreasing GDP?

Recession

Installing security cameras is an example of which risk management technique?

 Risk reduction

__________ accounts for all income before deductions, but __________ is monetary gain after subtracting operating costs.

Revenue; profit

Which form of advertising media is the most expensive?

Television

What is the segment of individuals who benefit from your product called?

Target market

Which technique for dealing with risk often involves the purchasing of insurance?

Risk transfer

Which of the following are materials used in producing goods or providing services?

Economic resources

What term is used to describe he ability to cause a desired or intended result, for example, the ability to offer goods/services consumers want?

 Effectiveness

Which of the following is an advantage of a house buyer?

Freedom to remodel or redecorate

You should review your risk management techniques every __________.

 Year

What does a customer try to achieve by asking “what problem am I trying to solve?”

Identifying the needs

Which of the following terms means “single buyer”?

Monopsony

Which of the following accurately describes a franchise?

An agreement to operate a business in the name of an established company

How many steps are in the risk management process?

 Five

An economic system in which there is increased government involvement where the goal is to keep prices low and provide jobs for everyone is known as which of the following?

Socialism

The amount of product available to the market is known as which of the following?

Supply

Which type of sales promotion can make customers feel valued?

Loyalty programs

Coupons, fliers and invitations are examples of what form of advertising medium?

Direct mail

Which of the following is the first step of the consumer decision making process?

Need identification

What is the ultimate goal of personal selling?

Closing the sale

Which type of economy resembles communism because most resources are government owned?

Socialist

Which of the following best describes capital?

The monetary funds invested in a project

A formal proposal which provides detailed descriptions of a new business to potential investors and lenders is known as which of the following?

A business plan

What are the two basic aspects of advertising?

The message and the medium

Which phase in the business cycle is defined as the period of lowest economic activity?

Trough

Which of the following describes statistics?

The collection, organization and analysis of numerical data, especially of survey results

Which of the following can be defined as the taxes placed on imports?

Tariffs

Selecting a set of brands and then considering when and where to buy describes which of the following types of purchase behavior?

Item first

Which of the following is typically the most costly sales promotions

Demonstrations

Which types of products are often featured in window displays?

New and specialty products

Public relations is often associated with which of the following?

Publicity or “free advertising”

Which of the following types of advertising is used to influence the way a customer perceives a product?

Image

Which of the following is the most complicated form of business?

Corporation

Which type of advertising media timing is designed to provide greater exposure over a longer period and build customer loyalty?

Continuous ads

Efficiency can be improved by gathering information from customers.

False

If a company takes the results form a customer survey and uses it to make a projection, what type of projection are they likely to make?

Product growth projection

Which of the following is an example of risk avoidance?

Running a background check on employees

Which of the following describes the business action of two or more companies striving to gain customers?

Competition

What is the most expensive radio time slot for advertising?

Morning drive

If a company is able to use data to better predict the amount of inventory they need to have on hand, which type of projection are they using?

Sales projection

Which of the following is a French term for “let do”?

Laissez-faire

When are business risks generally greatest for a business?

When a business first begins operation

What are the two basic aspects of advertising?

The message and the medium