Introduction to Business Final

\________________ is the money a company generates through the sale of products and services.

Revenue

A(n) \_______ is a firm pursuing profits that offers products and services projected to fulfill​ consumers' needs.

business

The framework that outlines how a firm plans to generate revenue is known as​ a(n) \____________.

business model

Company LMT competes with other companies in the industry by offering the lowest prices around. By offering products at the lowest possible cost compared with other​ companies, Company LMT has​ a(n) \____________.

Competitive advantage

\____________________ attempt to operate efficiently and effectively to accomplish their goals but are not motivated by profits.

Not-for-profit organizations

\__________ is the functional area in charge of visualizing and creating new products.

Research and development

The​ \___________ function's responsibility involves finding opportunities in the​ marketplace, working with research and development to create products that take advantage of those​ opportunities, creating promotional strategies to connect with likely​ consumers, and establishing prices.

marketing

Mateo is a manager at Lawn Care Products​ (LCP). His primary responsibilities include​ recruiting, hiring, and supporting employees as well as making sure the company is in compliance with regulations regarding employee rights and workplace safety. Which function does Mateo perform at​ LCP?

Human resources

Which of the following business functions involves​ purchasing, logistics, and facilities​ management?

Operations Management

Which of the following is defined as the value of performing at a high level and behaving with determination and​ pride?

Professionalism

\_____________ refers to the analysis of how a society utilizes its limited assets to create and allocate various products and services.

Economics

Macroeconomics is the study of​ \________.

the analysis of a​ nation's more significant economic​ concerns, such as the manner in which firms​ compete, the impact of government​ policies, and the allocation and preservation of an​ economy's limited resources

Which of the following represents the worth of the most attractive option that was ultimately not​ selected?

Demand curve

An economic system centered on economic freedom and competition is known as​ \___________.

capitalism

​\_____________ is an economic structure involving government possession and control of significant business activities joined with private possession and control of less vital business activities.

Socialism

A​ \_____________ charts the amount of merchandise consumers tend to buy at

demand curve

Which term describes a condition in which a sole company controls a particular market to the extent that it has the ability to control​ prices?

Monopoly

Which of the following occurs when​ revenue, employment, and manufacturing decline over at least a​ 6-month period of​ time?

Recession

Which of the following describes an economic situation in which costs increase gradually through the economy as a​ whole?

Inflation

The U.S. dollar is an example of​ \_____________.

fiat money

Which of the following is accountable for safeguarding currency in consumer accounts and overseeing the transition any time a financial institution​ collapses?

Federal Deposit Insurance Corporation

Who decides the monetary policy in the United​ States?

The Federal Open Market Committee

Which of the following describes the rate that member banks charge each other to borrow money​ overnight?

Federal funds rate

What does the Fed do to inject money into the economy and decrease the federal funds​ rate?

Buys treasuries

A business that is owned by one individual is a​ \__________.

sole proprietorship

What is a disadvantage of operating a sole​ proprietorship?

Finite life span

Which statement describes the advantage of operating a sole​ proprietorship?

Sole proprietors have more privacy and generally are not required to report anything to anyone.

Which of the following is a characteristic of a general​ partnership?

The partners have joint liability for the​ firm's financial obligations.

Which of the following is a disadvantage of​ partnerships?

Potential for conflict

An S corporation is a​ \________.

corporation that combines the​ capital-raising options and limited liability of a corporation with the federal taxation advantages of a partnership

Investors who purchase shares of stock in a company are called​ \________.

shareholders

Which form of business is also known as a closely held​ corporation?

Private corporation

Which of the following is a disadvantage of​ corporations?

Reporting requirements

A​ \________ has unlimited​ liability, but the various​ \_______ who own the stock face only limited liability.

​corporation; shareholders

Two businesses coming together to form a single company is known as​ a(n) \__________.

merger

Which of the following is NOT a major contribution of small​ businesses?

They meet the needs of smaller organizations.

​A(n) \_________ summarizes an anticipated company​ project, including the​ project's objectives and strategies for accomplishing those objectives.

business plan

Compared with starting a new​ business, buying an existing business has both advantages and disadvantages. One of the disadvantages of buying an existing business is​ \________.

the potential for a considerable amount of financing

The​ \________ section of a business plan explains the purpose of the business and what it hopes to accomplish.

mission and objectives

​A(n) \_________________________ is a group of individuals with particular knowledge or important connections that assists a company owner with the evaluation of strategies and decision making.

advisory board

​\________________ is the initial collection of resources expended in order to establish a company.

Seed money

Companies with solid growth potential may seek public​ funding, which can be secured from​ \________.

an initial public offering​ (IPO)

​A(n) \____________ is an agreement in which an entity acquires permission to retail goods and utilize certain features of another​ business's structure.

franchise

Performing the decisional​ role, managers may​ \________.

decide about setting product prices and selecting employees

​\__________ focuses on establishing strategies and objectives for a company and proposing the best ways to achieve them.

Planning

A​ \____________ is a declaration of why a company exists and what it intends to achieve for consumers and stakeholders.

mission statement

A​ \_____________ is a succinct expression of the philosophies that influence a​ corporation's decisions and actions

values statement

Assessment of an​ organization's strengths and weaknesses relative to the opportunities and threats it faces is included in which of the strategic planning​ processes?

Performing a SWOT analysis

Which of the following represents the methods of coordinating resources in order to achieve a​ company's objectives?

Organizing

​\___________ are typically responsible for establishing​ objectives, fulfilling​ goals, and organizing work for other levels of management.

Middle managers

​\______________ supervise employees and fulfill the strategies established throughout other levels of management.

​First-line managers

Which one of the following statements is NOT a true representation of​ top-level managers in the management​ pyramid?

​Upper-level managers select top managers.

\__________ represents the practice of directing and inspiring individuals to successfully work toward company objectives.

Leading

Which of the following are inclined to regulate decision making and limit the choices of​ employees?

Autocratic leaders

​Laissez-faire leaders take the role of​ \________.

supporters and​ consultants, encouraging​ employees' ideas and proposing insights when asked

​\__________ involves methods of calculating progression toward objectives and modifying strategies as needed.

Controlling

When Juanita compares her​ company's key performance features with those of industry​ front-runners, she is​ \____________.

benchmarking

Which of the following are skills necessary to comprehend individuals and to work together successfully with​ others?

Interpersonal skills

​\____________ represent the capability and knowledge needed to implement the procedures of a specific occupation.

Technical skills

Consumer desires and​ requirements, pursuing​ long-term success, and assimilating marketing with other components within a business are all key aspects of​ \______.

the marketing concept

​\_______ represents the separation of various markets into​ lesser, more standardized clusters with comparable​ requirements, desires, and buying activities.

Market segmentation

The study of the statistical characteristics of a population is known as​ \______.

demographics

Which of the following contains elements that work together to create a marketing strategy including various​ goods, costs,​ deliveries, and consumer​ messages?

Marketing mix

Ordinary products and services which are purchased repeatedly and on a regular​ basis, such as milk or​ bread, are known as​ \________.

convenience products

​\______ represent significant goods and services that consumers purchase occasionally and that often require more intricate evaluations and comparisons in order to make a final decision.

Shopping products

Which of the following represents very specific product brands that a consumer expressly desires and will pursue no matter the price or​ distance?

Specialty products

\_______ are more costly company products that have extended​ lifespans, such as machinery and equipment.

Capital items

Which of the following occurs during the growth stage of a product life​ cycle?

A rapid jump in sales takes place if the product is successful.

During which stage of the product life cycle do the marketers try to extend the life of the product by highlighting​ improvements?

Maturity stage

\___________ involves retailing a new product for a limited time in order to evaluate its attractiveness and to gain feedback from consumers before a final product is fully released.

Test marketing

​\______ represent(s) the worth that a business has established for a certain product.

Brand equity

A​ \_________ is an illustration or​ word-based depiction of a brand and exemplifies the nonverbal recognition of a certain brand.

logo

A​ \_____ consists of legal protection given to a brand in order for its owners to possess private rights to its use and​ distribution, creating exclusivity and appeal for that particular brand.

trademark

Which of the following includes a collection of related goods available from a​ company?

product line

​\_______ represents the levels of responsiveness consumers have to fluctuations in costs for certain products and the effect those changes have on demands for those products.

price elasticity

Fixed costs include​ \________.

real estate taxes

A method of determining the least amount of sales required at a certain price in order to account for all fixed and variable costs is known as​ \_________.

​break-even analysis

​\____________ is a technique of determining product costs that involves taking into account the expense of production instead of market conditions and that often involves adding markups to products to calculate selling prices.

Cost-based pricing

​\_________ is a pricing technique used to establish larger initial sales quantities by offering a very low price in order to decrease competition and increase product attractiveness.

penetration pricing

Which of the following is defined as organizing accurate price​ evaluations, profitability​ statements, financial​ plans, and other information which is vital to company decision​ makers?

Management accounting

Which of the following represents a specialized area of accounting dedicated to assessing a​ business's operations and the monetary consequences of strategic choices such as​ pricing, employee​ benefits, and business​ acquisitions?

Financial analysis

A​ \_______ holds the top accounting position in a corporation and is in charge of supervising all accounting tasks.

controller

Which of the following represents an official analysis of the integrity and consistency of an​ organization's financial​ reports?

audit

\______ represents the acceptable procedures used by public firms in the United States for creating financial statements.

GAAP

​\_______ are valued business possessions including​ currency, real​ estate, structures,​ inventory, and investments.

Assets

The amounts businesses owe lenders and vendors for loans and supplies are called​ \______.

liabilities

​\__________ is the amount of a​ firm's resources that remain with the proprietors after all creditors have been paid.

Owner's equity

To calculate​ \_______, the cost of goods sold must be subtracted from sales.

gross profit

​\______ involves collecting money owed to a business.

accounts recievable

If a firm is considered to be highly​ leveraged, what does that mean for the​ firm's finances?

the firm carries a lot of debt

The bills a firm owes to its​ vendors, lenders, and other parties are called​ \__________.

accounts payable

Selling ownership in a firm to raise funds is called​ \_______.

equity financing

Any physical possession a creditor is allowed to take over if a debtor fails to pay a loan back is called​ \_______.

collateral

Which of the following​ include(s) venture capital and generally refers to specialized investment firms that tend to get involved after the VC​ stage?

private equity

Contracts whose worth is derived from another entity are called​ \_____.

derivatives

Which of the following handles the selling of​ IPOs?

primary market

Which of the following is LEAST likely to coordinate the sale or purchase of​ bonds?

stock exchange

When seeking to sell​ short-term debt​ instruments, what market would be most​ useful?

money market

Which of the following is a computerized stock​ exchange?

NASDAQ

The situation when stock prices have been rising over a long period is described as a​ \______.

bull market