Business Foundations Final (Rothwell)

true

true/false: greater adaptability to changing market demands is one advantage of a small business

expectancy theory

rahul works as an assistant manager in a car manufacturing firm. he wishes to be promoted to the position of manager but feels that it is unlikely to happen. as a result, rahul is not motivated to achieve the desired end. what theory best explains rahul's situation?

mcgregor's theory y

jill is the principal of a charter school. she believes that her employees like to work and that under proper conditions, they will seek out responsibility in an attempt to satisfy their social, esteem, and self-actualization needs. what theory of management would jill most likely follow?

false

true/false: the focus of all marketing activities is the successful transformation of resources into goods and services

true

true/false: a sole proprietor has unlimited liability in meeting the debts of his or her business

monopolistic competition

when different businesses promote similar products that differ in some characteristics but satisfy the same consumer need, the competition environment is most likely to be a...

true

true/false: one disadvantage of a partnership is the difficulty in selling the partnership interest

true

true/false: limited partners do not participate in the management of the business

countertrade agreements

exporting that involves bartering products for other products instead of for currency

export agent

an intermediary who usually handles international transactions for other firms

trading company

a firm that buys goods in one country and sells them to buyers in another country

false

true/false: the hawthorne studies found that money was the primary motivator for employees

false

true/false: modular design, an operations process for manufacturing products, does not allow products to be repaired quickly, thus increasing the cost of labor

false

true/false: service businesses cannot incorporate quality standards

false

true/false: one of the most significant drawbacks of small businesses is their inability to innovate and to bring significant benefits to customers

just-in-time inventory management

minimizing inventory by providing an almost continuous flow of items from suppliers to the production facility is referred to as...

motivation

an inner drive that directs a person's behavior toward goals

true

true/false: according to herzberg's theory, salary is a hygiene factor

false

true/false: an s corporation is taxed just like any other corporation

true

true/false: licensing is a good option for small manufacturers wanting to launch a well-known brand internationally

false

true/false: as an international business opportunity, direct investment provides the least amount of control but is also the least expensive way to participate in foreign trade

business ethics

principles and standards that determine acceptable conduct in business

economics

the study of how resources are distributed for the production of goods and services within a social system

social responsibility

refers to a business's obligation to maximize its positive impact and minimize impact on society

embargo

best defined as a prohibition on trade in a particular product

true

true/false: in a limited partnership, at least one partner has unlimited liability

business ethics relates to an individual's or a work group's decisions that society evaluates as right or wrong, whereas social responsibility concerns the impact of the entire business activities on society

how do the terms business ethics and social responsibility differ from each other?

in modified capitalism, the government intervenes and regulates business to some extent

how does modified capitalism differ from pure capitalism?

true

true/false: an electric supply is most likely to be a monopoly

c corporation

a law firm specializing in medical malpractice. each owner has unlimited liability for the debts of the business and all owners share in the management of the firm. this law firm is an example of a...

false

true/false: classroom training allows employees to learn by actually performing the tasks involved in their jobs

false

true/false: compensation for individuals within a specific job category depends on the compensation for that job and not on the individual's productivity

false

true/false: creating an innovative product that meets many users' needs is sufficient ini today's versatile global marketplace

false

true/false: the customer value of a product refers to anything a buyer must give up to obtain the benefits the product provides

false

true/false: profits are negative in the growth stage of the product life cycle

selection

function of human resources management that includes testing

selecting a target market

the first step in developing a marketing strategy is...

true

true/false: in the concentration approach to market segmentation, a company develops one marketing strategy for a single market segment

false

true/false: a commonly made mistake in interviews is not enough concern about compensation

true

true/false: during the growth stage of the product cycle, a firm tries to strengthen its position in the market by emphasizing the product's benefits and identifying market segments that want these benefits

price skimming

auto elite produces luxury cars with heated leather seats, sleek design features, and expensive technology that includes giving drivers a 360-degree view of the exterior of the car while they are driving. the pricing strategy that would most likely be associated with these cars is...

false

true/false: in accounting, a ledge is a time-ordered list of accounting transactions

false

when the federal reserve board (the fed) buys securities, it decreases the money in circulation

false

true/false: the principle is the amount of money a business pays to use a bank's funds

true

true/false: a marketable security is a temporary investment of cash

an organization's profitability over a period of time

an income statement shows...

revenue

the total amount of money received from the sale of goods or services, as well as from related business activities such as the rental of property and investments

current liabilities

a company's financial obligations to short-term creditors, which must be repaid within one year, are called its...

owners' equity

includes the owners' contributions to a company along with income earned by the company and retained to finance continued growth and product development

ratio analysis

calculations that helps managers compare an organization's productivity, profitability, and financing mix with other similar entities

store of value

when money serves as a way to accumulate wealth, money primarily functions as a...

higher is its interest rate

in general, the longer the term of a certificate of deposit, the...

buy government securities

what action is the federal reserve board most likely to take in an attempt to increase the money supply in the economy?

securities markets

danielle is an investor who wants to sell her stocks and bonds to other investors. what provides a mechanism for her to buy and sell stocks and bonds?

licensing

a trade agreement in which one company - the licensor - allows another company - the licensee - to use its company name, products, patents, brands, trademarks, raw materials, and/or production processes in exchange for a fee or royalty

contract manufacturing

occurs when a company hires a foreign company to produce a specified volume of the firm's product to specification; the final product carries the firm's name

joint venture

a partnership when a company wants to do business in another country by finding a local partner (occasionally, the host nation itself) to share the costs and operation of the business

strategic alliance

a partnership formed to create competitive advantage on a worldwide basis

direct investment

the ownership of overseas facilities

multinational corporation (mnc)

the highest level of international business involvement which is a corporation that operates on a worldwide scale without significant ties to any one nation or region

multinational strategy

the customizing of products, promotion, and distribution according to cultural, technological, regional, and national differences

global strategy (globalization)

a strategy that involves standardizing products (and, as much as possible, their promotion and distribution) for the whole world, as if it were a single entity

corporate citizenship

the extent to which businesses meet the legal, ethical, economic, and voluntary responsibilities placed on them by their stakeholders

codes of ethics

formalized rules and standards that describe what a company expects of its employees

ethical issue

an identifiable problem, situation, or opportunity that requires a person to choose from among several actions that may be evaluated as right or wrong, ethical or unethical

personal ethics

relates to an individual's values, principles, and standards of conduct

economic system

a description of how a particular society distributes its resources to produce goods and services

pure capitalism

a form of capitalism in which all economic decisions are made without government intervention

modified capitalism

form of capitalism that includes government intervention and regulation to an extent

open economy

an economy in which economic activities occur between the country and the international community

partnership

the least used form of business

general partnership

a partnership that involves a complete sharing in both the management and the liability for the debts of the business

limited partnership

a partnership that has at least one general partner (who assumes unlimited liability) and at least one limited partner (whose liability is limited to his or her investment in the business)

limited partnership

what type of partnership exists for risky investment projects where the chance of loss is great and losses are limited to their initial investment?

true

true/false: limited partners have no voice in the management of the partnership, and they may bear most of the risk of the business (while the general partner reaps a larger share of the benefits)

true

true/false: in general partnerships, the general partners have unlimited liability for the debts incurred by the business, just as the sole proprietor has unlimited liability for his or her business

true

true/false: partnerships are quasi-taxable organizations (this means that partnerships do not pay taxes when submitting the partnership tax return to the irs)

corporation

a legal entity, created by the state, whose assets and liabilities are separate from its owners

true

true/false: corporations account for the majority of all u.s. sales and income

corporate charter

a legal document that the state issues to a company based on information the company provides in the articles of incorporation

quasi-public corporation

a type of public corporation owned and operated by the federal, state, or local government

true

true/false: many quasi-public corporations operate at a loss

preferred stock

a special type of stock whose owners, though not generally having a say in running the company, have a claim to profits before other stockholders

common stock

stock whose owners have voting rights in the corporation, yet do not receive preferential treatment regarding dividends