Intro to Business- Midterm Exam Questions and Answers

75% of start up capital for a business.. - savings, bank loans, and credit cards small businesses are independent businesses with fewer than how many employees - 500 specialists with responsibilities for specific parts of a company's operations - middle management Long Term Financing - money needed for main resources of a business start up financing - money needed for inventory, supplies, and licenses short term financing - money needed for operating activities of a business Minorities who own a business (%) - 17% Women who own businesses (%) - 25% Owners under 35 years old (%) - 14% Businesses that are home based (%) - 50% True or False. Core values describe the reasons a business exists - FALSE Long Term & Short Term Goals are in - Description of Business sales forecasts are in - Customer Analysis Human Resource Plans are in - Operations Plans description of resources needed is in - Marketing Plans Budget and Financial Statements are in - Financial Plans True or False. Venture Capital is money provided by large investors to finance a new business - TRUE True or False. Tactical management is more collaborative - FALSE True or False. Over a 10 year period, more than 50% of all businesses are discontinued - TRUE True or False. A small business typically dominates its field - FALSE True or False. The SBA is a government agency that helps small business owners obtain financing - TRUE Which group started a wave of retirement in 2011? - Baby Boomers BY 2018, nearly 1/2 of all jobs will be held by - Women A majority of US businesses employ how many people? - 1 True or False. Management is the process of accomplishing goals of an organization through the effective use of people and resources - TRUE Easiest form of business to start and end - proprietorship Business that makes up 9.55% of all US business - partnership A written expression of the reason a business exists and what it wants to achieve - Mission Statement A precise statement of results a business expects to achieve - Goal Guidelines used in making consistent decisions - Policies Descriptions of the way work is to be done - Procedures True or False. The direction for a business comes from its policies and procedures - FALSE. (Goal & Mission) True or False. A contingent worker is one who has an explicit contract for long term employment - FALSE True or False. Unity of command means there is a clear reporting relationship for all staff - TRUE True or False. The company purchasing rights to run the business is known was the franchiser - FALSE. (Franchisee) True or False. Strategic management style is when the manager is more directive - FALSE obtaining, preparing, and compensating employees - staffing identifying and arranging work and resources needed - organizing the effort to lead and direct people - implementing analyzing information and setting goals - planning determine to what extent the business is accomplishing goals - controlling people responsible for the day to day work of a small group of employees - supervisors people who set long term direction and plans - top management influence that stems from personal trust and reputation - identity influence when a leader has ability to get others to accomplish tasks bc of who they are - position influence type of influence can be wages, benefits, etc - reward influence which of the following is NOT considered a need? - credit card which of the following is considered a want? - cable TV needs and wants are.. - unlimited which is NOT considered a component of GDP - charitable spending GDP is the total value of all goods and services produced in a country during - one year which of the following would NOT result in more productivity? - increased wages which of the following is NOT a tax collected by the government? - transportation tax which of the following is a legal monopoly in the US? - DTE Energy Which of the following would NOT be prevented by anti-trust laws? - rain checks A word, symbol, or letter linked w/ a company or product - trademark protects rights of authors, composers, etc - copyright Economic Resources - natural, human, capital True or False. If consumers want a particular good or service, its price will go down - false True or False. competitors are businesses offering very similar products to the same customers - true True or False. the market price is where supply exceeds demand - false True or False. when customers cannot find a good substitute, demand for that product will be high - true True or False. GDP per capita is calculated by dividing GDP by total population - true True or False. people are considered unemployed if they are unwilling to work - false True or False. wages tend to decrease during inflation - false True or False. the US household credit card has been decreasing or staying steady since 2010 - true True or False. the US government currently has the highest possible credit rating for borrowing - false true or false. about 25% of workers are public employees - false true or false. electricity is an example of public utility - true true or false. collecting a fee for fishing license is one way the government earns money - true true or false. timber is an example of a non renewable resource - false1 true or false. social responsibility refers to the duty of a business to contribute to the well-being of a community - true most nations in world operate this type of economy - mixed economy the resources owned and controlled by the population - market economy the resources are owned and controlled by the government - command economy economy used by less developed countries and not in global economy - traditional economy 4 Phases of Business Cycle - recovery, prosperity, recession, depression the cost of borrowing for large US corporations - corporate bond rate the rate for time deposits at savings institutions - cert. of deposit rate the rate financial institutions are charged to borrow funds from the Federal Reserve - discount rate the rate banks make available to their best business customers - prime rate they yield on long term US government debt bonds of up to 30 years - treasury bond rate the amount individuals pay to borrow for a new home - mortgage rate the yield on short term US government obligations - t-bill rates no fraud or deception exists - legality an offer must be made and acceptance must occur - agreement those entering the contract must be of legal age and of sound mind - competent parties something of measurable value must be exchanged by the parties involved - consideration True or False. Financial planning is needed by a small business only until it begins to make profit. - False True or False. Employees rather than managers are responsible for the financial health of a company - False True or False. A cash budget is an estimate of the actual money received and paid out for a specific time period. - True True or False. Businesses are responsible for making required federal and state payments for each employee - True True or False. Sales and profits for a specific period are reported in a company' financial strength - True True or False. By watching a TV commercial, you are taking part in a marketing activity - True True or False. Emotional buying are reasons to purchase based on feelings, attitudes etc - True True or False. Rational buying are reasons based on fact and logic - True True or False. The first step in marketing research is to develop a data collection procedure - False True or False. Communication begins with a person or company known as the receiver. - False True or False. C2B is the long economic tradition of bartering and auctions among consumers - False True or False. CAD involves using a computer at home to do a job - False True or False. AI is software that enables computers to reason, learn, and make decisions - True True or False. Computer crime is white collar crime (non violent) - True True or False. The physical elements of a computer system are called software - False What are a specific group of consumers who have similar wants and needs? - Target Market What is the blending of the 4 marketing elements? - Marketing Mix What considers the needs of customers when developing a marketing mix? - marketing orientation what is a company's plan that identifies how it will use marketing to achieve its goals? - marketing strategy What is non-paid promotional communication presented by media rather than the business being promoted? - Publicity What are activities and materials designed to reinforce a company's brand and image? - Sales Promotion What is an ongoing program of paid and non-paid communication, planned to favorably influence public opinion about an organization, effort? - Public Relations which measure of memory capacity represents a billion bytes? - Gigabyte 1/2 byte - nibble Shows how much profit is being made by each dollar of sales for the period being analyzed? - Net Income Ratio Shows the rate of return the owners are getting on the money they invested in the company? - Return on Equity Ratio Tells you if a business can pay its debts as they become due? - Current Ratio Tells you how much the business is relying on the money borrowed from others that will have to be paid back rather than money provided by the owner? - Debt to Equity Ratio program that formats data in columns and rows in order to do calculations - spreadsheet creating a slideshow for educational and business seminars - presentation software allows the user to enter, store, revise, and print for letters, memos, reports, etc - word processing includes graphics software to prepare charts, graphs, visual elemetns - desktop publishing an organized collection of info with data items related to one another in some way - database software identify the type and quantity of resources and products on hand along with current value of each - inventory records show all taxes collected, paid, and owed - tax records identify amount assets have decreased in value due to age and use - depreciation records list of all cash received and spent by the business - cash records contain info on all employees of the company, their compensation, and benefits - payroll records identify all purchases made using credit - record of accounts identify all buildings and equipment owned by the business; incl. their value and the amounts owed on them - asset records setting and communicating the value of products and services - pricing obtaining, managing market information to improve business decisions and performance - marketing information management determining the best ways for customers to locate, obtain, and use products and services - distribution designing, developing, maintaining products and services that meet customers' needs - product and service managment communication directly with potential customers to determine and satisfy their needs - selling program that formats data in columns and rows in order to do calculations - spreadsheet creating a slideshow for educational and business seminars - presentation software allows the user to enter, store, revise, and print for letters, memos, reports, etc - word processing includes graphics software to prepare charts, graphs, visual elemetns - desktop publishing an organized collection of info with data items related to one another in some way - database software identify the type and quantity of resources and products on hand along with current value of each - inventory records show all taxes collected, paid, and owed - tax records identify amount assets have decreased in value due to age and use - depreciation records list of all cash received and spent by the business - cash records contain info on all employees of the company, their compensation, and benefits - payroll records identify all purchases made using credit - record of accounts identify all buildings and equipment owned by the business; incl. their value and the amounts owed on them - asset records setting and communicating the value of products and services - pricing obtaining, managing market information to improve business decisions and performance - marketing information management determining the best ways for customers to locate, obtain, and use products and services - distribution designing, developing, maintaining products and services that meet customers' needs - product and service managment communication directly with potential customers to determine and satisfy their needs - selling ESSAY QUESTIONS - ... 1) Identify & Describe the 4 economic systems. Be specific. (Ch.1) - Market Economy: Mixed Economy: Command Economy: govn't controls resources and production; china Traditional: 2) List and describe 5 functions of managers. (Ch.7) - staffing, implementing, planning, organizing, controlling (look up for description) 3) What is a target market? Write a description for the target market of Ray Ban Clubmaster sunglasses. (Ch.10) - specific group of people who have similar needs and wants; target market for this product would be boys ages 15-30ish; they are expensive so someone who has $100+ to throw away; mainly someone who is into fashionable accessories budgeting for marketing activities, getting funds, and providing financial assistance to customers - financial analysis 4 Types of payroll Taxes - income, unemployment, medicare, social security True or False. An implied warranty is usually printed in the owner's manual of a product. - False. True or False. The Consumer Bill of Rights was first presented by Gerald R. Ford - False True or False. Fraud occurs when consumers are given false info in an effort to make a sale - True True or False. Debt collection is the number 1 source of consumer complains - True True or False. The FDA inspects and grades meat and other foods - False True or False. The principle of a loan is the total amount of interest that will be paid. - False