ENT3003 Final Exam

TRUE

(T/F) Businesses add value by transforming lower-value inputs (like paper and ink) into higher-value outputs (like textbooks).

TRUE

(T/F) Businesses can have both positive and negative effects on society.

revenue

________ is money a company brings in through the sale of goods and services.

business model

A/an _______ is a concise description of how a business intends to generate revenue.

service

Lisa has a small language training business. She provides French and Spanish lessons to several customers in the neighborhood. What type of business does Lisa have?

FALSE

(T/F) Economies of scale are savings from not buying too much of any one thing.

FALSE

A country that imports more than it exports would have a trade surplus.

international monetary fund

The ________ was established in 1945 to foster international financial cooperation.

trading blocs

_______ are organizations of nations that remove barriers to trade among their members and that establish uniform barriers to trade with nonmember nations.

exporting

John, a jewelry maker in Florida, receives international orders through his website. He ships the products from the production plant in Florida to other countries after receiving confirmed orders. This scenario is an example of ________.

TRUE

(T/F) Ethics are the rules or standards governing the conduct of a person or group.

FALSE

Culture is NOT an influence on ethical behavior.

corporate social responsibility

The idea that a business has obligations to society beyond the pursuit of profits is ________.

is more likely to be sustained over time

Unlike philanthropy, strategic CSR (Corporate Social Responsibility) _____________.

greenwashing

An eco-friendly health resort claims to be environment friendly, and markets itself as an eco-resort. However, it engages in irresponsible activities such as wasting of water, disposal of plastic and untreated wastes into the water bodies, and cutting trees in protected areas to expand its facilities. This is an example of ___________.

TRUE

(T/F) Establishing a corporation is more complicated and expensive compared to establishing a sole proprietorship.

FALSE

(T/F) A joint venture does not result in a separate legal entity.

is owned by only one person

A sole proprietorship _________.

Unlike a sole proprietorship, a corporation's owners have limited liability.

Which of the following is a key difference between a corporation and a sole proprietorship?

partnership

A _________ is an unincorporated company owned by two or more people.

TRUE

(T/F) Lifestyle businesses are built around the personal and financial needs of an individual or family.

FALSE

The first infusion of capital used to get a business started is called an Initial Public Offering (IPO).

entrepreneurial efforts within a larger organization

Intrapreneurship refers to _____________________.

proposed business venture, goals, and plans for achieving those goals

A business plan is defined as a document that summarizes the ____________.

advisory board

A(n) ___________ is a form of "group mentoring" in which you assemble a team of people with subject-area expertise or vital contacts to help review plans and decisions.

FALSE

(T/F) First-line managers are those at the highest level of the management hierarchy.

TRUE

(T/F) Leading is the process of guiding and motivating people to work toward organizational goals.

planning

Developing strategies, establishing goals and objectives for the organization, and translating those strategies and goals into action plans is part of the __________ function of management.

strategic plan

A ________ establishes the actions and resource allocation required to accomplish strategic goals.

technical

Which of the following skills refers to the ability and knowledge to perform the mechanics of a particular job?

TRUE

(T/F) Organization Structure is a framework that enables managers to divide responsibilities, ensure employee accountability, and distribute decision-making authority.

FALSE

(T/F) Conflict is always destructive in a team and should be avoided.

functional

Grouping workers according to their similar skills, resource use, and expertise is called a _______ structure.

assigning employees to both a functional group and a project team

Which of the following is a characteristic of a matrix structure?

groupthink

Uniformity of thought that occurs when peer pressures causes individual team members to withhold contrary or unpopular opinions is called __________.

FALSE

(T/F) Stealth marketing is a marketing approach in which firms first ask permission to deliver messages to an audience.

TRUE

(T/F) Strategic marketing planning refers to the process of examining an organization's current marketing situation, assessing opportunities and setting objectives, and then developing a marketing strategy to reach those objectives.

form utility

When a manufacturer combines fabric, buttons, and zippers to create clothing, it creates ________.

marketing research

Collecting and analyzing information for making marketing decisions is knows as __________.

market penetration

________ involves selling more of your existing products into the markets you already serve.

TRUE

(T/F) Expense items are inexpensive products that organizations generally use within a year of purchase.

FALSE

(T/F) A product line is the complete portfolio of products that a company offers for sale.

Break-even

________ analysis is a method of calculating the minimum volume of sales needed at a given price to cover all costs.
Correct!

convenience products

______ are everyday goods and services that people buy frequently for personal use, usually without much conscious planning.

participative pricing

Which of the following is a pricing method that allows customers to pay the amount they think a product is worth?

TRUE

(T/F) The primary function of distribution channels is delivering value to customers, so channel strategy decisions should start with customer needs and expectations.

FALSE

(T/F) Having your products available in as many outlets as possible in each market area is known as exclusive distribution.

retailers

Intermediaries that primarily sell goods and services to individuals for their own personal use are called ________.

take legal title to goods they distribute

Merchant wholesalers _________.

wheel of retailing

_________ refers to an evolutionary process by which stores that feature low prices gradually upgrade until they no longer appeal to price-sensitive shoppers and are replaced by a new generation of leaner, low-price competitors.

TRUE

(T/F) A push strategy is a promotional strategy that focuses on intermediaries.

FALSE

The first step in the personal selling process is aligning with customer needs.

pull strategy

In the commercial for their new asthma drug, Florida Pharmaceuticals suggests that viewers should consult with their doctors for more information about the medication. In this example, Florida Pharmaceuticals uses which of the following strategies?

institutional advertising

Advertising that seeks to create goodwill and build a desired image for a company, rather than promote specific products, is called _________.
Correct!

personal selling

___________ is one-on-one interaction between a salesperson and a prospective buyer.

TRUE

(T/F) Owners' Equity is the portion of a company's assets that belongs to the owners after obligations to all creditors have been met.

FALSE

Current Liabilities is profit earned or loss incurred by a firm.

controller

A _________ is the highest-ranking accountant in a company, responsible for overseeing all accounting functions.

buildings

Which of the following is an example of a fixed asset?

income statement

A(n) ________ is a financial record of a company's revenues, expenses, and profits over a given period of time.

FALSE

Trade Credit is a type of private equity.

FALSE

Long-term financing is financing that is typically repaid within one year.

budget

A _______ is a planning and control tool that reflects expected revenues, operating expenses, and cash receipts and outlays.

start-up

A ______ budget identifies the money a new company will need to spend to launch operations.

selling ownership shares

Equity financing refers to arranging funding by__________.