Business Fundamentals

1

_____ are market structures with one company as the supplier of a product because the nature of that product makes a single supplier more efficient than multiple, competing ones.

2

Which of the following is a negative factor that affects socialist economic systems?

3

The economic system of the East Asian nation of Xinzen calls for public ownership of all businesses. The government has complete control over the market, and individuals do not have individual rights and the freedom to make choices. In this scenario, the economic system followed by Xinzen is _____.

4

Normander Corp. is a large media corporation that owns all the media outlets in Liecheben and a few news agencies internationally. Any new media company that tries to establish itself in Liecheben soon runs out of business because of the overpowering presence of Normander Corp. This scenario exemplifies _____.

5

The Kingsabode Daily is a community news agency that distributes newspapers to the residents of Kingsabode County. To meet the demand and to ensure that there is zero wastage of resources, the news agency prints 250 newspapers that are distributed in the 250 homes in the county. The price associated with such a demand and supply pattern is called the _____.

6

A drawback of communism, which was adopted by some countries in the 1900s, was the inability of people to make basic choices such as where to work or what to buy.

7

In the context of planned economies, countries thatadoptedcommunism in 1900s developed:

8

A giant telecommunications company that was previously owned by the government of Sunzabia, a European country, is sold to an independent industrialist to ensure that the company is handled in a more efficient way. The given scenario exemplifies _____.

9

Gross Domestic Product (GDP) levels tend to be somewhat understated, since they don't include any illegal activities, which can represent a significant portion of some countries' production.

10

Glasvania, a European country, experiences a period of economic downturn that results in high unemployment. Almost all businesses are compelled to reduce their prices by a large margin because most consumers have limited money to spend. The given scenario exemplifies _____.

11

Deflation refers to a period of falling average prices across an economy, which is a sign of economic trouble that goes hand-in-hand with very high unemployment.

12

The economic situation in Lanceberg, an African country, slowly picks up after a severe financial downturn. Over a period of 12 months, businesses expand and employment levels rise. Consumers begin to engage in normal buying behavior. In this scenario, the economy of Lanceberg is currently in the _____.

13

The U.S. government uses the consumer price index (CPI) and the producer price index (PPI) to evaluate:

14

Gregory was a typist at a corporate firm. When the company adopted a special voice recognition software for the purpose of documentation, Gregory's job became redundant. Therefore, he was laid off. The increased use of technology in most companies has made Gregory's skills inessential, and he remained unemployed for a long time. In the given scenario, Gregory is facing _____.

15

Ronnie works on a part-time basis for a company that provides home repair and maintenance services. Ronnie is specialized in handling the central heating systems in homes and is therefore needed to be at work only during the winter. Other than that, he is mostly unemployed for the rest of the year. In this scenario, the form of unemployment faced by Ronnie is _____.

16

The curve that shows the relationship between the price of a good and the quantity that consumers are willing to purchase at each price is the

17

Which of the following is a predictable, secondary effect of a sharp increase in gasoline prices?

18

Why is it essential to use action words and industry targeted keywords in a resume?

19

It is important to be selective about what to include in your resume instead of including everything you’ve done. Why is it so hard for most job seekers to do this?

20

What difference do you think it makes to an employer if they see resumes with proper grammar and clean format versus ones without?

21

Why is the WHI method such a powerful tool? What can you do if you cannot find quantifiable data to support your skills and experience?

22

How can you tailor your resume to target a specific job or employer? Give at least three examples from your own resume.

23

Compared to the United States, China and India have:

24

Despite their huge populations, China and India represent a much smaller opportunity in terms of size and economic growth

25

Trade restrictions like tariffs and quotas will

26

Competition is present when

27

Which of the following is most important if a country is going to achieve and sustain rapid economic growth?

28

The basic mission of the _____ is to promote global economic cooperation and stable growth.

29

The _____ is aninternational cooperative of 188 member countries, working together to reduce poverty in the developing world.

30

_____ refers to the unrestricted movement of goods and services across international borders.

31

Umeron, a European country, wants to import 18 million bales of cotton from Trumberton, an Asian country. However, Umeron is able to import only 10 million bales because Umeron's import laws limit the amount of cotton and jute that can be imported. In the given scenario, the government of Umeron has imposed a(n) _____ to restrict international trade.

32

Inicell Inc., an American camera manufacturing company, wanted to import a few camera parts from Ruelia, an Asian company. However, the American government passed a taxation law that stated that a tax of 4% would be levied on all electronic imports. In this scenario, the American government imposed a(n) _____.

33

In Fidaro, a North American country, punctuality is considered a sign of integrity. On the other hand, in Gwary, an African country, punctuality is considered a sign of anxiety and is given less importance. This exemplifies:

34

Trade restrictions were created to:

35

In _____,firms either acquire foreign firms or develop new facilities from the ground up in foreign countries.

36

Quistor Inc., a company based in the country of Waltefa, contracts with a small-scale supplier in the country of Carlesna to manufacture its computers and tablets that are sold across the world. This strategy by Quistor Inc. illustrates _____.

37

_____ is the authority granted by a domestic firm to an overseas firm for the rights to produce and market its product or to use its trademark/patent rights in a defined geographical area.

38

In the context of global trade, the _____ is a measurement of the value of one nation's currency relative to the currency of other nations.

39

When the total value of a nation's exports is higher than the total value of its imports, that country has a(n) _____

40

Which of the following countries has a trade deficit?

41

In the context of global trade, a balance of payments deficit means that:

42

The total value of the goods exported by Maulini, a South American country, in the last fiscal year was lower in comparison to the total value of the goods imported by it. Given this information, Maulini had a _____ in the last fiscal year.

43

Romernia, an Asian country, imported goods and services worth $700 million in the last fiscal year. It exported goods worth $400 million in the same year. The difference in the value of Romernia's imports and exports is known as _____.

44

Which of the following countries is involved in countertrade?

45

Ithilium, a European country, is able to produce more electronics than Kilim, a North American country, even though both countries use the same amount of resources. Given this information, it can be deduced that Ithilium has a(n):

46

Openi, an island nation, is able to increase its textile production without having to compromise on the production of other materials. This is in contrast to other nations that need to lower the production of other materials to increase their textile production. In this scenario, Openi has a _____ in textile production.

47

Which o the following statements is true of ethics?

48

Janet reasons, "It is wrong to lie. However, it is okay to overstate my expense account on my recent business trip because I need the money, and my company has not given me a raise in the past year." In this scenario, Janet is an employee who views ethics as _____.

49

Promoting high-calorie/low-nutrient foods with inadequate information about the risks is a(n) _____ practice.

50

Walid, an IT professional, is known for his perseverance, his self-discipline, and taking accountability for his actions. In the context of universal ethical standards, Walid most likely possesses the core value of _____.

51

Rupert is an individual who believes in contributing to the community by using eco-friendly products. In the context of universal ethical standards, Rupert most likely possesses the core value of _____.

52

In the context of universal ethical standards, being open-minded and not taking advantage of others exemplifies the core value of _____.

53

In the context of the legal and ethical dimensions of business conduct, embezzling money is:

54

Universal ethical standards can solve the problem of too many people viewing ethics as _____.

55

Anaida is an entrepreneur who believes in providing equal opportunity to people regardless of their age, gender, race, or religion. She is open-minded and detests the idea of taking advantage of others. In the context of universal ethical standards, Anaida most likely possesses the core value of _____.

56

Rudolf, a Polish manager in a company based in China, is admired by his colleagues for the way he interacts with people, his considerate nature, and his tolerance toward other cultures. In the context of universal ethical standards, Rudolf possesses the core value of _____.

57

In the context of the core values identified by the Character Counts organization, being honest, not deceiving, cheating, or stealing, and doing what you say you'll do represent the universal ethical standard of _____.

58

In the context of business ethics, _____ refers to a decision that involves a conflict of values.

59

The employees of a multinational company follow a standardized and formal set of written guidelines that help them make right decisions in various situations. These guidelines have been translated into 20 languages and are followed by employees across all branches of the company. One of the guidelines is to include all supervisors in discussions regarding instances of violation of rules. In this scenario, the multinational company has:

60

Research from the Ethics Resource Center suggests that _____ has more influence than any other variable on the ethical conduct of individual employees.

61

A cement company decided to modify its production methods to minimize the negative impact of the company's activities on the environment. The company also invested in the purchase of upgraded machinery to implement this plan. In the given scenario, the cement companymost likely embraced the idea of _____.

62

Quinbeck Inc., a computer manufacturing company, annually donates 6% of its total profits to an orphanage. The company also provides free personal computers to children to promote learning among them. Given this information, Quinbeck Inc. most likely engages in _____.

63

In the context of a company's responsibility to the environment, which of the following is the idea behind sustainable development?

64

In the context of a socially responsible organization, which of the following statements is true of consumerism?

65

One of the ways by which companies can show their responsibility toward the environment is by reducing their _____.

66

Broche Technologies, a brand of electronic appliances, develops a new range of refrigerators that do not release chlorofluorocarbons. The company promotes these products as the most eco-friendly refrigerators in the market. In this scenario, Broche Technologies is engaging in _____.

67

Angorasia, an Asian country, supports a free market system. The flexible economy of the country makes it fairly easy for new sellers to enter the market, which in turn gives buyers a variety of choices in terms of products and services. Given this information, it can be said that Angorasia supports _____.

68

Aragon, a brand of inverters, provides products that work well in the first year of their use. The performance of the products, however, starts declining after the first year, and the products eventually become unusable within a short period of time. The pattern of breakdown is similar for all Aragon inverters. Reports suggest that Aragon intentionally creates inferior products to increase repurchases. In the given scenario, Aragon is guilty of _____.

69

After being stagnant for a few years, a clothing company started making profits consistently. Following this, the CEO of the company decided to contribute to the growth of the community by starting an apprenticeship program in tailoring. The program involved providing training to a batch of 10 uneducated, underprivileged people free of cost every year. In this scenario, the company's gesture exemplifies _____.

70

FreshBean is an online grocery delivery service. Its employees and customers, the farmers from whom the company obtains its products, and the people who live in the community where the company operates are FreshBean's _____.

71

The most socially responsible companies establish _____ for their vendors, setting clear policies for human rights, wages, safety, and environmental impact.

72

Andrew, an employee in a corporate company, is asked to conduct a systematic evaluation of how well the company is meeting its ethics and corporate responsibility goals. In the given scenario, Andrew is most likely asked to do a _____.

73

Clara and Sandra collaborate to open a cafe. They come to an arrangement wherein Sandra manages the cafe from Monday to Wednesday, Clara manages it from Thursday to Saturday, and both jointly manage it on Sunday. Both Clara and Sandra share the profits of the business equally while facing a personal liability for any debts or losses that the cafe may incur. In this scenario, Clara and Sandra most likely _____.

74

Tasmeen owns a retail business along with four other people. Like the other owners, Tasmeen is not personally responsible for the debts of the company. Her personal assets are thus protected in case the company incurs losses. Given this information, it can be assumed that Tasmeen _____.

75

Choice of ownership determines the degree to which each owner has personal liability for the firm's debts.

76

FoodieGo, a catering company, is owned by foreign investors and local businessmen. Its earnings are equally divided among its members. It does not face the problem of double taxation as taxes are only levied on the personal income of the members. The owners of FoodieGo do not have personal liability for any debts incurred by the company. In the given scenario, FoodieGo is an example of a _____.

77

Which of the following is a disadvantage associated with sole proprietorships?

78

Jovi's Corner, a toy store, abruptly closes down after the death of its owner. Without an heir or an experienced person to manage the store, Jovi's Corner is shut down, and the property is sold off to another party. The profits are donated to an orphanage. In the given scenario, Jovi's Corner is most likely an example of a _____.

79

Which of the following is an advantage of general partnerships?

80

Tania starts a bookstore with her friend. However, owing to other commitments, Tania is unable to help with the daily operations of the bookstore. Therefore, Tania proposes that she would not actively participate in managing the business but would provide financial support to the business. By doing this, she would be sharing the profits equally with her friend, without incurring any of the business debts personally. In this scenario, Tania is a(n) _____.

81

There is no limit on the number of partners who can participate in a general partnership

82

A textile corporation has two hundred odd stockholders. As it is inconvenient for so many stockholders to manage the company, the stockholders elect a group of individuals to oversee the company's operation and to represent their interests. In this scenario, the stockholders elect a _____.

83

A firm considers _____ to increase size and market power within the industry.

84

Fabotels is a hotel aggregator that buys budget hotels that succumb to financial losses and then refurbishes them under the company's brand name. Fabotels recently purchased Ravine Comforts, a small lodge that was running into huge debts. The business deal between Fabotels and Ravine Comforts exemplifies a(n) _____.

85

Norman owns a large number of shares in a telecommunications corporation. Despite that, he does not have the right to vote in a meeting held specifically to elect the CEO of the company. In this scenario, Norman is most likely a _____.

86

Heinrich Chemical Corporation holds an annual meeting in which it invites all individuals who hold shares in the company. The occasion is also set aside for the election of a new member to the company's board of directors. However, the company ensures that only individuals who have the right to vote participate in the election. In this scenario, the _____ of the company take part in the voting process.

87

Which of the following is a difference between a C corporation and an S corporation?

88

A large film production company merges with a popular sound processing studio, resulting in the formation of a new company out of the two previously independent firms. This is most likely an example of a _____.

89

Happta is a corporation with tax-exempt status. It has members but cannot have stockholders. Given this information, Happta is most likely a(n):

90

In the context of an acquisition, the firm that is purchased by another firm is called the _____.

91

The stockholders of a construction firm decide to start a steel company, but they want to have limited liability. After completing the business plan, they initiate the process of establishing the company by filing articles of incorporation and paying the filing fees to the state government. In this scenario, the stockholders of the firm want to start a _____.

92

Conall is appointed by a nine-member board of directors of a real estate company to manage the company on a daily basis. The board ensures that Conall acts in a manner that is consistent with the interests of the stockholders. Given this information, Conall is most likely a _____.

93

Svelter Corporation does not face the problem of double taxation as the Internal Revenue Service (IRS) does not tax the earnings of the company separately. Instead, taxes are only levied on the personal income of the stockholders. A limitation, however, is that the company is only allowed to have a maximum number of 100 stockholders at a time. Given this information, Svelter Corporation is a(n) _____.

94

The basic rules governing how a corporation is organized and how it conducts its business are known as _____.

95

Lancelock Inc. buys a less accomplished firm by directly signing a deal with the target firm's shareholders. The move is vehemently opposed by the board of directors and the top management of the target firm. This is an example of a _____.

96

The owners of limited liability companies (LLCs) are called members because:

97

Flaira, a high-end clothing brand in Florida, signs a licensing agreement with a firm in Honolulu to allow the latter to use Flaira's brand name, trademark, and business methods to operate the same clothing business in Honolulu. In exchange, the Honolulu firm has to pay the owner of Flaira an annual fee. This scenario is an example of a(n) _____.

98

A Franchise Disclosure Document (FDD) is:

99

Which of the following statements is true of a franchisor-franchisee relationship?

100

An advantage of franchising is:

101

Which of the following is a disadvantage of franchising?

102

Paul worked as an artisan at a furniture company where a set of artisans were required to produce a specific part of a product, and the product was later assembled. Paul quit his job and started a small furniture business where he crafts unique products based on the demands of his customers. He feels that the constant need to adapt and outperform himself keeps him focused and motivated to improve his craft. Which advantage of entrepreneurship is highlighted in the given scenario?

103

Felix lost his job at an investment firm because of downsizing during a period of recession. To keep himself financially stable, he opened a food truck that became a huge success. Which of the following advantages of entrepreneurship initially motivated Felix to start the food truck?

104

Ophelia opened a boutique that specializes in creating custom trousseaux for brides. She conceived the idea in her senior year at school, and despite receiving criticism for the idea, she went ahead and opened the boutique. Which entrepreneurial characteristic is highlighted in the given scenario?

105

In the context of entrepreneurs, which of the following statements is a difference between an internal locus of control and an external locus of control?

106

In the context of various funding options for small businesses, which of the following statements is a difference between angel investors and venture capital firms?

107

_____is the process of funding ventures by raising money from a large number of investors via the Internet.

108

Rudy, a food truck owner, has sizable followers on his website where he personally interacts with them and thanks them for their support. He also lets his followers know his location and the menu for a day in advance. The opportunity of _____ is highlighted in the given scenario.

109

Margie dropped out of college to pursue her passion for cooking. With personal resources to fund her initial capital, she started a food truck in one of the busiest streets of her hometown. After a month of running the food truck, Margie realized that she was not getting enough customers because there were several other similar food trucks in the area. In this scenario, which of the following threats did Margie's business face?

110

Robert started his company in his parents' garage because he could not afford to rent an office space. Most of his finances were spent on procuring the essential items to set up his company. As a result, he was able to save funds for the future. The opportunity of _____ is highlighted in the given scenario.

111

A(n) _____ is a formal document that describes a business concept and outlines the core business objectives while detailing the strategies and timelines for achieving those objectives

112

A _________ is a formal document that describes a business concept and outlines the core business objectives while detailing the strategies and timelines for achieving those objectives

113

Which of the following is a powerful contribution made by small businesses to the U.S. economy?

114

Natalie is a professional baker who dreams of owning her own cake business. She does not have any ideas or concepts for starting a cake shop, but her wealthy uncle is ready to fund her initial capital. Natalie's risk appetite is low and she wants to run a business that has less than 10 percent chances of first-year failure. Which of the following could be the best solution for Natalie to pursue her dream of owning a cake shop?

115

Tobin starts a catering company of his own and earns a substantial profit in the first year itself. His total earnings are more than what he used to earn as a salaried person. Which of the following advantages of entrepreneurship is highlighted in the given scenario?

116

Neman, a single parent, quit his job and started a small independent business because he was unable to give adequate attention to his child. Being an entrepreneur gives him the freedom to give undivided attention to his child without jeopardizing his work. Which of the following advantages of entrepreneurship is highlighted in the given scenario?

117

Technological tools such as the Internet and email have:

118

Priscilla is a trader of silver and diamond jewelry. Due to a recessionary trend in the industry, her business has not been making any profits for a few months. As the end of this economic trend cannot be easily ascertained, she decides to get her house mortgaged so that she can add a new line of business of trading in semi-precious stones. This financial risk appetite of Priscilla illustrates her _____ as an entrepreneur.

119

Julian wants to open a bakery. He uses his savings and borrows some funds from his family to start his business. In the given scenario, Julian uses _____ to fund his business.

120

According to small business experts, while raising start-up funds from friends and relatives, it is:

121

Lois wants to start an art gallery. However, because of lack of adequate funds, she decides to borrow money from a bank. The bank is hesitant to give money to Lois because it cannot verify whether her business would be able to earn enough profit to repay the borrowed amount within the stipulated period. However, after a thorough research, the bank grants her the money. In the given scenario, Lois uses _____ to fund her business.

122

Caroline owns an online jewelry store. She has developed a smartphone application for her business that allows her customers to take their pictures and try out virtual jewelry over those pictures before placing the orders. The opportunity of _____ is highlighted in the given scenario.

123

Which of the three strategies for finding job leads is most likely to help you on your Job Search Journey? Why?

124

What barriers do you anticipate in scheduling Career Network meetings? How can you overcome these barriers?

125

What is the value in customizing a cover letter? What do you think are the most valuable three things to customize? Why?

126

Instella Corp. hires Georgio for a position in the top-level management of the company. Georgio acquires the job as he exhibits excellent skills at strategic planning. Georgio is especially seasoned in analyzingmarketplace trends and long-term planning. In this case, Instella Corp. hires Georgio because he demonstrates _____.

127

Abram is a manager at Runa Marcus Corp., a company that runs a women's lifestyle magazine. Abram's strong points are his creative writing skills and expertise in photo-editing software. Thus, although he is in a managerial role, he is able to assist the employees in these functional areas. In the context of management skills, Abram has strong _____.

128

Gracie is a branch manager in a software company. Her work in the company is to coordinate teams and special projects with her peers from other departments. In the management hierarchy, Gracie is a _____ manager.

129

The _____ of a firm includes managers who set the overall direction of the firm, articulating a vision, establishing priorities, and allocating time, money, and other resources.

130

In the context of management skills, front-line managers must have a high degree of _____, which help them hire, train, and evaluate employees; avoid mistakes; and ensure high-quality production.

131

Jack works in a cargo shipping company as a section leader. As a part of his job, he needs to train and evaluate the employees. He also makes sure that the employees constantly remain motivated to carry out their tasks efficiently. Thus, as a section leader, he is heavily involved in the day-to-day production process of the company. In the context of the management hierarchy, Jack is a _____ manager in the company.

132

Sebastian gets a job in a processed food manufacturing company. This job enables him to support his family members and provide for their basic needs. According to Maslow's hierarchy of needs theory, the job fulfills Sebastian's _____ needs.

133

Expectancy theory advocates that:

134

Paul is an employee at a marketing firm. He is someone who prefers to be instructed by his seniors and avoids taking major responsibilities. He rarely uses his own judgment or creativity while doing a task in fear of putting things at risk. Paul's conduct in the workplace is consistent with the assumptions of_____.

135

An assumption of Theory Y is that:

136

Lawrence, the CEO of a media company, treats employees from all the levels of the organization in the same manner. The fair treatment is not just limited to his conduct with his employees, but it is also visible in the kind of perks and benefits they receive. Lawrence is strictly against discriminating in the workplace, and this motto of his keeps his employees greatly motivated. In this scenario, Lawrence follows _____.

137

Psychologist Douglas McGregor proposed that managers should use Theory Y assumptions to:

138

In the context of goal setting in an organization, the most effective strategic goals are:

139

In the context of management planning, _____ refers to very specific, short-term planning that applies tactical plans to daily, weekly, and monthly functions.

140

Which of the following statements is true of contingency planning?

141

In the context of management planning, _____ refers to high-level, long-term planning that establishes a vision for the company, defines long-term objectives and priorities, determines broad action steps, and allocates resources.

142

In the context of management planning,_____ refers to specific, short-term planning that applies strategic plans to specific functional areas.

143

Rebecca is a manager in a large publishing house. She and a few other managers do the tactical planning once the strategic plan is prepared. Rebecca is a _____ manager.

144

In the context of strategic planning, which of the following is true of mission statements?

145

A _____ is an organization with a flexible structure that brings together specialists from different areas of the organization to work on individual projects on a temporary basis.

146

Rovermand Corporation is a small organization in which each member of the company is clear about his or her responsibility and whom he or she must report to. The best feature of the organization is the quick decision making, owing to its simple and direct chain of command. In the context of organization models, Rovermand Corporation is a _____ organization.

147

Kate is the head of the research department at a pharmaceutical company. Her team is in the process of developing a drug that has the potential to reduce the spread of skin cancer. Kate has set the deadline for the project and has provided her team members a set of guidelines that need to be followed. However, she has left it to them to decide how they will accomplish the goal. In this scenario, Kate is a(n) _____.

148

____ hoard decision-making power for themselves, and they typically issue orders single-handedly.

149

Gloria is a manager in a paints and coating manufacturing company. Although the authority of making the final decision lies with her, she is open to suggestions from her peers and employees and tries her best to incorporate them in various situations. In this case, Gloria is a(n) _____.

150

Autocratic leadership tends to be the best option when:

151

Autocratic leadership tends to be the best option when:

152

In operations management, _____ means using resources to create value by providing customers with goods and services that offer a better relationship between price and perceived benefits.

153

In the context of American business, which of the following statements is true of the changing scenario of operations management over the last five decades?

154

Ursula Corp., a manufacturer of notebooks, makes small batches of different kinds of notebooks according to the customer demand. In this way, it caters to the needs of various customers without significantly increasing the manufacturing cost. In this scenario, which of the following techniques does Ursula employ?

155

Nondurable goods are often _____.

156

Marie, an operations manager at Clagox Systems, spends a lot of time in figuring out ways to achieve the established goals of the company at minimal costs. She conducts meetings and asks for suggestions from her teammates to reach the targets at the lowest possible expense. In this scenario, Marie is focusing on _____.

157

_____ are stocks of goods or other items held by an organization. Manufacturers hold raw materials, components and parts, work in process, and finished goods

158

_____ is a software-based approach to integrate an organization's information flows.

159

Identify a disadvantage of holding larger inventories.

160

Ucon Inc., a manufacturing company, handles all the supply chain functions on its own. This has resulted in an inefficient use of resources and delays in production. To resolve these issues, the management decides to hire external agencies to perform some operations. In this scenario, Ucon Inc. is most likely to adopt the strategy of _____.

161

The _____ is a project management tool that illustrates the relationships among all the activities involved in completing a project and identifies the sequence of activities likely to take the longest to complete

162

A _____ is used for goods that must be produced at a specific site or that are so large and bulky that it isn't feasible to move them from station to station.

163

David works at Klambunk Motors, an automobile manufacturing company. Once a new automobile has been designed by the design team, David determines and finalizes all the activities required to manufacture and deliver the new automobiles to showrooms. In this scenario, David determines the _____ needed to transform the company's inputs into outputs.

164

Which of the following statements is true of a product layout?

165

Prextos Corp., after incurring losses, decides to move its manufacturing unit to a foreign location where it would get labor at cheaper rates. In this scenario, Prextos Corp. is planning to employ _____ to cut down its losses.

166

Devon Construction Co is currently in the midst of a big residential construction project. The company's operations manager is looking at the estimated completion dates for the various phases of construction. At the site, ground excavation work takes longer than anticipated. The operations manager wishes to make up for the time lost in the other phases. However, the remaining phases are also

167

_____ software takes the electronic design for a product and creates the programmed instructions that robots must follow to produce that product as efficiently as possible.

168

Which of the following statements is true of robots?

169

GRT Logistics takes the help of the latest technology to get its processes done. It uses fully programmed systems for which human control is not required at all. These systems operate the machinery and equipment on their own to perform a variety of tasks. In this scenario, GRT Logistics has _____ its processes.

170

Which of the following statements is true of computer-integrated manufacturing (CIM) software?

171

_________ first proposed the relationship between quality and business success in the early 1950s and is considered the father of the quality movement

172

_____ is asimple method incorporated into a production process designed to eliminate or greatly reduce errors.

173

_____ is an approachto quality improvement characterized by very ambitious quality goals, extensive training of employees, and a long-term commitment to working on quality-related issues.

174

_____ is an approach to manufacturing that emphasizes the elimination of waste in all aspects of manufacturing processes.

175

Mervin, the vice president of a curtain manufacturing company, emphasizes that the production of curtains should meet the actual current demand. He believes in minimizing the inventories of finished products and work in process at each stage of the supply chain. In this scenario, Mervin follows the _____.

176

Daryl is an accountant in Vansert Inc., a multinational healthcare company. He is responsible for providing analysis, preparing financial statements, and reporting the financial transactions of the company to the deputy chairman of the company. In this scenario, Daryl is most likely a _____.

177

The Securities and Exchange Commission hires Tim to procure and analyze data on the state's tax revenues and expenditures to ensure that they are recorded and reported in accordance with regulations and requirements. In this case, Tim is most likely a(n) _____.

178

Betty's job entails detecting problems such as embezzlement, waste, mismanagement, and employee theft at her organization. In this case, Betty is a(n) _____.

179

To give the company's stockholders, creditors, and other external stakeholders an accurate idea of the company's overall performance, Rowensport Corporation, a multinational company, releases statements that contain details of the company's profits and losses over the past five years. In this scenario, the company is most likely involved in _____.

180

In the context of balance sheets, patents, trademarks, and copyrights are examples of _____.

181

In the context of balance sheets, accounts receivable is an example of _____.

182

In the context of balance sheets, accounts receivable is an example of__________.

183

Grydon Inc. has applied for a business loan in the United Bank. To best assess the loan case, the loan officer at the bank, Cerejo, decides to look at the company's net income. Cerejo will find this information in Grydon's _____.

184

Rolette Clemens is a financial institution that provides loans to businesses. It rejects a textile company's request for a loan after it reviews the value of the company's assets, liabilities, and owners' equity and finds them to be unsatisfactory. In this scenario, Rolette Clemens most likely analyzed the company's _____ to assess its financial condition.

185

In the context of balance sheets, resources owned by a firm are known as _____.

186

A famous musician sells the copyright of one of his songs to a record company for $2 million. In this scenario, the sale of the copyright of the song exemplifies the sale of a(n) _____.

187

Congress passed the__________that banned business relationships that might create conflicts of interest between certified public accounting (CPA) firms and the companies they audit.

188

The management of a sugar manufacturing company sets aside a sum of $50,000 in its budget for the purchase of new machinery that would double the production. In the given scenario, the management is in the process of planning the _____ of the company.

189

Dylan is a supervisory manager in the production department of a tea manufacturing company. Each year, he actively participates in the budgeting process of the company. His input is valued by the top management as he is able to identify the issues in his department. In this scenario, it can be said that Dylan's company follows the _____ to budgeting.

190

Certificate of deposit is an interest-earning deposit that requires the funds to remain deposited for a fixed term.

191

The budgeted income statement is a projected financial statement that forecasts the types and amounts of assets a firm will need to implement its future plans and how the firm will finance those assets

192

A budgeted income statement is a projected financial statement that forecasts the types and amounts of assets a firm will need to implement its future plans and how the firm will finance those assets.

193

A commitment to meeting social responsibilities can contribute to a more profitable company and an increase in shareholder value.

194

David needs to acquire financial capital to purchase a printing press for his business. David can either acquire the financial capital for the press by borrowing money from a bank or by purchasing the press on credit from his supplier

195

David needs to acquire financial capital to purchase a printing press for his business. David can either acquire the financial capital for the press by borrowing money from a bank or by purchasing the press on credit from his supplier.

196

Projects with potential for high returns generally have a low degree of uncertainty and risk.

197

A manufacturing firm does not necessarily need an inventory of parts and materials to assemble its products.

198

A factor is a restriction lenders impose on borrowers as a condition of providing long-term debt financing.

199

_____ is a spontaneous financing granted by sellers when they deliver goods and services to customers without requiring immediate payment.

200

__________is a spontaneous financing granted by sellers when they deliver goods and services to customers without requiring immediate payment.

201

A key difference between a line of credit and a revolving credit agreement is that under a line of credit:

202

Which of the following is a key difference between a line of credit and a revolving credit agreement?

in Business

A) Under a line of credit, the bank involved agrees to make funds available as long as the borrower's credit rating doesn't deteriorate, while in a revolving credit agreement, the bank guarantees that the funds will be available.
B) Under a line of credit, funds are available for up to a year, while in a revolving credit agreement, funds are available for no more than 90 days.
C) Under a line of credit, the interest rate on borrowed funds is stated in advance, while in a revolving credit agreement, the interest rate is allowed to "float" based on agreed-upon criteria.
D) Under a line of credit, the borrower must secure the funds by pledging collateral, but in a revolving credit agreement, the bank involved agrees to make additional funds available as long as the principal and interest are paid.

203

The _____ is an asset management ratio that measures how quickly a firm sells its stock to generate revenue.

204

Kenneth wants to start a new business. To get start-up capital, he takes a short-term loan from a bank. The bank agrees to provide him the agreed-upon funds as per a legally binding commitment. However, the bank requires Kenneth to pay interest on any fund he borrows and a commitment fee based on the unused amount of funds. Which of the following short-term financing sources does Kenneth utilize to fund his business in the given scenario?

205

A _____ is a guaranteed line of credit in which a bank makes a binding commitment to provide a business with funds up to a specified credit limit at any time during the term of the agreement

206

_____ is a guaranteed line of credit in which a bank makes a binding commitment to provide a business with funds up to a specified credit limit at any time during the term of the agreement.