Business - Introduction To Business, Pre Quiz 6

Nordstrom sells designer suits made in Italy in its stores in the United States. Nordstrom is ____ suits.

All of the following are true regarding the guaranteed insurability rider EXCEPT

Businesses that need very large amounts of money, equipment, or other material resources in order to get started are ________ businesses

4

Which of the following is one of the two major categories of accounting?

5

Explain the major disadvantages of incorporating a business as a corporation

Answer: The major disadvantages of incorporating a business as a corporation are the following:
(1) Cost and complexity: Starting a corporation is more expensive and more complicated than starting a sole proprietorship or a partnership, and "taking a company public" (selling shares to the public) can be extremely expensive for a firm and time consuming for upper managers.
(2) Reporting requirements: To help investors make informed decisions about stocks, government agencies require publicly-traded companies to publish extensive and detailed financial reports. These reports can eat up a lot of staff and management time, and they can expose strategic information that might benefit competitors or discourage investors unwilling to wait for long-term results.
(3) Managerial demands: Top executives must devote considerable time and energy to meeting with shareholders, financial analysts, and the news media.
(4) Possible loss of control: Outside investors who acquire enough of a company's stock can gain seats on the board of directors and therefore begin exerting their influence on company management. In extreme cases, outsiders can take complete control and even replace the company founders if they believe a change in leadership is needed.
(5) Double taxation: A corporation must pay federal and state corporate income tax on its profits, and individual shareholders must pay income taxes on their share of the company's profits received as dividends (periodic payments that some corporations opt to make to shareholders).
(6) Short-term orientation of the stock market: Publicly held corporations release their financial results once every quarter, and this seemingly simple requirement can have a damaging impact on the way companies are managed. The problem is that executives feel the pressure to constantly show earnings growth from quarter to quarter so that the stock price keeps increasing.

6

In right-to-work states, unions can exist but cannot bargain for workers

7

Rumelt's criteria for strategy evaluation are: feasibility, consistency, consonance, and __

8

“Critics” are the social media type that publish blogs, publish their own Web pages, and upload videos and music.

9

What feature does a firewall provide?

10

One of the biggest differences between unions of the 1950s and unions of today is:

11

Because of unlimited liability, it is easy for sole proprietors to borrow large sums of money.

12

As a business strategy, the strategy behind dumping is to

13

Quiang spent two hours going over quality reports to figure out if his team is meeting quality standards he set for the current month. Quiang's efforts are part of the ________ function of management.

14

N is a student pilot with a large life insurance policy. Which of these features would limit the insurer's obligation in the event N was killed while flying as a student pilot?

15

All of the following are questions that managers can ask to determine whether delegating is the right choice for a particular task EXCEPT ________

16

"Black hat hackers" are hackers who have no harmful intent. Instead, they hack into computers simply for the intellectual challenge it involves

17

Which of the following is the foundation of reinforcement theory?

18

LaMar Holten plans to start his presentation for a nonprofit charity program with a startling statistic. This is usually a poor approach, as it may distract the audience

19

A target market is defined as a specific group of consumers who ________

20

The yield of a particular security is determined by dividing the dividend or income by the security's market price

21

Management can achieve its goals by coordinating what four types of resources?

22

When Carlton Company Inc. exported elevator component parts to a company in Taiwan, it allowed the company 90 days to pay for the parts. This is an example of a(n)

23

Raw materials, buildings, and machinery are ____ resources

24

A benefit of a free market can be that

25

When considering consumers, which of the following did NOT play a role in the subprime bubble?

26

The ethical norm of utility evaluates whether an act respects the rights of all parties

27

If Kmart states that it is going to spend $100 million in advertising in the upcoming year to help increase its market share, it is explaining part of its ____ plan.

28

According to the Kauffman Foundation, the average new firm required _____ in start-up capital, although a large share of businesses start for less than _____

29

Discuss the effect of Title VII of the Civil Rights Act of 1964 on employment opportunities for minorities. Are the effects similar to those of the Age Discrimination and Employment Act?

30

Discuss the distribution functions performed by wholesalers and retailers

Answer: Wholesalers and retailers perform the following distribution functions:
Matching buyers and sellers. By making sellers' products available to multiple buyers, intermediaries reduce the number of transactions between producers and customers.
Providing market information. Retail intermediaries collect valuable data about customer purchases: who buys, how often, and how much.
Providing promotional and sales support. Many intermediaries assist with advertising, in-store displays, and other promotional efforts for some or all of the products they sell.
Gathering assortments of goods. Many intermediaries receive bulk shipments from producers and break them into more convenient units (known as breaking bulk) by sorting, standardizing, and dividing bulk quantities into smaller packages.
Transporting and storing products. Intermediaries often maintain inventories of merchandise that they acquire from producers so they can quickly fill customers' orders. In many cases, retailers purchase this merchandise from wholesalers who, in addition to breaking bulk, may also transport the goods from the producer to the retail outlets.
Assuming risks. When intermediaries accept goods from manufacturers, they usually take on the risks associated with damage, theft, product perishability (in the sense of tangible goods that are vulnerable to rotting, for instance), and obsolescence.
Providing financing. Large intermediaries sometimes provide loans to smaller producers.
Completing product solutions. In some industries, producers rely on a class of intermediaries often called value-added resellers (VARs) or system integrators to complete or customize solutions for customers.
Facilitating transactions and supporting customers. Intermediaries can perform a variety of functions that help with the selection, purchase, and use of products.

31

Knowing that many people hold parties for Independence Day, Pepsi would like to stand out among competitors and gain the attention of consumers. The best promotion method for Pepsi would be:

32

An advantage of a centralized organization is that it:

33

Russell Brady, a white male in his early thirties, recently applied for a position at Pinnacle, Inc. He demonstrated that he was qualified to do the job, but he was not hired. He recently learned that Pinnacle was intentionally favoring women and minorities for the position, and he is upset. Should he sue Pinnacle?

34

Your nine-year-old neighbor stops by and excitedly tells you all about the new cookies that her Girl Scout troop is selling this year. When you tell her that you are really trying to watch your figure, she responds, "The Trefoils are low fat and low calorie!" What stage of the personal- selling process does this represent?

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Business - Introduction To Business, Pre Quiz 6

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