Introduction to Business Final Exam Sophia Course

Introduction to Business Final Exam Sophia Course

 

 

If a new restaurant owner determines that she does not have sufficient funds to open a new location, where does this determination belong in her SWOT analysis?



Threat



Weakness



Opportunity



Strength

CONCEPT

The Marketing Plan

2

In modern times, companies need to be socially responsible toward various stakeholders. 

When a company ensures that its products will not cause personal injury when used, the company is demonstrating particular consideration to which stakeholder?



Employees



Customers



Environment



Investors

CONCEPT

Models of Social Responsibility and Considering the Stakeholder

3

Which of the following is an advantage of buying a franchise as an existing business, instead of starting from scratch?



The ability to use a well-known brand



Able to use own ideas for running the business



The ability to operate without pre-existing expectations from customers



The ability to choose suppliers for the business

CONCEPT

The Small Business Franchise

4

Which of the following is most directly impacted by a positive corporate culture?



Establishing intermediate goals



Defining the structure of the organization



Implementing more efficient operational plans



Improving employee morale

CONCEPT

Management Process and Corporate Culture

5

The US government decided to enforce a trade restriction to no longer trade any goods with Mexico.

Which of the following does this scenario describe?



Tariff



Embargo



Quota



Foreign-exchange control

CONCEPT

Interactions within the Global Economy

6

Which of the following is true about a flat organizational structure?



Has been used to reduce management costs



Is most common in large corporations



Is usually associated with a centralized organization 



Has several levels of management

CONCEPT

Organizational Considerations: Structures and Hierarchies

7

A budget is used to manage the finances for a business for which of the following reasons?



To identify the losses a business could incur



To make sure spending is planned and controlled



To value the assets a business maintains



To accurately assess the investments of a business

CONCEPT

Role of Financial Management

8

Which of the following correctly describes short term financing?



Is harder to get than long term financing



Is less risky for the amount of time



Is repaid within a year and a half 



Is more risky for the amount of money

CONCEPT

Trade Credit and Promissory Notes

9

A beverage manufacturer used large, computerized machines to pour syrup and carbonated water into glass bottles to create soft drinks. The machines then placed caps on each bottle. The bottles of soft drinks were packaged together and shipped to retailers.

Which of the goods from the situation is a consumer good?



Computerized machines



Soft drinks



Glass bottles



Syrup and carbonated water

CONCEPT

Markets in Marketing

10

Jane, who managed a regional team of salespeople, prioritized her activities in order to prepare for the weekly sales meeting with her staff. She then set the meeting day and time according to when the staff were scheduled to be in the office.

Which management skill below did Jane demonstrate?   



Decision making



Conceptual



Human relations



Time management

CONCEPT

https://hwacer.com/Tutorial/introduction-to-business-final-exam-sophia-course/

Management Skills

11

Which of the following is true regarding ethics in business?



Ethical decisions have little impact on customer relationships.



Ethical values can change based on circumstances.



Ethical violations always involve breaking laws.



Ethical decisions are not always a clear cut case.

CONCEPT

Ethics as a Lifestyle

12

What information does the sales forecast provide in a business plan?



It predicts how the business will compete in the marketplace.



It focuses more on a pricing strategy than on production costs.



It provides the timelines for starting the business.



It details the investments needed to start the business.

CONCEPT

The 3 Part Business Plan

13

Which of the following is an example of viral marketing? 



A group of coworkers talks about the best ads shown during the telecast of a major football game.



A company enables people to join their loyalty program by completing a form on their website.



A company encourages customers to create and upload videos that show their friends and family using one of the company's products. 



Subscribers to a company's email newsletter receive an announcement about an upcoming sale. 

CONCEPT

Unique Branding

14

A balance sheet provides which of the following? 



A record of the company's operating expenses



The amount of cash going in and out of a business



A snapshot of a company's financial situation



The money earned or lost by a business for a set time period

CONCEPT

Financial Planning

15

Which of the following is an example of recency error in performance appraisals?



Laura gave an employee a high performance rating. She likes the employee's personality, and they have similar social interests.



Laura gave an employee a poor performance rating. The employee did not meet her sales quotas for the second year in a row.



Laura gave an employee a poor performance rating. Even though the employee met her quotas all year, her sales numbers were down in the month prior to her appraisal.



Laura gave an employee a high performance rating. Even though the employee did not meet her sales quotas, she was a good communicator.

CONCEPT

Appraisals and Their Impact in HR and Training

16

Jenny is a high school senior who wants to someday be a lawyer.

Which of the following is an intermediate goal?



Jenny hopes to someday become a federal judge.



Jenny hopes to major in philosophy at a private university next fall.



Jenny hopes to attend law school at a top-rated university after finishing a Bachelor's of Arts in philosophy.



Jenny hopes to earn her Bachelor's degree and be admitted to law school.

CONCEPT

Goal Setting and the Mission Statement

17

A large cable company is the only provider of cable TV and Internet for a small community. As a result, consumers in the community who want either of these services must purchase from this company.

In which of the following economic markets is the cable company operating? 



Perfect



Monopoly



Monopolistic



Oligopoly

CONCEPT

Supply and Demand Economics

18

Girard, who managed a group of graphic artists, provided the tools and resources his staff needed to work on project and then allowed them the freedom to make decisions on their own. A few deadlines were occasionally missed, but the employees expressed high job satisfaction.

Which management approach below does Girard utilize? 



Autocratic



Free rein



Contingency



Democratic

CONCEPT

Management Styles

19

A cosmetic company created a new cream that claimed to use a well-known ingredient to reduce dark spots on skin. The cream contained just enough of the ingredient to list it on the package, but it was not enough to make the product effective.

Which of the following does this scenario illustrate?



Sales promotion



Bait and switch



Coloring



Angel dusting

CONCEPT

Truth in Advertising

20

Which of the following would NOT be considered a type of incentive program?



Paying employees for performance



Providing a profit-sharing program



Offering employees a yearly bonus



Providing continuing education courses

CONCEPT

Compensation in the Workplace

21

A line of devices from an electronics manufacturer experienced a peak in sales. The company then decided to simplify the product line to focus on a few key devices and aggressively promoted these specific products.

 

The product is in which phase of the product life cycle?



Introduction



Decline



Growth



Maturity

CONCEPT

Product Life Cycle

22

Which of the following activities is overseen by the Federal Reserve?



Purchasing corporate bonds



Public trading of stocks



Printing of money



Approval of business mergers

CONCEPT

Federal Reserve

23

Which of the following must a company do to effectively use technology in its marketing efforts?



Select the same technology formats for marketing its products that its competitors use.



Avoid using online reviews since customers could post negative information about the company's products.



Design features for customers to use on the company website that rarely get updated.



Review the implemented technology formats on a regular basis to determine if any changes need to be made.

CONCEPT

Technology and Marketing

24

Which of the following describes the purchase of a shopping good?



Abby purchased a bottle of mouthwash because she ran out of it the night before.



Abby purchased a new sofa and futon after redesigning her living room.



Abby purchased a soft drink and muffin on her way to work.



Abby purchased a brand new Corvette sports car.

CONCEPT

Product

25

Which of the following companies is more likely to use a loan secured by inventory for its short term financing?



An accounting firm that provides tax preparation and financial planning services



A struggling web development company with no options for collateral



A home repair company that needs a long repayment period to pay back a loan



A grocery store chain that keeps large quantities of products on hand

CONCEPT

 

1

Which of the following is NOT a barrier to effective delegation?



 A manager envies his staff members' abilities.



A manager fears his employees will make a critical mistake. 



A manager is concerned he will lose control by empowering his staff.



A manager decides to set a standard for quality rather than expect perfection.

CONCEPT

Decision Making

2

Fletcher owned a large nursery that grew trees and shrubs. He sold his products to landscaping companies and major retailers in his region.

Fletcher would be considered which of the following?



A distributor



A wholesaler



An intermediary



A retailer

CONCEPT

Place

3

Which of the following is a disadvantage to using tests as a hiring method for potential employees?



Test results can be inaccurate due to applicants experiencing test anxiety.



Most tests only evaluate skills and not applicant personality traits.



It is easier to evaluate skills using application forms.



Most applicants refuse to take tests as a part of the employment process.

CONCEPT

Acquiring the Employees

4

Which of the following is true regarding reserve requirements?



Lower reserve requirements mean banks must hold more money in cash or deposit.



Higher reserve requirements mean banks have less money to lend.



Higher reserve requirements mean banks have more money to lend.



Lower reserve requirements mean consumers have more difficulty borrowing money.

CONCEPT

Federal Reserve

5

If a company expands a product line with product variations and increases promotion to focus on product differentiation, it is most likely in the __________ phase of the product life cycle.



decline



maturity



growth



introduction

CONCEPT

Product Life Cycle

6

When an environmental group accused a local energy company of illegally dumping waste in a river, the company spokesperson released a statement that defended the energy company's actions by denying that they had any responsibility to keep the river clean.

Which social responsibility stance below did the energy company take?



Defensive



Proactive



Accomodative



Obstructionist

CONCEPT

Ethics and Marketing

7

Select the institution below that provides loan services but does NOT accept deposits.



Mutual savings bank



Security and investment dealer



Commercial bank



Credit union

CONCEPT

Financial Institutions and Their Services

8

Which of the following is true about a flat organizational structure?



Is usually associated with a centralized organization 



Has several levels of management



Has been used to reduce management costs



Is most common in large corporations

CONCEPT

Organizational Considerations: Structures and Hierarchies

9

Which of the following exemplifies pull marketing?



Mailing coupons to customers



Updating a product's package design



Creating and updating a company blog



Direct selling at a store location

CONCEPT

Push and Pull Marketing

10

Which of the following is true about a market segmentation?



Focuses more on promotion strategies than pricing strategies



Details all of the possible markets a company should try to reach



Describes the phases a product goes through during its lifecycle 



Subdivides the market based on customer traits to focus marketing efforts

CONCEPT

Marketing Strategy

11

NAFTA, the EU and the WTO are all forms of __________. 



nontariff barriers



trade restrictions



trade agreements



protective tariffs

CONCEPT

Interactions within the Global Economy

12

Which of the following does the World Bank use to categorize countries?



Geographic location



Monetary policy



Per capita income



Total population

CONCEPT

Global Markets

13

A garden supply company advertised that a specific brand of fertilizer was on sale for a limited time.

Which of the following is likely to be the reason the price was lowered?



The company had to cover the expense of having the fertilizer delivered to the store.



The fertilizer brand is very popular and usually sells out quickly.



The company was able to buy a large amount of the fertilizer from its supplier.



The company will charge customers a fee for loading the fertilizer into their vehicles.

CONCEPT

Price

14

Anita borrowed money from a bank to help her start her small business.

Which factor of production below does the loan represent?



Information resource



Human resource



Physical resource



Capital

CONCEPT

Economic Systems

15

An employee intentionally enters inaccurate information into her company’s database to deliberately get back at her employer.

Which type of technology risk below does this illustrate?



Protecting data



Misusing data



Updating systems



Technology usage

CONCEPT

Management Technology in Virtual Work World

16

In modern times, companies need to be socially responsible toward various stakeholders. 

When a company ensures that its products will not cause personal injury when used, the company is demonstrating particular consideration to which stakeholder?



Employees



Environment



Investors



Customers

CONCEPT

Models of Social Responsibility and Considering the Stakeholder

17

A business owner decides to give all her employees a living wage and benefits, including any new employees.

Which social responsibility stance did the business owner demonstrate?



Accommodating



Proactive



Defensive



Obstructionist

CONCEPT

Stances to Social Responsibility Issues

18

Financial accounting is different from managerial accounting in which of the following ways?



Financial accounting involves creating financial documents for people to use within an organization.



Financial accounting provides financial information to people outside of an organization.



Financial accounting sets the performance goals for every division within a business.



Financial accounting is used by an organization to make financial plans for the future.

CONCEPT

Financial Accounting as Compared to Managerial Accounting

19

Kirsten was the financial manager for a chain of ladies' apparel stores. She reviewed the weekly operating activities, such as buying inventory, paying employees to work in retail stores and paying rent on the retail spaces. 

Which responsibility of a financial manager below does this scenario describe?



Managing risks taken by the business



Determining long term investments



Getting funds for investment opportunities



Overseeing day-to-day financial activities

CONCEPT

Financial Accounting as Compared to Managerial Accounting

20

Which of the following describes the purchase of a shopping good?



Abby purchased a brand new Corvette sports car.



Abby purchased a bottle of mouthwash because she ran out of it the night before.



Abby purchased a soft drink and muffin on her way to work.



Abby purchased a new sofa and futon after redesigning her living room.

CONCEPT

Product

21

Which of the following is true about corporate ownership?



Each US state has the same tax guidelines for creating corporations.



A corporation is owned by any person who purchases its stock.



Stockholders are unable to share their voting rights with other people.



All corporations are publicly owned through publicly traded shares.

CONCEPT

Types of Corporations

22

Jenna and the partners in her firm met with an entrepreneur who owned a company that needed funding. Jenna led her team in closely evaluating the company's financial documents to determine if the project would be too risky to invest in. Jenna's group was interested in helping a company grow rather than just getting it started.

Which of the types of investor below is described in this scenario?



Angel investor



Venture capitalist



Personal investor



Lending institution

CONCEPT

Investors and Private Placement

23

Jenny is a high school senior who wants to someday be a lawyer.

Which of the following is an intermediate goal?



Jenny hopes to major in philosophy at a private university next fall.



Jenny hopes to earn her Bachelor's degree and be admitted to law school.



Jenny hopes to someday become a federal judge.



Jenny hopes to attend law school at a top-rated university after finishing a Bachelor's of Arts in philosophy.

CONCEPT

Goal Setting and the Mission Statement

24

In which of the ways below is corporate culture best expressed to employees?



Through explicitly stated goals and objectives



Through management leading by example



Through offsite training programs



Through enforcing legal requirements

CONCEPT

Management Process and Corporate Culture

25

As a manager at a large pharmaceutical company, Ian led a team of scientists in testing new drugs to determine if any side effects were present.

Which of the following best describes his role?



Division manager



Top manager



Line manager



Middle manager

CONCEPT

Managers

 

1

A budget is used to manage the finances for a business for which of the following reasons?



To identify the losses a business could incur



To value the assets a business maintains



To make sure spending is planned and controlled



To accurately assess the investments of a business

CONCEPT

Role of Financial Management

2

A company selling a new product would consider using a skimming pricing strategy for which of the following reasons?



To be competitive with companies selling similar products



To generate consumer interest in the product



To develop brand loyalty with its current market



To cover high marketing costs for a new product

CONCEPT

Price

3

A well-known corporation planned to expand one of their product lines and needed financing. The corporation wanted financing that could be quickly arranged. All information about the financing needed to be kept confidential so their competitors would not find out about the expansion.

Which of the following types of financing is the company likely to use?



Stock offering



Long term loan



Corporate bond



Venture capitalist

CONCEPT

Debt Financing

4

Sophie led a team developing a social responsibility program for her company. The team created a program to raise money for a local food bank charity.

Which of the following activities would NOT have been performed during the planning step for the program?



Determine the fundraising goals



Manage performance of the program team



Gain support from upper management



Set the budget for marketing the program

CONCEPT

Steps to Creating a Social Responsibility Program

5

Which of the following is an example of telecommuting?



A manager approves an employee's request to take a company laptop on a trip so that he can work while he is away from the office.



A manager approves an employee's request to extend his hours on Monday through Thursday so he does not have to work on Fridays. 



A manager approves an employee's request to set his core working hours from 10:00 a.m. to 7:00 p.m.



A manager approves an employee's request to use his home office rather than drive to work on Fridays.

CONCEPT

Virtual Options in Business Today

6

Martin started a custom frame shop after retiring as an engineer. He was a skilled craftsman and knew there was a market in his small town for this business. He focused on serving his customers and maintaining the daily operations of his business.

Which of the following would Martin be considered?



Business partner



Corporate owner



Small business owner



Entrepreneur

CONCEPT

Small Business and the Entrepreneur

7

Erin managed a well-known vacation resort in Florida. When decisions needed to be made, she held meetings where she met with her employees to discuss and resolve issues by giving everyone some opportunity to contribute to decisions.  

Which of the styles of management below does this scenario describe?



Democratic style



Free rein style



Autocratic style



Contingency approach

CONCEPT

Management Styles

8

Which of the following would cause a going-out-of-business sale to be considered false advertising?



The company keeps the location open.



The company begins the sale on time.



The company reduces product prices.



The company liquidates all inventory.

CONCEPT

Truth in Advertising

9

A large clothing retailer determines the company eventually wants to offer home goods and furnishings at its stores within the next six to seven years. Management decides to add a home goods division to prepare for this product offering expansion.

Which of the following does this scenario illustrate?



Functional strategy



Intermediate goal



Long term goal



Operational plan

CONCEPT

Goal Setting and the Mission Statement

10

Which of the following is a disadvantage to using tests as a hiring method for potential employees?



Test results can be inaccurate due to applicants experiencing test anxiety.



It is easier to evaluate skills using application forms.



Most tests only evaluate skills and not applicant personality traits.



Most applicants refuse to take tests as a part of the employment process.

CONCEPT

Acquiring the Employees

11

Which of the following is a characteristic of an angel investor? 



Typically loans a business money for no longer than 10 years



Assesses and evaluates risk more thoroughly before loaning money



Provides growth funding for a startup company to expand



Provides initial funding to a business from personal finances

CONCEPT

Investors and Private Placement

12

A line of devices from an electronics manufacturer experienced a peak in sales. The company then decided to simplify the product line to focus on a few key devices and aggressively promoted these specific products.

 

The product is in which phase of the product life cycle?



Introduction



Decline



Maturity



Growth

CONCEPT

Product Life Cycle

13

Lindsey decided to open a franchise fitness center instead of starting her own business from scratch.

Which of the following is an advantage to Lindsey purchasing the franchise?



Lindsey can get help with marketing and advertising the new business.



Lindsey can create the logo and company slogan for the fitness center.



Lindsey can select the suppliers for purchasing the workout equipment.



Lindsey can determine what fitness options she will provide her customers.

CONCEPT

The Small Business Franchise

14

Which of the following can investors use to evaluate a company's potential earning power?



Asset to liabilities ratio



Earnings per share



Debt to owner's equity ratio



Current ratio

CONCEPT

Equity Financing

15

Sebastian required his employees to work overtime to meet a deadline on a project. The following week, he gave each employee a gift card to a local restaurant.

Which type of reinforcement below does this scenario illustrate?



Positive punishment



Negative reinforcement



Negative punishment



Positive reinforcement

CONCEPT

HRM Toolkit

16

In addition to providing products and services, which of the following can a business often create?



Increased need for government regulations



Need for economic policy change



Quality of life for consumers



More restrictions on consumer choices

CONCEPT

What Is Business?

17

Fletcher owned a large nursery that grew trees and shrubs. He sold his products to landscaping companies and major retailers in his region.

Fletcher would be considered which of the following?



An intermediary



A distributor



A wholesaler



A retailer

CONCEPT

Place

18

A US based company manufactures and sells custom motor homes. All engine parts are made in Michigan, and the tires are made in Virginia. The computer system is made in China. The leather for all seating is made in Italy. The carpet and wood flooring are made in Pennsylvania.

Select the item below that is an import to the US.



Tires



Carpet and wood flooring



Engine parts



Computer system

CONCEPT

Global Economy

19

Which of the following is NOT a problem associated with the use of social media in marketing?



Staying current with technology changes



Constant need for new content



Using social media to build customer loyalty



Legal issues related to consumer privacy

CONCEPT

Technology and Marketing

20

Which of the following is an example of recency error in performance appraisals?



Laura gave an employee a high performance rating. She likes the employee's personality, and they have similar social interests.



Laura gave an employee a poor performance rating. Even though the employee met her quotas all year, her sales numbers were down in the month prior to her appraisal.



Laura gave an employee a high performance rating. Even though the employee did not meet her sales quotas, she was a good communicator.



Laura gave an employee a poor performance rating. The employee did not meet her sales quotas for the second year in a row.

CONCEPT

Appraisals and Their Impact in HR and Training

21

In modern times, companies need to be socially responsible toward various stakeholders. 

When a company ensures that its products will not cause personal injury when used, the company is demonstrating particular consideration to which stakeholder?



Investors



Environment



Customers



Employees

CONCEPT

Models of Social Responsibility and Considering the Stakeholder

22

Which of the following does a low current ratio indicate about a business?



The business will have difficulty repaying debts.



The business will exceed its financial goals.



The business will accept low levels of risk.



The business will increase its spending power.

CONCEPT

Budgeting

23

Select the item below that is a characteristic of holistic marketing.



Implementing targeted marketing programs for green products.



Considering all business aspects when marketing products



Combining different marketing techniques to sell a product



Focusing on marketing individual products to consumers

CONCEPT

Evolution of Marketing

24

A large textile mill had a spinning department, a weaving department, a dyeing department and a printing department. Activities were grouped based on the area. For example, all activities related to spinning were grouped to form the spinning department.

What type of departmentalization below does this illustrate?



Geographic



Process



Form



Customer

CONCEPT

Getting Organized

25

Sophie's dorm room was hot since she did not have air conditioning. She decided to buy a new fan.

What type of consumer behavior influence below does this scenario describe?



Cultural



Personal



Psychological



Social