Principles First Semester Review
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1 Principles First Semester Review financing is the money needed to pay for the current operating activities of a business. a. Start-up b. Long-term c. Short-term d. Intermediate Each of the following is a key factor in successful entrepreneurship except: a. having special business skills. b. creating an effective business plan. c. possessing a real desire to be your own boss. d. having a need to direct other people. Most young entrepreneurs are female. According to the Small Business Administration (SBA), a small business is one with 100 or fewer workers. Many small businesses have an advantage over larger businesses because they are better able to: a. raise large amounts of financial capital. b. mass produce products. c. provide personalized service to customers. d. market their products.
2 Entrepreneurship is the process of starting, organizing, managing, and assuming the responsibility for a business. The proportion of all jobs in the United States that are provided by small businesses is roughly: a. one-quarter. b. one-third. c. one-half. d. two-thirds. A(n) is an invention or creation that is brand new. a. innovation b. improvement c. development Advancement d. An effective leader gets to know each person's skills and abilities as well as strengths and weaknesses. 1 It is generally agreed that tools and money are the most important resources of a business. 2 A manager is better able to influence workers when he or she: a. earns a large salary. 3 b. has an impressive job title. c. is recognized as an expert.
3 d. is an older person. Management is the way a manager treats and involves employees. a. technique 4 b. design c. style d. approach A good way to decide whether a business's action is ethical is to ask yourself whether it will: a. increase the firm's profits. 5 b. increase the firm's sales. c. improve the firm's competitive position in the market. d. embarrass the firm if the action becomes public knowledge. 6 Ethical business practices ensure that the highest standards of conduct are observed in a company's relationships. As a part of the planning process, managers should: a. impose a set of ethical values on all employees. 7 b. work with employees to develop values that emphasize ethical behavior. c. provide a list of the firm's ethical standards to all workers. d. hire lawyers to evaluate the ethics of the firm's policies.
4 When tactical management is used, the manager is: a. directive and controlling. 8 b. sharing and trusting. c. attentive and respectful. d. unsure and doubtful. The five functions of managers include each of the following except: a. planning. 9 b. organizing. c. cooperating. d. staffing. In the day-to-day operations of a business, managers should stress the importance of ethical behavior. 10 The is the physical conditions and psychological atmosphere in which employees work. a. business location b. office c. work environment d. shop Performance management is the evaluation of a worker's ability to get along with other employees.
5 In today's economy, technology has: a. reduced the need for low-skilled employees. 3 b. reduced the need for high-skilled employees. c. reduced wage rates for most workers. d. reduced workers' need for higher education. An additional worker should be hired when: a. that worker is expected to add more income to the firm than his or her cost. 4 b. a firm is not able to produce enough products to satisfy demand for its product. c. it's summer and many employees are going on vacation. d. the cost of workers' overtime pay is growing. Jobs in the U.S. workplace have been influenced in recent years by each of the following except: a. changes in consumer preferences. 5 b. the increasing cost of obtaining a higher education. c. new technologies. d. business cycles. A(n) is a specific study of a job to identify in detail the job duties and skill requirements. a. employee evaluation 6 b. task review c. position examination
6 d. job analysis removes work from one company and sends it to another company that can complete it at a lower cost. a. Downsizing 7 b. Rationalizing c. Subsidizing d. Outsourcing An organizational culture is the environment in which people work. 8 9 A glass ceiling is an artificial limit placed on minority groups that keeps them from moving into positions of authority within a business. A(n) is always a permanent end of employment for a worker. a. layoff 10 b. transfer c. termination d. extinction A of distribution is the route a product follows when it is moved from the producer to the final consumer. a. channel b. course c. path
7 d. conduit 2 A business must plan each of its products to make sure it meets the needs of the target market better than similar products offered by competitors. Marketing is often mistakenly thought of as being limited to advertising or selling goods or services. 3 A target market is defined as: a. a group of consumers who live in a specific geographic region. 4 b. a group of consumers who belong to a specific racial or ethnic group. c. a group of consumers who have similar incomes. d. a group of consumers who have similar wants and needs. 5 The most common advertising media include television, radio, newspapers, magazines, mass mailing, outside displays, and the Internet. : A marketing is the blending of four marketing elements product, distribution, price, and promotion. a. orientation 6 b. mix c. strategy d. targeting 7 The words promotion and advertising always have the same meaning.
8 The first step in new product planning is: a. production and financial planning. 8 b. idea screening. c. test marketing. d. idea development. Which of the following is not a commonly used method of carrying out market research? a. holding focus groups 9 b. making observations c. evaluating tax payments d. conducting experiments Distribution is determining and using the lowest cost method of delivering products to consumers. 10
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