BUS-X 100 Assignments


Terms in this set (...)

You sell online fitness courses and want to establish a marketing campaign that utilizes multiple tactics to lead customers to a sale.
Email offer of 30% off your fitness courses
Blog article about common training mistakes to avoid
Facebook post that lead users to a blog article about common training mistakes
Entry form on blog article for readers to enter email address to learn more
In terms of how customers will experience your marketing campaign, select each tactic so it is in the proper sequence.
Step 1: Facebook post that leads users to a blog article about common training mistakes.
Step 2: Blog article about common training mistakes to avoid.
Step 3: Entry form on blog article for readers to enter email address to learn more.
Step 4: Email offer of 30% off your fitness courses. e
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Your daughter recently approached you with an idea to start an online business selling handmade wreaths for the front doors of homes. She is very skilled in the craft, and for years has been making the wreaths in her spare bedroom and selling them offline for premium prices. She has approached you for advice because she is aware of your expertise as a business professional. You suggest setting up an online wreath marketplace so she can develop two income streams: she can sell her own wreaths on the site and other wreath makers can pay a listing fee to sell their wreaths on the site. You will do the programming for free. What two online business models are being utilized in this scenario?
Fee-based platform
Online-only retailing
Your company provides a unique assortment of gardening supplies to the general public. Your company sells a unique assortment of gardening supplies to the general public and has historically relied on traditional marketing approaches, such as magazine ads, to sell your products. These advertisements are expensive and provide little useful feedback, so you would like to include online marketing in your promotional mix. You already have a full-feature website and extensive gardening expertise, but you have a small marketing budget; as a result, you want to start your online promotional campaign with tactics that are free of charge.Select the tactics that meet your needs and requirements. Select all that apply.
Content marketing
Social media marketing
Basic SEO
Email marketing
Lead generation
You hired a web developer to create the website for your hardware and home improvement store. After several weeks, she presented you with the options below.Which option best meets the needs of mobile consumers?
A website that optimizes layout depending upon the type of device it is being viewed on.
Even retailers that sell many similar products are often different from each other in several key ways. Consider the following descriptions and specify which one best describes each retailer by selecting the correct option from the drop down menu.

1.Trader Joe's offers many organic food choices, healthy food prepared on site, a high quality fresh meat market, and extensive wine selections.It has smaller, upscale stores in major U.S. markets, but is not likely to be found in rural areas of the country. It costs more than major grocery stores and primarily sells food-related items.

2.Sam's Club has stores primarily in major markets. While they are owned by Walmart, there are far fewer Sam's Clubs than Walmarts. Pricing is low because product is sold in bulk. If you can't use 24 hot dog buns before they go stale, this isn't the store for you. Stores are huge and not only sell groceries, but refrigerators, televisions, and more.

3.Vons, QFC, and Safeway are traditional grocery stores that can be found in just about every town. These large stores carry a wide selection of foods and household products. They also often carry an assortment of books, magazines, DVDs, and many stores have pharmacies. Prices are very competitive.

4.Need a soda and a lottery ticket? How about batteries for your headphones before heading to the airport? Maybe you need some snacks for your road trip. 7-Eleven stores are in almost every town and near every major highway, in addition, they are small to facilitate purchasing what you need so you can rapidly return to the road.
1.Limited product categories, small scale, exclusive distribution, premium prices
2.Assortment of product categories, large scale, exclusive distribution, discount prices
3.Assortment of product categories, large scale, intensive distribution, discount prices
4. Assortment of product categories, small scale, intensive distribution, discount prices
Below are several scenarios that describe pricing strategies. Select the pricing strategy from the drop down menu that matches each scenario.

1.Nike introduces a new shoe that automatically inflates when the wearer's arches begin to fall. They price the shoes at $299.99 - much higher than a standard pair of shoes.
2.In deciding between two sweaters with very similar color and fit, you buy the sweater that is priced at $69.59. You aren't sure why it seemed like the best price.
3.You bought an HP color laser printer at a very reasonable price but you are surprised and disappointed to discover how expensive replacement toner cartridges are and that you seem to need one every few months.
4.Wow! On the endcap of the snack aisle you see a special deal: a two-pack of "Super Bowl" Pringles for $3.99. You grab it and are delighted to save some money, then you walk down the chip aisle and realize you did not save any money at all: Single cans of Pringles sell for $1.99.
1.Price Skimming
2.Psychological Pricing
3.Captive Pricing
4.Promotional Pricing
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You visit a shoe store and find a shoe style you love, but the store doesn't have your size because you have very small feet. You speak with the manager and she says the manufacturer does make shoes in your size, but the store has never stocked that size before: She can special order a pair that will arrive at the store within two weeks and your pair will be the same price as the standard sizes.

You wonder how this could be; surely the manufacturer isn't making a single pair of shoes just for you. They must make these shoes in large batches to keep the price reasonable. What advantage of intermediaries is most responsible for your ability to special order shoes at the same price as standard sizes?
Intermediaries break bulk.
You are the CEO for a major electronics company that just announced the launch of a new smart watch with a variety of tracking capabilities designed to make the life of its wearers easier and healthier. While the watches aren't cheap to make, they are so highly sought after that you'll charge premium prices and make a good profit. Pre-orders for the watches begin stacking up on announcement day and you have promised customers they'll receive watches in two weeks. You have never failed to deliver on a promise like this before, but you just received a call from your overseas factory: The watches will not be shipped tomorrow as planned, but will be delayed two weeks due to an engineering problem. Since the transit time for the ocean vessel you typically use is two weeks, your customers will receive their highly anticipated watches two weeks late. Based on this scenario and your knowledge of physical distribution, what transportation option best meets your goals?
Ship by airfreight because customers will receive watches on time, although it will shave 5% off your gross margin.
You want to sell more of the crocheted baby items you make. What started as a hobby seems like it could become a legitimate money-making business. Your friend works at a company that distributes a variety of items to retailers all over the country, including many baby items. Once you send pallets of product to this company, they handle all of the sales, shipping, and other logistics involved with selling to these retailers. Although you'll make less profit per item than you do now, you'll be able to sell much higher volume - which will more than make up the difference.

What is the distribution channel described in this scenario?
Two-step distribution
Your boss has asked you to "secret shop" the nearby appliance store. They are your main competitor and the prices they charge have a strong influence on what you can charge. You sell appliances that have stronger brand names and higher consumer reports ratings than the appliances your competitor sells. You also offer free delivery, something your competitor does not offer.

You find that your competitor consistently sells appliances for $50 more than you charge for models with comparable features. Based on this information, what response is most likely to increase your store's overall profit?
d. Raise prices by $55 because of the enhanced perception of your products and services.
You are a partner in a new company that makes organic shoes. You had several accounting courses as an undergrad, so your partners have made you the de facto finance officer. It's important to remember the steps in creating a breakeven analysis. You have all agreed to use this as your financial barometer. Use the information below to calculate your breakeven point for the month of May. Round your response to the nearest whole number.

Company Data

Fixed Costs for May: $2,000

Variable Costs per Unit: $25

Production Capacity: 300

Unit Price: $75

Gross Sales: $5,250

The breakeven point for the month of May is:
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You go to a home and garden export. The person at one booth says, "Take the ache out of your gardening, these gardening shears with permanent silicone coating will make you eager to prune this spring." Priced at $25, this is far below their normal price of $50, but that price is only available at this event. It seems like an amazing deal for a set of shears that will change your attitude toward gardening. You're on board, but then the marketer tells you about a honing stone to keep those permanently siliconed shears sharp.. He also sells you a custom set of gel grips for the shears that makes them even more comfortable to use. By the time you leave the expo, you have spent $100.

Which of the following pricing strategies did the marketer use?
Promotional Pricing
3D technology was a novelty twenty years ago. While many were interested, few people felt the need to own a 3D printer. The main drawback was cost. In the last few years, the cost has come down considerably and is now about $1,000. 3D printers are also easier to find now that 20 companies make them. Imagine that you work for one of the 3D printer companies and are charged with creating a major advertising campaign. You need to compare the advantages of two major media choices. To help you decide which medium to choose, select the advertising media each advantage describes.
1.Highly selective targeting
2.Can reach same audience multiple times in short period
3.Available for small marketing budgets
4.Results are very easy to track
5.Largest reach
6.Offers visual impact and entertainment value
1.Social Media
2.Broadcast Television
3.Social Media
4.Social Media
5.Boradcast Television
6.Broadcast Television
You were recently promoted to Vice President of Marketing for the pharmaceutical company that makes Humira, a medicine that treats various autoimmune diseases. It is an expensive, patent-protected medicine that is not always covered by insurance. To further increase market share in this category, your top priorities are to persuade and inform doctors of the benefits of Humira, and to provide incentives for customers to purchase the product if their doctor prescribes it. You know that doctors often need to have specific questions answered before they'll prescribe more of a certain medicine. Which of the following promotion mixes best accomplishes these goals?
Spend 75% of marketing budget on personal selling and 25% on sales promotion.
The Director of Promotions at Disneyland Paris is looking for a great promotion that will revive the public's interest in this least visited Disneyland park. He believes the right incentives, offered to the right audience, will be the most effective method to boost attendance and improve the profitability of this park; his primary goal is to increase attendance which has been declining attendance for the past 3 years. He has identified two key priorities for this campaign:
Encourage locals to visit Disneyland Paris on a more regular basis.
Expand the list of prospects and encourage marketing managers to provide these prospects with periodic incentives to visit Disneyland Paris.
Which two sales promotion tactics should he choose to reach these objectives?
One free admission for every three paid admissions
Win a trip for 2 adults and 2 children
TOD, the upscale company for men's shoes, has a reputation for creating chic, trendy, and expensive shoes. TOD wants millennials to be aware of its reputation but millennials are often jaded by traditional advertising methods.TOD decides to utilize PR methods to promote its shoes because it believes they are more organic and credible than paid advertising; however, TOD is concerned that many PR methods preclude control of the message and this could undermine its objectives.. How can TOD best utilize PR while addressing these concerns?
Hold a series of fashion shows and dance parties in big cities, and invite key influencers and celebrities to those parties
A common form of innovation is to improve the function or quality of a product. This type of innovation usually solves some tangible problem that exists with other products currently available in the market. For example:
1) A problem: People back their cars down their driveways using rearview mirrors that provide limited visibility.
2) A solution: Many cars now come equipped with dashboard cameras that sense obstacles in the way and stop the car.
3) A benefit (s) Fewer accidents occur. Lives are saved. Insurance costs are lower.
For each improvement in a product function, identify the tangible benefit of the innovation:
1.Food packages with resealable tops.
2.Electric iron automatically shuts off if not used for more than 10 minutes.
3.Lawnmowers come equipped with guards on the discharge chute.
4.Wheels on bottom of luggage.
1.Extends life of product
2.The possibility of fire is reduced
3.May prevent serious injuries from debris
4.Makes travel easier
Each phase of the product life cycle is characterized by an industry-wide pattern of revenue and profits for a particular product category.Review the revenue and profit descriptions below, then identify each description with the correct life cycle stage.
Sales peak and profits decline
Rapidly increasing sales and profits
Sales decline, as do profits. Substitutes enter the market
Low sales and profits
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Not every new item that McDonald's rolls out is an instant success. Periodically during the past 50 years, McDonald's has offered some products that just didn't catch on with customers. One example is McWings, which was rolled out to stores for a short time in 2013 and then disappeared from the menu. The company did not give a reason for discontinuing the product and there were no known supply or production problems associated with McWings, but many observers noted that the cost of the McWings ($2.99 for 3 wings) did not offer the value that McDonald's customers expected.Based on the information above, what two phases of product development did McDonald's likely misjudge?
Product Analysis
Product Development and Testing
Marketing strategies are tailored to the phase of a product's life cycle, for example, Frito-Lay competes in the very mature, but still profitable, food chip category. From the list below, select marketing strategies that would be appropriate at this stage. Check all that apply.
Offer $1 off coupons to remain price competitive.
Introduce Cheddar Bacon Mac and Cheese flavor.
The Bouqs is an online florist that delivers flower arrangement by mail order. You select the arrangements online, then the package of flowers arrive within a few days. If you were the product manager for The Bouqs, what is your highest priority when designing the package that flowers will arrive in?
Protect the flowers from damage.
You are opening a new restaurant and bar downtown. You create a detailed description of your target market profile using the three primary dimensions of market segmentation. Identify each portion of your description by its dimension of segmentation.
Between 18-22
Enjoy trendy clubs and restaurants
Are attending college
Live in the downtown area
Are socially conscious
Watch Big Bang Theory and Girls
Don't watch news programs very often
Your office supply business has been open for three weeks and you are disappointed in how few sales you've had. The store is located on the perimeter of a new office park that is about 40% occupied. You were hoping that sales would be brisk because the nearest Office Max is at least 10 minutes away. Since you opened, many customers have stopped in to buy supplies, but at that time you did not carry what they needed; however, you have since ordered the supplies these customers want and have them in stock. While your prices are about 25% higher than Office Max, you figured that since your store is much more convenient, customer will pay more. So far this has not been the case.
Marketing brings value to customers in four primary ways. In what two ways are you failing to provide that value?
Right price
Right time
One of your favorite programs is a show in which wealthy investors listen to sales pitches from entrepreneurs looking for an investment in their new company. Some entrepreneurs are lucky enough to have all four investors make offers, while most are happy if just one of the investors is interested. You now realize that companies with a fully developed marketing mix garner more interest from investors. What elements of the marketing mix are missing from this entrepreneur's pitch?
"We have created a new kind of waffle mix that is gluten free, grain free, dairy free, and high in protein - but it tastes as good or better than the leading waffle mix. We're targeting customers who want delicious options for breakfast, without having to worry about food allergies or empty calories. The best part is that our product will sell for only 20% more than the leading waffle mix, which is highly-processed and grain-based."
You are again watching a show in which entrepreneurs pitch to investors to fund their company. You have consistently noticed that companies with a fully developed marketing mix seem to garner more interest from investors. What elements of the marketing mix are missing from this entrepreneur's pitch?
"We help customers design the most beautiful photo books and scrapbooks online, then customers order their books and receive them within three days. Our templates are more artistic and customizable than those offered by any other service. Our service will be offered through an exclusive partnership with Pinterest, where Pinterest users can design an unlimited number of photo books or scrapbooks free, then save them for future purchase. We will also sponsor ads on Pinterest, Facebook, and Twitter to tell people about our service."
You are about to recommend a series of sweeping changes within your department. They include:
Replacing existing cubicles with new ones that are larger and provide your employees more privacy
Implementing an "Employee of the Month" program•
Implementing a flextime policy
Allowing employees to cross-train with their peers to better prepare them for advancement
Announcing across-the-board raises to launch your sweeping changes
As you review your changes, you realize that some of them apply to motivation factors, while others apply to maintenance factors. Choose the category for the corresponding changes.

Replacing existing cubicles with new ones that are larger and provide your employees more privacy
Implementing an 'Employee of the Month' program
Implementing a flextime policy
Allowing employees to cross-train with their peers to better prepare them for advancement.
Announcing across-the-board raises to launch your sweeping changes.
Maintenance factor
Motivational factor
Maintenance factor
Motivational factor
Maintenance factor
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The facility you manage is under pressure to improve productivity, or it may be forced to close. You have already completed time and motion studies of each position and are confident that appropriate operating procedures are in place. You have increased the per-piece pay rate two times in the last year, however the more recent increase did not yield much improvement in productivity. What is the most effective next step?
Call a meeting of employees to discuss the issue and ask for recommendations.
For the past several years you have been working as a clerk at a law firm, typing complicated legal briefs for the partners of the firm. In an effort to increase your output, the partners have indicated that if you are able to increase your typing speed (without errors) from your current rate of 65 words per minute to 85 words per minute, your pay will be increased by 5%. Based on expectancy theory, the three factors that will determine whether you are motivated to achieve this goal are _____, _____ and _____.
Whether or not you feel you will be given sufficient resources to enable you to type 85 words per minute.
Whether typing 85 words per minute seems like a realistic goal to you.
Whether a 5% pay raise is a sufficiently desirable outcome.
One of your senior sales reps comes into your office and tells you she will be leaving in two weeks. When you ask why she is choosing to leave after so many years, she informs you she is discouraged about not meeting sales goals and wants to pursue other interests.
During lunch, you relate the story to a colleague. He tells you about the idea of expectancy theory and gives you several ideas for persuading the employee to stay. Which idea is most likely to work?
Offer the employee a 20% raise if she meets sales goals, plus offer weekly mentoring on prospecting, negotiating, and closing sales deals.
Companies use departmentalization to divide the business into more manageable working units. Each departmentalization option has both distinct advantages and disadvantages. The examples below describe some disadvantages. Match each statement with the type of departmentalization best described by using the drop down list.
Our software company has multiple departments who handle their own HR, marketing, and financial management functions. While this isn't always efficient, it serves the needs of our company in other ways.
Our team was about to close a big deal with a school district, but the business sales team sold the entire inventory to someone else. We lost the sale on our side, and the school district now sees us as unreliable.
The marketing campaigns created by our department are hugely popular and customer interest is off the charts. If only the operations department would stop being so picky about their quality control processes so that we can get this product out the door. My team's bonuses are based on sales, not reject rates.
There are advantages to both centralized and decentralized decision-making in an organization. Identify whether the advantages listed below are associated with centralization or decentralization by selecting the correct choice from the drop down menu.
Faster decision making
Increased innovation
Higher efficiency
More employee empowerment
Stronger brand/corporate image
More responsive to customer needs
Greater top management control
Each type of organizational structure has unique advantages. For each advantage listed below, select the organizational structure it is associated with from the drop down menu.
A clear specified path for communications
Expertise can be shared across departments
Information is shared readily
Specialized support is available to managers
Decision making occurs rapidly
Individuals can provide key regulatory oversight
Line and Staff
Line and Staff
A large advertising agency is headquartered in New York, but has branch offices in major cities around the world. Those offices work with key accounts in their respective cities, but branches also collaborate with each other when a client wants an international campaign. This agency is known for producing the highest quality creative work in the industry. Whether a campaign is national or international, creating the campaign requires collaboration among art directors, copyrighters, media buyers, and other specialists at the firm. This agency employs only top talent and is a prestigious place to work. When designing their organization structure, what choices will support the goals and culture of this organization? Check the five choices that apply.
Matrix structure at branch offices
Jobs with high degree of variety
Managers with narrow span of management
Decentralize decision making to the branch offices
Organize company by location
You have gathered your management team to conduct a SWOT analysis of your local produce distribution business. Categorize each of the strategic factors below by choosing the correct aspect of a SWOT analysis from the options in the drop down menu.
Our fleet of new, fuel efficient trucks
Local farming co-ops are delivering product directly to grocery stores
20 new restaurants opening in the city over the next 9 months
Our computerized dispatching system that optimizes delivery schedule
Possible new regulations that will prohibit transport of certain products to our customers in a neighboring state
Large percentage senior staff nearing retirement at the same time
Successful middle managers must handle a wide assortment of job responsibilities; some require conceptual skills, others require interpersonal skills, still others require technical skills. Choose the skill most needed for each responsibility below from the drop down menu.
Coordinating their activities with other middle managers in the company.
Evaluating organizational goals and incorporating them into departmental goals.
Accurately communicating the objectives of top management to the entire team.
Reviewing financial and other performance measures to ensure that goals will be met
You have been hired as store manager for a national retailer. The facility is large, with over 40 full-time employees. Your first goal is to increase overall revenue by encouraging sales associates to upsell and cross-sell products. You will measure their performance by tracking revenue per transaction; and you will provide incentives if goals are reached. What is your first step in this process?
Organize a meeting with your sales associates to discuss the current revenue per transaction and specify the new target for revenue per transaction.
You are the lead engineer for an athletic shoe company. Top management has asked you to somehow reduce the weight of your product by 20% without losing any of its function or durability. They want this new product ready for production within six months. You believe this goal is possible and have promised top management it will be achieved. You have a team of 20 industrial designers who are responsible for designing your company's shoes. Which leadership style should be adopted for this situation?
Participative Leadership
You are president of a small business industry association that has been called to testify before the U.S. Congress. Due to budget constraints, there is fear that funding for the Small Business Administration (SBA) might be cut. Which of the following are facts about small business in the U.S. that you would use to argue against cuts to the SBA? Check all that apply.
The vast majority of all firms with employees are small businesses, making them a huge source of jobs for our economy.
Over 50% of net new jobs come from small businesses.
Small businesses employ over 40% of high-tech workers.
Joe Beanne, of Cup of Joe Coffee Shop, is putting together a business plan and needs to know which of the following he should include as components of the plan? Check all that apply.
Will open by spring and will be profitable by year 2
There are a lack of coffee shops in the area $30,000 is needed for renovations to the space he rents
Joe sells coffee and donuts
You have opened a small business that is now thriving to the point where expansion is possible. You project moderate, but steady, growth for the next several years. Which source of funding best fits your situation and needs?
Bank Loan
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Your family has owned an Italian restaurant since before you were born. In the last 5 years, your family has opened three new locations - all of which have been successful. Now your family is considering moving to a franchise business model. They ask you to specify how the franchise will be set up. You create an arrangement where there are many advantages for the franchisee. However, there is one tradeoff that could drive away potential franchisees. What is it
The franchisee will cover the cost of remodeling the franchise location.
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You just received a patent on your amazing new electronics invention. This invention could provide a legacy that generates income for your children, your grandchildren, and beyond. To bring this product to market and grow this into a real business, you need partners or investors. You find four investors who are willing to invest $100,000 each in exchange for 10% ownership. That will leave you with 60% ownership of the business. Since you will be CEO of the business, you will make all of the day-to-day decisions and if all goes well in the next few years, you might even buy back shares from your original investors so that you can own the whole company again. Once you own all of the shares, you will be able to transfer the company to your children so that the business can continue even after you are gone.
Which form of ownership will best meet your needs?
You and a friend will both invest $20,000 into a personal fitness business you are establishing. You will handle most of the day-to-day business operation and all of the marketing. You feel you should receive 70% of the profits from the business because of the time and expertise you will be providing to the business. Your friend agrees you should receive more of the profit, but believes that since you are investing an equal amount, the profits must be split equally. You consult an attorney. What advice from the attorney would be correct?
You can form a partnership that specifies in company agreements how the profit will be shared.
Several years ago, you and a friend started an online home décor retail store. You each invested $30,000 to get the business off the ground. Profits were good for the first few years, then you began losing business as other large retail stores began selling online. While sales were dwindling, you kept purchasing inventory in hopes the market would bounce back. It didn't and now you must close the business. At last check, you owe these suppliers over $75,000; but there is literally $0 in the business bank account. You decide to shut the company down.
For each of the ownership structures below, identify the total personal liability for you and your friend.
Sole proprietorship
For each example, select the best form of business by selecting from the dropdown list.
Five people will form a consulting business with each person investing equal amounts and expecting to receive equal profits. The owners will specify how and when other people might be allowed to become a part of the business, but they will limit admission to those who bring specific expertise the team does not already have.
A catering company will be formed, and once formed, its first contract will be to provide food services to a major computer company at all of its campuses in the U.S. The caterer will need to open offices, hire employees, and purchase inventory. The start-up costs will come to $250,000.
An individual wants to open a small carpentry business and wants to register its name, buy a business license, and begin business operations.
Sole proprietorship
Trade policies have both positive and negative consequences to businesses, consumers, and governments. A company in Japan recently proposed a revolutionary new concept for home washing machines that could make all other forms of washing machine obsolete. As a result, other countries may impose a quota on the imports of washing machines from Japan.
If a country imposes quotas on imports of the revolutionary new washing machine, which of the following statements would be true?
The number of washing machines sold to the country with quotas will decrease and the price will increase.
Last year, a Swedish company began production of solar panels suitable for powering small homes. The product has a great deal of promise, but the panels are more expensive to produce than panels manufactured in Norway. As a result, Sweden has imposed a tariff on the import of solar panels from Norway. Which of the following are reasons cited by the government of Sweden for this tariff? Check all that apply.
to protect domestic employment
to protect new and emerging industries
The balance of trade equals exports minus imports.
Since the inception of NAFTA, U.S. exports to Mexico have grown from $50 billion to $221 billion, while imports from Mexico have risen from $49 billion to $270 billion. During that same period, U.S. exports to Canada have grown from $114 billion to $287 billion, while imports from Canada have risen from $128 billion to $317 billion.
Select two trends from the list below that have resulted from the NAFTA agreements:
Canada's balance of trade with the U.S. has increased.
Mexico's balance of trade with the U.S. has increased.
You have been hired as global marketing director for a successful chain of sushi restaurants in the U.S. and Canada. Your company wants to expand worldwide, but is finding it particularly difficult to expand in certain Middle East countries. You notice there is only one other large chain of sushi restaurants in the Middle East, and they are very successful. Your market research indicates that the population could support more sushi restaurants. You do not have much operating experience I these countries and the local regualtions, tax laws, and other legal uncertainties make your expansion a risky endeavor. Your company's top priorities are to gain market share quickly and to have control over the quality of the restaurants; however, you also want to limit the risks associated with opening restaurants in a new market. What is your best option from the choices below?
Acquire the existing sushi chain in the Middle East.
You run a magazine publishing company and are approached on January 10th by the salesperson from your largest ink supplier. She advises you that the company just announced a price increase effective January 1, however, she will accept an order at the old prices if you submit the order today and backdate the order to December 28. You ask why she is willing to do that and she explains that her commission rate was higher under the old pricing structure and by backdating, not only do you get a lower price, but she will get a higher commission, and you can claim this purchase as an expense for last year which will lower your taxes.
Determine which of the following answers best describes the situation above and your business decisions.
Not legal, and not ethical
A woman who recently migrated from Romania is hired to serve as a customer service representative. Three weeks into her employment, seven different customers have complained. All insist that they cannot understand her strong accent. That concern was noted during the employee's job interview, but the decision to hire was made anyway. You can terminate the individual because, as a result of her strong accent, she is unable to communicate effectively with customers. What was the cause of this employee's termination?
Inability to perform the job
Review the mission statements for the following Fortune 500 companies and determine which of the social responsibility models each mission statement supports.
ADM: To unlock the potential of nature to improve the quality of life. ADM supports the
Becton, Dickinson and Company: To help all people live healthy lives. Becton, Dickinson and Company supports the
Bristol-Myers Squibb Company: To discover, develop and deliver innovative medicines that help patients prevail over serious diseases. Bristol-Myers Squibb supports the
Citigroup: Our goal for Citigroup is to be the most respected global financial services company. Like any other public company, we're obligated to deliver profits and growth to our shareholders. Of equal importance is to deliver those profits and generate growth responsibly. Citigroup supports the
ConocoPhillips: Use our pioneering spirit to responsibly deliver energy to the world. ConocoPhillips supports the
Socioeconomic Model
Socioeconomic Model
Socioeconomic Model
Socioeconomic Model
Socioeconomic Model
A car dealership in your area has experienced a decrease in business due to a number of consumer complaints. Match each complaint with the consumer right the dealership is failing to address.
Correct Response

Right to be Informed
The dealer will not allow shoppers to see the VIN number, which would allow shoppers to run a report on the vehicle's history.,

Right to be Heard
The customer switchboard is open weekdays from 11:00 am to 3:00 pm,

Right to Choose
The dealership only sells new vehicles that it has on the lot. It will not order vehicles with customized options that are available at other dealers.,

Right to Safety
Their bestselling car model has been recalled for steering problems three times in the past year.
The Volvo Group's vision is to become the world leader in sustainable transport solutions by creating value for customers in selected segments; pioneering products and services for the transport and infrastructure industries; improving driving quality and safety; advancing environmental care; and working with energy, passion, and respect for the individual.
Businesses can benefit society by offering valuable products. Based on the above description what values does Volvo provide? Select all that apply.
Increasing quality
Increasing safety and health
Increasing value for money
In reviewing the financial records of your family printing business you wonder what it would be like to expand overseas. You recall from your college business class that there are four primary economic systems in the world today. They are:
Review each of the following descriptions of a country's business environment below, then match the description to their economic systems by choosing your answer from the drop down menu.
With no minimum capital standards, starting a company only requires some simple paperwork. Flexible labor regulations means you can hire employees as long as you follow certain guidelines and laws.
On average, it requires over 100 days to incorporate a company, and obtaining necessary permits takes 400 days. And some key industries are owned by the state, so you would need to evaluate whether private businesses in your industry are even allowed.
Only state enterprises can enter into economic agreements with foreigners as minority partners; ordinary citizens cannot participate. All means of production are owned by the state.
Adam Smith stated that Capitalism is based upon four principles:
The right to create wealth
The right to own property and resources
The right to economic freedom and the freedom to compete
The right to limited intervention
Today, the extent to which those rights exist varies from country to country. Choose the economic rights from the drop down menu that best describes the governmental economic activities below.
Venezuela is a socialist country where the average tariff rate on imports is 8.6 percent. This rate is fairly high. Non-tariff barriers restrict imports of cars and agricultural products. It may take several weeks to import goods. This limits the ability of businesses to import goods at a reasonable price.
Hong Kong is a mixed economy where the competitive regulatory regime aids business formation and innovation. North Korea is a communist country where entrepreneurial activity is non-existent because the state continues to regulate the economy heavily through central planning and control.
The maximum individual tax rate varies from country to country. The lowest maximum individual tax rate is in the British Virgin Islands (0%).
The European Convention on Human Rights states "Every natural or legal person is entitled to the peaceful enjoyment of his possessions. No one shall be deprived of his possessions except in the public interest and subject to the conditions provided for by law and by the general principles of international law".
The right to economic freedom and freedom of the people
The right to limited intervention
The right to create wealth
The right to own property and resources
You are six months from graduating college and begin to think about your future. Knowing that you'll soon be searching for a job increases your interest in the health of the economy. This is because jobs for students with your major are highly dependent on economic growth. Categorize the following hypothetical headlines as either good news or bad news by choosing the correct answer from the drop down menu.
Unemployment rate drops to 5.6% from 6.1%, the third straight drop in the last three months.
GDP comes in at $17 trillion this quarter, compared to $16.5 trillion last quarter.
Prices, as measured by the CPI, increased by 10% last year and it could be even higher this year.
GDP drops by 2% in the 3rd quarter, after growing at 5% in the 2nd quarter.
You are considering purchasing stock in a company and looked online to gather information about the company. Under the "Financial Information" page you found the company's balance sheet. After reading the balance sheet you realized that a balance sheet provides you with
the financial position of the company on a particular date, including assets, liabilities and shareholders' equity.
Your uncle has passed away and bequeathed you a large sum of money which you have decided to invest in a business. You confer with a business broker for advice regarding a company to purchase and she presents you with four businesses to evaluate. The business with the highest owners' equity is
A bakery: Assets $4.7 million, Liabilities $1.1 million
When you first started your property management business, your accountant told you that a negative cash flow is often the main cause of small business failure. Keeping that in mind, you want to measure cash flow for your first year of operations. In preparing your cash flow statement, you make the following observations:

Your cash flow from operating activities was a positive $25,000 because you made a net profit of $35,000 and paid off the $10,000 beginning balance in accounts payable..

Your cash flow from investing activities was a positive $15,000, due to the sale of a company maintenance truck you no longer use.

Your cash flow from financing activities was a negative $45,000, due to the repayment of a loan you took out when starting the company.
Based upon your observations, you conclude
you had a negative cash flow during the year.
For years you have diligently saved your money and now you decide to invest it in a local business. You seek the advice of a large financial services company. The firm provides you with financial data for a restaurant that recently completed a major renovation on its owner-occupied building. The restaurant's financial data for the year prior to, and at the conclusion of the renovation looks like this:


Revenue: $150,000

Expenses: $50,000

Profit: $100,000

Assets: $500,000

Liabilities: $250,000

Owner's Equity: $250,000

Cash on Hand: $250,000


Revenue: $350,000

Expenses: $250,000

Profit: $100,000

Assets: $750,000

Liabilities: $600,000

Owner's Equity: $150,000

Cash on Hand: $25,000

After studying the financial information above, which of the following statements best describes the financial position of the restaurant?
The restaurant expanded but profits have not increased.
After years of efforts aimed at landing a large contract, your construction company has finally hit pay dirt and signed a contract to build a large apartment building. As part of the contract, your company will purchase all the needed materials up front and will not be paid until the building is completed. All your suppliers require payment within 30 days of delivery of materials. Select the financial statement on which you would you most easily find the following information.
Revenue generated by the apartment contract.
The amount of money generated from selling a delivery truck you will no longer need.
Value of materials inventory you have purchased but not yet used on the project.
Income Statement
Statement of Cash Flows
Balance Sheet
Your dream of owning a chain of karate studios may just come true. A local couple is selling the five studios they have been operating for the last 15 years. You look over their financial statements and find out some promising information. Identify the financial statement you used to discover the following information:
The company secured a $100,000 operating loan last year in order to fund continued expansion.
This increased cash from financing activities by a net of $75,000 because they paid off an old $25,000 loan at the same time.
The company owns the buildings the studios are in. The value of those assets is over $1 million.
The company has been profitable every year for the last 10 years. Expenses have remained steady during that time as well.
Statement of Cash Flows
Balance Sheet
Income Statement
You recently assumed the presidency of a small fastener manufacturing company. It is owned by an elderly woman who wants you to prepare a balance sheet to keep track of her owner's equity. As you prepare to do so, you sit at your desk and review financial reports. To begin creating a balance sheet, identify the items that are assets and those that are liabilities.
Balance owed on new equipment loans
Customer invoices for orders you have shipped
Machine screw inventory on hand
Upcoming federal income taxes due
Supplier invoices for raw materials purchased for your inventory
Checking account balance
You have just finished your first year in business as a chain of jewelry stores. A lot of cash has passed through the business in the last year. It's time to construct your statement of cash flows to see where all the money went. Select the correct section from the statement of cash flows for each transaction.
Cash increase from bank loan received during the year
Cash increase from sale of storage warehouse
Cash decrease from monthly business expenses, such as salaries and insurance
Cash increase due to the sale of inventory to customers
Cash increase from sale of equity in company
Cash decrease from purchase of buildings
Check My Work
You just bought a big house and have plans to buy a bunch of furniture, top-notch appliances, and complete some extensive landscaping. The budget for these activities is significant, but you are in no hurry. You plan to retire in this house. As you are considering your options, you read that the Federal Reserve has abruptly decided to sell a significant quantity of government securities in the coming months. What is your most likely conclusion about this action?
The Fed predicts inflation and wants slow the economy by decreasing money supply.
For years you have deposited your money in a local community bank. Unfortunately, the bank's lending policy was lax and last year the bank was forced by the FDIC to close its doors. You had $600,000 on deposit at the bank in a joint savings account with your spouse. The FDIC sold all of the deposits and loans of the failing bank to Wells Fargo, which is a much more stable bank. What affect will this have on your savings account?
You will now become a customer of Wells Fargo and will lose no money.
You own a car dealership. Today you read a news article that the Fed is considering changes to the reserve rate.

Identify the likely economic impacts from an increase or decrease in the reserve rate.
a. There will be more consumers with money to spend.
b. There will be fewer consumers with money to spend.
c. You might receive a lower price for your cars.
d. You might receive a higher price for your cars.
Reserve rate decreased
Reserve rate increased
Reserve rate increased
Reserve rate decreased
Part 1: Your new job is going well and you might be promoted soon. Life is good, until you found out someone stole your ATM PIN number. You didn't notice it until now and have lost about $100 due to this fraud. This was done over the course of four withdrawals of $25 each. Which of the following features could have helped stop the ongoing fraudulent withdrawal of your money?
Part 2: You feel stung by this invasion of your bank account, and feel even worse when you get a text alert the next day that your account is overdrawn by $100. You now have to pay an additional $25 fee. Your grandma sent you a birthday check a few days ago for $125, but now you will have to use it to pay for the fraud and overdraft fee. You meant to deposit the check yesterday, but had to work late and couldn't get to the bank. Which one of the following features could have helped you avoid this problem?
Part 3: Will this bad day ever end? When you get home, you find that your cable is out. You call the cable company and learn your service has been disconnected because you failed to pay your bill. You are confused because you know you mailed a check, but in today's mail you find a notice that your check has been returned because you forgot to put a stamp on it. Which bank feature could have helped you avoid this problem?
Text alerts of account activity
Electronic deposit of checks from a smartphone
Online bill payment
As owner of ACME Machinery, you are in the process of creating your annual operating and capital budgets for the new year. You ask your assistant to provide a number of financial reports. When you arrive this morning, you find the following reports on your desk:
Anticipated sales revenue: $20 million
Required IT software: $.5 million
Anticipated labor costs: $8 million
Anticipated raw material costs: $1.2 million
New equipment purchases: $4 million
Construction of new production facility: $10 million
Identify whether each item belongs on the operating budget or the capital budget.
a. Anticipated sales revenue: $20 million
b. Required IT software: $.5 million
c. Anticipated labor costs: $8 million
d. Anticipated raw material costs: $1.2 million
e. New equipment purchases: $4 million
f. Construction of new production facility: $10 million
a. Operating
b. Capital
c. Operating
d. Operating
e. Capital
f. Capital
As your business continues to expand, you decide to raise additional capital in case there is an economic downturn.You have reviewed your options and determine that debt financing is the best choice because it has a number of advantages that are particularly applicable for your company; however, you are mindful that there are some disadvantages as well. Categorize the list below as either advantages or disadvantages by dragging to the correct location.
a. The relationship ends once the debt is paid off.
b. Money must be paid back within a pre-determined period of time.
c. Interest is tax deductible.
d. Cost and availability is dependent on external factors.
e. Assets of business may be held as collateral.
f. Both short and long-term options.
A research scientist at your family's cleaning products business recently patented a new laundry detergent that will revolutionize how home washing machines are utilized. As the VP of Sales, you are convinced if you redesign the facility to manufacture the new product, the company's sales and profitability will skyrocket. Your Chief Financial Officer is not as excited about redesigning the facility. She knows it will require long-term financing - and that can be expensive. In addition, your idea will reduce overall factory capacity in order to make room for manufacturing the new product. As a result, company profits could actually go down for a while, making it difficult to make debt payments on a regular basis. You understand her concerns but remind her that, based on extensive consumer research, potential sales for the new product could triple or quadruple the size of your company within three years. This would make the company a prime acquisition target for larger companies such as Proctor & Gamble - and that would mean a huge payday.

Based on the potential of the new, patented product and your CFO's concerns, the best financing option is
Angel or venture funding
Below are last year's revenue and expenses for a manufacturing company. Based on this information, which of the following is most likely true about their cash flow?
The company has short-term cash shortages due to seasonality.