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Business Administration Core
Terms in this set (100)
. Karla and Brad are college graduates who have received a small inheritance from their grandfather's estate. Karla and Brad have always wanted to own a business, and they are committed to devoting both time and money to making it a success. What type of business ownership would you recommend to Karla and Brad?
General partnership. A general partnership is designed to combine the capital, experience, and abilities of two or more people. Corporation ownership would not be acceptable because Karla and Brad's only involvement would be in the growth and possible profits of the business by buying shares of stock. A limited partnership would allow Karla and Brad to invest but have limited responsibilities in operations and management. A sole proprietorship would be owned by one person.
Gabriella is writing a professional report about the trends occurring in a specific industry. What source would provide Gabriella with the most relevant, up-to-date information?
Trade publications. Trade publications are reliable sources of information for various professions (e.g., human resources) and industries (e.g., restaurant). Many professions and industries publish magazines and periodicals on a weekly or quarterly basis. Online articles are often available on a trade or professional organization's web site. Online message boards and mailing lists may not provide the most relevant, accurate, or up-to-date information. Government publications may provide relevant information; however, archived information is usually older rather than up-to-date.
Millie is reading a book to learn how to knit. She wants to make her sister a scarf for Christmas, but it's only a week away, and she doesn't have much time. Millie decides to skip ahead of the directions, and the scarf winds up looking more like a potholder. Which of the following tips for following directions did Millie ignore:
Don't rush. When Millie skips ahead of the knitting directions in her book, she is rushing forward without all the information she needs to make the scarf. Reading and following directions is not a race. Taking your time and following the steps provided will ensure that you don't leave something out or do something incorrectly. This improves your chances of doing it right. In this situation, Millie is not ignoring the tips to know when to speak, accept responsibility, or note key words.
Which of the following is an example of a good listening skill:
Asking appropriate questions. Being a good listener is important on the job and in other types of relationships. One way to be a good listener is to ask appropriate questions in order to clarify what the speaker is saying. For example, this means asking specific questions about how to perform a task if a manager is explaining a new job function. It does not mean continually interrupting the speaker with irrelevant comments or asking questions that do not pertain to the conversation. Good listeners look at the speaker and focus on what s/he is saying rather than thinking about a response.
In all business occupations, it is important for workers to have effective use of
Correct grammar. Your image as an employee can be enhanced by your use of good grammar, rather than slang, and by your ability to communicate clearly and effectively with customers and fellow employees. Not all occupations require a knowledge of several languages. The use of technical terms, or jargon, is limited since it may be difficult for employees to master and for customers to understand.
The most effective way to interpret others' nonverbal cues often is to look at their
Facial expressions. Nonverbal cues are communication that involves the use of gestures or facial expressions, rather than the use of words. Facial expressions usually are the most important aspect of nonverbal cues or body language. For example, when people feel emotions such as happiness or anger, those emotions are expressed through smiles, frowns, and eye patterns. It is easy to see that someone is happy if s/he is smiling. Leg movements are a type of body language; however, they are not as effective a way to interpret nonverbal cues. Clothing style and office decor are nonverbal cues also, but they are not as easy to interpret as facial expressions.
An effective technique to use to clarify information when giving verbal directions involves
Demonstrating a procedure. If possible, it is always useful to demonstrate a procedure when giving verbal directions. The visual demonstration reinforces the verbal explanation and makes it easier for employees to understand. This might include an actual demonstration, a video of a demonstration, or diagrams that explain the procedure. The goal is to increase understanding, particularly if the directions are detailed, or the procedure is new or complicated. Taking notes often helps employees to understand and follow directions. Speaking in a loud voice will not help to clarify information. It is effective to encourage questions rather than to limit them.
It is most appropriate for businesspeople to use complex, technical jargon when they are
Speaking with coworkers. Jargon is a specialized language known only to a certain group of people. Industries and companies often use jargon that is meaningful to their businesses and may not be easily understood by people outside their industries or companies. Coworkers are more likely to use jargon because they are familiar with the terms and their meanings or applications. New customers, friends, business associates, and acquaintances may not be familiar with a specific industry's jargon.
A recommended way to find out why the caller has phoned your business is to
Ask the caller, "How may I help you?" This question requires callers to identify the purpose of their calls. It is courteous, since you cannot provide assistance until you know what is needed. Asking, "What did you want?" sounds abrupt and impolite. Waiting for callers to ask questions would waste your time and that of the caller's. Answering promptly with a friendly greeting is a guideline for giving good telephone service, but would not identify the purpose of the call.
When taking notes during a seminar, a businessperson should write down
Key points. Effective note-taking involves writing down the most important information or key points for future reference. A person generally speaks faster than another person writes, so it would be difficult for a person to write down every detail or word the speaker says. The key points cited during a seminar may or may not be of interest to the businessperson. Inaccurate statements should not be cited during a seminar.
A guideline for effective, written business communication is to write clear, direct letters that immediately explain to the reader the
Purpose of the message. Effective written communications immediately explain the reason for the message. Readers may not take the time to read lengthy messages in search of their purpose. Businesspeople should explain the purpose quickly and in concise terms in order to make sure that the receiver will read the letter. The company's structure, goals, and purpose would not be explained immediately unless they were the purpose of the letter.
Which of the following would help Caitlin emphasize the most important points and clarify the crucial concepts of her business report:
Bullet-pointed list. Writers often use bullet-pointed lists to break up a lot of content into smaller "chunks" of information. Writers use bullet-pointed lists to emphasize the most important information, clarify concepts, and summarize key points. Long paragraphs and complex sentence structures tend to overwhelm readers; therefore, readers often overlook or miss important information. The signature block is the element of a letter in which the writer signs his/her name.
When writing a business report, Thomas might check his writing and style manual to determine the
Appropriate way to cite his resources. To provide consistency throughout written documents, certain businesses or industries often follow a specific writing style, such as Associated Press (AP) or Chicago Manual. Because each style manual varies and often follows different standards, writers should check the appropriate style manual to ensure that s/he is formatting a resource citation correctly. A computer-software manual, the computer-software "help" function, or a computer-software web site provides information about setting up tables in documents. A dictionary or glossary provides formal definitions of words. A thesaurus provides synonyms for words.
The following information appears at the end of all of Molly's outgoing e-mails: Molly S. Glenn; Assistant Manager; The Creekside Café; 4422 Clear Creek Road, Danville, TN 44882; (774) 555-2047; firstname.lastname@example.org. This information is Molly's e-mail
Signature. Text appearing at the bottom of an e-mail that indicates a person's or business's identity and contact information is known as the e-mail signature. Many businesses require their employees to include a signature identifying themselves and their contact information in all of their outgoing e-mail. An e-mail attachment is a computer file that is sent with an e-mail message. An e-mail carbon copy is a duplicate of an e-mail that is sent to someone else in addition to the primary recipient(s) of the message. E-mail etiquette refers to a set of rules specifying how to behave and conduct oneself when writing and/or replying to e-mails.
A business letter that presents its message in as few words as possible would be described as having
Conciseness. Being concise means being specific and brief. Unnecessary words and phrases should be eliminated. Completeness means the business letter contains all pertinent information. Clarity means the content of the business letter is clear and easily understood. Courtesy means polite behavior.
Which type of communication is being used when a salesperson sends a message to the store manager?
Upward. Upward communication starts with employees and goes to an upper organizational level. Downward communication starts with the upper level and goes down to the employees. Lateral communication is communication that occurs between employees on the same organizational level. Diagonal is not a type of communication.
Which of the following is the most appropriate method for supervisors to use when communicating about personal or confidential issues with individual employees:
Face-to-face meeting. When a supervisor must address a sensitive, personal, or confidential issue (e.g., salary) with an employee, it is best to discuss the issue in a private, face-to-face meeting. Company newsletters, telephone conference calls, and staff memos are appropriate ways to communicate and share pertinent information with several people at one time.
An unhappy customer wants to return some merchandise. The salesperson listens well and is polite and courteous to the customer. As a result of this professional approach, the customer leaves the business satisfied. This is an example of
Building positive customer relations. Treating customers with respect and courtesy creates a positive relationship with customers and goodwill for the business. The situation described does not involve suggestion selling, quality of products, or employee turnover.
What should you do to be prepared to answer customer questions?
Find out what you need to know to do your job well. You should take the responsibility to gather information you will need to answer customer questions. Facial expression and eye contact are used when interacting with customers. Giving customers a chance to express themselves fully is a key aspect of handling customer complaints.
Which of the following is a guideline for employees to follow in handling customer inquiries:
Make sure you clearly understand customers' inquiries. Customers' inquiries are not always phrased in such a way that employees can easily determine what customers want to know. Employees should find out exactly what the customers are asking in order to give them the most accurate answers. Inquiries should be handled as courteously as sales, which means spending whatever time is needed to answer them. In many cases, it would be inappropriate to try to sell something to a customer who asks a question. Employees who are busy with a sale can often take a moment to answer a single question for another customer without being rude to the first customer. If the second customer has additional questions, s/he should be asked to wait until you can give those questions your full attention.
By accurately explaining the company's policies to customers, salespeople often are able to avoid misunderstandings with customers and improve the company's
Image. Business image is the view or opinion that customers have about a business. Salespeople can improve the image of the company in the eyes of its customers by knowing company policies and procedures and being able to accurately interpret them to the clientele. Properly explaining policies will help to avoid misunderstandings and to improve the company's image. A routine is a regular course of action; goals are objectives to be met. Rules are regulations. A business establishes routines, goals, and rules in order to avoid misunderstandings with customers and improve its image.
When assisting domineering/superior customers, which of the following is not an action to take:
Do most of the talking yourself. One of your goals as a salesperson is to learn as much as possible about your customers. To do this, you must stop talking. This is especially true when dealing with domineering/superior customers. Since they like to talk, let them do most of the talking. All of the other alternatives are guidelines for assisting domineering/superior customers.
The first step in handling customer complaints is to
Listen to what the customer has to say. You must first know what the complaint is before you can handle it. Only by listening to the customer can you assess the situation in order to follow through with further action. Then you can develop a remedy that is agreeable to the customer. You should always follow through with your promises.
Cash-register tapes and shipping forms used by a business would be classified as industrial
Supplies. Supplies are goods that are constantly being purchased and used up in the operation of a business. Parts are items that will become part of a final product without additional processing. Materials become part of a finished good after they have been processed. Equipment is industrial goods used in the operation of a business but not in the actual production of a good or service.
Sara told her mother that she'd like a new bicycle for her birthday to ride to the park. What type of want or need is this?
Economic want. Economic wants are desires for items that can be valued in terms of money; and because the bike has monetary value and is for pleasure, it makes it an economic want, not a need. Economic needs are required items that can be valued in terms of money. Noneconomic wants and needs cannot be valued in terms of money.
Which of the following is an example of creating form utility:
Sewing a dress. Form utility occurs when the shape or form of a product is altered in order to make it more useful to the consumer. When you make fabric into a dress, you are altering the shape of the fabric to make it more useful. Buying a dress, renting a dress, and borrowing a dress do not create form utility because they do not alter the shape or form of a product.
When the price of a product is high, consumer demand will usually be
Low. There is an inverse relationship between consumer demand and the price of the product. In other words, the higher the price of a product, the lower the consumer demand for it will be.
A business owner who is acquiring a partner in order to obtain additional operating funds is performing which business activity?
Financial analysis. This is the process of planning, maintaining, monitoring, controlling, and reporting the use of financial resources. It includes functions involved in obtaining funds and using them to achieve the goals of the business. Any business activity involving the acquiring, spending, investing, etc., of money is part of the financial analysis function. A business owner who is acquiring a partner in order to obtain additional operating funds is performing a financial analysis activity. Accounting is the process of keeping financial records. Debt financing is one way to obtain funds. Franchising is a method of distributing goods and services through a licensing arrangement between the franchisor and franchisee.
Which of the following is a statement that is true for all economic systems:
People are interdependent. People in all economic systems are interdependent. In other words, they must depend on each other in order to obtain the things they need. The economic system provides a way for this to happen. Government regulates wages in a command economic system. Consumers control prices, and business is competitive in a market economic system.
What is one of the identifying characteristics of private enterprise?
Freedom in the marketplace. Freedom in the marketplace is one of the characteristics of private enterprise. Consumers and producers are free to decide what to buy or produce. Unlimited government control, little competition, and equality in income are characteristics of a socialistic or communistic government.
The type of business organization that offers its owners the most protection from risk is a
Public corporation. The owners of a public corporation are only liable for what they have invested in the corporation. Therefore, the public corporation offers the most protection as far as risk is concerned. In a sole proprietorship and a general partnership, the owner(s) bear all the business risks. A government agency is not a type of business organization.
Government bans or controls monopolies because monopolies
Do not always benefit consumers. A monopoly exists when a single business influences the entire production of a particular good or service. This means that any major competitors are eliminated, and the monopoly can control the price of the product by restricting production. Government regulates monopolies to protect consumers except in cases in which it is best to have a single provider of a good or service, e.g., utilities. Monopolies do not reduce the power of the government and are not necessarily hard to manage. They do pay taxes.
Which of the following parts of self-management reflects the ability to adjust to new and changing situations:
Adaptability. Adaptability is a trait shared by people who have learned to adjust to new and changing situations. Without becoming fearful or angry, an adaptable person sees change as a part of life. Transparency is being who you say you are. Achievement is setting high standards for oneself—and reaching them. A positive attitude is common in people who are optimistic and willing to start new projects without knowing all the details.
Which of the following describes the relationship between self-esteem and your success in life:
Important to success. Self-esteem is the way you feel about yourself at any given time. The level of your self-esteem is important to your personal success and your success at work because a high level of self-esteem gives you the confidence you need to be successful. It is related to and significant in both areas.
Eliminating undesirable traits requires
Taking some action. Eliminating undesirable traits requires taking some action. Change does not occur automatically. It requires conscious effort on the part of the individual who wants to change. Studying others' traits or finding a role model might be helpful in deciding how to change, but it is not required. Correcting undesirable traits does not necessarily involve a complete reform that changes everything.
An example of a nonverbal signal that you can use to establish a connection with others and indicate that you are tuned in to what they are saying is
Eye contact. Looking someone in the eye is a way of connecting with others and letting them know you are interested in what they are saying. Eye contact must be used carefully so that it is not misinterpreted. Questioning, tone of voice, and choice of words are part of verbal communication.
Which of the following is a method a responsible worker could use in order to become more productive:
Read current industry materials. Responsible workers look for better ways to do their work. This includes keeping up with what is going on in the industry. Having the latest information at their fingertips can help them to handle customers more effectively and efficiently. Watching coworkers doing their jobs would prevent employees from doing their own work. Behaving with honesty and integrity and following unwritten company rules are part of responsible behavior, but they are not related to productivity.
What should be a responsible worker's primary work goal?
To be as efficient as possible. Responsible workers should try to be as efficient and as productive as possible. They should make every effort to find ways to do their jobs in the best way possible. This may earn them promotions, but that should be secondary to productivity. Qualifying for benefits is usually a condition of employment. Developing a code of ethics is a personal goal rather than a work goal.
The characteristics that reflect an individual's honesty, dependability, and fairness are referred to as
Ethical standards. Ethical standards are the basic principles by which people live. Mental skills include memory, creativity, imagination and thinking ability. Human relations skills are all of the people-oriented skills that enable individuals to get along well with others. Leadership style refers to the way or manner in which a leader goes about the task of influencing others.
Mr. Field makes all the important decisions and gives his employees very specific instructions. Which of the following describes Mr. Field's management style:
Authoritarian. This management style is used by people who enjoy being in command, rely on their own judgment, and tell employees exactly how to do their jobs. Democratic managers encourage employee participation in decision-making, seek employee input, and share authority. Laissez-faire is a more open style of management that provides only general guidance and avoids giving specific, detailed directions.
What is the not-so-good news about maintaining a positive attitude?
It takes more effort to be positive than to be negative. The not-so-good news about maintaining a positive attitude is that it takes more effort to be positive than to be negative. We can control our attitudes; however, and that is the good news about maintaining a positive attitude.
Which of the following is not a guideline for responding to criticism in a constructive manner:
Tell the person involved exactly what you think of the situation. By telling the person exactly what you think, you may say something offensive and make the situation worse than it already is. The other alternatives are guidelines to help you respond to criticism in a constructive way. By taking the criticism seriously, acting on it, maintaining your self-control, and determining how you can improve, you can make the best out of the situation and accept the criticism being given.
Tom believes that his own culture is naturally better than other cultures. This is an example of
Ethnocentrism. Tom's belief is ethnocentric. Ethnocentrism is the belief that your own culture is naturally better than other cultures. Cultural sensitivity is the willingness to adjust your opinions and behaviors so that you value different people and ideas. Diversity is all the ways in which people differ. Individualism is a focus on independent work and accomplishments.
In order for the process of communication to work effectively, it must include __________ of the information transmitted.
Understanding. Understanding occurs where there is interaction and/or feedback between sender and receiver. Information is not always appreciated, e.g., bad news, nor does it always require analysis. Communication may be written, so discussion is not possible or necessary.
Five minutes before closing time, a customer requested a special order to be delivered that day. Lee was in the process of closing for the day, but the customer was insistent. Lee agreed to assemble the order and deliver it. Lee's behavior would be described as
Passive. Passive behavior is characterized by failure to exercise personal rights and a lack of respect for personal needs. The goal of such behavior is often to avoid conflict, and passive people have difficulty refusing requests made of them. The customer's request was unreasonable, and Lee would have exhibited assertive behavior if he had politely explained to the customer that he could not comply but would be glad to take care of the order as soon as possible the next day. Aggressive behavior is characterized by a willingness to ignore the rights of others and to exploit them. The customer's behavior could be described as aggressive.
The XYZ Company has a committee whose members are appointed for three-year terms to review the company's hiring policies. This committee is an example of a __________ committee.
Standing. A standing committee is one whose work continues over a long period of time. A committee whose members are expected to serve for three years would be considered a standing committee. A short-term committee has an immediate goal, such as planning the company Christmas party. This kind of committee is likely to be temporary. The committee members did not volunteer but were appointed.
Which of the following leadership characteristics would be too difficult to "fake":
Passion for work and people. Leadership has to do with a lot more than just rank or position. Unfortunately, many managers and supervisors have found ways to get promoted to leadership positions without having true leadership characteristics or skills. But, one trait that can't be faked is passion. Effective leaders genuinely care about the work they're doing and the people they're leading. Work outcomes and relationships matter to them. They don't just contribute the bare minimum or make themselves available during office hours only. They are fully committed at all times. Unfortunately, many leaders have found ways to appear credible, honest, and self-confident when they actually are not.
When management and employees see the same image of what the business is capable of being in the future, they are sharing a(n)
Vision. A vision for a business is what the business wants to become. Management and employees have a shared vision when they see the same image of what the business is capable of being in the future. When everyone in the business shares the vision, that vision has a better chance of becoming a reality because everyone is working for the same future. A business might realize a vision by setting several goals to achieve. A vision is more than a dream or an idea.
Which of the following is a true statement about coaching:
Coaching is enabling others to reach their potential. Coaching is enabling others to reach their true potential by helping them to overcome the barriers that are keeping them from doing so. Coaching doesn't always involve athletics. You don't have to be involved with sports to be a coach; you just have to be involved with other people. A coach isn't necessarily a boss. Coaching others is a lot more than just telling them what to do. There isn't just one way to coach. You can coach others in a variety of different ways.
In which of the following situations might a business be held liable for the unethical behavior of its employees while they are on the job:
Female applicants are harassed during interviews. Businesses are not permitted to allow their employees to harass job applicants or any of their workers. Businesses that allow their employees to harass job applicants on the basis of their sex may be held liable for those actions and sued in a court of law. If found guilty, a business may have to pay millions of dollars for ignoring the unethical actions of its employees. Businesses routinely rate suppliers according to their prices and copy the promotional techniques of their competitors. Customers should be treated with respect if the business expects them to remain customers.
Which of the following is the opportunity cost for a person who decides to place $500 in the bank rather than purchase something s/he really wants but does not need:
Immediate gratification. Opportunity cost is the benefit that is lost when a person decides to use scarce resources for one purpose rather than another. When a person places $500 in the bank, the opportunity (benefit) is having money available for the future. The cost of placing money in the bank means that the person does not have the money to purchase a desired item. When a person purchases something that s/he doesn't need but really wants, the benefit to the person is immediate gratification or a sense of instant satisfaction that s/he has acquired the desired product. The opportunity cost (benefit lost) is not a higher discretionary income, lower salary or wages, or long-term dissatisfaction.
Hanson Supermarket wanted to establish a form of business credit with Smith Wholesale Company that would allow the owner to purchase meat, vegetables, bread, and milk products on a "90 days same as cash" basis. The owner also wanted a credit account that would require payments every 30 days so that s/he would not have to make large payments. The type of credit account that would best suit Hanson Supermarket is a(n) ___________ credit account.
Budget. The best credit account that Hanson Supermarket could establish with Smith Wholesale Company is a budget account. A budget account is a form of short-term credit often set up for 60- or 90-day periods with a payment due every 30 days. A regular credit account is a credit account which allows credit users to buy at any time during a set time period, usually 30 days. It is also called an open account. A revolving credit account is a type of credit account that limits the total amount of money that may be owed and charges interest on outstanding balances. An installment credit account is a type of credit account set up to handle one total amount of credit which is to be paid in regular installments.
Ali is borrowing $275,000 from a bank. So Ali understands the terms of the loan, the bank outlines the terms in a formal agreement and requires Ali to sign it. This is an example of a financial
Contract. A contract is an agreement between two or more businesses stating that one party is to do something in return for something provided by another party. In the example, the bank agrees to lend Ali money and Ali agrees to the loan terms, which includes a repayment schedule. If one party does not follow through with the agreement, the other party can pursue legal action. A warranty is a promise made by the seller to the consumer that the seller will repair or replace a product that does not perform as expected. A proposal is a formal document that presents the reader with a call to action. A referral is an entity to which salespeople are recommended.
One advantage to setting attainable goals is that you
Are less likely to become discouraged. Attainable goals are realistic and within reach, so one advantage to setting attainable goals is that you are less likely to become discouraged. Attainable goals will not make you work harder to achieve a very high goal—very high goals do not fit the definition of attainable. Being able to picture a goal in your mind is the result of setting a specific goal, not necessarily an attainable one. Being able to measure your progress is the result of setting a measurable goal, also not necessarily an attainable one.
Which of the following is a source of income that a person should consider when developing a personal budget:
Salary. An individual's income is the source of money that the person receives. A person earns income by working and collecting a salary from his/her employer. Other income sources include child support payments, alimony, interest, and profits from investments (e.g., rental properties). Insurance, clothing, and utilities are types of personal expenses.
Each year, Marla must pay a certain percentage of the value of her home to the local government. Which of the following is the tax liability Marla is responsible for paying:
Property. Tax liability is the amount of money that people owe and must pay to the government. Property taxes are monies that local governments collect from homeowners. The value of the home and the property the home sits upon is a consideration when determining the homeowner's property tax liability. Excise taxes are sales taxes on specific goods such as gasoline, cigarettes, and alcohol. Governments collect sales tax for purchases and income tax on money that a person earns.
Which of the following is a safeguard that can be used when writing checks:
Don't sign blank checks that could be filled out by a dishonest person. Although this seems like it'd be an obvious safeguard, it happens frequently when people don't know the name and/or amount for the check. They sign the check and carry it around. If the check is lost, a dishonest person can make the check payable for any amount s/he chooses. Checks should be filled out in ink so that dishonest people can't alter them. Avoid making the check out to Cash. If the check is lost, anyone can cash it. Your signature should be as close to the same as possible each time you sign a check so that banks can spot forged checks.
When reconciling bank statements, it is important to consider
Checks that have not cleared. Reconciling bank statements involves comparing the entries in a checkbook with the entries listed on the bank statement. In many cases, the balance will be different because checks have been written that have not cleared the bank. Therefore, these amounts will not appear on the bank statement. To verify the actual amount in the account, it is necessary to subtract the checks that have not cleared from the balance listed on the bank statement. When reconciling bank statements, it is not necessary to consider the number of transactions, services not available online, or the types of payroll deposits.
It is important to protect against identity theft to prevent unauthorized individuals from
Obtaining credit in your name. Identity theft occurs when someone illegally obtains another person's information and uses that information to assume the other person's identity. It is important to protect against identity theft to prevent unauthorized individuals from using your information to obtain credit in your name. In most cases, the unauthorized person has no intention of paying for the credit, so the debt will be listed on your credit report, which may have a negative effect on your credit rating. It is not important to protect against identity theft to prevent unauthorized individuals from sending you information online or trying to sell you a product.
While preparing her annual income tax return, Kate determined that she had her employer withhold more tax than necessary. As a result, Kate is eligible for a government
Refund. Because Kate had too much income tax taken out of her wages, she is eligible for a tax refund check, which is issued by the government upon receipt of Kate's completed tax return. The government does not issue a deduction, due bill, or reference when income tax is overpaid.
Which of the following types of broker usually charges the highest commissions:
Full-service. Full-service brokers usually charge the highest commissions because they provide in-house research and personalized investment guidance. Discount brokers have lower commissions, and online brokers often have even lower commissions than discount brokers. All of these types of brokers trade stocks.
Of the following lending investments, which is not offered by a bank:
Municipal bond. Municipal bonds are lending investments offered by municipalities, not banks. Savings accounts, money market accounts, and certificates of deposit are all offered by banks.
How does insurance benefit a business?
Protects against financial loss. Insurance is a contractual agreement in which one company (insurer) will pay for specified losses incurred by the other company (insured) in return for installment payments (premium). For example, a company that loses its inventory and equipment in a fire can file a claim with its property insurance carrier to obtain money to purchase new inventory and equipment if the policy premiums are up-to-date and the policy covers such losses. Insurance does not necessarily reduce a business's security needs, lower personal tax obligation, or enhance economic utility.
Information that a business keeps in its accounting records includes its
Revenues and expenses. Accounting is the process of keeping and interpreting financial records. Information that a business keeps and tracks in its accounting records includes its revenues and its expenses. Revenues refer to income or money that flows into the business from activities such as sales. The business also keeps track of its expenses in its accounting records. Expenses are the monies the business owes to others (e.g., vendors) and flows out of the business. By keeping records of revenue and expenses, the business can evaluate its profits—the amount of money left over after all the expenses are paid. Products (goods and services), trends, forecasts, and market share are types of marketing information.
A company's current balance of assets and liabilities falls under the focus of
Working capital management. A company's current balance of assets and liabilities falls under the focus of working capital management. Working capital management involves short-term decisions about cash flow. Return on capital is a component of working capital management that refers to how well a business is generating cash flow in relation to its invested capital. Capital investment decisions are made for the long-term and do not relate to current assets and liabilities. The cash conversion cycle is a component of working capital management that refers to how long a business's money is "tied up" between purchasing raw materials and receiving cash from sales.
Which of the following is not a purpose of an exit interview:
To negotiate compensation and benefits. Exit interviews are discussions with employees who are leaving that are designed to gain feedback for the business. Exit interviews aim to gauge employee attitudes about a company, gain constructive suggestions for improvement, and gather further understanding about employee turnover. They are not designed to negotiate compensation and benefits—this would take place with a new employee, not one who is leaving.
To improve a business's effectiveness in providing customer satisfaction, the business's marketing activities and its other business functions should be
Coordinated. An organization that applies the marketing concept must focus all of its planning and activities on satisfying customer needs. This requires the coordination of all marketing activities with each other and with all other business functions. No viable marketing activities should be eliminated. Contrasting or publicizing the activities would not improve customer satisfaction.
Which of the following statements is an example of an opinion:
Politicians are unethical and should not be trusted. When analyzing information, it is important to separate opinion from fact. Facts contain true data or information. An opinion is a person's point of view or belief about a topic. A person may believe that all politicians are unethical and untrustworthy, but not all people believe this statement, nor can the statement be proven. The alternative statements are facts.
Emma is preparing a report about business trends in her industry, which she must submit to her manager in two days. The most efficient, cost-effective way for Emma to obtain the information is to
Analyze information that is posted on the industry's trade association's web site. The most efficient, cost-effective way to obtain information is to search reputable web sites. Industry, trade, or professional association web sites are likely to have current and accurate information. Setting up and conducting interviews, visiting local businesses, and telephoning government agencies to send literature will take longer, and in some cases be more expensive than accessing the trade association's web site.
One way for a person to verify the reliability of an online article's information is by
Comparing the information with other articles about the topic. When other articles from reputable sources confirm the information from the original article, the information in the original article is more likely to be reliable. Evaluating the author's writing style, gathering internal reports from the company's database, and asking others for their opinions are not actions that will verify the reliability of the article's information.
An advertising agency wants to communicate its television commercial idea to a client. What format would be the best for the agency to use?
Storyboard. A storyboard contains a series of illustrations and text that outline the commercial's key scenes in sequential order. A storyboard is a visual aid that helps the advertising agency communicate the commercial idea and content to the client. A memo is a short, written message that communicates information to employees within the business. A sales letter is a written message that is sent to potential buyers to persuade them to buy the business's products. A catalog is a collection of graphics and text that communicates information about the business's products.
What portable device can businesspeople use to store electronic documents, so they can later retrieve them from other computers?
Flash drive. A flash drive is a small device that plugs into a computer's USB port and allows users to transfer, store, and retrieve information from the computer's hard drive onto the device. The user can plug the information into other computers to retrieve the information when needed. Camera film, audio tape, and computer batteries are not devices that allow businesspeople to store and retrieve electronic documents from a computer.
Appropriate information management saves businesses time and money by
Maintaining higher levels of productivity. Appropriate information management saves businesses time and money by maintaining higher levels of productivity. Employees can be more productive when good information management decreases information overload and "paper trails." Information management will not necessarily maintain yearly raises for employees.
Which of the following is the type of information system that contains word-processing and spreadsheet applications:
Office automation. Businesses use office automation information systems to develop, manipulate, and store various types of administrative data, including documents, spreadsheets, graphics, and computer-generated presentations. Microsoft Office, AppleWorks, and IBM/Lotus SmartSuite are common office automation programs that businesses use. Transaction processing information systems process routine business transactions. Organizations use business intelligence information systems to collect, store, and analyze information about the their markets and competitors. Meta tags are HTML codes that display information about web pages.
Programming languages. A computer programming language is the language or code that instructs a computer to carry out specific actions in relation to certain keystrokes. Computer programmers use various types of computer programming languages to develop computer hardware and software programs. Search engines are computer programs that crawl the Web looking for information. Service providers provide access to a service, such as the Internet. A disk drive is a component of a computer that reads data from and writes data to removable computer disks.
Which of the following is an Internet-access source that allows computer users to log onto the Internet without a physical connection:
Wireless Fidelity. Wireless Fidelity (Wi-Fi) allows computer users to access the Internet through radio frequencies, which don't require a physical connection to power grids. Wireless Internet allows users the ability to access their e-mail and various web sites from their laptop computers or cellular telephones from different locations. Analog or dial-up Internet access involves using telephone lines that are connected to a modem. Broadband cable requires a cable modem to access the Internet. A portal is a popular starting point for surfing the Web (e.g., Yahoo).
Business people often use the calendar applications on their cellular telephones to
Track their appointments. Cellular telephones are available with many options. Many cell phones have calendar and scheduling applications that allow users to set and track their tasks and appointments. Cell phones may also include Internet access to check e-mail, text-messaging functions to send text messages to clients, and global positioning systems (GPS), which are navigational tools that help users to obtain driving directions.
To streamline its information systems, the Mason Company wants to purchase a computer program that performs a variety of related functions, such as accounts payable, accounts receivable, and general ledger applications. The Mason Company should purchase a(n) ____________ computer package.
Integrated software. Integrated software applications consist of two or more related computer programs that work together to record information or perform specific business tasks or functions. Accounting involves keeping and interpreting financial records. Because accounts payable, accounts receivable, and general ledger applications are related or interdependent accounting activities, the company should purchase an integrated accounting software package. Marketing intelligence involves obtaining and analyzing information about the target market. Engineers use engineering design software to develop various products and structures. Customer identification and preferences are often elements of customer-relationship management integrated software.
Which of the following is needed to post a web page:
Web server. After creating a web page, the developer needs to post the web page through a web server or Internet service provider (IPS). The Web server or IPS may charge a fee to post and store the web page, although some web servers will provide the service free of charge. Developers post web pages for many reasons, which may include selling products to interested audiences. Legal permits are not required to post a web page.
Which of the following is an example of one of a business's inputs:
Employees. Every business takes inputs (resources) and uses them to make outputs (products). Inputs are things such as employees, raw materials, equipment, capital, etc. Outputs are good and services, also known as products
Which of the following statements about practicing good safety habits is true:
Employees should always be thinking about safety. Employees should be concerned for their own safety as well as the safety of others at all times. Thinking about safety does not distract employees from their jobs—it enables them to perform jobs in a safe manner that reduces risk to themselves and the business. Taking shortcuts when learning a new skill can cause a safety hazard. Instructions and guidelines for employees may be verbal as well as written.
Which of the following is a true statement:
Accidents and injuries occur frequently in the workplace. An accident is an unexpected happening that may result in injury, loss, or damage. An injury is physical harm to a person. So many accidents and injuries occur in the workplace that preventing them has become a major effort for most businesses. In 2000, approximately 5,900 deaths resulted from work-related accidents. Employees are responsible for doing all that they can to prevent accidents by following safety precautions.
To best handle serious illnesses or injuries in the workplace, employees should thoroughly understand the company's __________ procedures.
Medical emergency. Businesses often develop procedures for handling medical emergencies. In many cases, businesses provide employees with certified training (e.g., CPR, first aid) that will help them handle certain types of medical emergencies. Fire escape, robbery, and security are important issues that businesses address in terms of developing policies and procedures, however these areas do not directly address procedures that relate to illness or injury in the workplace.
Which of the following situations is an example of business security:
Employees are required to enter and exit the business through one door. This practice enables management to monitor what items employees carry in and out of the business. All employees should know how the security system operates and how to start/stop it. Computerized files should be available only to persons authorized to access those files. For example, sales staff may have access to inventory information but not to vendor files or employee records. To prevent price-ticket switching, cashiers should be familiar with prices and call for a price check if a price seems too low.
Providing an uninterrupted flow of goods or materials is an important aspect of which of the following business activities:
Purchasing. Purchasing is the planning and procedures necessary to obtain goods and services for use in the business or for resale. An important aspect of purchasing is providing an uninterrupted flow of goods or materials to ensure that these items are on hand when the business needs them. This is accomplished by purchasing the goods or materials far enough in advance to ensure their delivery when required. Controlling is the management function that monitors the work effort. Organizing is the management function of setting up the way the business's work will be done. Directing is the management function of providing guidance to workers and work projects.
Which of the following is an example of a business placing a blanket order with a vendor:
Ordering goods without specifying style. Relying on vendors to ship an appropriate assortment of goods is an example of placing a blanket order. For example, a store might order towels and sheets and rely on the vendor to ship an assortment of colors, sizes, and styles. When placing a blanket order, stores also might allow a vendor to decide when to ship and how much to ship at one time. Ordering goods that are out of stock is an example of placing a reorder. Ordering items that usually are not carried is an example of placing a special order. Ordering items in advance of the season is an example of placing an advance order.
Which of the following lists the components of the production process:
Inputs, a conversion process, and outputs. In order for production to occur, all businesses need inputs, the resources used in production; a conversion process that turns inputs into products; and outputs, the goods and services produced as the result of combining inputs. Product design is the planning of a new product. Purchasing obtains the resources used in production. Planning determines what will be produced and the way in which it will be done. The factors of production are human, natural, and economic resources. Mass, unit, and batch are methods of production.
Your body language affects how you present yourself in terms of your nonverbal cues and the
Manner in which you carry yourself. Body language includes gestures such as facial expressions, nervous habits (e.g., nail biting), and posture. Certain gestures generate impressions that suggest one's level of confidence or comfort in certain situations. For example, crossing the arms close to your body often indicates a feeling of defensiveness. Nonverbal cues can affect how others respond. The ability to maintain an appropriate body weight is a health issue. The ability to manage budgets and the level of work productivity are not considered nonverbal communication cues.
A personal characteristic that helps people to reach their goals is
Perseverance. Perseverance is the ability to stick with something, no matter what the obstacles, until it is finished. Having perseverance is very helpful in reaching goals. Pessimism is a negative attitude toward life. Passivism is a trait that causes people to take the path of least resistance in most circumstances. Procrastination is the habit of putting things off until a later time. None of these negative traits would help people to reach their goals.
Which of the following does not describe decision making:
Changing one requirement. Choosing one alternative, selecting one preference, and picking one option are all the same activity: choosing one thing over other possibilities. Since "changing one requirement" is making a change to one required activity, it does not describe decision making. Rather, it could be an activity that supports a decision already made.
A man comes to pick up his order at the office where Courtney works. When she tells him his order hasn't arrived yet, he seems a little upset. She asks for his order number again so she can double-check it and find out where it is. Which step of the seven-step problem-solving method does this situation illustrate?
Collect information. Courtney is collecting information about the man's order so she can find out why it hasn't arrived on time. The problem has already been defined—the man's order is missing. Courtney isn't stating assumptions by asking for this information. And she can't evaluate the solution yet because she hasn't chosen one at this point.
Which of the following is an external source of information about yourself that could help you to develop self-understanding:
Friends. Obtaining feedback from others with whom you are closely associated will help you to get a more objective view of yourself than you can develop on your own. Other outside sources might include coworkers, supervisors, teachers, and counselors. Self-help books contain ideas for improvement but do not contain information about you as an individual. Personal knowledge and self-evaluation are internal sources of information about yourself.
To help make tentative career decisions, you should know the educational and training requirements as well as
Your major strengths, aptitudes, and interests. This information will be the most important because it will help you to determine whether you will be happy and successful in a certain career area. Salary is important to some, but most people try to find occupations that will provide personal satisfaction. People often expect that career opportunities will change according to the needs of the market and that they may need to adapt in the future. Technology is an important part of many occupations, but not all. In addition, technology is constantly changing, which means that your computer skills will likely change over time.
What do employees need to be successful in most business careers?
Basic academic skills. Basic academic skills involve the ability to read, write, perform simple math calculations, and communicate verbally. Employees in most business careers are expected to be able to read instructions or other business and promotional materials. They often need to write simple reports or record information and prepare sales checks or calculate prices. Business employees also need to be able to communicate verbally with coworkers and customers. These basic academic skills are needed to succeed in the business world. Physical strength is not usually a requirement for success in business. Apprenticeship training is necessary for many jobs in the trade industries. Technical backgrounds are helpful for jobs in specialized areas, such as engineering.
Entrepreneurs protect the profitability of their businesses by developing which of the following skills:
Financial and problem-solving. Entrepreneurs need to understand financial or money concepts and how the concepts relate to their businesses. This understanding helps business owners maintain and control business operations and other expenses. Control over expenses can increase the company's profitability. Problem-solving skills can help an entrepreneur protect company profitability by finding new ways or solutions to overcome obstacles, which may affect revenue. Passive is defined as dormant or not active. Skills are learned and practiced and, therefore, cannot be passive. Operations is a business function rather than a skill. Possession of domestic skills (e.g., cooking) does not generally protect a company's profitability. Technical skills are specialized applications used to accomplish business objectives. Language skills refers to the degree a person can communicate with others in a verbal or written manner. Team building refers to the manner in which a person interacts in a group of people to accomplish a goal. Although entrepreneurs can use technical, language, and team-building skills to increase or maintain corporate profitability, they must possess a fiscally responsible mindset.
Students searching for a job should check the listings posted in the school's
Guidance office. Most schools have a guidance office that local businesses often contact when they are looking for workers. Students searching for jobs should check the listings that are posted in the guidance office. The guidance office also will have information about those job openings that will be helpful to students wishing to apply. The athletic department, reference library, and media center usually do not maintain lists of available jobs although staff in those offices may know of jobs specific to their fields.
One way that an applicant can indicate a sincere interest in the job during an employment interview is to
Listen attentively. Listening attentively during an employment interview is very important because it allows the applicant to completely understand questions before answering. Listening attentively also tells the interviewer that the applicant is sincerely interested in the job and wants to learn as much as possible in order to respond appropriately. Answering quickly, talking constantly, and speaking loudly might indicate that the applicant is nervous or unprepared for the interview rather than sincerely interested in the job.
What should job applicants offer to do in the closing paragraph of an interview follow-up letter?
Provide further information. By offering to provide further information, applicants are indicating their interest in the job without stating it directly. They are reinforcing their desire to be hired. Interviewers usually take this type of offer to mean that the applicant wants to be seriously considered for the position. Applicants have applied for a specific job and should not offer to take anything that is available. The job they have applied for has a specific salary range, and it would be inappropriate to offer to work for less. Applicants are not expected to send gifts of any type to interviewers.
One way that individuals can obtain valuable work experience before applying for full-time paying positions is to
Serve an internship. An internship is training in which schools and businesses cooperate to provide on-the-job practice for learners. Most internships are unpaid, but the participants obtain valuable work experience that will help them obtain full-time paying positions. Many businesses prefer to hire applicants who have experience, and serving an internship is one way that individuals can obtain experience. Researching the industry is a way of obtaining information rather than work experience. Individuals complete apprenticeships after they are hired. Attending summer school is a way of obtaining additional training.
As president of her large company, which should be Sandra's first priority?
Planning. Top executives have the responsibility for planning a company's direction, which involves deciding what will be done and how it will be accomplished. In a large company, the president is not likely to be directly involved with supervising employees or the production of products. The president's only involvement with hiring would be hiring management personnel.
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