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intro to business final

Terms in this set (100)

Lamar, a manager for a computer assembly department, has toured the assembly floor where employees are performing specialized tasks and noticed that employees seem to be bored and dissatisfied with their work. To promote satisfaction and retain employees' interest in their jobs, Lamar may do any of the following except
a.
start job rotation.
b.
transfer everyone out of the department.
c.
institute job enlargement.
d.
cross-train employees
B
Several European countries have banded together to reduce the trade barriers between them and encourage trading among themselves. This is known as
a.
the European Union.
b.
an orderly marketing agreement.
c.
a GATT.
d.
a multinational.
e.
a cartel.
A
____ is a necessary and extremely important by-product of capitalism.
a.
Competition
b.
Monopoly
c.
Poverty
d.
Socialism
e.
Communism
A
The various types of businesses attracting small business are generally grouped into service industries, distribution industries, and financial industries.
a. True b. False
B
Once a manager has identified a problem, he or she can generate alternatives to that problem. After this is done, the manager
a.
weighs the pros and cons of each alternative.
b.
determines the best alternative.
c.
evaluates the decision he or she made.
d.
implements each solution and determines which had the best results.
e.
implements the solution.
B
The duties of a marketing manager include facilitating the exchange of products between the organization and its
a.
​suppliers.
b.
​stakeholders.
c.
​customers or clients.
d.
​local government.
C
What led most directly to increased government involvement with regulating business and its dealings with society?
a.
The collapse of the oil industry
b.
The Industrial Revolution
c.
The Great Depression
d.
The end of World War I
e.
President Kennedy's consumer bill of rights
C
In the ____, Kia Corporation describes the basics of the bond issue, who the trustee is, when the bonds mature, and how the bonds will be paid off.
a.
term-loan agreement
b.
trustee agreement
c.
bond term agreement
d.
bond indenture
e.
bond prospectus
D
After several years of success with the product line, Procter & Gamble introduced its popular Sure deodorant in three new scents. This is an example of ____ modification.
a.
feature
b.
market
c.
functional
d.
quality
e.
aesthetic
E
Terrance operates a very successful cold storage business in the United States and would like to establish a similar business in a foreign country so he is able to offer shipping between the United States and the other country with storage for the goods once shipped. He has studied several countries and has a few possibilities, but would like to work in one that will most likely result in the success of his business there. Which country has the most efficient, integrated, and dynamic economic relationship with the United States?
a.
China
b.
Vietnam
c.
Mexico
d.
Canada
D
Two additional rights added in the last decade are the right to consumer education and the right to courteous service.
a. True b. False
A
During the year Comer, Inc., had $200,000 in goods available for sale. At the end of the accounting period it had an ending inventory of $40,000. This reveals that it had sold all but ____ worth of the available goods.
a.
$200,000
b.
$20,000
c.
$10,000
d.
$40,000
e.
$160,000
D
The legality of uniform geographic pricing has been challenged and so its use has been abandoned.
a. True b. False
B
A promissory note that requires a borrower to repay funds in installments is called a(n)
a.
term-loan agreement.
b.
annuity loan agreement.
c.
lease.
d.
mortgage.
e.
installment plan
D
The average length of an SBA loan is about twenty-five years.
a. True b. False
B
A _____ is a typed page of about 300 words provided by an organization to the media as a form of publicity.
a.
​news release
b.
​cooperative advertisement
c.
​press conference
d.
​feature article
A
Furs Unlimited is using a combination of advertising and personal selling to increase the sales of its fur coats. This activity involves the ____ ingredient of the marketing mix.
a.
promotion
b.
pricing
c.
distribution
d.
product
e.
timing
A
Quick and Fast Enterprises has very short deadlines and must have materials out in proper order, intact, billed properly, and routed to the specific individual to whom they are addressed. The CEO has monthly meetings with employees to discuss what can be done to make the business more efficient. At the conclusion of the meetings, the CEO analyzes the input by himself then brings in the heads of finance, materials, logistics, human resources, and operations to provide feedback to questions he has. He also asks them for insight into how the issues have arisen and the possible effects of implementing the changes he is considering. After meeting with the managers, he makes a decision and sends out a memo to all managers with instructions that the changes must be implemented and how he envisions implementation should take place, and the projected timeframe. When he has reached this point, he expects full and complete cooperation and exact compliance with the instructions. What type of leadership style is this CEO most likely using?
a.
Entrepreneurial
b.
Charismatic
c.
Participative
d.
Autocratic
C
An auto repair shop is an example of a fixed-position layout.
a. True b. False
B
An outline of the actions an organization intends to take to accomplish its goals and objectives is called its
a.
plan.
b.
policy.
c.
organization function.
d.
mission.
e.
control function.
A
A Corvette, a dinner at the Olive Garden, and an overnight stay at a Hilton Hotel all satisfy human needs. Therefore, each
a.
is a convenience product.
b.
possesses utility.
c.
is a service.
d.
is unique.
e.
is created for an unsegmented market.
B
Corporate officers are elected by the stockholders.
a. True b. False
A
Tina is a real estate broker who has been asked to sell a property by a client. The property is exactly what she has wanted for herself. She knows the seller is unaware of the value of the property and is relying on her to make the best decision. She knows if she markets it aggressively, she can get several thousand dollars more for the property than the seller is asking. Tina talks to her son and asks him to buy the property in his name, with her funds, and to transfer the property to her after the transaction is completed. She contacts her client and tells him she has a buyer ready who is offering to purchase the property for a thousand dollars over the listing price. The seller agrees to the sale unaware of the other issues involved. As it relates to the topic of this chapter, which of the following best describes Tina's actions?
a.
Tina has knowingly engaged in a conflict of interest.
b.
Tina has no ethical issues because the seller received more money in the transaction than the listing price.
c.
Tina helped her client enter a transaction in which everyone benefitted.
d.
Tina has sacrificed a thousand dollars more than she needed to pay for the property.
A
Command economies include capitalism, socialism, and communism.
a. True b. False
B
Paul White was assigned to a senior employee responsible for instructing new computer programmers. Because of this senior employee's instruction, White gained hands-on experience under normal working conditions. Paul experienced ____ training.
a.
seminar
b.
simulation
c.
classroom
d.
on-the-job
e.
role-playing
D
R&D activities aimed at discovering new knowledge that has some potential use are known as
a.
basic research.
b.
product design.
c.
applied research.
d.
development and implementation.
e.
design planning.
C
According to Maslow's hierarchy of needs, the most basic needs are physiological needs.
a. True b. False
A
Approximately ____ percent of U.S. adults who use the Internet are active on Facebook.
a.
50
b.
40
c.
70
d.
60
e.
80
E
What does double taxation mean?
a.
Companies must pay taxes on their earnings, and then stockholders pay taxes on their dividends.
b.
Companies must pay taxes on their income, and then employees must pay taxes on their salaries and wages.
c.
Companies must pay taxes on corporate income and then pay additional taxes on distributions of profit to stockholders.
d.
Companies have to pay both sales taxes and income taxes.
e.
Suppliers tax their customers, and in turn these businesses tax the ultimate consumer.
A
You are the decision maker for purchasing office equipment in your organization. One sales representative privately offers you season tickets to the Texas Rangers if you help him out. This tactic is
a.
a bribe.
b.
a common business practice.
c.
personal selling.
d.
a corporate discount.
e.
ethical.
A
A locally owned and operated bakery with just one location is likely to have
a.
an extensive advisory staff.
b.
no organization chart.
c.
a short chain of command.
d.
a complex chain of command.
e.
a highly departmentalized structure
C
The human relations movement in management was born out of experiences cited in the Hawthorne studies.
a. True b. False
A
Because of the ability to sell stock, it is easy for sole proprietors to raise large sums of money.
a. True b. False
b
The four basic questions in a capitalist economy are what to produce, how to produce, who should produce, and when to produce.
a. True b. False
b
If the assets of Marco's Pet Store are $107,000 and the owners' equity is $75,000, which of the following is a correct statement?
a.
The liabilities are $32,000.
b.
The long-term liabilities are $75,000.
c.
The owners' investment equals $182,000.
d.
The current assets are worth $32,000.
e.
The new income for the period is $32,000.
A
Prudential and several other large insurance companies have joined together to underwrite an extremely large insurance policy. This sort of association is referred to as a(n)
a.
syndicate.
b.
alliance.
c.
vertical merger.
d.
conglomerate.
e.
cooperative.
A
Amanda, a merchandise manager at Dillard's, has just been informed by her superior that all managers in the store have been reassigned departments of responsibility because top management has done some reorganizing. Amanda previously was in charge of the infants' department and the girls' department, and now she is also in charge of the boys' department. This is an example of
a.
the MBO program in progress.
b.
job modification.
c.
job enrichment.
d.
job redesign.
e.
job enlargement
E
The use of the factory system in the United States helped to usher in the
a.
twentieth century.
b.
Renaissance.
c.
Great Depression.
d.
colonial period.
e.
Industrial Revolution.
E
Slater Co. has very old computers and manufacturing equipment and knows it needs to upgrade them or risk losing much of its business. Slater does not have the money to purchase the computers, so it will most likely need
a.
to use increased cash flow from sales.
b.
a short-term loan.
c.
to deduct the cost from employees' salaries.
d.
to keep using the old computers.
e.
long-term financing.
E
Increased competition from firms in other nations is an example of the
a.
technological environment.
b.
mixed environment.
c.
laissez-faire environment.
d.
command environment.
e.
global environment.
E
Mark Zuckerberg's Internet.org program that helps bring Internet access to underserved communities in various parts of the world is an example of
a.
consumerism.
b.
business ethics.
c.
code of ethics.
d.
social responsibility.
e.
affirmative action programs.
D
Legal services and public affairs are ____ types of jobs, so they do not fit directly into the chain of command.
a.
top management
b.
advisory
c.
voluntary
d.
specialized
e.
authoritative
B
When all products undergo the same operations in the same sequence, a(n) ____ is used.
a.
process layout
b.
fixed layout
c.
output layout
d.
product design
e.
product layout
E
Upon beginning her career at Davidson Inc., a small consulting firm, Stephanie Benjamin receives a copy of the firm's organization chart, which will
a.
demonstrate the firm's informal network of communication.
b.
indicate the short-, medium-, and long-term goals of the company.
c.
clarify positions and report relationships within the firm.
d.
probably be outdated because small firms are always changing.
e.
not be very useful because small firms don't usually adhere to a formal structure.
C
The best method of learning from experience in international business is to
a.
start exporting through an export merchant.
b.
enter into a licensing agreement.
c.
form a joint venture.
d.
invest directly in a foreign country.
e.
start exporting through an export agent.
D
Lang Industries is introducing a new product and will use price skimming to set the price. Price skimming is
a.
​the strategy of charging the highest possible price for a product during the introduction stage of its life-cycle.
b.
​raising prices above a fair price.
c.
​a means of increasing competition in order to raise prices even higher.
d.
​a way for the seller to secretly pocket extra money charged for a product but not recorded on the company books.
A
Which of the following represents the biggest customer of American business?
a.
Consumers
b.
Foreign governments
c.
Government
d.
The military
e.
Other businesses
A
A general term for a middleman that actually buys from producers or other middlemen and then resells goods to consumers is a _____.
a.
merchant middleman
b.
retailer
c.
functional middleman
d.
broker
e.
sales agent
A
Costs that depend on the number of units produced are called
a.
fixed costs.
b.
markup.
c.
operational expenses.
d.
overhead.
e.
variable costs.
E
An analytical process breaks raw materials into different component parts.
a. True b. False
A
When looking at the company's sales figures, Marisol sees that her salespeople have not achieved high sales in Japan. She is at what stage in the managerial decision-making process?
a.
Implementing the problem
b.
Identifying the problem
c.
Evaluating the problem
d.
Generating a problem
e.
Selecting a solution
B
Total Accounting has developed new software for nonprofit organizations that allows them to send donors receipts via text or email. The software permits donors who have downloaded its app to keep a running total of their donations to each nonprofit organization they make donations to if the organization uses the Total Accounting software. This permits the donor to do year-end tax planning. The software also tracks donors for the organizations and sorts them according to the activities or events that elicit the greatest contribution from each donor so the organization can use this information for marketing purposes. What market is the target of the Total Accounting marketing team?
a.
Producer market
b.
Government market
c.
Industrial market
d.
Institutional market
D
What does the government encourage in order to protect the consumer's right to choose?
a.
Trust laws
b.
Divestitures
c.
Cooperation
d.
Competition
e.
Monopolies
D
Leslie and Jorge work in the Kohl's warehouse. In the warehouse goods are received, identified, sorted, dispatched for storage, held, recalled, picked and assembled, and dispatched for shipment. Jorge works in the section of the warehouse where goods are protected in storage until they are needed. Leslie is tasked with packaging goods and directing them to the proper transport vehicle after she has prepared the proper documents. What warehouse activity does Leslie perform?
a.
Dispatching shipments
b.
Recalling, picking, and assembling goods
c.
Receiving goods
d.
Identifying goods
A
Belle and Diamond are spending the day together. First, they have breakfast at McDonalds, then have a quick work-out at Curves followed by a massage at Massage Envy, and getting their nails done a Red Persimmon. They finish their day with getting their hair done at Fantastic Sams followed by ice cream at Ben & Jerry's. What do these businesses have in common?
a.
They all provide services rapidly and permit walk-ins.
b.
They have few employees who are all experts in their particular field.
c.
They do not require expertise to start as training is provided by the seller.
d.
They are franchises.
D
During the recent economic crisis, the number of business bankruptcies actually declined.
a. True b. False
a
To ensure that work flows according to schedules, operations managers use a procedure called
a.
inspection.
b.
follow-up.
c.
cycle control.
d.
equilibrium control.
e.
monitoring and evaluation
B
Olivia Sawyer discovered problems in coordinating the work flow going from her department to marketing. To solve the problem, she identified some situations that needed correction and asked employees to submit their suggestions for improvement. After their suggestions were summarized, the employees selected one for implementation. Next, a supervisor was given responsibility and authority to oversee implementation and to keep Sawyer informed. Sawyer's actions exhibit the ____ leadership style.
a.
consensus
b.
consultative
c.
autocratic
d.
entrepreneurial
e.
democratic
E
Job analysis is the systematic procedure for studying jobs to determine expected levels of productivity.
a. True b. False
B
Mike Hill and Larry Wright decide to start a partnership and offer accounting services. Which of the following is the best way to start this partnership?
a.
They should determine the exact way the business should be run and have a witness listen to their oral discussion.
b.
With the help of an attorney, they should draft a partnership agreement that states each partner's duties and investments.
c.
They should let a consultant draft whatever agreement the consultant thinks is appropriate.
d.
They should orally discuss how they want the partnership to work and who is responsible for certain areas.
e.
They should carefully draft an articles of partnership together, outlining each partner's responsibilities and other important information.
B
Oil companies use a synthetic process when they refine crude oil.
a. True b. False
B
Louis is beginning a marketing research project. One of the six steps of marketing research is to
a.
define the problem.
b.
survey the sales force.
c.
open a business.
d.
engage a marketing research firm.
A
Kohl's ran a newspaper ad stating, "We are the friendliest store in town." This is an example of ____ advertising.
a.
institutional
b.
cooperative
c.
long-term
d.
primary-demand
e.
comparative
A
Harrington Golf Co. states that it will double its employee staff and decrease its advertising budget by 25 percent in order to keep up with its high customer demand. This is part of its ____ plan.
a.
tactical
b.
contingency
c.
operational
d.
long-term
e.
strategic
D
Bill's Manufacturing needs $450,000 to build a new plant. It must also spend $200,000 on new equipment for the plant. Both of these needs are examples of
a.
cash-flow problems.
b.
debt-capital needs.
c.
equity-capital needs.
d.
short-term financing needs.
e.
long-term financing needs
E
A situation in which participants act out the roles of others so that they can better understand those roles is called
a.
conferences.
b.
role-playing.
c.
seminars.
d.
on-the-job training.
e.
simulation training
B
In France, income taxes are reduced so that individuals will have more income to spend, which in turn will stimulate the economy. This is an example of
a.
fiscal policy.
b.
the business cycle.
c.
economic stimulation.
d.
monetary policy.
e.
recession.
D
A trading company
a.
is involved in manufacturing.
b.
provides a link between buyers and sellers in different countries.
c.
owns assets related to manufacturing.
d.
does not take title to products.
e.
does not perform activities necessary to move the products.
B
Setting prices for organizational buyers is very similar to setting prices for consumers.
a. True b. False
B
Capital or capital goods as recognized by economists would include all of the following except
a.
facilities.
b.
crude oil.
c.
money.
d.
machinery.
e.
computer equipment.
B
Fluctuations in a nation's economy are referred to as its
a.
inflation problem.
b.
economic upheaval.
c.
recession period.
d.
business cycle.
e.
depression cycle.
D
Nine West manufactures leather goods such as shoes and handbags. Which form of distribution is this company most likely to use?
a.
Intensive
b.
Exclusive
c.
Agent-driven
d.
Selective
e.
Comprehensive
D
Kyla goes to a car dealership to purchase a new Honda Accord. She is not willing to pay the listed sticker price for the car, and she instead works with the salesperson and manager until a mutually satisfactory price is agreed upon. This is an example of ____ pricing.
a.
negotiated
b.
comprised
c.
reference
d.
secondary
e.
differential
A
Melinda walks into a local convenience store to buy chewing gum. She more than likely will employ ____ in deciding to make that purchase.
a.
routine response behavior
b.
absolute response behavior
c.
limited decision making
d.
extensive decision making
e.
intensive decision making
A
The business plan should deceive neither investors nor loan officers and should convey accurate and realistic expectations of business potential.
a. True b. False
A
All of the following are reasons for a greater focus on quality by U.S. firms except
a.
customers that are more demanding.
b.
reduced market share.
c.
poorer financial performance.
d.
competition from foreign firms.
e.
unpredictability on Wall Street.
C
With respect to combined business skills and knowledge, which of the following partnerships is best?
a.
Leslie, Andrea, and Jamie own a boutique. Leslie has marketing expertise. Andrea has ten years' experience operating a successful small store, including hiring employees, handling inventory control, buying, and managing credit. Jamie is a CPA. Each has agreed to use his or her experience and expertise for the success of the business.
b.
Mary, Janet, and Liz own a bakery. They are able bakers by trade. Each wants to spend all of his time baking items.
c.
Jack and Reena own a video store. Reena is most experienced as a homemaker and mother. Jack has worked as an auto mechanic for ten years.
d.
Courtney and Bob, both young pharmacists, own a pharmacy. Neither has taken a business course, but they are willing to learn.
e.
Cory and Dany own a vacuum cleaner store. Cory knows everything possible about store operations. Dany is wealthy and can provide investment capital.
A
Anyone with the money can purchase shares of PepsiCo's stock. This makes PepsiCo a(n) ____ corporation.
a.
foreign
b.
domestic
c.
alien
d.
open
e.
closed
D
A marketing plan is a written document that specifies an organization's resources, objectives, and strategy.
a. True b. False
A
Which of the following specialized business models would perform e-business activities to generate revenues by matching online buyers and sellers to facilitate exchanges?
a.
Brokerage e-business model
b.
Subscription e-business model
c.
Advertising e-business model
d.
Pay-per-transaction e-business model
e.
C2B e-business model
A
Fred has opened a chicken and waffle restaurant near a major entertainment attraction. In addition to the foot-traffic generated by his proximity to the attraction which draws 16.2 million visitors a year, he is developing a social media plan to improve the number of visits by people who live in the community. He has installed electronic menus on the tables so visitors can place their own orders and pay at their table, which allows him to gather information about guests. He has filtered the information and uses it to encourage locals to follow the restaurant on Facebook. He posts digital coupons on the Facebook page, runs contests with free meals as prizes, posts information about community events the restaurant supports and participates in, and encourages nonprofits to use his location for their meetings. He has determined that he needs community members to use three Facebook coupons per month and each of them to share one contest post per month to double his local customer base. Which of the following best describes the numerical measurements Fred is using to determine the effectiveness of his social media plan?
a.
Quantitative social media measurement
b.
Qualitative social media measurement
c.
Key activity standards
d.
Sentimental social media measurement
A
James' first year as parts manager for a local dealership was pretty rocky. To ensure that his subordinates would follow through on established goals, he warned them about losing their jobs. James' managerial attitude reflects assumptions underlying
a.
the equity theory.
b.
Theory X.
c.
Theory Z.
d.
Theory Y.
e.
Theory C.
B
When the management of a large grocery store heard that Target might be coming to town, they developed alternative courses of action they could take if their competitive landscape changed. What type of plan did they develop?
a.
Objective
b.
Tactical
c.
Operational
d.
Contingency
e.
Strategic
D
HR Solutions, Inc. (HRSI)HR Solutions, Inc. (HRSI) is a human resources management company that specializes in helping small companies learn the right ways of handling human resources issues and activities. The company teaches the different activities that are involved in HR management, as well as teaching companies how to plan for the future. HRSI even helps companies downsize without having their reputations suffer. However, according to HRSI, an ideal situation would be one where all companies downsize simply by attrition. Another main objective of HRSI is to increase cultural diversity within every organization that it helps. HRSI management believes that this diversity is the key to the introduction of successful new ideas into any organization.HRSI is in the process of hiring new employees. This is a critical decision for the company because it is supposed to be the expert on this issue. Once the selection is done, HRSI will need to train its employees effectively so that they will be able to maintain the good image of the company.
Refer to HR Solutions, Inc. When HRSI helps small companies with the development phase of human resource management, it is involved with which of the following activities?
a.
Profit-sharing
b.
Downsizing
c.
Training
d.
Determining health benefits
e.
Attrition
B
Job specification is a systematic procedure for studying jobs to determine their various elements and requirements.
a. True b. False
B
Allen imports furniture from China. He travels to his suppliers' businesses three times a year to inspect how the furniture is made, the conditions at the factory, and how much workers are paid. When he is satisfied that the supplier meets his standards for humanitarian treatment of workers and ethical work practices, he places an order for furniture to be made by the company. The suppliers usually require part of the payment upfront or proof that payment will be made on delivery. Because Allen has been in business for many years, and has used the same bank for his business for the entire time he has been in business, he works out an agreement with his banker that the bank will advance him funds for a short-term at prime interest rate plus two percent. What kind of transaction did Allen enter into with the bank?
a.
Unsecured bank loan
b.
Trade credit
c.
Commercial paper
d.
Promissory note
B
A manager who coordinates the activities of operating employees is a(n) ____ manager.
a.
executive
b.
first-line
c.
middle
d.
top
e.
functional
B
Which of the following is not a characteristic of an oligopoly?
a.
Sizable investments are required to enter the market.
b.
There are few sellers.
c.
The seller has considerable control over price.
d.
The market actions of each seller can strongly affect other sellers.
e.
Any duplication of facilities is wasteful.
D
Aspirin, yo-yo, and escalator were all brand names at one time.
a. True b. False
A
Examples of command economies include
a.
socialism and market economy.
b.
capitalism and socialism.
c.
socialism and communism.
d.
communism and capitalism.
e.
socialism and free enterprise.
C
A market is a group of individuals and/or organizations that have needs for products in a given category and have the ability, willingness, and ____ to purchase such products.
a.
utility
b.
authority
c.
desire
d.
credit
e.
money
B
Which of the following companies would most likely be able to issue commercial paper?
a.
Mike's Pizza Place
b.
A local housing construction company
c.
General Electric
d.
United Way
e.
A medium-sized advertising agency
C
From the beginning of the Industrial Revolution until the early twentieth century, business effort was directed mainly toward
a.
the production of goods.
b.
fighting unionization.
c.
keeping the cost of labor low.
d.
the development of new markets.
e.
developing new machinery.
A
Which of the following economic terms describes the total value of a nation's goods or services that have been adjusted for inflation?
a.
Gross domestic product
b.
Gross national product
c.
Altered gross domestic product
d.
Real gross domestic product
e.
Altered gross national product
D
Harley-Davidson employs a method of inventory control demanding that suppliers deliver parts and raw materials to Harley's production facility just as they are needed and in exactly the right amounts. This type of inventory control is known as
a.
PERT.
b.
supplier-based inventory control.
c.
purchase planning.
d.
flexible manufacturing.
e.
just-in-time inventory control.
E
The type of utility on which production and operations management focuses is ____ utility.
a.
need
b.
form
c.
place
d.
time
e.
possession
B
NMO Inc. will use ___ by borrowing funds to increase the return on the owners' equity.
a.
preferred stock
b.
common stock
c.
financial leverage
d.
equity capital
C
The Organization of Petroleum Exporting Countries (OPEC)
a.
has as its objective completely free trade among its members.
b.
was organized in response to the formation of the European Community.
c.
was founded in 1975.
d.
was effective in increasing the supply of oil.
e.
was conceived as a collective-bargaining unit.
E
Money that is invested in small and sometimes struggling firms that have the potential to become very successful is called
a.
growth funds.
b.
SBA-guaranteed loans.
c.
seed money.
d.
venture capital.
e.
franchise funds.
D
Weight-Gone offers a guaranteed weight loss of 8 pounds in one week without dieting or exercise. Thousands of customers purchase the products and about 200 call in with complaints that the product was ineffective. What action should Weight-Gone take?
a.
It should explain to the customers that they misused the product and try to sell them more of the product.
b.
It should discuss the product failure with the customers and then provide them with a full refund of their purchase price.
c.
It should ignore the customers' complaints and hope they will tire of calling and writing letters.
d.
It should immediately remove its products from the market, fully refund the thousands of customers' money, and close its business.
e.
It should use persuasive techniques to get the 200 disappointed customers to try the product again each time it fails in order to decrease refunds.
B
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