Deck 1: What Is Business

Question 1

of the organization.

A) Human capital
B) Assets
C) Business Acumen
D) Visionary leadership
E) Managerial Acumen

Answer 1

D

Question 2

Which of the following is NOT integral in how an organization can succeed in identifying solutions to needs the marketplace desires?

A) right time
B) right customer
C) right place
D) right invention
E) right price

Answer 2

D

Question 3

The functions of organizing,staffing,planning,and controlling are most closely associated with

A) employees.
B) customers.
C) managers.
D) stockholders.
E) accountants.

Answer 3

C

Question 4

Businesses differ from nonprofit organizations in that a business's focus is on

A) price.
B) goods.
C) profit.
D) organization.
E) plans.

Question 5

_________ refers to the money needed by an organization.

A) Assets
B) Labour
C) Capital
D) Managerial acumen
E) Structure

Question 6

__________________ refers to the value-creating skills which an organization's employees bring to the marketplace.

A) Organizational efficiency
B) Employee interaction
C) Labour supply
D) Organizational value
E) Stakeholder efficiency

Question 7

____________ is the amount a business earns over and above what it spends for salaries and other expenses.

A) Profit
B) Revenue
C) Interest
D) Dividends

Question 8

____________ refers to the human resource requirements of the business.

A) Labour
B) Capital
C) Assets
D) Efficiency
E) None of the above

Question 9

A loss occurs when expenses are greater than:

A) assets
B) profit
C) revenue
D) costs

Question 10

The goal of business is to earn

A) respect.
B) resources.
C) a profit.
D) responsibility.
E) independence.

Question 11

The total amount of money that businesses earn by selling goods and services is called ________.

A) profit
B) revenue
C) loss
D) retained earnings

Question 12

To be successful in today's markets,businesses must:

A) provide the greatest variety of products to consumers.
B) spend more money on marketing and less on production.
C) focus their resources on achieving the goal of zero defects.
D) delight customers with a quality product at a good price and outstanding service.

Question 13

A business incurs a ___________ if its costs and expenses exceed its revenues.

A) loss
B) liability
C) debit
D) dividend

Question 14

Which of the following is NOT one of the three fundamental characteristic that an efficient and effective operating platform will possess?

A) A system of integrated actions
B) Commercial Endeavours
C) Employee Interaction model
D) Organizational Efficiency & Structure
E) None of the above

Question 15

Which of the following is NOT one of the four core fundamental resource areas an organization will build its business model or system around:

A) Assets
B) Labour
C) Capital
D) Managerial acumen
E) Structure

Question 16

Business has changed over time,traditionally business was more focused on the product and how to sell it.Today business is more focused on:

A) quality and service.
B) reliability.
C) marketing.
D) production.

Question 17

Which of the following is the best example of a business?

A) A community college
B) The Salvation Army
C) The Girl Guides of Canada
D) Wal-Mart

Question 18

Any activity which seeks to earn a profit by providing a good or service is known as a(n): :

A) industry
B) corporation
C) business
D) service

Question 19

Which of the following does NOT make up a business?

A) A system of integrated actions
B) develops and grows a market for its goods and/or services
C) creates organizational value (wealth) on behalf of its stakeholders
D) develops wealth for its employees
E) delivers the right solution to the right customer

Question 20

Last year,MacTeck Enterprises had total revenues of $34 million while its total expenses were $22 million.Based on this information,MacTeck:

A) earned a profit of $12 million.
B) earned a profit of $56 million.
C) suffered a loss of $12 million.
D) suffered a loss of $22 million.

Question 21

To start any business you must first have

A) investors.
B) an idea.
C) capital.
D) employees.
E) a business plan.

Question 22

A precise statement of the rationale for a business and a step-by-step explanation of how it will achieve its goals is a

A) mission statement.
B) corporate charter.
C) business plan.
D) corporate statement.
E) balance sheet.

Question 23

Which of the following is NOT part of the process called The Business Planning Cycle?

A) Management team understands its strategic opportunities and its capabilities, competencies and overall capacity
B) Management team develops a business plan via a process which outlines its focus and methodology for using its resources
C) Management team capitalizes on its identified strategic opportunities
D) Management team creates valuable products and services
E) Management team creates a unique position in the marketplace built around a competitive advantage.

Question 24

of the organization.

A) Visionary leadership
B) Assets
C) Business Acumen
D) Human capital
E) Managerial Acumen

Question 25

A business incurs a ___________ if its costs and expenses exceed its revenues.

A) loss
B) liability
C) debit
D) dividend

Question 26

When purchasing a product,the consumer is actually buying its anticipated benefits and

A) satisfaction.
B) price.
C) costs.
D) productivity.
E) form.

Question 27

If a business is to be successful in the long run,it must treat its customers,employees,and community with social

A) meetings.
B) responsibility.
C) agendas.
D) insight.
E) interests.

Question 28

A loss occurs when expenses are greater than:

A) assets
B) profit
C) revenue
D) costs

Question 29

____________ is the amount a business earns over and above what it spends for salaries and other expenses.

A) Profit
B) Revenue
C) Interest
D) Dividends

Question 30

Profitability analysis takes into consideration:

A) return on the capital invested
B) return on equity
C) financial leverage
D) comparisons between competitors to determine which organizations are the most effective in their utilization of their resources
E) All of the above

Question 31

A business' objectives should be:

A) specific
B) measurable
C) actionable
D) controllable
E) all of the above

Question 32

What makes up the 3C assessment?

A) ceremony, competencies, capacity
B) capabilities, customers, cyclical
C) company, competencies, capacity
D) ceremony, customers, capacity
E) capabilities, competencies, capacity

Question 33

Which of the following is not a product?

A) A Dell personal computer
B) A veterinarian's treatment of a pet's injuries
C) A lawyer's advice in a divorce case
D) Business profit
E) A checkup by a doctor

Question 34

Any activity which seeks to earn a profit by providing a good or service is known as a(n):

A) industry
B) corporation
C) business
D) service

Question 35

A company has a competitive advantage when it can:

A) offer customers a product/service that has more value to them than similar products offered by other companies
B) the business plan is competitive and executed properly
C) customers are attracted to the company's product/service offering(s)
D) the company generates money, or revenue, from the sale of the product.
E) All of the above

Question 36

A company has a competitive advantage when it can:

A) offer customers a product/service that has more value to them than similar products offered by other companies
B) the business plan is competitive and executed properly
C) customers are attracted to the company's product/service offering(s)
D) the company generates money, or revenue, from the sale of the product.
E) All of the above

Question 37

The business plan should do all of the following except

A) explain the business.
B) include estimates of income and expenses.
C) establish a strategy for acquiring sufficient funds.
D) include an analysis of the competition.
E) act as a shackle to limit the business's flexibility and decision making.

Question 38

In order to achieve long-term growth and profitability,businesses are constantly searching for new markets and new opportunities to further grow the scope and focus of their organizations:

A) to pay its bills and reinvest in the future
B) because they recognize that the demand for current products and services could disappear
C) to ensure the immediate survival of the firm
D) in order to achieve long-term growth and profitability
E) a) and d)

Question 39

Too much emphasis on developing future products and/or services,versus responding to customer needs today,may result in the business:

A) falling short of social responsibility expectations
B) liquidity issues if it is unable to cover its expenses in the short term
C) remaining healthy and continues to grow
D) acquiring external capital funding commitments which will enable them to reinvest in the organization
E) ensuring that it remains vibrant and responsive to community needs

Question 40

A business' objectives should NOT be which of the following:

A) Specific
B) Measurable
C) Easy
D) Controllable
E) All of the above

Question 41

All of the following would be included in the total product offer of benefits that consumers consider when buying a good or service the:

A) price. consumer's income.
C) buyer's past experience.
D) store's atmosphere.

Question 42

When purchasing a product,the consumer is actually buying its anticipated benefits and

A) satisfaction.
B) price.
C) costs.
D) productivity.
E) form.

Question 43

When consumers calculate the value of a product,they:

A) subtract cost of production from market price.
B) eliminate all nontangible elements that might affect their perception of the product.
C) look at the benefits the product provides then subtract the cost.
D) identify the variable and the fixed components of the product's benefits.

Question 44

Successful product differentiation:

A) of consumer goods is determined exclusively by price.
B) can be based on either real or perceived differences in products.
C) is prohibited if it restricts price competition and market access.
D) is less important due to the growth of the Internet.

Question 45

Non-profit organizations,

A) last for only short periods of time as their objective is not to create profits for their owners.
B) Have a hard time hiring employees as they have no means of paying them.
C) Are not concerned about meeting their financial needs.
D) Can provide an opportunity for individuals to address social issues.

Question 46

The _______ of the value proposition is the perceived sum of your company's ability to deliver in each of the areas noted within the value proposition equation,versus the _____ of your competitors' value propositions measured across these same benefit areas.

A) Total; strength
B) Strength; strength
C) Strength; weakness
D) Weakness; weakness
E) Weakness; strength

Question 47

____________ is the amount a business earns over and above what it spends for salaries and other expenses.

A) Profit
B) Revenue
C) Interest
D) Dividends
E) Assets

Question 48

A value proposition which has a positive price/quality relationship is considered superior to those of your competitors,if it:

A) is more unique
B) is more important
C) your product is more value-driven
D) provides greater opportunity to communicate to the potential purchaser
E) all of the above

Question 49

Businesses differ from nonprofit organizations in that a business's focus is on

A) price.
B) goods.
C) profit.
D) organization.
E) plans.

Question 50

If a business is to be successful in the long run,it must treat its customers,employees,and community with social

A) meetings.
B) responsibility.
C) agendas.
D) insight.
E) interests.

Question 51

_______ expenditures are expenses incurred as a result of the normal business operations.The salaries/wages of employees,the purchase of raw materials for the fabrication of products,the costs of shipping products from point A to point B,or the costs of advertising campaigns,are examples of such expenses.

A) Asset-based
B) Working
C) Operating
D) Functioning
E) Past

Question 52

For small businesses,product differentiation:

A) is more difficult than it is for larger firms because of the high cost of product research and development.
B) usually concentrates on the pricing component of the total product offer.
C) can be an important strategy to gain market share.
D) is less important than it is for big firms with multiple product lines.

Question 53

When people consider purchasing a good,they:

A) are responding to the market forces of supply and demand.
B) are most influenced by the price of the product or service.
C) will not consider goods that require them to make a special effort to purchase.
D) may evaluate and compare a variety of factors.

Question 54

All of the following would allow a firm to utilize product differentiation :

A) pricing differences. increased production.
C) elaborate packaging.
D) intensive advertising.

Question 55

The combination of all the factors that consumers evaluate when deciding whether or not to buy a good or service is called a:

A) total product offer.
B) product mix.
C) product differentiation.
D) product package.

Question 56

Which of the following refers to a group of products offered by a firm that are physically similar or are intended for a similar market?

A) Product matrix.
B) Product line.
C) Product mix.
D) Total product offer.

Question 57

LoRider Wheels sells high quality bicycles and accessories.The store is known for a pleasant environment,friendly salespeople and an excellent service department.All of these elements are part of the ___________ offered by LoRider.

A) total product offer
B) product line
C) competitive environment
D) marginal utility package

Question 58

When consumers decide to purchase a particular product,they:

A) will search for the retailer that offers the lowest price.
B) consider the total collection of benefits that the product offers.
C) base their decision on a brand name nearly all of the time.
D) initially evaluate the product's package.

Question 59

The purpose of __________ is to create real or perceived product differences.

A) niche marketing
B) product differentiation
C) product mixing
D) target marketing

Question 60

The total amount of money that businesses earn by selling goods and services is called ________.

A) profit
B) revenue
C) loss
D) retained earnings

Question 61

In evaluating colleges,students and parents are likely to judge a school:

A) strictly on the basis of major curriculums offered.
B) based on the tuition.
C) by the collection of benefits offered by the school.
D) on the anticipated rate of return on their tuition investment.

Question 62

Businesses have the right to keep and use their profits as they choose,without limitations.

Question 63

___________ is the development of plans and decisions which will guide the direction of the firm and determine its long-term performance.

A) Vision
B) Planning
C) Strategy
D) Execution
E) Tactic

Question 64

A manager is an individual who assumes the risk of starting a business.

Question 65

Any organization that produces a good or service can be classified as a business.

Question 66

____________ is the development of plans and decisions which will guide the direction of the firm and determine its long-term performance.

A) Vision
B) Planning
C) Strategy
D) Execution
E) Tactic

Question 67

As restaurant chains that specialize in Mexican cuisine,Fernando's and Carmelita's offer similar items on their menus.However,Fernando's restaurants are positioned in the market as elegant establishments with high prices.Carmelita's restaurants,on the other hand,are located in middle class neighborhoods,with a casual atmosphere that welcomes families with young children.The prices at Carmelita's are in the moderate range.When evaluating the marketing strategies used by these restaurants,we can conclude that:

A) both practice product mix effectiveness.
B) they utilize product differentiation.
C) Fernando's has chosen a shopping good strategy.
D) their target markets differ, with one intended to appeal to the industrial market, and the other designed to attract the consumer market.

Question 68

Today,managers have to make allocation decisions around the use of which scarce resources,

A) financial
B) human
C) natural
D) all resources

Question 69

_______________ is the art of getting things done using organizational resources.

A) Socialization
B) Justification
C) Preparation
D) Management

Question 70

Businesses seek to earn a profit by providing goods and services to others.

Question 71

Strategy:

A) Is the development of plans and decisions which will guide the direction of the firm and determine its long-term performance
B) Focuses on the vision of the firm and the opportunity which it believes exists in the marketplace
C) checks that the life expectancy of the product or service is long enough to ensure that the initial investment can be recovered and that the firm can make a profit.
D) a) and c)
E) a), b) and c)

Question 72

"I Can't Believe That It's Medicine" is an advertising slogan for a new antacid.The manufacturer claims that their antacid works faster and tastes better than any competing brand.These claims are part of the firm's strategy to achieve:

A) deceptive marketing recognition.
B) the creation of knockoff products.
C) new product development.
D) product differentiation.

Question 73

Profit is what it costs to make and sell a product.

Question 74

Sweet Dream Confectioners uses the same ingredients as most other producers of chocolate candies.In fact,taste tests suggest that the candy itself,while quite good,isn't much better than other well-known brands of chocolate.However,the company wraps its candies in expensive looking foil and places them in very attractive boxes.It promotes its products in advertisements as "the ultimate in chocolate experience." Sweet Dream charges a much higher price than most competitors,but sales continue to grow.This success indicates that:

A) consumers often behave in an irrational manner.
B) there is more to the total product offer than the physical product.
C) consumers seldom consider price when making a buying decision for goods such as chocolate.
D) chocolate is best classified as a convenience good.

Question 75

Today's progressive managers:

A) usually prefer to use the autocratic style of leadership.
B) tend to emphasize teamwork and cooperation rather than discipline and order-giving.
C) face fewer challenges and problems than managers in the past.
D) can rely on a much higher level of worker loyalty to the organization than in the past.

Question 76

_______,managers need to understand where the market is going and how their products and services will fit into the market and meet customer needs.________,they need to ensure that the right product reaches the right customer at the right time and at the right place for the right price.

A) Tactically; tactically
B) Strategically; strategically
C) Strategically; Tactically
D) Decisively; tactically
E) defensively; tactically

Question 77

Revenue is the amount a business earns above and beyond what it spends for expenses and costs.

Question 78

Nonprofit organizations such as the Canadian Cancer Society do not engage in management,marketing,or finance activities.

Question 79

Non-profit organizations,

A) last for only short periods of time as their objective is not to create profits for their owners.
B) Have a hard time hiring employees as they have no means of paying them.
C) Are not concerned about meeting their financial needs.
D) Can provide an opportunity for individuals to address social issues.

Question 80

The goal of business activities is profit.