Deck 20: B: Extension: A Business Basics

Question 1

Which form of business recommends a legal agreement between two or more business partners that outlines core business issues?

A)Sole proprietorship
B)Partnership
C)Corporation
D)LLC

Answer 1

B

Question 2

What is the fundamental difference found in a limited partnership?

A)Only one partner is responsible for all of the partnership's losses.
B)Both partners are responsible for all of the partnership's losses.
C)Both partners are protected from being responsible for all of the partnership's losses.
D)None of these.

Answer 2

C

Question 3

What is a hybrid entity that has the legal protections of a corporation and the ability to be taxed (one time) as a partnership?

A)Limited partnership
B)Limited liability corporation
C)Limited proprietorship
D)Limited shareholder

Answer 3

B

Question 4

Accounting deals with the strategic financial issues associated with increasing the value of the business while observing applicable laws and social responsibilities.

Question 5

What involves analyzing business operations for internal decision making and does not have to follow any rules issued by standard-setting bodies such as GAAP?

A)Accounting
B)Bookkeeping
C)Financial accounting
D)Managerial accounting

Question 6

Partnership agreements typically include all of the following, except:

A)Expectations for sharing profits and losses.
B)Partner's salary requirements.
C)Methods for conflict resolution.
D)Shareholder's expectations for a successful business.

Question 7

What is the function of the marketing department?

A)Deals with the strategic financial issues associated with increasing the value of the business while observing applicable laws and social responsibilities.
B)Includes the policies, plans, and procedures for the effective management of employees.
C)The function of selling a good or service and focuses on increasing customer sales, which increases company revenues.
D)The process associated with promoting the sale of goods or services.The marketing department supports the sales department by creating promotions that help sell the company's products.

Question 8

Which of the following financial statements gives an accounting picture of property owned by a company and of claims against the property on a specific date?

A)Balance sheet
B)Statement of owner's equity
C)Statement of cash flows
D)Income statement

Question 9

What occurs when businesses sell products or services for more than they cost to produce?

A)Expense
B)Profit
C)Loss
D)Revenue

Question 10

A loss occurs when businesses sell products or services for less than they cost to produce.

Question 11

For-profit corporations primarily focus on making money and all profits and losses are shared by the business owners.

Question 12

Break-even analysis is the point at which revenues equal costs.

Question 13

What reports operating results (revenues minus expenses) for a given time period ending at a specified date?

A)Balance sheet
B)Statement of owner's equity
C)Statement of cash flows
D)Income statement

Question 14

What is the function of the sales department?

A)Deals with the strategic financial issues associated with increasing the value of the business while observing applicable laws and social responsibilities.
B)Includes the policies, plans, and procedures for the effective management of employees.
C)The function of selling a good or service and focuses on increasing customer sales, which increases company revenues.
D)The process associated with promoting the sale of goods or services.The marketing department supports the sales department by creating promotions that help sell the company's products.

Question 15

What involves preparing financial reports that provide information about the business's performance to external parties such as investors, creditors, and tax authorities?

A)Accounting
B)Bookkeeping
C)Financial accounting
D)Managerial accounting

Question 16

Which of the following is not a type of business?

A)Sole partnership
B)Partnership
C)Limited partnership
D)Corporation

Question 17

What refers to the amount earned resulting from the delivery or manufacture of a product or from the rendering of a service?

A)Expense
B)Profit
C)Loss
D)Revenue

Question 18

What analyzes the transactional information of the business so the owners and investors can make sound economic decisions?

A)Accounting
B)Bookkeeping
C)Financial Accounting
D)Managerial Accounting

Question 19

What describes the basic transaction data such as its date, purpose, and amount and includes cash receipts, canceled checks, invoices, customer refunds, employee time sheet, etc.?

A)Balance sheet
B)Source document
C)Transaction
D)Financial statement

Question 20

Human resources management includes the policies, plans, and procedures for the effective management of employees (human resources).

Question 21

Which of the following is not accomplished by human resources management?

A)Employee recruitment
B)Employee training
C)Employee vacation scheduling
D)Employee appraisals

Question 22

What tracks and communicates changes in the shareholder's earnings?

A)Balance sheet
B)Statement of owner's equity
C)Statement of cash flows
D)Income statement

Question 23

What is revenue?

A)A distribution of earnings to shareholders.
B)Refers to the amount earned resulting from the delivery or manufacture of a product or from the rendering of a service.
C)Refer to the costs incurred in operating and maintaining a business.
D)Anything owned that has value or earning power.

Question 24

What is an asset?

A)A distribution of earnings to shareholders.
B)Refers to the amount earned resulting from the delivery or manufacture of a product or from the rendering of a service.
C)Refer to the costs incurred in operating and maintaining a business.
D)Anything owned that has value or earning power.

Question 25

What is a dividend?

A)A distribution of earnings to shareholders.
B)Refers to the amount earned resulting from the delivery or manufacture of a product or from the rendering of a service.
C)Refer to the costs incurred in operating and maintaining a business.
D)Anything owned that has value or earning power.

Question 26

Which of the following represents psychographic segmentation?

A)Based on regional variables such as region, climate, population density, and population growth rate.
B)Based on variables such as age, gender, ethnicity, education, occupation, income, and family status.
C)Based on variables such as values, attitudes, and lifestyles.
D)Based on variables such as usage rate, usage patterns, price sensitivity, and brand loyalty.

Question 27

What is the rate at which the net present value of an investment equals zero?

A)Internal rate of return (IRR)
B)Return on investment (ROI)
C)Cash flow analysis
D)Break-even analysis

Question 28

What is a standardized set of activities that accomplishes a specific task, such as processing a customer's order?

A)Transaction
B)Business process
C)Expense
D)Marketing

Question 29

Which of the following is not a reason to increase market share?

A)Economies of scale
B)Reputation
C)Increased bargaining power
D)Nearing production capacity

Question 30

What is the division of a market into similar groups of customers?

A)Market management
B)Market mix
C)Market communications
D)Market segmentation

Question 31

What is a means to conduct a periodic check on the company's financial health?

A)Internal rate of return (IRR)
B)Return on investment (ROI)
C)Cash flow analysis
D)Break-even analysis

Question 32

What is the analysis and redesign of workflow within and between enterprises?

A)Business process
B)Management information system
C)Transaction
D)Business process reengineering

Question 33

What is calculated by dividing the firm's sales by the total market sales for the entire industry?

A)Break-even point
B)IRR
C)Market share
D)Income statement

Question 34

What is information technology?

A)A field concerned with the use of technology in managing and processing information.
B)The function of selling a good or service and focuses on increasing customer sales, which increases company revenues.
C)The function that plans for, develops, implements, and maintains IT hardware, software, and the portfolio of applications that people use to support the goals of an organization.
D)Includes the methods, tasks, and techniques organizations use to produce goods and services.

Question 35

Which of the following is not one of the four phases in the product life cycle?

A)Growth
B)Decline
C)Place
D)Introduction

Question 36

What is management information systems?

A)A field concerned with the use of technology in managing and processing information.
B)The function of selling a good or service and focuses on increasing customer sales, which increases company revenues.
C)A general name for the business function and academic discipline covering the application of people technologies, and procedures-collectively called information systems-to solve business problems.
D)Includes the methods, tasks, and techniques organizations use to produce goods and services.

Question 37

What is operations management?

A)A field concerned with the use of technology in managing and processing information.
B)The function of selling a good or service and focuses on increasing customer sales, which increases company revenues.
C)The function that plans for, develops, implements, and maintains IT hardware, software, and the portfolio of applications that people use to support the goals of an organization.
D)The management of systems or processes that convert or transforms resources into goods and services.

Question 38

Which of the following is not a part of the marketing mix?

A)Product
B)Price
C)Point
D)Promotion

Question 39

What is the point at which revenues equal costs?

A)Break-even point
B)Cash flow analysis
C)ROI
D)IRR

Question 40

Which of the following represents geographic segmentation?

A)Based on regional variables such as region, climate, population density, and population growth rate.
B)Based on variables such as age, gender, ethnicity, education, occupation, income, and family status.
C)Based on variables such as values, attitudes, and lifestyles.
D)Based on variables such as usage rate, usage patterns, price sensitivity, and brand loyalty.

Question 41

Define the three common business forms.

Question 42

Define business process reengineering and explain how an organization can use IT to transform its business.

Question 43

Identify the four primary financial statements used by most organizations.

Question 44

Define the relationship between sales and marketing, along with a brief discussion of the marketing mix.

Question 45

Describe a transaction and its importance to the accounting department.

Question 46

List and describe the seven departments commonly found in most organizations.