Devry SBE310 Final Exam ANSWERS

SBE 310 Final Exam ANSWERS1.(TCO 1) Approximately what percentage of businesses have a payroll with fewer than 500 people?(Points : 5)10 percent25 percent75 percent99 percent2.(TCO 1) You have a small business that offers printing services. One of the services you offer is a high-speed color copier. You are currently the only printing service in a tri-state area that offers such a service. You currently have _______.(Points : 5)Creative destructionA competitive advantageA qualitative advantageA capital advantage3.(TCO 1) Your employees are your most valued assets due to their _______.(Points : 5)Skill, knowledge, and informationEarningsKnowledge of finance and accountingCollege degree and high IQ4.(TCO 1) Entrepreneurship primarily involves which phase of business?(Points : 5)The startup processHiring of key employeesMaintaining a positive cash flowBuilding and maintaining a sufficient customer base5.(TCO 1) Which of the following is the most common form of business ownership?(Points : 5)Sole proprietorshipsPartnershipsCorporationsJoint ventures6.(TCO 4) Which of the following acts was written to prevent large businesses from forming trusts?(Points : 5)Clayton ActFederal Trade Commission ActFair Debt Collection Practices ActCivil Rights Act of 19647.(TCO 4) Bankruptcy remains on a credit report for how many years?(Points : 5)3 years5 years7 years9 years8.(TCO 4) Peter Drucker stated that businesses have _______ basic functions.(Points : 5)TwoThreeFourFive9.(TCO 4) Managing inventory can be compared to which of the following?(Points : 5)A balancing actPreparing for a testDriving a busLion taming10.(TCO 4) What is the key word in evaluating a channel of distribution? (Points : 5)LocationPlasticsCompetitionEfficiency11.(TCO 4) A long-term agreement to rent a building, equipment, or other assets is known as a:(Points : 5)LeaseRental contractLegally liable contractBusiness contract12.(TCO 4) Consumers typically do not want the cheapest product available; they want the:(Points : 5)Best product for the highest priceMost reasonable product at the highest priceMost reasonable product at the lowest priceBest product for the most reasonable price13.(TCO 4) The point at which total cost equals total revenue and the business is neither making or losing money is known as the _______.(Points : 5)Profit areaLoss areaBreakeven pointProfit point14.(TCO 2) Through the franchise agreement, the ________ gains the benefit of the parent company’s expertise, experience, management systems, marketing, and financial help.(Points : 5)FranchisorFranchiseeLeaserLessee15.(TCO 2) The financial document that is used by startup businesses to show where capital comes from and for what it will be used is called:(Points : 5)Cash-flow statementProjected earnings statementSources and uses of fundsIncome statement16.(TCO 2) Which of the following is not included in the marketing plan section of the business plan?(Points : 5)How sales forecasts will be reachedMarketing objectivesIdentification of potential marketsCash-flow statements17.(TCO 3) When analyzing financial statements, remember that profits can be increased and expenses can be decreased to make the records look better __________.(Points : 5)In the short runIn the long runFor tax purposesFor bank audits18.(TCO 3) In the chapter opener, what was the limitation that kept Philip Rosedale from creating Second Life when he first had the idea for it?(Points : 5)He didn’t have enough money.He didn’t know how to promote it.Computers were not powerful enough at the time.Some technical gadget like a flux capacitor needed to be invented first.19.(TCO 3) Most Inc. 500 companies receive more than half of their revenue from:(Points : 5)Their local areaTheir regional areaOutside their home regions and internationallyA 100-mile proximity of their business20.(TCO 3) Computers, office equipment, and furniture are all examples of ________ that have a life of more than one year.(Points : 5)Current assetsCurrent liabilitiesCapital equipment assetsInvestments21.(TCO 5) Mintzberg suggested several important skills a manager needed in order to perform the four functions of management. The most important of these was listed as(Points : 5)Carrying out negotiationsMotivating subordinatesMaking decisions in conditions of extreme ambiguity in allocating resourcesBeing willing to continually learn on the job22.(TCO 5) Maslow’s hierarchy of needs theory ranks the highest level of needs as what?(Points : 5)PhysiologicalSafety and securityEsteemSelf-actualization23.(TCO 5) The Equal Employment Opportunity Commission _______ that the information from a job analysis be used to ensure equal employment opportunity.(Points : 5)Strongly urges and sometimes requiresAlways requiresUrgesDoes not care24.(TCO 6) A production process that operates for long periods of time without interruption is known as?(Points : 5)Analytic systemSynthetic systemContinuous processIntermittent process25.(TCO 6) Scheduling is necessary to maximize levels of: (Points : 5)Efficiency and customer serviceCustomer service and expenseSales and expenseEfficiency and effectiveness26.(TCO 7) An account number of 13 would represent which of the following accounts?(Points : 5)Accounts payableAccrued taxesInsurance expenseAccounts receivable27.(TCO 7) Equity funds never need to: (Points : 5)Be repaidBe accounted forBe stated on the income statementBe stated on the balance sheet28.(TCO 8) About what percent of small businesses export goods and services?(Points : 5)10%15%30%50%29.(TCO 9) The obligation of business to maximize the positive impact it has on society while minimizing the negative impact is called:(Points : 5)Moral obligationBusiness responsibilityBusiness ethicsSocial responsibility30.(TCO 9) Threats and opportunities to a business can be found in which of the following environments?(Points : 5)Economic and legal onlyLegal and sociocultural onlyTechnological and competitive onlyEconomic, legal, sociocultural, competitive, and technological1.(TCO 1) Compare and contrast a sole proprietorship, a partnership and a corporation. Provide examples of where you would use each structure. (Points : 14)2.(TCO 3) Analyze the advantages and disadvantages of buying an existing business. Under what circumstances would one be more advantageous? (Points : 14)3.(TCO 4) Compare and contrast Economic Order Quantity and Just-In-Time as inventory control methods. Evaluate how these control methods can improve the financial position of a small business. (Points : 14)4.(TCO 6) Compare and contrast analytic manufacturing systems and synthetic manufacturing systems, giving an example of each. (Points : 14)5.(TCO 9) Analyze the four levels depicted in the pyramid of social responsibility. (Points : 14)