Business

Question 1

What are strategies to impact price perceptions?

Answer 1

• prestige pricing
• psychological pricing
• loss leader pricing
• reference pricing

Question 2

What is EDLP?

Answer 2

Strategy of charging low prices with few promotional sales.

Question 3

What are the four basics rights to the private enterprise system?

Answer 3

• Private property
• Competition
• Profit
• Freedom of choice

Question 4

What are the 5 factors of production?

Answer 4

• Entrepreneurs
• Human resources
• Technology
• Natural resources
• Capital

Question 5

Define Business

Answer 5

Any activity that provides a good or service for the purpose of earning profit.

Question 6

Define Loss

Answer 6

A loss occurs when a company’s revenue is less than its expenses.

Question 7

Define Profit

Answer 7

A profit is earned when a company’s revenue is greater than its expensive.

Question 8

What is an entrepreneur

Answer 8

Someone who assumes the risk of creating organizing and operating a business and who directs all the business resources.

Question 9

what are two types of capital

Answer 9

• Real Capital

- Financial Capital

Question 10

Define Real Capital

Answer 10

The physical facilities used to produce goods and services.

Question 11

Define Financial Capital

Answer 11

Money used to facilitate a business enterprise.

Question 12

PEST Model

Answer 12

a model used to measure changes in the business environment that might affect the company’s ability to prosper.

• Political-legal
• Economic
• Sociocultural
• Technological

Question 13

Define Globalization

Answer 13

The movement towards a more interconnected and interdependent world economy.

Question 14

What does Porters five force model include ?

Answer 14

• Rivalry among existing competitors
• Bargaining power of suppliers
• Threats of new entrants
• Bargaining power of buyers
• Threat of substitute goods or services

Question 15

What are the four degrees of competition ?

Answer 15

• Monopoly
• Oligopoly
• Monopolistic competition
• Perfect competition

Question 16

Define Monopoly

Answer 16

A form of competition where there is only one provider of a service or product and no substitutes for the product exists.

Question 17

Define Oligopoly

Answer 17

a form of competition in which only a few sellers exist.

Question 18

Define Scarcity

Answer 18

The economic problem of how to reconcile unlimited human wants and desires with limited economic resources.

Question 19

What is Bartering?

Answer 19

People trading goods or services without a medium of exchange.

Question 20

Define Currency

Answer 20

a medium of exchange for the transfer of goods and services that provides a consistent and equitable standard.

Question 21

Which factors may affect demand?

Answer 21

• Changes in income level
• Population changes
• Consumer preferences
• Complementary goods
• Substitute goods

Question 22

Define Liquidity

Answer 22

How quickly assets can be turned into cash

Question 23

Define Forecasts

Answer 23

Predicted revenue, costs and expenses for a specific future period.

Question 24

What is Capital Budget?

Answer 24

Capital Budget considers the companies long range plans and outlines the expected financial needs for significant capital purchases. Some examples are..

• Real estate
• Manufacturing,
• Equipment
• Plant expansions
• Technology.

Question 25

Define Statistical Quality Control?

Answer 25

The continuous monitoring of each stage of the entire production process to ensure that quality standards are being met at every stage.

Question 26

What is the Six Stigma?

Answer 26

A Method that seeks to eliminate defects by removing variations in outcome and measuring and analyzing manufacturing processes to see if standards are being met.

Question 27

Define ISO?

Answer 27

ISO is an Organization dedicated to creating worldwide standards of quantity for goods and services.

Question 28

What is E-Procurement?

Answer 28

E-Procurement is a online purchasing system connecting companies and their business processes directly with suppliers while managing all interactions between them.

Question 29

Why is a Gantt Chart Useful for a Business?

Answer 29

A Gantt Chart is useful for business because it is used to lay out each task in a project, in order of which these tasks must be completed and how long each task should take.

Question 30

What are The Four Decisions to Operation Planning?

Answer 30

1. The Type of Production Process 2. The Facility Location 3. The Facility layout 4. Resource Planning

Question 31

What are Facility Location Factors to consider?

Answer 31

- Proximity to Market - Proximity to Raw Materials - Proximity to Utilities - Proximity to Hazardous Waste Disposal.

Question 32

What is a Corporate Bond?

Answer 32

A Corporate Bond is a type of Loan issued by a Company (*NOT a bank or finance company). It is a Formal Written Agreement to Reimburse at a Regular Interest Rate.

Question 33

what is Factoring in Business?

Answer 33

Factoring is the process of selling accounts receivable for cash.

Question 34

Define the Purpose of a Promissory Note?

Answer 34

A written promise to pay a supplier a specific amount of money by an agreed-upon date.

Question 35

Define Commercial Paper?

Answer 35

An unsecured short term debt instrument of 100 000 or more typically issued by a corporation to bridge a cash flow gab created by large accounts receivable inventory or payroll.