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business
foundations of business
Questions and Answers of
Foundations of Business
Distinguish among the various kinds of managers in terms of both level and area of management.
Recognize the key management skills of successful managers.
Identify the different types of leadership.
Should all firms have contingency plans? Why or why not?
Tesla is one of the most valuable car makers in the world.The company, which also makes energy generation products, has a reputation for industry-disrupting innovation, but Tesla wasn’t an
Over the past few years, an increasing number of employees, stockholders, and customers have demanded to know more about their companies. As a result, more companies have been taking the time to
A successful career requires planning. Without a plan, or road map, you will find it very difficult, if not impossible, to reach your desired career destination. The first step in planning is to
Define an organization.
Explain why job specialization is important.
Identify the various bases for departmentalization.
Describe how decentralization follows from delegation.
Explore how the span of management describes an organization.
Identify four forms of organizational structure.
Examine the types, development, and uses of teams.
Describe how committees and task forces are used.
Explain the functions of the informal organization and the grapevine in a business.
How do teams and committees differ?
How does the grapevine differ from formal communications within an organization?
Sweetgreen, a farm-to-table salad chain, combines mission and passion to build healthier communities by connecting people to real food. The company is revolutionizing the salad business. Jonathan
An organization chart is a diagram showing how employees and tasks are grouped and how the lines of communication and authority flow within an organization. These charts can look very different
In the past, company loyalty and the ability to assume increasing job responsibility usually ensured advancement within an organization. While the reasons for seeking advancement (the desire for a
Explain the nature of production.
Outline how the conversion process transforms raw materials, labor, and other resources into finished goods or services.
Discuss the importance of service businesses to consumers, other business firms, and the nation’s economy.
Describe how research and development leads to new products and services.
Discuss the components involved in planning the production process.
Explain how purchasing, inventory control, scheduling, and quality control affect production.
Summarize how technology can make American firms more productive and competitive in the global marketplace.
Toyota is one of the world’s largest automobile companies, but it faced a long road to get to this place in history. It wasn’t until the company developed its original manufacturing philosophy,
Graeter’s began as a tiny Cincinnati business and now enjoys a national reputation for the quality of its premium ice cream. Once a small local business, today Graeter’s has a state-of-theart
Suppose that you are planning to build a house in the country. It will be a brick, one-story structure of approximately 2,000 square feet, centrally heated and cooled. It will have three bedrooms,
Because service businesses are now such a dominant part of our economy, job seekers sometimes overlook the employment opportunities available in production. Two positions often found in manufacturing
1. What steps did Jim Moon take to build a relationship between his business and Bank Rhode Is-land?2. What collateral, if any, do you think Moonworks can use as security for a future
Why would a lender offer unsecured short-term loans when it could demand collateral?
Many financial managers and corporate officers have been criticized for (a) poor decisions, (b) lack of ethical behavior, (c) large salaries, (d) lucrative severance packages worth millions of
What is venture capital? An angel investor? A private placement?
What are the major advantages of electronic banking services?
Describe the traditional banking services provided by financial institutions.
Describe the four sources of funds for a business.
What is the difference between equity capital and debt capital?
What is speculative production? How is it related to a firm’s cash-flow problems?
To be successful, what traits and skills does an employee in the finance industry need?
1. Choose one of the Big Four accounting firms and take a look at its Twitter, Facebook, LinkedIn, or YouTube websites.2. How does the accounting firm you chose use social media? Are they
Of the three financial ratios discussed in this chapter, which do you think is the most important financial ratio? Why?
Explain the calculation procedures for and significance of each of the following:a. Return on sales.b. The current ratio.c. Inventory turnover.
What are the benefits of comparing a firm’s current financial information with information for previous accounting periods, with industry averages, and with financial information for competitors?
In a statement of cash flows, what is included in the operating activities section? In the investing activities section? In the financial activities section?
If a retailer has revenues of $700,000, cost of goods sold that total $270,000, and operating expenses that total $200,000, what is its net income before taxes?
What is the difference between a balance sheet and an income statement?
If a business firm has assets worth $170,000 and liabilities that total $40,000, what is the value of the owners’ equity?
How do you determine the dollar amount of owners’ equity for a sole proprietorship, or a partnership, or a corporation?
What types of information could be illustrated in a visual display? In a tabular display?
What happens if a business has a management information system that is too small?
What happens if a business has a management information system that is too large?
How do the information requirements of managers differ by management area?
Describe how decision support systems and business application software can help improve employee productivity.
What is the difference between data and information? Give an example each of accounting data and accounting information.
1. Develop a social media plan for that business using what you learned in this chapter.2. What are the objectives of your social media plan?3. What social media tools would you
1. Describe some of the ways that Zappos uses social media to build a social community.2. How does Zappos encourage word-of-mouth marketing through social media?3. If you were the social media
How can a small cosmetics wholesaler located in Jacksonville, Florida, use e-business and social media to increase its customer base, increase revenues, and reduce expenses?
Assume that you are the owner of a small company that produces outdoor living furniture. Describe how you could use the B2C business model to sell your products to consumers?
How do e-businesses generate revenue streams, reduce expenses, and earn a profit?
How can social media help a firm generate new product ideas and recruit employees?
How can social media be used to market and advertise a firm’s products or services?
For a business, why are crisis and reputation management, listening to stakeholders, and targeting specific types of customers important activities?
How has social media changed the environment for business firms?
According to material in this section, what are the reasons why people use social media?
1. How would you describe Honest Tea’s ideal level of market coverage? Why would this intensity of market coverage be appropriate for such beverages?2. Should Honest Tea use the same
1. Do you think that social media buzz is an effective way to promote a product? Why or why not?2. Have you ever participated in a social media campaign like “Share a Coke”? If so, how did your
What are the three levels of market coverage? What types of products is each used for?
What are the four common types of publicity?
What is publicity, and why do organizations use it?
What are the common tools of public relations?
What factors affect the choice of sales promotion used?
What are the two classifications of sales promotion methods?
Why do marketers use sales promotion?
Describe the six steps of the personal-selling process.
Identify the three types of salespersons.
What are the advantages and disadvantages of using personal selling?
Explain the eight major steps in developing an advertising campaign.
Describe the major types of advertising by purpose.
What are the major elements of a promotion mix?
Why is integrated marketing communications being increasingly accepted?
What is the major goal of integrated marketing communications?
Describe the major characteristics of the primary transportation modes.
What is the goal of materials handling?
Explain the seven major warehousing activities.
How is inventory management a balancing act between stock-out costs and holding costs?
What are the four most common types of shopping centers, and what type of store does each typically contain?
How does nonstore retailing occur?
Describe the major types of retail stores. Give an example of each.
Identify and describe the various types of wholesalers.
How has technology enhanced the implementation of supply-chain management?
How does supply-chain management encourage cooperation between buyers and sellers?
Explain the three intensities of market coverage. Which types of products are generally associated with each of the different intensity levels (convenience, shopping, or specialty)?
Describe the six distribution channels. Give an example of each.
How do the different types of middlemen link a producer to a user within a marketing channel?
1. Go to Twitter.com and search for @Casper and look through recent tweets in the account’s timeline. How is Casper using humor and pop culture to build brand loyalty?2. What is the
1. How would you classify Mi Ola’s consumer products? Explain your answer.2. In which stage of the product life-cycle would you place Mi Ola’s products? In this stage, would you
Explain the five types of discounts for business products.
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