BUSINESS

MANAGEMENT +
ADMINISTRATION

1. Stockholders in corporations have limited liability.

2. Limited liability means that losses are limited to the amount of money
that they have invested in business.
3. To find relevant, valid information about federal legislation you can use
government publications.
4. Things you can locate in company employee handbooks: use of
company property.
5. Regardless of whether you are writing a report, preparing for a debate,
or simply learning something new for the fun of it, identifying and reading
sources that provide relevant, valid information about the subject at hand is
very important.

6. if you are researching federal legislation such as copyright law, you are
most likely to read relevant, valid information in government publications.
7. Political blogs typically reflect the opinions of their writers, so their
information may or may not be relevant or valid.
8. Businesses often develop employee handbooks, which provide
information about their general policies and procedures.
9. Employee handbooks usually provide information about overtime and
vacation policies, disciplinary and grievance procedures, pay schedules, dress
codes, and behavioral expectations in its employee handbook.
10.Being prepared will help individuals remain objective and able to offer
logical evidence to back up their ideas.
11.Enunciating clearly involves speaking clearly and distinctly, which
makes the message easy for the listener to follow.
12.When you state a fact, it's important to be accurate. Make sure you
can support your statement. Don't generalize.
13.Some graphics that are used in business reports are textual (textoriented) because their content is presented in the form of words and
numbers.
14.When preparing written communication, one of the most important
rules is to be thorough and provide all the necessary information because the
receiver may not have the opportunity to ask questions in person.
15.When describing activities that need to be done in a specific order, the
writer might want to number the steps to set the process apart from the text
and to clarify the process.
16.One of the main functions of an informational message is to provide
information to readers in such a way that they understand the message
17.Account executives often participate in meetings with clients and
other advertising agency staff to develop ad campaigns for the clients.
18.Employees should be friendly and courteous to all and adapt to each
customer's behavior in a positive manner.
19.To express its service orientation, a business uses various
communication channels, one of which is the business's employees.
20.Policies ensure that employees will handle the same situations in the
same manner, rather than making decisions regarding each customer,
because the policies provide guidelines for employees to follow.
21.Salespeople are not able to satisfy non complainers because they do
not express their dissatisfaction to anyone associated with the business.
22.A brand promise is a company's agreement, spoken or unspoken, with
customers that it will meet their expectations and deliver on its brand
characteristics and values.
23.Specialty goods are consumer goods with special or unique
characteristics that consumers are willing to exert special efforts to obtain.
24.Economics is the study of how people satisfy unlimited, competing,
economic wants with limited resources. Demand is the amount of an item
customers can and will purchase. When price decreases, the demand for a
product usually increases.

25.The more profit the company makes, the more it can grow, providing
better salaries to its workers, more jobs in the community, and making
possible larger charitable contributions and other benefits to society.
26.When businesses make profits, they are more likely to contribute to
worthy causes that help improve the communities in which they are located.
27.Price fixing eliminates competition and is illegal.
28.Government passes zoning laws to protect the value of business
property by allowing only certain types of businesses to occupy an area.
29.Overlaps of leadership and emotional intelligence include proactive
behavior, perseverance, positive working relationships, and confidence.
30.Prejudice is an opinion or judgment that is based on feelings or
hearsay, rather than fact. Prejudice is an attitude, not an act.
31.Although an important aspect of self-assessment is evaluating your
weaknesses, obsessing over them will only discourage you.
32.Self-confidence is a positive belief in your own talents, skills, and
objectives.
33.Any questions should be relevant to the customer's wants and needs in
order to indicate your interest in meeting those needs.
34.Initiative is defined as the willingness to act without having to be told
to do so, or the willingness to accept or seek additional or unpleasant duties.
35.Attitudes are very personal feelings and values.
36.Empathy is the ability to put yourself in another person's place.
37.The willingness to adjust your opinions and behaviors so that you value
different people and ideas is cultural sensitivity.
38.Assertive behavior is characterized by respect for personal rights as
well as for the rights of others.
39.The way a person reacts to conflict is called his/her conflict response
mode.
40.A work team is a group of employees which is responsible for carrying
out an entire work process.
41.Fulfilling one's obligations in a dependable, reliable manner is known
as responsibility, and it is an important leadership characteristic.
42.Initiating a meeting about a needed change at work is leading change.
43.When you study human relations, you examine the ways that people
form and conduct relationships with one another.
44.Credit is the arrangement in which businesses and individuals can
purchase now and pay later.
45.Individuals and businesses acquire income in many ways. Dividends
are earnings that are paid to investors or stockholders for their investments.
46.Credit allows businesses and consumers to pay for several different
purchases at one time with a single payment.
47.When an item is purchased, money is exchanged for the right to own
the item. Using credit may be part of the purchase process.
48.People who have written goals accomplish 50 to 100 times more than
people who do not.
49.Developing a personal budget helps individuals manage their income
and expenses.

Identity theft occurs when an individual obtains and uses another person's
information (e.g., credit cards) without that person's consent.

50.

MARKETING

1. Torts are civil wrongdoings that cause harm or injury to another party.
2. Appropriation, wrongful interference, defamation, and conversion are
four kinds of torts.
3. Defamation involves making false, malicious statements about a
person or organization.
4. Conversion occurs when personal property is taken from the owner and
given to someone else to use.
5. A corporation acts as a "legal person" in doing business and is owned
by stockholders who have purchased stock.
6. A partnership is a form of business ownership in which the business is
owned by two or more persons.
7. A sole proprietorship is a form of business ownership in which the
business is owned by one person.
8. A cooperative is owned and operated by its user-owners to supply
goods and services to its members.
9. Channel management involves understanding the concepts and
processes needed to identify, select, monitor, and evaluate sales channels.
10.Promotion involves understanding the concepts and strategies needed
to communicate information about goods, services, images, and/or ideas to
achieve a desired outcome.
11.Pricing is the marketing function that involves determining and
adjusting prices to maximize return and meet customers' perceptions of
value.
12.Product/service management is the marketing function that involves
obtaining, developing, maintaining, and improving a product or service mix in
response to market opportunities.
13. Intermediaries are also called middlemen and include sales agents,
wholesalers, and retailers who perform specific functions in the movement of
goods from producers to consumers.

14.Direct channels of distribution do not involve intermediaries. All

channels of distribution involve producers and either industrial or ultimate
consumers.
15.Green marketing refers to the practice of pricing, promoting, and
distributing products in such a way that they do not harm the natural
environment.
16.Consumer protection deals with safety features and product labeling
standards that protect the consumer.
17.Social awareness is a term used to describe the practice of
enlightening the community of business actions to promote social welfare.
18.International marketing refers to marketing goods and services in
foreign countries.
19.Concise messages are clear and short.
20.A courteous message addresses others with respect.
21.Completeness in communication means giving all the information
required.
22.Organizing information helps you to communicate your message to
your audience in a meaningful way.
23.An effective subject line for a professional email should summarize the
body of the message and make it easy for the recipient to understand the
purpose of the email.
24.Informational messages are intended to inform and provide data to the
recipients. In many cases, the purpose of an informational message is to help
the recipient make a decision.
25.Clear and concise writing enables a recipient to read the message. The
letterhead usually includes the business's name, address, and phone number
so recipients are able to contact the business.
26.Simple written reports are often intended to provide information to the
business's employees. An example of a simple written report that a business
might prepare on a regular basis is the minutes of a staff meeting.
27.Body language is gestures, facial expression, tone of voice, or any
other form of communicating without words. An employee's body language
conveys a message to customers. For example, if an employee is talking to
one customer and ignores a new customer, the employee's body language is
telling the new customer that she/he is not important.
28.Informal product demonstrations do not communicate interest in
providing good service to customers.
29.A sincere complaint is an honestly felt dissatisfaction.
30.A service complaint results from poor service, and a business
complaint is customer dissatisfaction with the business in general.
31.A brand promise is a business's agreement (spoken or unspoken) with
customers that it will consistently meet their expectations and deliver on its
brand characteristics and values.
32.Strategic management refers to the business's plans and goals for the
future.

33.Technologies of all types have enabled global markets to function

effectively.
34.Government, culture, and exchange rates have both facilitated and
hampered global trade.
35.Competition is the rivalry between two or more businesses to attract
scarce (limited) customer dollars. In order to be competitive, businesses must
try to offer consumers quality products at fair prices.
36.The profit motive is the desire to make a profit, which moves people to
invest in business. Inflation is a rapid rise in prices usually occurring when
demand exceeds supply.
37.Excise is a special government tax on certain items, such as gasoline.
38.Businesses are responsible for collecting income and social insurance
taxes from employees and sales, excise, and duty taxes from customers.
Businesses pay tax on their income and property, and they also pay fees for
licenses and permits.
39.Subsidy is government financial help given to a business.
40.Bonds are interest-bearing certificates issued by government that
promise to pay bond owners a certain sum at a specified time.
41.Discount is the amount by which the price of something is reduced.
42.Union stewards are called shop stewards, and they are union members
elected by their peers to handle any grievances or problems members might
have with management.
43.A union president's responsibilities involve leading the union as a
whole rather than assisting individuals.
44.A mediator is involved in union negotiations, clarifying issues, and
making suggestions concerning the contract.
45.Empathy is the ability to put yourself in another person's place.
Resourcefulness helps you to make the best of any situation.
46.Creativity is the ability to generate unique ideas, approaches,
solutions, etc.
47.Self-understanding is comprehending one's personal needs, interests,
values, and motives and recognizing their effects on one's behavior.
48.Patience is the ability to endure life's aggravations and difficulties
calmly.
49.Offensive behavior is unpleasant or displeasing.
50.Assertive behavior is characterized by respect for personal rights as
well as for the rights of others.

FINANCE

1. Stockholders in corporations have limited liability; that is, their losses

are limited to the amount of money that they have invested in the business.
2. A contract is an agreement between two or more businesses stating
that one party is to do something in return for something provided by the
other party.
3. When an individual or business charges interest on money that another
individual or
4. business borrows, a debtor-creditor relationship exists.
5. Pump and dump is an investment scam that takes place mostly online.
6. The government does not require individuals and businesses to pay tax
on income under certain circumstances, such as charitable contributions.
7. Corrective controls are initiatives taken to fix a problem that has
already been detected.
8. To prevent an intermediary from tampering with transactional data,
continuous-inspection compliance technology such as a virtual auditor must
have access to the information at its source.
9. Message recipients use many techniques to encourage and indicate
their understanding of a speaker's message.
10.The purpose of developing and using graphics in business reports is to
communicate information
11.A collection letter is a type of persuasive message that many
businesses write to customers who are delinquent in making payments on
their accounts.
12.A characteristic of a simple written report is that it usually is short and
to the point.
13.Communication in a business with a formal staff communication
system usually moves in three directionsup, down, and sideways.
14.To develop positive relationships with international clients, business
people should try to learn as much as they can about their clients' cultures,
customs, and social values.
15.Financial professionals often invest money for clients. As a result, they
should provide clients with accurate information about the performance of
possible investments.
16.Economic resources are items that can be used to produce goods and
services, and they are in limited supply.
17.Access to raw materials, availability of natural resources, amount of
pollution, and a business's location are examples of environmental factors
affecting the business environment.

18.Some of the factors that affect the decision as to what will be produced
include which items are profitable, what consumers want and need, and what
resources are available.
19.Income tax is a tax on profit. When businesses earn a profit from
supplying goods and services to consumers, they pay a certain percentage of
that profit to the government.
20.The rate of inflation, the percentage of change in price levels, has a
major effect on purchasing power because when inflation is high, a dollar will
not buy as much.
21.Some factors that affect business cycles are considered internal
because they take place within the economic system itself.
22.Initiative is willingness to act without having to be told to do so and
sometimes includes willingness to accept/seek additional or unpleasant
duties.
23.Employees demonstrate their honesty and integrity when they refuse
to violate the trust a company places in them.
24.In order to benefit from criticism, you must take an objective look at it
and decide how much of it is valid and based on fact.
25.Tact is the ability to do or to say the right thing in any circumstance.
Empathy is the ability to put yourself in another person's place.
26.The clothing that people choose to wear sends a message to other
people and is considered a form of nonverbal communication, or body
language.
27.Credibility is believability, and employees are more likely to believe a
manager who has the appropriate background and ability.
28.When making a plan for improvement, the coachee's job is to take
personal responsibility for making the changes.
29.There are no hard-and-fast rules for treating coworkers with fairness
and respect because every workplace is different, and each group of workers
is different.
30.A dividend is a sum of money that a corporation pays to a stockholder
as earnings on an investment.
31.Choosing to buy an item at the check-out counter is a classic example
of impulsive spending.
32.Education is a financial want rather than a financial need.
33.A check is a negotiable instrument or bank draft made payable to a
specific party for a specific amount of money.
34.A check serves as a written promise to the check bearer that money is
available in the issuer's bank account.
35.Individuals should periodically validate their credit histories to make
sure that the information is correct.
36.Credit unions are essentially cooperatives providing financial products
and services to a group of individuals who work for the same employer or
share some other common interest or characteristic.
37.A financial market is an organized effort or exchange that facilitates
the buying and selling of financial assets.
38.Liquid assets are financial assets such as stocks that can easily be
converted into cash. Illiquid assets, therefore, are assets that cannot be easily
converted into cash or sold without a significant drop in their value.

39.Increased consumer spending usually indicates that the economy is

growing and unemployment is low.
40.Although financial globalization tends to increase investors' access to
many different financial markets, financial globalization also seems to
increase the risks of speculative bubbles and herd behavior among investors.
41.The net asset value of a mutual fund is the dollar value for one share
of its stock.
42.A stock's current yield is a measure of the amount of last year's
dividend as a percentage of the stock's current price.
43.Human risks are chances of loss caused by human weakness and
unpredictability, such as dishonesty.
44.When financial information is fully disclosed and is presented in a clear,
understandable way, it is transparent.
45.Total cash receipts is the total of all of the sources of income that the
business lists under cash receipts.
46.A budget estimates how a business will earn and spend its money.
Businesses use budgets to estimate how they will spend the money they earn
as income.
47.A financial-information management system is a set of processes,
people, and equipment used to gather, store, organize, and provide financial
information to decision makers.
48.Financial-information management's stewardship function involves
protecting financial data from tampering, loss, unauthorized access, and
unauthorized use.
49.Master data management involves the collection, storage,
accessibility, and maintenance of the business's non transactional data (e.g.,
product,employee).
50.Data mining is the process of searching computer databases to look for
patterns of information and correlations among information.

HOSPITALITY + TOURISM

1. The debtor is the individual or business that owes money to another

individual or business (creditor).
2. An LLC (limited liability company) form of business ownership is
growing in popularity because of some of the ways it benefits its owners.
3. When a community's leaders create legislation to increase taxes for
food and beverage products, the businesses that supply the products pass
the tax increase to the consumer by raising prices on the products.
4. Coordinating channel management with other marketing activities
such as promotion is important to businesses because they need to have the
goods in stock when they are advertised.
5. This makes it convenient for travel agents and saves having to pay
bank fees for converting the money.
6. Businesses often develop employee handbooks that provide
information about their general policies and procedures.
7. When employees present their ideas to management or coworkers,
they should be prepared to defend those ideas and provide supporting in
formation.
8. The first step in holding a group discussion is typically making sure
that everyone understands the group's purpose and reason for having the
discussion.
9. Rehearsing the presentation provides the speaker with an opportunity
to make sure that s/he is speaking at the appropriate pitch.
10.When describing a process or historical information, the writer may
need to present the facts in chronological order.
11.Using the correct words in written communication is one way for
businesspeople to make sure that the receiver understands the message.
12.Memorandums are a frequently used form of brief, written
communication exchanged by people within an organization.

13.The most appropriate communication channel for routine workplace

messages such as Odessa's reminder to employees is email.
14.Employees should treat others, whether they are customers,
coworkers, or supervisors, with consideration.
15.Until it is determined otherwise, one should assume that the complaint
is legitimate.
16.It is unethical for a business to sell its customers' information to third
parties without the customers' permission because it is a breach of privacy.
17.Many hotels and resorts have multiple channels of distribution so that
they reach more guests and provide guests with more ways to reserve their
rooms.
18.Form utility is usefulness created by altering or changing the form or
shape of a good to make it more useful to the consumer.
19.The law of supply states that the quantity of a good or service that will
be offered for sale varies in direct relation to its selling price.
20.Social responsibility is the duty of business to contribute to the wellbeing of society. Many of the decisions that business owners make affect not
only the business but the community in which the business exists.
21.Marketing is the process of creating, communicating, and delivering
value to customers and managing customer relationships in ways that benefit
the organization and its stakeholders.
22.The spread of capitalism throughout the world has given businesses
opportunities to expand and reach new markets, thereby encouraging the
growth of a global economy.
23.Businesses are affected by external factors, which include changes in
the business cycle.
24.The business cycle refers to the periods of expansion and contraction
in economic conditions.
25.The formula for calculating productivity is goods and services produced
(outputs) divided by the resources utilized to produce the goods (inputs).
26.A productivity increase is an increase in production brought about by
more efficient use of the same amounts of labor and capital.
27.Having a positive attitude can help you be more successful in life, but
it does not guarantee fame or money.
28.Stimulus control occurs when a person attempts to avoid situations
that cause him/her stress.
29.Gestures such as pointing, arm-waving, or use of the hands to make a
point are part of body language.
30.When people are developing strategies (strategizing), they are coming
up with a plan of action to accomplish something.
31.You need to recognize, or admit, that a disagreement exists before you
can take action to resolve it.
32.Taking big risks is not a behavior of an achievement-oriented person.
Achievement-oriented people assess risk carefully and assume moderate
risks, so as not to jeopardize their potential accomplishments.

33.Life is all about changes. Nothing ever stays the same. Some changes
are good, and some changes are bad.
34.Coaching is enabling other people to reach their true potential by
helping them overcome barriers that are keeping them from doing so.
35.Office politics exist in every business. People are trying to do their best
to look good to the higher ups so that they can get a promotion, a raise, etc.
By listening and observing others, you can learn how to maneuver the
political environment in your company.
36.Income is money received from outside sources. Sources of income
include salaries, interest earned, dividends, rent, and transfer payments.
37.Businesses must compete with each other for customers.
38.A budget is an estimate of what income and expenses will be for a
specific time period.
39.Credit card issuers often charge late fees for payments that do not
arrive on time.
40.It is a good idea for people to verify that their credit is accurate by
reviewing their credit-history reports.
41.Natural risks are chances of loss which result from natural causes.
These are natural phenomena occurring outside anyone's control.
42.Business owners must spend money to obtain assets, which are
anything of value that the business owns.
43.An important aspect of financial ethics is making sure the business
makes a profit and serves the best interests of its stakeholders
(e.g.,employees, customers, investors).
44.An important part of most employee-orientation programs is a tour of
the facilities. New employees are taken on a tour of the business and shown
the location of various personnel offices, lunchroom, supply room, and
parking facility.
45.A hotel sales representative follows up with clients to get feedback
about their experiences with the facility's banquet services.
46.Market size is a measure of the total dollar amount of potential sales to
all customers within a given market.
47.To make the data more interesting and easier to understand,
businesses often present data in a table.
48.Travel and tourism marketing involves marketing many types of travel
services to customers who plan to travel.
49.Before a marketing plan can be conceived and ultimately executed, an
organization must be able to name, or identify, the target market and must
be able to communicate information to the group with the ability to buy.
50.Simply obtaining information is not useful unless the business applies
the information to accomplish a task.
51.Now, more than ever, the government is cracking down on corporate
dishonesty.
52.
Business employees use word-processing software programs to
create text documents, such as letters, memos, and reports.