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5.
Businesses use budgets to estimate how they will
Correct Answer
B. Spend their money.
Explanation
Businesses use budgets to estimate how they will spend their money. A budget is a financial plan that outlines the expected income and expenses for a specific period. By creating a budget, businesses can allocate funds to different areas such as operations, marketing, and investments. This allows them to make informed decisions on how to best utilize their resources and achieve their financial goals. Budgeting helps businesses track their spending, control costs, and prioritize their expenditures, ensuring that money is allocated efficiently and effectively.
6.
What type of tax are businesses required to pay on the profits they earn?
Correct Answer
C. Income
Explanation
Businesses are required to pay income tax on the profits they earn. Income tax is a tax imposed on the income or profits generated by individuals or businesses. It is calculated based on the taxable income, which is the total income earned minus any allowable deductions or exemptions. This tax is paid to the government and is used to fund public services and government programs.
7.
When providing services to clients, financial professionals have the responsibility to supply
Correct Answer
B. Accurate information.
Explanation
Financial professionals have the responsibility to supply accurate information to their clients because it is crucial for making informed financial decisions. Providing accurate information ensures that clients have the necessary data to assess their options, understand the risks and benefits, and make sound financial choices. This responsibility helps to build trust between the professional and the client and is essential for maintaining the integrity of the financial services industry.
8.
Which of the following is a financial want rather than a financial need:
Correct Answer
B. Education
Explanation
Education is a financial want rather than a financial need because it refers to the desire to acquire knowledge and skills beyond basic necessities. While education is important for personal and professional growth, it is not essential for immediate survival or meeting basic needs such as food, clothing, and shelter. Basic needs are necessary for sustaining life, while education is more of a long-term investment in self-improvement and future opportunities.
9.
Which of the following is not a factor contributing to financial convergence and consolidation:
Correct Answer
A. Desire for illiquid assets
Explanation
Financial convergence and consolidation refer to the process of merging and integrating financial markets and institutions. Factors contributing to this process typically include technological advances, financial deregulation, and the desire for lower costs. However, the desire for illiquid assets does not directly contribute to financial convergence and consolidation. Illiquid assets are investments that cannot be easily converted into cash, such as real estate or private equity. While they may be desired by some investors for their potential returns, they do not necessarily drive the integration and consolidation of financial markets and institutions.
10.
A financial-information management system can help a financial manager to make which of the following types of decisions:
Correct Answer
B. Capital budgeting
Explanation
A financial-information management system can help a financial manager make capital budgeting decisions. Capital budgeting involves evaluating and selecting long-term investment projects that will generate cash flows in the future. A financial-information management system can provide the necessary data and analysis tools to assess the profitability and feasibility of potential investment opportunities, helping the financial manager make informed decisions about allocating resources to different projects.
11.
By protecting financial information from tampering, loss, and unauthorized use, a financial-information management professional acts as a(n) __________ of that financial information.
Correct Answer
D. Steward
Explanation
A financial-information management professional acts as a steward of financial information by protecting it from tampering, loss, and unauthorized use. A steward is someone who is responsible for managing and safeguarding something valuable, in this case, financial information. They ensure that the information is handled and stored securely, and that access to it is limited to authorized individuals. By acting as a steward, the professional ensures the integrity and confidentiality of the financial information.
12.
Which of the following individuals is an internal user of a business's financial data:
Correct Answer
C. Manager
Explanation
A manager is an internal user of a business's financial data because they are responsible for making important decisions within the organization. They need access to financial information to monitor the company's performance, analyze trends, and determine the most effective strategies for achieving the business's goals. Managers use financial data to assess profitability, manage costs, make budgetary decisions, and evaluate the overall financial health of the company. Unlike external users such as creditors, investors, and tax collectors, managers have direct involvement in the day-to-day operations and decision-making processes of the business.
13.
The primary purpose of the accounting function is to prepare and present relevant financial information, while the primary purpose of the finance function is to
Correct Answer
D. Use the information to make financial decisions.
Explanation
The primary purpose of the accounting function is to prepare and present relevant financial information, while the primary purpose of the finance function is to use the information to make financial decisions. Accounting focuses on recording, summarizing, and reporting financial transactions, while finance uses this information to analyze the financial health of the business, assess investment opportunities, determine capital structure, and make strategic financial decisions. Finance professionals use the financial information provided by the accounting function to make informed decisions that can impact the profitability and sustainability of the business.
14.
Which of the following statements is true about accounting systems:
Correct Answer
A. The managerial accounting system is useful for planning and internal decision making.
Explanation
The statement that the managerial accounting system is useful for planning and internal decision making is true. Managerial accounting focuses on providing information to managers within an organization to aid in decision making, budgeting, and planning. It helps managers understand the financial implications of their decisions and allows them to monitor and control the performance of different departments or units within the company. This system is not required by the government and is not specifically focused on segments of the company. The financial accounting system, on the other hand, is primarily used for external reporting purposes.
15.
Computer manufacturers sell their products through retailers, such as Best Buy. This is an example of the __________ function of marketing.
Correct Answer
B. Channel management
Explanation
The given correct answer for this question is "channel management". This is because channel management refers to the process of managing the distribution channels through which products are sold. In this case, computer manufacturers sell their products through retailers like Best Buy, which is a part of the distribution channel. Channel management involves selecting, managing, and motivating intermediaries to ensure that products reach the target customers effectively and efficiently.
16.
Indirect channels of distribution are the only channels that involve
Correct Answer
C. Intermediaries.
Explanation
Indirect channels of distribution involve intermediaries, which are individuals or businesses that help move products from producers to ultimate consumers. These intermediaries can include wholesalers, retailers, agents, and distributors. Unlike direct channels of distribution, which involve producers selling directly to consumers, indirect channels rely on these intermediaries to facilitate the movement of goods and services. Therefore, the correct answer is intermediaries.
17.
One aspect of coordinating channel management with pricing activities involves
Correct Answer
B. Setting appropriate prices.
Explanation
Coordinating channel management with pricing activities involves setting appropriate prices. This means that when managing channels, it is important to determine the right prices for products or services. This involves considering factors such as market demand, competition, costs, and customer perception. By setting appropriate prices, companies can ensure that their products are priced competitively, maximize profitability, and maintain a healthy relationship with their channel partners.
18.
Successful positioning appeals to customers'
Correct Answer
A. Emotions.
Explanation
Successful positioning appeals to customers' emotions because emotions play a significant role in consumer decision-making. Emotionally appealing positioning can create a strong connection with customers, influencing their perception, preferences, and purchase behavior. By tapping into emotions such as joy, fear, or nostalgia, companies can create memorable experiences and build brand loyalty. Emotionally-driven marketing can also differentiate a product or service from competitors, making it more attractive and compelling to consumers.
19.
When sales people demonstrate the features and benefits of goods or services, they often are able to
Correct Answer
D. Create desire for products.
Explanation
When salespeople demonstrate the features and benefits of goods or services, they often create desire for products. By showcasing the positive aspects and highlighting how the product can meet the needs and desires of potential customers, salespeople can generate interest and make people want to purchase the product. This can lead to increased sales and ultimately contribute to the success of the business.
20.
Why do businesses try to build a clientele?
Correct Answer
A. Leads to repeat business
Explanation
Businesses try to build a clientele because it leads to repeat business. By establishing a loyal customer base, businesses can ensure a steady stream of revenue over time. Repeat customers are more likely to make frequent purchases, provide positive word-of-mouth recommendations, and contribute to the overall success and growth of the business. Building a clientele also allows businesses to establish long-term relationships with customers, understand their needs and preferences, and tailor their products or services accordingly. This ultimately leads to increased customer satisfaction and loyalty, resulting in sustained profitability for the business.
21.
Which of the following is a reason why the ethical and legal issues involved in selling activities are extremely important:
Correct Answer
A. Buyers avoid doing business with unethical salespeople.
Explanation
Ethical and legal issues in selling activities are extremely important because buyers tend to avoid doing business with unethical salespeople. When salespeople engage in unethical behavior, such as lying or deceiving customers, it damages their reputation and trustworthiness. Buyers value integrity and honesty in their business relationships, and they are more likely to choose to work with salespeople who demonstrate these qualities. Therefore, understanding and adhering to ethical and legal standards is crucial for salespeople to build and maintain successful relationships with buyers.
22.
A restaurant server might obtain valuable information about the taste of a new menu item by talking to
Correct Answer
A. Customers.
Explanation
A restaurant server would obtain valuable information about the taste of a new menu item by talking to customers. Customers are the ones who actually taste and experience the food, so their feedback and opinions would be the most relevant and useful in determining the success of a new menu item. The server can gather information about the customers' preferences, likes, and dislikes, which can help in making improvements or adjustments to the menu item if needed.
23.
The marketing function that best enables a company to make informed decisions about what to sell is
Correct Answer
D. Marketing-information management.
Explanation
Marketing-information management is the marketing function that best enables a company to make informed decisions about what to sell. This function involves gathering, analyzing, and interpreting data and information about customers, competitors, and market trends. By effectively managing marketing information, companies can identify customer needs and preferences, monitor competitors' activities, and stay updated on market conditions. This information is crucial for developing and adjusting product and service offerings to meet customer demands and maximize sales and profitability.
24.
Marketers may want to use research to study the economy, a factor that is subject to change. In this context, the economy can be described as a(n)
Correct Answer
A. Variable.
Explanation
In the given context, the economy is referred to as a "factor that is subject to change." This suggests that it is not a fixed or constant element but rather something that can vary or fluctuate over time. Therefore, the most appropriate term to describe the economy in this context is "variable."
25.
A community experiences an increase in food and beverage taxes. How might the tax increase impact the hospitality industry in the community?
Correct Answer
B. Hotel restaurants and banquet facilities generally increase the prices of their products.
Explanation
The correct answer is that hotel restaurants and banquet facilities generally increase the prices of their products. This is because the tax increase on food and beverages would likely lead to higher costs for these businesses. In order to maintain their profit margins, they would need to pass on these increased costs to their customers by raising the prices of their products.
26.
Which of the following actions are foreign hotel chains taking that most encourages bookings by travel agents in a different country:
Correct Answer
C. Paying commissions in the travel agents' currency
Explanation
Foreign hotel chains are most encouraging bookings by travel agents in a different country by paying commissions in the travel agents' currency. This means that the hotel chains are offering the travel agents a commission in the currency of their own country, making it easier and more convenient for the agents to receive their payment. This incentive helps to attract and motivate travel agents to book reservations with the hotel chains, as they can avoid the hassle and potential costs of currency exchange.
27.
What trait is being demonstrated when employees treat customers with respect and without prejudice?
Correct Answer
C. Consideration
Explanation
Consideration is the trait being demonstrated when employees treat customers with respect and without prejudice. Consideration involves showing thoughtfulness, kindness, and respect towards others, regardless of their background or characteristics. By treating customers with respect and without prejudice, employees are demonstrating consideration by valuing and acknowledging the worth and dignity of each individual. This trait helps to create a positive and inclusive environment, fostering strong customer relationships and satisfaction.
28.
Which of the following is a situation that illustrates a hospitality/tourism business collecting primary marketing information:
Correct Answer
D. A hotel sales representative follows up with clients to get feedback about their experiences with the facility's banquet services.
Explanation
A hotel sales representative following up with clients to get feedback about their experiences with the facility's banquet services is an example of a hospitality/tourism business collecting primary marketing information. This is because the hotel is directly interacting with their clients and obtaining firsthand information about their experiences. This feedback is valuable for the hotel to assess the quality of their services and make improvements if necessary.
29.
One of the characteristics of travel and tourism marketing is that it has significant impact on
Correct Answer
D. Local economies.
Explanation
Travel and tourism marketing plays a crucial role in boosting local economies. When people travel to a destination, they spend money on accommodations, transportation, food, shopping, and various other services, which directly contributes to the local economy. This influx of tourist spending creates job opportunities, stimulates business growth, and generates tax revenue for the local government. Moreover, it encourages the development of infrastructure and amenities to cater to the needs of tourists, further enhancing the economic growth of the region.
30.
One of the reasons why a chain of hotels might analyze and interpret the marketing information contained in databases is to
Correct Answer
B. Compare variables.
Explanation
A chain of hotels might analyze and interpret the marketing information contained in databases to compare variables. This means they would be examining different factors or elements within the data to identify patterns, trends, or relationships. By comparing variables, the chain of hotels can gain insights into customer preferences, behavior, and market trends, which can help them make informed decisions regarding their marketing strategies, pricing, product offerings, and overall business operations.
31.
Which of the following is a procedure that a tour operator might use when handling emergency situations such as natural disasters:
Correct Answer
B. Assist with evacuation
Explanation
A tour operator might use the procedure of assisting with evacuation during emergency situations such as natural disasters. This involves helping tourists to safely leave the affected area and find shelter or transportation to a safer location. This is a crucial step in ensuring their safety and well-being during such emergencies.
32.
One of the services provided by some professional organizations in the travel and tourism industry is training that leads to obtaining
Correct Answer
C. Certification.
Explanation
Professional organizations in the travel and tourism industry offer training programs that lead to certification. Certification is a recognized credential that validates an individual's knowledge and skills in a specific area. It demonstrates that the person has completed the necessary training and has met the standards set by the organization. Obtaining a college degree, firsthand experience, or online instruction may be valuable in the travel and tourism industry, but certification specifically refers to the training provided by professional organizations.
33.
The Ramada Inn is a sponsor of the annual "Festival of Trees," which raises money for a local women's shelter. This is an example of
Correct Answer
C. Promotion.
Explanation
The fact that the Ramada Inn is sponsoring the annual "Festival of Trees" suggests that they are promoting their brand and services. By associating themselves with a charitable event that raises money for a local women's shelter, they are not only creating positive brand awareness but also showing their support for the community. This type of sponsorship can help to enhance their reputation and attract potential customers. Therefore, the Ramada Inn's involvement in the "Festival of Trees" can be considered as a promotion strategy.
34.
The Premier Hotel inserts a coupon offering a mid week special in the local newspaper. What type of promotional activity is the hotel using?
Correct Answer
D. Sales promotion
Explanation
The Premier Hotel is using a sales promotion as a promotional activity by inserting a coupon offering a midweek special in the local newspaper. Sales promotions typically involve offering discounts, coupons, or other incentives to encourage customers to make a purchase or take advantage of a special offer. In this case, the hotel is using the coupon to promote their midweek special and attract customers to book a stay during that time.
35.
Isabelle asks Todd, one of her project-team members, if he has collected all of the information that he needs to start tabulating a survey. What project-management activity is Isabelle performing?
Correct Answer
A. Monitoring
Explanation
Isabelle is performing the project-management activity of monitoring. She is checking with Todd to see if he has collected all the necessary information for the survey. Monitoring involves keeping track of the progress and performance of the project to ensure that it is on track and meeting its objectives. By asking Todd about the information collection, Isabelle is actively monitoring the project's progress towards the survey tabulation.
36.
The process of managerial planning typically helps to
Correct Answer
D. Maximize resource efficiency.
Explanation
The process of managerial planning typically helps to maximize resource efficiency. This is because during the planning process, managers carefully analyze the available resources and allocate them in the most effective and efficient manner. By doing so, they ensure that resources are utilized to their fullest potential, minimizing waste and maximizing productivity. This ultimately leads to better utilization of resources and increased efficiency in achieving organizational goals.
37.
Which of the following is the management function that focuses on matching the appropriate person with the necessary skills for a specific job:
Correct Answer
D. Staffing
Explanation
Staffing is the correct answer because it is the management function that involves selecting and hiring the right individuals with the required skills and qualifications for a particular job. This function ensures that the organization has a competent workforce that can effectively carry out their roles and responsibilities. Staffing also involves activities such as recruitment, selection, placement, and orientation of employees.
38.
What management function involves motivating and encouraging an employee?
Correct Answer
B. Directing
Explanation
Directing is the management function that involves motivating and encouraging an employee. This function includes providing guidance, instructions, and support to employees to achieve organizational goals. It involves communicating expectations, clarifying roles and responsibilities, and providing feedback and recognition to enhance employee performance and motivation. Directing also involves resolving conflicts, coordinating activities, and creating a positive work environment to promote employee engagement and productivity.
39.
How can a business reduce risks that are associated with a poor public image:
Correct Answer
A. Implement an ethics program
Explanation
Implementing an ethics program can help a business reduce risks associated with a poor public image. By establishing ethical guidelines and standards, the business can ensure that its employees and stakeholders act in a responsible and transparent manner. This can help build trust and credibility with customers, investors, and the public, mitigating the negative impact of any potential scandals or unethical behavior. An ethics program can also help identify and address any potential risks or issues before they escalate, allowing the business to proactively manage its reputation and public image.
40.
What do managers need to do to help employees understand their specific responsibilities in achieving the organization's goals?
Correct Answer
B. Communicate priorities
Explanation
Managers need to communicate priorities to help employees understand their specific responsibilities in achieving the organization's goals. By clearly communicating what tasks and objectives are most important, managers can provide employees with a clear understanding of what is expected of them and what they need to focus on. This helps to align individual efforts with organizational goals and ensures that everyone is working towards the same objectives.
41.
Which of the following provides the foundation for a business's overall planning and controlling activities:
Correct Answer
A. Organizational goals
Explanation
Organizational goals provide the foundation for a business's overall planning and controlling activities because they serve as a guide for decision-making and resource allocation. Organizational goals help define the purpose and direction of the business, and they provide a framework for setting specific objectives and targets. By aligning planning and controlling activities with organizational goals, businesses can ensure that their actions and strategies are in line with their long-term vision and mission. This helps to create a cohesive and focused approach to achieving success and allows for effective monitoring and evaluation of progress towards the goals.
42.
How does empathy help coworkers to be fair to each other?
Correct Answer
B. Coworkers with empathy are better able to understand others.
Explanation
Empathy is the ability to understand and share the feelings of others. When coworkers have empathy, they are more likely to be able to put themselves in the shoes of their colleagues and understand their perspectives, needs, and emotions. This understanding can lead to fairer treatment of each other, as empathy allows coworkers to consider the impact of their actions on others and make decisions that take into account the well-being and feelings of everyone involved. Ultimately, empathy fosters a more compassionate and inclusive work environment, where coworkers are more likely to treat each other fairly and with respect.
43.
Which of the following is an indication that employees might be experiencing a lot of stress:
Correct Answer
B. Being irritated when dealing with customers
Explanation
Being irritated when dealing with customers can be an indication that employees might be experiencing a lot of stress. Stress can cause irritability and frustration, which can manifest in interactions with customers. When employees are stressed, they may have a shorter fuse and be more prone to becoming irritated or impatient when dealing with customers. This can negatively impact customer service and overall job satisfaction.
44.
Effective managers involve employees in planning changes because people who help to initiate changes are usually more __________ to those changes.
Correct Answer
B. Receptive
Explanation
When employees are involved in the planning process of changes, they feel a sense of ownership and responsibility towards those changes. This involvement increases their level of commitment and engagement, making them more open and receptive to the changes. They are more likely to understand the reasons behind the changes and see the benefits they can bring. This leads to a smoother implementation and higher chances of success.