Tracy Wants to Start Her Own Business, but Knows Little

question 248

Multiple Choice

Tracy wants to start her own business, but knows little about how to set up an accounting system or interpret financial information. "I'm not worried about accounting," she tells her friends. "I'll just hire a part-time bookkeeper to handle all that type of stuff, and focus my attention on what I like-finding ways to satisfy my customers." Which of the following is the best response to Tracy's comments?

• A) Fine. Just make sure the bookkeeper you hire knows how to use a database, since this type of software is the heart of any efficient accounting system.
• B) Although you can hire someone to keep your books, you'll still need to know how to read, understand, and interpret basic accounting reports in order to make good business decisions.
• C) Most entrepreneurs would agree with your opinion. The work done by accountants is mainly clerical in nature, so time spent by business owners on accounting tends to take them away from more important tasks.
• D) You have a good plan. Only managers of large firms require knowledge of accounting. Owners and managers of small businesses can easily get by with just a part-time bookkeeper.

Illustrate how consumers assess value and price in their purchasing decisions.

Understand and apply the process of price setting, including the identification of pricing objectives and constraints.

Distinguish between movements along a demand curve and shifts in the demand curve.

Explain the relationship between pricing policies and organizational objectives.

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Definitions:

Diversity Management

The practice of acknowledging, understanding, accepting, valuing, and celebrating differences among people with respect to age, class, ethnicity, gender, physical and mental ability, race, sexual orientation, spiritual practice, and public assistance status.

Organizational Flexibility

Organizational Flexibility is the capacity of an organization to adapt quickly to internal or external changes, modifications in operations, or shifts in strategy to meet market demands.

Interpersonal Conflicts

Occur when individuals have disagreements or clashes due to differences in opinions, values, or interests.

Organizational Flexibility

The ability of an organization to adapt and respond to changing conditions or opportunities in its internal and external environment.