BBA Practice 2

FINC 3304 Ted's Tools expects to commence paying an annual dividend two years from now. The first dividend is expected to be $.75 per share with all dividends thereafter increasing by 2 percent annually. What is the expected dividend in year 5? $.75 (1.02)^3 $.75 (1.02)^4 $.75 (1.02)^5 $.75 (1.02)^6

$.75 (1.02)^3

ECON 2302 Andreas is a political consultant with his own firm. He travels the country and provides campaign advice for political candidates. Last year he earned $250,000 in revenue for his services. He pays one employee $50,000 to manage the small office back home and pays $25,000 on rent and utilities for that office. Andreas owns computing and office equipment that depreciated by $5,000 last year. His accountant tells him that if he were to sell all of the equipment, he could put that money in the bank and earn $3,000 in interest next year. Bill also has received an offer to teach political science at a college at a salary of $100,000. Bill's accounting profit is equal to ________ and his economic profit is equal to ________. $175,000; $67,000 $170,000; $67,000 $200,000; $72,000 $170,000; $70,000

$170,000; $67,000

ACCT 2302 Amber Manufacturing provided the following information for last month: Sales $20,000 Variable costs 6,000 Fixed costs 9,000 Operating income $5,000 If sales double next month, what is the projected operating income? $25,000 $10,000 $25,000 $19,000 $12,000

$19,000

FINC 3304 Which one of the following is an ordinary annuity, but not a perpetuity? $75 paid at the beginning of each month period for 50 years $25 paid weekly for one year, starting one week from today $40 paid quarterly for five years, starting today $50 paid every year for ten years, starting today

$25 paid weekly for one year, starting one week from today

ACCT 2302 The per-unit standards for direct materials are 2 gallons at $4 per gallon. Last month, 11,200 gallons of direct materials that actually cost $42,400 were used to produce 6,000 units of product. The direct materials quantity variance for last month was $3,200 favorable. $2,400 favorable. $3,200 unfavorable. $5,600 unfavorable.

$3,200 favorable.

ECON 2301 Autonomous consumption is $500, the marginal propensity to consume is 0.8, and planned investment spending is $200. If GDP is $3,000, how much is unplanned inventory investment? 0 $600 $100 -$100

-$100

MGMT 3306 Which of the following values of alpha would cause exponential smoothing to respond the most slowly to forecast errors? 0.10 0.30 0.50 0.80 cannot be determined

0.10

FINC 3304 Whitt's BBQ has sales of $348,000, a profit margin of 8.1 percent, and a capital intensity ratio of 0.70. What is the total asset turnover rate? 1.04 1.08 1.13 1.29 1.43

1.43

ECON 2301 Real GDP equals $200 billion, the government collects 20% of any increase in real GDP in the form of taxes, and the marginal propensity to consume is 0.8. What is the value of the expenditure multiplier? 1.00 2.00 2.8 5.00

2.8

ACCT 2302 A company sells a product which has a unit sales price of $5, unit variable cost of $3 and total fixed costs of $180,000. The number of units the company must sell to break even is 90,000 units. 36,000 units. 360,000 units. 60,000 units.

90,000 units.

MGMT 3303 Which of the following is not a description of organizational culture? A system of shared beliefs and values. "Social glue" binding members together. A system of reporting relationships. An organization's personality. A system that guides the behavior of organizational members.

A system of reporting relationships.

The actual results for 130,000 units with a new budget for 130,000 units.

ACCT 2302 Boland Manufacturing prepared a 2013 budget for 120,000 units of product. Actual production in 2013 was 130,000 units. To be most useful, what amounts should a performance report for this company compare? The actual results for 130,000 units with the original budget for 120,000 units. The actual results for 130,000 units with a new budget for 130,000 units. The actual results for 130,000 units with last year's actual results for 134,000 units. It doesn't matter. All of these choices are equally useful.

ACCT 3303 Which of the following publications is not considered a GAAP document? Statements of financial standards issued by the FASB Accounting interpretations issued by the FASB APB Opinions Accounting research studies issued by the AICPA

Accounting research studies issued by the AICPA

FINC 3304 Which of the following statements about float is NOT correct? Float is difference between cash balance recorded in the cash account and the cash balance recorded at the bank. Disbursement float is generated when a firm writes checks, so the available balance at bank - book balance > 0. Collection float is generated when a firm receives checks to increase book balance before the bank credits the account, so the available balance at bank - book balance < 0. All of the above statement is correct.

All of the above statement is correct.

ACCT 3303 To be recognized in the main body of financial statements, an item should meet the definition of a basic element. be relevant and reliable. be measurable with sufficient certainty. All of these answer choices are correct.

All of these answer choices are correct.

ACCT 3303 Which of the following is an intangible asset? Restricted cash. Prepaid pension costs. Deferred income taxes. Customer lists.

Customer lists.

MGMT 3303 __________ managers believe that their native country, culture, language, and behavior are superior to all others. Expatriate Ethnocentric Geocentric Polycentric Global

Ethnocentric

ECON 2302 T/F Short-run equilibrium in monopolistic competition and in monopoly differs because the monopolistic competitor can make losses in the short run, while in a monopoly, profits will always be zero or positive.

F

ACCT 3303 Which of the following are extraordinary losses? Restructuring charges. Losses from inventory obsolescence. Impairment losses on intangible assets. Flood damage losses to property where flooding is rare.

Flood damage losses to property where flooding is rare.

MGMT 3304 Which of the following describes the "natural school" of legal thought? Government and legal system should reflect universal moral and ethical principles; basis for natural rights There is no higher law than the nation's highest governing body or court It focuses on the origin and history of legal system Judges should take economic and social realities into account

Government and legal system should reflect universal moral and ethical principles; basis for natural rights

ECON 2302 Which of the following is true of the trends for imports and exports (as measured by a percentage of the entire economy) in the United States? Imports and exports have both been increasing. Imports and exports have both been decreasing. Imports have been increasing and exports have been decreasing. Imports have been decreasing and exports have been increasing

Imports and exports have both been increasing.

MGMT 3303 ________refers to making people already employed by the organization aware of job openings External recruiting Internal recruiting Realistic recruiting employee recruiting Union recruiting

Internal recruiting

FINC 3304 What's the correct statement about the relevant cash flow? It includes only cash flows that will only occur if the project is accepted. It includes any cash flows that are relevant to the company's business operations. It considers sunk costs. It does not consider opportunity costs.

It includes only cash flows that will only occur if the project is accepted.

MGMT 3306 If cars sell for $200 profit and trucks sell for $300 profit, which of the following represents the objective function? Maximize 200C + 300T Minimize 200C + 300T Maximize 200C - 300T Minimize 300T - 200C

Maximize 200C + 300T

ACCT 3303 Rate of return on assets is computed as: Net income ÷ Average total assets. Net sales ÷ Average total assets. Dividends ÷ Average total assets. Net cash provided by operating activities ÷ Average total assets.

Net income ÷ Average total assets.

ACCT 3303 Which of the following statements related to noncontrolling interest is incorrect? Noncontrolling interest is sometimes called minority interest. Noncontrolling interest is the portion of equity interest in a subsidiary not attributable to the parent company. Noncontrolling interest in net income is reported as an expense on the income statement. Consolidated net income is allocated to the parent and to the noncontrolling interest in proportion to their appropriate percentages of ownership.

Noncontrolling interest in net income is reported as an expense on the income statement.

MGMT 3306 Which of the following statements regarding PERT analysis is true? Each activity has two estimates of its time duration. Project variance is the sum of all activity variances. Project standard deviation is the sum of all critical activity standard deviations. Only critical activities contribute to the project variance. None of the above is true.

Only critical activities contribute to the project variance.

MGMT 3303 During which managerial function do you make a blueprint for action that describes what you need to do to realize your goals? Organizing Leading Controlling Defining Planning

Planning

BUSI 3303 The difference between the observed value of the dependent variable and the value predicted by using the estimated regression equation is the standard error Residual prediction interval Variance

Residual

MGMT 3304 Which of the following cannot be registered as a trade name? Peach Blossom, Certified Public Accountant Apples & Oranges, Investment Partnership Banana Republic Clothing, Inc. Strawberries

Strawberries

MGMT 3304 Stubbs buys a Tred-brand bicycle from his brother, Uriah. Uriah agrees to keep the bike at his house until Stubbs picks it up. During a storm, a tree falls from Victor's yard onto Uriah's garage and destroys the bike. The loss of the bike is suffered by Stubbs. Uriah. Tred. Victor.

Stubbs.

FINC 3304 The risk premium for an individual security is based on which one of the following types of risk? Total Surprise Diversifiable Systematic

Systematic

ECON 2302 T/F As more labor is added to a fixed amount of capital, eventually the marginal product of labor decreases.

T

MGMT 3306 T/F TQM was defined in the textbook as managing the entire organization so that it excels on all dimensions of products and services that are important to the customer.

T

ACCT 2302 Which of the following statements about a budgeted income statement is not true? The budgeted income statement is prepared after the financial budgets are prepared The budgeted income statement is prepared on the accrual basis of accounting The budgeted income statement can be prepared in a multiple-step format The budgeted income statement is prepared using the individual operating budgets.

The budgeted income statement is prepared after the financial budgets are prepared

MGMT 3306 Which of the following is not a reason to carry inventory? To provide a safeguard for variation in raw material delivery time To take advantage of economic purchase-order size To maintain independence of operations To meet variation in product demand To keep the stock out of the hands of competitors

To keep the stock out of the hands of competitors

FINC 3304 Which one of the following had the lowest standard deviation of returns for the period of 1926-2011? U.S. Treasury bill Inflation Long-term corporate bonds Large-company stocks

U.S. Treasury bill

MKTG 3303 According to the text, a market is defined as a place to buy products. the buyers of the products that a company develops, promotes, prices, and distributes. the specific group of customers on whom an organization focuses its marketing efforts. a group of individuals and/or organizations that have needs for products in a product class and have the ability, willingness, and authority to purchase these products. the percentage of a group of customers that actually buys a specific product from a specific company.

a group of individuals and/or organizations that have needs for products in a product class and have the ability, willingness, and authority to purchase these products.

MKTG 3303 A business partnership between a domestic firm and a foreign firm is known as a joint venture. an international partnership. a multinational enterprise. licensing. exporting.

a joint venture.

BUSI 3303 A numerical measure from a sample, such as a sample mean, is known as a statistic a parameter the mean deviation the central limit theorem

a statistic

FINC 3304 The MM irrelevance capital structure theory proved that a firm's value is unaffected by its capital structure. But their study was based on some strong assumptions that: There are no brokerage costs. There are no corporate taxes and personal taxes. There are no bankruptcy costs and agency costs. There is no asymmetric information problem, and all investors can borrow at the same rate as corporations. All of above.

all the above

ACCT 2302 Activity-based costing allocates overhead to activity cost pools, and it then assigns the activity cost pools to products and services by means of cost drivers. accumulates overhead in one cost pool, then assigns the overhead to products and services by means of a cost driver. assigns activity cost pools to products and services, then allocates overhead back to the activity cost pools. allocates overhead directly to products and services based on activity levels.

allocates overhead to activity cost pools, and it then assigns the activity cost pools to products and services by means of cost drivers.

FINC 3304 Old Town Industries has three divisions. Division X has been in existence the longest and has the most stable sales. Division Y has been in existence for five years and is slightly less risky than the overall firm. Division Z is the research and development side of the business. When allocating funds, the firm should probably: require the highest rate of return from Division X since it has been in existence the longest. assign the highest cost of capital to Division Z because it is most likely the riskiest of the three divisions. use the firm's WACC as the cost of capital for Division Z as it provides analysis for the entire firm. allocate capital funds evenly amongst the divisions to maintain the current capital structure of the firm.

assign the highest cost of capital to Division Z because it is most likely the riskiest of the three divisions.

ECON 2301 If an economy has to sacrifice increasing amounts of good X for each unit of good Y produced, then its production possibility frontier is: bowed out from the origin. bowed in toward the origin. a straight line. a vertical line.

bowed out from the origin.

MKTG 3303 Lexmark sells some of its color printers for about $100, but the refill cartridges cost over $30 each. Lexmark's pricing strategy would be best labeled as price skimming. captive pricing. customary pricing. odd-even lining.

captive pricing.

ECON 2301 Fiscal policy attempts to affect the overall level of spending in the economy through: changes in the inflation rate. changes in the quantity of money or the interest rate. changes in tax policy or government spending. discretionary regulation of profits and wages.

changes in tax policy or government spending.

FINC 3304 Tom earned $120 in interest on his savings account last year. Tom has decided to leave the $120 in his account so that he can earn interest on the $120 this year. This process of earning interest on prior interest earnings is called: discounting. compounding. duplicating. multiplying.

compounding.

MKTG 3303 When produce companies such as Dole Tomatoes bypass wholesalers and sell directly to retailers, it is likely to create channel ___________ between Dole and these wholesalers. conflict cooperation leadership integration

conflict

MGMT 3303 Trust is based on _______, which can be enhanced by showing professionalism, technical ability, and good business sense. cooperation cohesiveness unity honesty credibility

credibility

ACCT 3303 A journal entry to record the sale of inventory on account will include a debit to Inventory. debit to Accounts Receivable. debit to Sales Revenue. credit to Cost of Goods Sold.

debit to Accounts Receivable.

MKTG 3303 Goodyear is a manufacturer and marketer of tires for new passenger cars. In recent years, the company's business has declined because of the overall decrease in consumer demand for new cars. In this case, the demand for Goodyear's tire products is said to be _______since it depends on the demand for new cars. inelastic fluctuating derived elastic

derived

MGMT 3303 When your intended message is sent accurately in the least amount of time, you are a(n) economical communicator. efficient communicator. formal communicator. collaborative communicator. effective communicator.

efficient communicator.

MKTG 3303 There are five elements that affect customers' perceptions of service quality. They are reliability, appearance of the tangibles, responsiveness, assurance, and credibility. experience within industry. responsibility. employee empathy. product knowledge

employee empathy.

MKTG 3303 Emily Dawson and seven other people were paid to get together and discuss a new product idea proposed by Johnson & Johnson. Researchers observed the interaction of the group. This method is called a focus-group interview. group survey. personal interview survey. sampling team. mail survey

focus-group interview.

ACCT 2302 Management accounting: focuses on estimating future revenues, costs, and other measures to forecast activities and their results provides information about the company as a whole reports information that has occurred in the past that is verifiable and reliable provides information that is generally available only on a quarterly or annual basis

focuses on estimating future revenues, costs, and other measures to forecast activities and their results

ECON 2301 Information technology was widely introduced in the economy at the same time the growth rate of labor productivity slowed down. A possible explanation for this is that: the world supply of electricity could not keep up with the increased use of computers. one-story factories were poorly suited to accommodate the new technology. microprocessors were so slow that they actually hampered, rather than helped, work. for new technologies to increase productivity, they have to be used in new ways.

for new technologies to increase productivity, they have to be used in new ways.

MKTG 3303 The maker of Huggies diapers is developing a media plan that involves trying to expose its target audience to its new advertisement about ten times. This is advertising reach. repetition. frequency. targeting. exposure.

frequency.

ECON 2301 People who are in the process of changing jobs are counted in which category? frictional unemployment involuntary unemployment structural unemployment cyclical unemployment

frictional unemployment

ECON 2302 If the price of chocolate-covered peanuts decreases from $1.15 to $0.90 and the quantity demanded increases from 0 bags to 400 bags, then the price elasticity of demand (using the midpoint method) is: 0.5 1 2 greater than 2

greater than 2

MKTG 3303 A(n) ____ is a concept, philosophy, or image. product good idea service issue

idea

MGMT 3304 Mike pushes Joan, who falls and breaks her arm. Mike is liable for the injury if Mike intended to push Joan. only if Mike did not intend to break Joan's arm. only if Mike had a bad motive for pushing Joan. only if Mike intended to break Joan's arm.

if Mike intended to push Joan.

MGMT 3304 Kroger, is an Ohio based company that owns some stores in Texas. A dispute arises over the ownership of a store with Jack, a resident of Louisiana. Jack files a suit against Kroger in Texas. Regarding this suit, Texas has federal jurisdiction. in personam jurisdiction. in rem jurisdiction. no jurisdiction.

in rem jurisdiction.

BUSI 3303 A multiple regression model has the form: = 5 + 6x + 7w As x increases by 1 unit (holding w constant), y is expected to increase by 11 units decrease by 11 units increase by 6 units decrease by 6 units

increase by 6 units

MGMT 3303 People with ______ exhibit less anxiety, greater motivation, and stronger expectations that effort leads to performance. high self-efficacy high self-monitoring internal locus of control high tolerance for ambiguity high self-esteem

internal locus of control

FINC 3304 The profitability index reflects the value created per dollar: invested. of sales. of net income. of taxable income.

invested

ACCT 3303 Activities that involve the cash effects of making and collecting loans and acquiring and disposing of property, plant, and equipment are classified as: operating activities. investing activities. financing activities. noncash activities.

investing activities.

MGMT 3304 Leigh wants to go into the business of construction contracting. Among the reasons that would probably convince Leigh to set up his business as a sole proprietorship would be its greater organizational flexibility. its limited liability. its perpetual existence. the ease of transferring the business to other family members.

its greater organizational flexibility.

MGMT 3303 The process of building into a job such motivating factors as recognition and achievement is called MBO. job design. job enrichment. job enlargement. horizontal loading.

job enrichment.

MGMT 3303 Balanced scorecard is an analytical framework for managerial control and consists of four perspectives. ______ is NOT a perspective of the balanced scorecard. leadership perspective Customer perspective Financial perspective Internal processes perspective Innovation and learning perspective

leadership perspective

MKTG 3303 The psychographic variable that includes numerous characteristics related to people's activities, interests, and opinion is motive. social class. personality. stage in family life cycle. lifestyle.

lifestyle.

BUSI 3303 The 50th percentile is the mode median mean third quartile

median

MGMT 3304 Lyla is a common shareholder in Norman's Nutty Nuts Corporation. As a common shareholder, Lyla is guaranteed regular payments of dividends. not guaranteed any payments of dividends. not given any voting rights. liable for all of Norman's Nutty Nuts's debts.

not guaranteed any payments of dividends.

MKTG 3303 Assuming that inflation is low, high buying power characterizes the _____ stage of the business cycle. prosperity depression recovery recession

prosperity

FINC 3304 A negative cash flow to stockholders indicates a firm: had a negative cash flow from assets. had a positive cash flow to creditors. paid dividends that exceeded the amount of the net new equity. repurchased more shares than it sold. received more from selling stock than it paid out to shareholders.

received more from selling stock than it paid out to shareholders.

MKTG 3303 Which of the following products is most likely to be marketed, using an undifferentiated approach? bicycle computer notebook seasoning salt oscillating fan

seasoning salt

BUSI 3303 More evidence against H0 is indicated by lower levels of significance smaller p-values smaller critical values lower probabilities of a Type II error ++++++++++++++++

smaller p-values

BUSI 3303 Whenever the population standard deviation is unknown, which distribution is used in developing an interval estimate for a population mean? standard distribution z distribution binomial distribution t distribution

t distribution

MGMT 3303 Distributors are part of the ______ environment of organizations. alliance task sociopolitical general internal

task

MGMT 3304 Ranchera, S.A. is based in Mexico. Ranchera enters into a contract to purchase of fencing materials from Fences for Ranchers Company. Fences for Ranchers is based in the United States. This contract is governed by The North American Free Trade Act. the provisions in the laws of both the U.S. and Mexico that are similar. the Mexican version of the Uniform Commercial Code. the United Nations Convention on Contracts for the International Sale of Goods.

the United Nations Convention on Contracts for the International Sale of Goods.

ECON 2302 Tacit collusion is difficult to achieve in practice: the larger the number of firms in the industry. the fewer the number of products being sold. the more similar the marginal costs of each firm. if customers have little or no bargaining power.

the larger the number of firms in the industry.

BUSI 3303 The highest point of a normal curve occurs at one standard deviation to the right of the mean two standard deviations to the right of the mean approximately three standard deviations to the right of the mean the mean

the mean

ECON 2301 Excess supply occurs when: the price is above the equilibrium price. the quantity demanded exceeds the quantity supplied. the price is below the equilibrium price. the quantity demanded exceeds the quantity supplied and when the price is below the equilibrium price.

the price is above the equilibrium price.

BUSI 3303 Which of the following is not a property of a binomial experiment? the experiment consists of a sequence of n identical trials each outcome can be referred to as a success or a failure the probabilities of the two outcomes can change from one trial to the next the trials are independent

the probabilities of the two outcomes can change from one trial to the next

ECON 2302 Public policies toward monopoly in the United States often consist of: laws outlawing all of them. the regulation of natural monopolies. government takeover if monopoly profit exceeds a certain level. forcing monopoly industries to become perfectly competitive.

the regulation of natural monopolies.

ACCT 3303 The single-step income statement emphasizes the gross profit and income from operations. total revenues and total expenses. extraordinary items and discontinued operations more than these are emphasized in the multiple-step income statement. the various components of income from continuing operations.

total revenues and total expenses.

ACCT 3303 The failure to properly record an adjusting entry to accrue a revenue item will result in an

understatement of revenues and an understatement of assets.

MGMT 3303 Organizations may apply trait theory by considering the relationships among employees. using personality assessments. hiring only from top-ranked business schools. doing a job audit. empowering the HR department.

using personality assessments.

ACCT 3303 Under the cash-basis of accounting, revenues are recorded when they are recognized and realized. when they are recognized and realizable. when they are recognized. when they are realized.

when they are realized.

FINC 3304 A bond that pays no interest payments and sells at a deep discount is called a(n) _____ bond. callable income zero coupon convertible

zero coupon