ICDC Finance

Which employee reports directly to a corporation's board of directors? A. Chief executive officer B. Accounting manager C. Vice president of operations D. Director of sales

A. Chief executive officer **

Which of the following is a true statement about effective communication: A. Effective communication is a two-way process. B. It is up to the sender to facilitate effective communication. C. There are very few barriers to effective communication. D. People rarely make mistakes when communicating.

A. Effective communication is a two-way process.

. Stocks in which of the following industry sectors are least likely to be affected by changes in the business cycle: A. Health care B. Energy C. Technology D. Capital goods

A. Health care **

Which of the following are factors that affect a business's decision to offer credit to a customer: A. Income, debt ratio, and credit rating B. Debt ratio, credit rating, and education C. Credit rating, objectives, and income D. Debt ratio, education, and objectives

A. Income, debt ratio, and credit rating **

10. Min is giving an entertaining presentation about the complex emotions he experiences when trying to pick lunch items from the school's cafeteria. When he frowns, smiles, scratches his head, and rubs his belly to express himself, what speaking technique is he using? A. Nonverbal communication B. Eye contact C. Comedy D. Hand gestures

A. Nonverbal communication **

24. What type of currency system is most likely to benefit a small country that relies heavily on exports to support its economy? A. Pegged B. Free floating C. Speculative D. Decentralized

A. Pegged **

. Which of the following are examples of tax shelters: A. Retirement funds and health-savings accounts B. Real estate and stock ownership C. Pension plans and capital gains D. Municipal bonds and earned income

A. Retirement funds and health-savings accounts **

Which of the following is a characteristic of a legally binding contract: A. Something of value must be exchanged. B. One of the parties must be in agreement. C. The contract must be written and signed. D. The contract must include an expiration date.

A. Something of value must be exchanged. **

Which of the following statements describes banking careers: A. They can involve accepting deposits and lending funds. B. They primarily consist of bank tellers. C. They are only found at commercial banks. D. They are not found at credit unions or insurance companies.

A. They can involve accepting deposits and lending funds. **

55. When a business uses its budget to monitor and avoid excessive spending, it is using the budget as a(n) A. financial control tool. B. performance evaluation. C. business plan. D. operating plan.

A. financial control tool. **

An internal database that contains relevant internal financial data in a central location supports a business's ability to A. share information. B. monitor competitors. C. install security measures. D. develop contracts.

A. share information. **

57. A company purchases an expensive new software system and divides the cost of it between the two departments that will use the system. This is an example of cost A. precision. B. accumulation. C. dividing. D. allocation.

Allocation

As Kelly reviewed her stock's performance level, she saw that the dividend per share was $1.80 and the closing price of the stock was $28.20 per share. What was the yield percentage for the stock? A. 4.8 B. 6.4 C. 6.1 D. 4.6

B. 6.4 **

Which of the following can be used to identify the unethical manipulation of records in a financial information management system: A. What-if planning B. Audit trails C. Long-term liabilities D. Direct checks

B. Audit trails **

Seth's manager asked him to develop a report that compares their company's fourth-quarter performance with others in its industry. Which financial-analysis software feature should Seth use to generate information for his report? A. Ratio analysis B. Benchmarking C. DuPont modeling D. Forecasting

B. Benchmarking **

Eugenia is using presentation software to prepare slides for her next workshop. In addition to putting the name and date of the workshop on the title slide, where else could Eugenia include this information in her presentation? A. Headers B. Footers C. Animations D. Transitions

B. Footers **

What does the credit rating of a financial institution indicate to savers and investors? A. The return rate for specific mutual funds B. How risky it is to provide the financial institution with funds C. The amount of funds that the bank lends to other institutions D. When the financial institution expects to see a return on investment

B. How risky it is to provide the financial institution with funds **

Which of the following is a true statement regarding a project champion: A. S/He is the same person as the project manager. B. S/He can mobilize the necessary resources to get the project done. C. S/He is usually a low-ranking employee in the business. D. S/He is closely involved in the work of the project.

B. S/He can mobilize the necessary resources to get the project done.

69. Companies are required to manage financial information in specific ways to A. enable employees to work remotely. B. comply with government regulations. C. prioritize information in order of importance. D. lessen the effects of information overload.

B. comply with government regulations. **

The entire market has just collapsed. This is an __________ risk known as a(n) __________ factor. A. internal; economic B. external; economic C. external; political D. internal; technological

B. external; economic **

Items most likely to be subject to an excise tax include A. inherited items and luxury cars. B. gasoline and cigarettes. C. apartment buildings and single-family homes. D. milk and cheese.

B. gasoline and cigarettes. **

79. When you monitor projects and make the appropriate corrections, the project runs more smoothly as a whole. This affects team members by A. building stronger team relationships. B. motivating them by reducing stress and building confidence. C. discouraging them from feeling accountable for the project. D. helping them learn from their mistakes.

B. motivating them by reducing stress and building confidence. **

Which of the following is an example of bancassurance: A. The Cover Yourself Insurance Company manages a pension fund for XYZ Corporation. B. A Good Cents Bank of Piqua employee sells certificates of deposit to a customer. C. A Dollars R Us Bank employee sells an auto-insurance policy to a customer. D. The BBB Insurance Agency processes a small-business loan for a sole proprietor.

C. A Dollars R Us Bank employee sells an auto-insurance policy to a customer. **

Who is responsible for approving corporate governance goals and policies? A. Shareholders B. Chief executive officer C. Board of directors D. Management team

C. Board of directors **

Which of the following examples best illustrates the purpose of variance analysis: A. Tariq made suggestions to his manager regarding pricing strategy. B. Shamaya figured out which product line would be most profitable. C. Carter determined that storage costs exceeded the budgeted amount. D. Eileen informed her manager how much money was left for travel.

C. Carter determined that storage costs exceeded the budgeted amount. **

41. Which of the following are common categories of commodities: A. Energy, grains, and consumer goods B. Energy, metals, and consumer goods C. Energy, metals, and grains D. Metals, grains, and consumer goods

C. Energy, metals, and grains **

What is a benefit of corporate governance? A. Ability to bypass sustainability efforts B. Increased distance from investors C. Improved access to capital D. Freedom from stakeholder interference

C. Improved access to capital **

Which of the following are examples of cash outflows: A. Payroll, stocks, and product sales B. Supplies, loans, and earned interest C. Rent, utilities, and supplies D. Utilities, sale of assets, and payroll

C. Rent, utilities, and supplies **

Which of the following is an external control used to govern companies: A. Segregation of duties B. Whistleblower policy C. Safety laws D. Managerial oversight

C. Safety laws **

The main objective of using marginal analysis in decision-making is to determine whether a business activity will result in A. a marginal expense that is greater than marginal cost. B. a marginal revenue smaller than marginal cost. C. a marginal revenue equal to or greater than marginal cost. D. a net revenue larger than marginal revenue.

C. a marginal revenue equal to or greater than marginal cost. **

A business can protect its confidential computer information from unauthorized users by A. conducting annual virus scans. B. developing Internet message boards. C. encrypting computer files. D. classifying business data.

C. encrypting computer files. **

To manage their work commitments in a timely manner, businesspeople should A. work on enjoyable tasks before tackling the unpleasant tasks. B. ask their coworkers to help them with routine activities. C. estimate the time that it takes them to perform their tasks. D. identify shortcuts that they can take get their work done quickly.

C. estimate the time that it takes them to perform their tasks. **

4. When a financial agent legally acts in the best interests of his/her client, the agent is establishing a(n) __________ relationship. A. principal B. authoritative C. fiduciary D. legislative

C. fiduciary **

Publicly-traded companies are required by law to provide A. company report cards. B. stock research. C. financial statements. D. yearly newsletters.

C. financial statements. **

The purpose of data normalization is to A. delete conforming data. B. increase data redundancy. C. improve data integrity. D. remove new types of data.

C. improve data integrity. **

13. An executive summary should be A. full of technical detail. B. lengthy. C. persuasive. D. written in passive voice.

C. persuasive. **

. The Taguchi quality-control method focuses on A. reducing waste. B. conformance to standards. C. product design and development. D. manufacturing processes.

C. product design and development. **

A disadvantage of financial globalization is that A. transaction costs have increased. B. investors have limited options. C. reporting requirements vary greatly by country. D. financial markets have become less liquid.

C. reporting requirements vary greatly by country. **

Considered together, salaries and sales commissions are a A. direct production cost. B. capital expenditure. C. semi-fixed expense. D. type of payroll tax.

C. semi-fixed expense. **

. Determining the needs of others sometimes includes A. making a written list of potential outcomes. B. creating knowledge gaps. C. treating two people differently in the same situation. D. putting yourself first.

C. treating two people differently in the same situation. **

The purpose of descriptive analysis is to summarize what happened in the past, whereas the purpose of predictive analysis is to A. hypothesize why the past happened the way that it did. B. predict what could have happened if the past were different. C. use existing data to forecast what could happen in the future. D. verify that the descriptive analysis was accurate and legitimate.

C. use existing data to forecast what could happen in the future.

Late fees, interest charges, and difficulty qualifying for loans are all possible results of A. paying credit card bills. B. dropping out of school. C. using credit poorly. D. going to college.

C. using credit poorly. **

64. Lean operations focus on increasing efficiency by reducing __________, while Six Sigma focuses on continuously improving __________ throughout the business. A. automation, standards B. wages, automation C. waste, quality D. standards, waste

C. waste, quality **

Which of the following is categorized as a fixed expense in a personal budget: A. Clothing B. Groceries C. Home repairs D. Car payment

D. Car payment **

What is an advantage of using technology in compliance? A. Risk of increased fraud B. Decreased cost C. Ease of transitions D. Increased efficiency

D. Increased efficiency

96. What technology can businesses use to reduce the risk of network security breaches? A. Pirated software programs B. Teleprompter devices C. Concurrency control applications D. Intrusion detection systems

D. Intrusion detection systems **

97. Which of the following statements is true regarding risk retention groups: A. Risk retention groups tend to pay higher licensing fees than traditional insurance companies. B. A risk retention group may insure companies from many different industries. C. Group members control risk by retaining equity and transferring liability to external sources. D. The insurance policy holders are also the company's stockholders.

D. The insurance policy holders are also the company's stockholders. **

Because they are clear and describable, excellent visions are A. very specific. B. long term. C. uninspiring to team members. D. able to be summed up concisely.

D. able to be summed up concisely. **

99. The ABC Corporation identifies all the risks that threaten the company. Then, it decides which risks it wants to focus on and shares this information with its stakeholders. The company is practicing A. environmental risk planning. B. corporate risk organization. C. competitive risk assessment. D. enterprise risk management.

D. enterprise risk management. **

If a company's decision makers all require different information concerning sales transactions to make business decisions, the company relies on __________ accounting. A. cost B. financial C. quality management D. managerial

D. managerial **

During the discovery process, an entrepreneur must determine whether the proposed business venture will A. require financial risk. B. generate large profits. C. create loyal customers. D. meet a need or a want.

D. meet a need or a want.

During a job interview, Christian did not maintain constant eye contact with his interviewer. Instead, he looked down at his papers a few times. The interviewer most likely assumed that Christian A. was not really interested in the position. B. was lying about his job qualifications. C. lacked confidence in his own abilities. D. was nervous or trying to recall information.

D. was nervous or trying to recall information. **

Which of the following is a factor that often leads to workplace stress and burnout: A. Interpersonal conflict B. Adequate compensation C. Sufficient time to meet deadlines D. High control of work assignments

Interpersonal conflict **

Which of the following leaders is most likely to inspire his/her employees to achieve: A. Joon regularly sets high goals for team members to work toward. B. Jose encourages his employees to use and develop their talents. C. Yamini works independently without the help of others. D. Nick gives specific instructions on how to perform work.

Jose encourages his employees to use and develop their talents. **

The advantage to businesses that use mobile-application technology is that their salespeople can obtain and send customer information from their A. fax machines. B. autoresponders. C. data banks. D. smartphones.

Smartphones

11. What type of graphic is best to use when you want to illustrate a sequence of events in chronological order? A. Pie chart B. Timeline C. Venn diagram D. Bar chart

Timeline

Customer relationship management increases sales and profits by increasing A. prices B. customer loyalty. C. product quality. D. competition.

customer loyalty. **

Businesses are affected by social factors in the external environment because A. every business creates consumer products. B. customer needs are affected by these factors as well. C. a business cannot survive without social networking. D. customers no longer value quality.

customer needs are affected by these factors as well. **

When writing a persuasive business message, you should remember to A. communicate your personal goals. B. describe the benefits to the audience. C. open the message with a meaningful quote. D. place the least important information at the beginning.

describe the benefits to the audience. **

17. Customer Relationship Management (CRM) software applications can help businesses identify customers' needs, interests, and preferences, which enables them to A. develop personalized messages. B. update the business's income statement. C. scan the environment for inconsistencies. D. verify accounting procedures.

develop personalized messages. **

One reason the United States provides assistance to underdeveloped nations is because it A. wants to learn about their technology. B. wants to become an important world power. C. hopes they will become trading partners. D. is expected to do so.

hopes they will become trading partners. **

One of the benefits of negative feedback is that it A. lets you know what is expected of you. B. tells you what you are doing right. C. keeps you from making mistakes. D. makes you feel good about yourself.

lets you know what is expected of you. **

Barry gives the pizza delivery person $15 and gets a pepperoni pizza in return. Barry is using money as a A. store of value. B. medium of exchange. C. loan. D. medium of barter

medium of exchange. **