Intro To Business Final

Keisha Hunter keeps track of day-to-day operational data to make sure her employer has enough cash to run the business and will determine if and when the company she works for should open a second distribution center. Hunter is a(n) _____ manager.

financial

_____ management is the art and science used to determine the most effective ways to acquire and use funds to achieve the firm's goals.

financial

Electronic communications networks (ECNs):

have permitted the creation of the fourth market

The Securities Investor Protection Corporation (SIPC):

insures the accounts of customers of brokerage firms for up to $500,000 against a firm failure

General Electric saves $1.6 billion per year by using its private corporate network that links its 340,000 employees. Another name for this network that operates behind a firewall is a(n):

intranet

By dividing cost of goods sold by the average inventory to measure the speed with which inventory moves through the firm and is turned into sales, the _____ ratio is calculated.

inventory turnover

For which of the following assets would a wholesale company use depreciation?

its warehouses

Which of the following is NOT really a financial ratio though it is often used to measure a firm's overall liquidity?

net working capital

A network that connects computers at one site is called a(n)

local area network

The cost of inventory to the firm includes all of the following EXCEPT:

selling costs

Payments in the form of more stock to existing stockholders are called:

stock dividends

Financial managers constantly strive for a balance between:

the opportunity for profit and the potential for loss

Managerial accounting provides all of the following financial information EXCEPT:

income statements

What type of expense would be shown on an income statement when the owner of a dirt racing track promoted an upcoming race by purchasing advertising time on a local radio station?

operating

The funds that are reinvested in the firm out of profits and after dividends are paid are called:

retained earnings

In finance, the opportunity for profit is called:

return

Capital budgeting:

selects asset proposals for maximum profitability

Business loans available from commercial banks with terms generally five to twelve years and secured or unsecured are called _____ loans.

term

_____ is the process of selecting the capital expenditures that offer the best returns and meet the goal of maximizing the firm's value.

Capital budgeting

_____ is the process of distributing the original cost of a long-term asset over the years of its useful life.

Depreciation

Which of the following statements does NOT describe an advantage inherent in equity financing?

Interest is tax-deductible

_____ management focuses on gathering and sharing an organization's collective knowledge to improve productivity and foster innovation.

Knowledge

Which of the following statements about computer viruses is true?

Viruses copy themselves onto other software.

Which of the following businesses would be most likely to require an unsecured bank loan, such as a line of credit or a revolving credit agreement?

a Christmas tree farm

_____ are bills that have accumulated and must be paid at a specified future date within the year although no bill has been received by the firm.

accrued expenses

A(n) _____ is a yearly document that describes a firm's financial status and usually discusses a firm's financial activities during the past year and its prospects for the future.

annual report

Collecting data over a period of time and then processing that data all at the same time is called _____ processing.

batch

"Financial managers focus on _____, the inflow and outflow of cash."

cash flows

A secured loan requires that the borrower pledge specific assets to secure the loan. These assets are called:

collateral

In 2004, a large department store chain in Germany was forced to withdraw customer loyalty cards when the press discovered that the company had secreted radio-frequency identification (RFID) tags in the plastic. Even when enclosed in a wallet or purse, these cards can transmit information over distances of about a meter, and the stores planned to use them to track which departments the customer visited. At issue was which data security issue?

consumer privacy

Haley Optics manufactures lenses used in cameras, binoculars, and scientific equipment. It had sales of $300,000 during the last quarter. It depreciated assets during the year by $20,000. The Earnings before interest and taxes was calculated to be $120,000. On an income statement, an accountant would classify the remaining $160,000 as:

cost of goods sold

Australia's Health Insurance Commission processes 300 million health claims and makes annual payments of $8 billion of payments to clients. The company would store all of its more than three gigabytes of information in a(n) _____ to support management decision making

data warehouse

The three main types of unsecured short-term loans are:

trade credit, bank loans, and commercial paper

A mortgage loan is a long-term loan that uses real estate as collateral.

true

All publicly held companies must include a statement of cash flows in their financial reports to stockholders.

true

An enterprise portal is an internal Web site that provides proprietary corporate information to a defined user group.

true

The postage stamps and petty cash in the architect's drawer as well as his drawing table, his office furniture, and money owed to him by clients are all examples of assets.

true

The three major categories of applications supplied by application service providers are:

enterprise applications, collaborative applications, and applications for personal use

Maysteel, which makes components for electric utilities, has created a(n) _____ that allows its six plant managers in Wisconsin and Ireland to access customized information about the costs and sales at the other plants. The only people who can access this information are its managers.

enterprise portal

Dividends and interest payment are both tax-deductible.

false

Of all the forms of equity capital, venture capital is the easiest to obtain.

false

Sullins Cleaning Service has purchased a new pressure washer for $18,000. Sullins Cleaning is allowed to charge a portion of the company's cost during its useful life against the profits it generates. This practice is called:

depreciation

The acceptable turnover ratio is:

different for each industry

Academic advisement is unevenly provided in many high schools and colleges. There is a plan to provide advice to high school students and to college freshmen that are seeking a potential major. The on-demand consultation gathers information about a student's grades, interests, test scores, interests and aptitudes. It assesses student qualifications for a variety of majors. The _____ will then recommend six majors for them to consider and provides further information sources about the major

expert

When compared to a wired LAN, the wireless LAN is:

faster and more reliable

The $350 charged to the homeowner for electrical work performed one month ago is an example of a note receivable.

false

A term loan is a loan with a maturity of less than a year.

false A term loan is a business loan with a maturity of MORE than one year; can be unsecured or secured.

Intranets, VPNS, and extranets are forms of LANs

false Intranets, VPNS, and extranets are forms of WANs

Lines of credit are short-term loans that are secured by collateral.

false Lines of credit are unsecured bank loans

Profitability ratios measure how well a firm uses its assets.

false Profitability ratios measure how well the firm is using its resources to generate profit and how efficiently it is being managed

Treasury bills, certificates of deposit, and mortgage loans are the most popular marketable securities.

false Three of the most popular marketable securities are Treasury bills, certificates of deposit, and commercial paper

A computer program that copies itself into other software and can spread to other computer systems is called a software infestation

false is called a computer virus

Preferred stock is a form of debt financing because the dividend must be paid before dividends can be paid to the equity owners.

false preferred stock is a form of equity financing

In finance, the potential for loss is called probability

false the potential for loss is called risk

"When Magna Manufacturing sells hand on screwdriver sets to Malloy Building Supply Company, Magna bills the tool manufacturer for the screwdriver purchase with terms of payment, which specify when the account is due. This type of unsecured loan is called _____ credit."

trade trade credit: the seller extends credit to the buyer between the time the buyer receives the goods or services and when it pays for them

Securities are investment certificates issued by corporations or governments.

true

The Internet is essentially a worldwide wide area network (WAN).

true

The NYSE and NASDAQ are vying for supremacy in the U.S. securities markets.

true

Tracy Lefteroff is the global managing partner for PricewaterhouseCoopers. She said that her company is eager to invest in newly created biotech companies because the U.S. has an aging population that will need new medications and treatments. What kind of equity capital would Lefteroff be likely to provide?

venture capital