POBF Exam

Which of the following is a capital investment decision?

How to finance investments

Gross domestic product per capita is a measure of:

The average workers productivity

What are two things that a purchasing specialist should consider when making a make-or-buy decision?

The company's production capabilities and the cost of making the needed parts

Which of the following is a characteristic of a product trade-name franchise?

The franchisee can choose the name of the business

The process of keeping the financial records of a business is known as:

accounting

Which of the following makes comparisons of the financial conditions at multiple organizations possible?

accounting standards

What type of accounting method would most likely be used by a large business that has a large number of outstanding loans and customer charge accounts?

accrual method

Which of the following is a benefit of visualizing your goal?

avoiding distractions

Who decides how goods and services will be marketed in a private enterprise economic system?

business people

Which of the following is a key component of managing working capital?

cash conversion cycle

Which of the following financial reports provides estimates of when, where, and how much money will come into and out of a business next year?

cash flow statement

Of the following, which is a durable good?

coffee mug

The first step in maintaining an inventory of supplies for the business is to:

develop a list of supplies that the business needs

One way that the productivity of a business can be measured is by:

dividing the dollar value of total sales by the costs of making those sales.

Marketing is described as creating:

exchanges

Which of the following factors may influence supply?

natural disasters

If a purchasing specialist and a supplier discuss potential issues and ways to resolve them prior to making a purchase, what are the two parties doing?

negotiating

The finance function would definitely be involved in a decision regarding

new business projects and strategies

The role of finance in business often involves:

obtaining funds

What management function is being described in the following situation? David Thomas, a top-level manager, identifies jobs to be performed, assigns responsibility for them, establishes departments to handle the jobs, and determines how many and which employees mid-level managers will supervise.

organizing

Operations is demonstrated in which of the following phrases?

producing goods and services

What is one way in which purchasing specialists play an important role in the success of a business?

providing a flow of goods

A characteristic of a sole proprietorship is that the owner:

receives all the profit.

Why do many businesses store information in a computerized database?

to maintain client lists

What type of corporation sells millions of shares and must furnish complete information about its earnings, assets, and debts?

C, public

An example of a performance goal is:

Completing your financial-planning certificate

Nathan is a project manager in charge of four other employees. He's divided up responsibilities and assigned them to specific team members to work on. This is known as:

Delegation

If all of the individuals who own a business share unlimited liability for the business's losses, these individuals are part of a(n):

General partenrship

A manager studies the business's previous sales statistics as well as the sales forecast before making purchasing decisions. What type of resource is the manager using?

Informational

Which of the following is a true statement about innovative management?

It is more participative than traditional management

Cathy is allowing her four friends to pick out a skirt for her at the mall—with one request: that all four friends agree about the selection. Which style of decision making is Cathy asking her friends to use?

Maximum

Brynn manages employees who are new on the job and need quite a bit of supervision. Therefore, she can only supervise a few employees at once. Brynn's span of control is:

Narrow

Globalization can be a disadvantage for domestic workers when they lose their jobs due to the practice of:

Offshoring

Which of the following actions describes proactive management?

Planning in advance for change

Planning the quantities to produce is an important part of production planning because it helps to:

Prevent losses to the business

Any factor that causes changes in supply and demand will cause changes in:

Price

Suzette purchases sporting goods from several different manufacturers and sells the items in her shop, Suzy's Sports. What kind of buyer is Suzette?

Retail

Efficient production enables businesses to:

Turn out the most products at the least cost

Steve manages employees who are highly skilled and need little supervision. Therefore, he can supervise quite a few employees at once. Steve's span of control is:

Wide

A company's current balance of assets and liabilities falls under the focus of:

Working capital management