BADM120-7XB Phelps Final Exam (Test 1-4)
The number of companies listed in the Dow Jones Industrial Average is ________. (number)
30
At the highest levels of income, American taxpayers pay at a rate of _______%. (number)
37
The investor who insists on either CSR or BRI will probably get a lower rate of return on the investments than those who are in it to make the maximum return. True False
True
The proportion of females on the Russell 300 Index companies has recently risen to ________ (number) percent.
20
If VFINX earns 10% per year on average for forty years, one can earn a million dollars over this period by investing $________ per month.
188
Food companies do not want their customers to be confused by vague or misleading labels on their products, so they are voluntarily settling the issue by streamlining the labels to just _________ (number) phrases--hoping that everyone can understand.
2
Efforts are underway to to allow workers at small businesses to make contributions to ____________ accounts through automatic payroll withholding, and their employers can match some or all of those contributions. The investment earnings in the plans are not taxed until the employee withdraws that money, typically after retirement.
401(k)
Although states may establish their own minimum wage, it cannot be below the federal minimum wage which is $________ per hour and earned by fewer than one percent of American workers.
7.25
In the first seven months of 2019, the average savings rate for Americans was ________ percent. (number)
8
Tax Freedom Day is the day when the nation as a whole has earned enough money to pay its total tax bill for the year. This year, Tax Freedom Day was _______________
April 16
___________(one hyphenated phrase) employment is a term used in U.S. labor law for contractual relationships in which an employee can be dismissed by an employer for almost any reason (that is, without having to establish "just cause" for termination), and likewise, the employee can quit for any reason.
At-will
Much clothing on Amazon comes from _________, among the world's largest clothing exporters.
Bangladesh
It appears customers are enthusiastically welcoming the plant-based burgers offered by the recent IPO company BYND. The company is_____
Beyond Meat
CSR investing has been around for a couple of decades, but currently growing in popularity is BRI or ___________
Biblically responsible investing
The ____________ (two words B and R) is a non-profit association whose members are chief executive officers of major U.S. companies. Unlike the U.S. The CEOs recently met and signed a 300-word letter pledging their commitment ESG.
Business Roundtable
The U.S. until recently exported shiploads of garbage to XXXXX which now is going to XXXXX. _________ (two words)
China India
Name one of the BIG FOUR accounting firms.
Ernst & Young
According to _________ (company one word) COO Sheryl Sandburg, bias is the only reason that men hold 62% of management jobs and women 38%.
A popular credit scoring system is FICO, which stands for ___________________ Company.
Fair Isaac
For financial statements of different companies to be comparable, the reports must be compiled by a common set of rules. Accounting rules are developed by the FASB. ____ ____ ______ ______ (four words)
Financial Accounting Standards Board
The SEC or ___________________________ (four words) is often referred to as the Watchdog of Wall Street, but it wouldn't be too much of a stretch to think of it as the "Capital Markets Cop." It aims to protect investors and maintain fair, orderly and efficient markets, similar to a regular police force's primary goals of protecting the public and maintaining law and order.
Securities and Exchange Commission
The second most populous country in the world is_______
India
Finish this BIG 4: __MG
KP
"There is one and only one social responsibility of business-to use it resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud"This famous quote is by economist ________. (two words) Nike should stick to shoes.
Milton Friedman
The Bureau of Labor Statistics of the U.S. government measures the LFPR--or the labor force _________ as an measure of economic health. Tight now the figure is pretty good.
Participation Rate
S & P 500 ____________ Name the S and the P. No punctuation. Leave off the &.
Standard Poors
Which offers the highest standard of living for its citizens? Select one: a. Hong Long b. North Korea c. Venezuela d.India e. Mali
a. Hong Kong
On the world stage, the strongest economy (size, growth, and stability) belongs to: a. United States b. Japan c. Australia d. Chine e. Germany
a. United States
Average CEO tenures have shortened to about _____ year(s). Select one: a. five b. twenty c. one d. ten e. fifteen
a. five
Which company appears to be facing the biggest threat to its existence? a. Juul b. Philip Morris c. Lyft d. Peloton e. We
a.Juul
_______________ is the systematic and comprehensive recording of financial transactions pertaining to a business and the process of summarizing, analyzing and reporting these transactions to oversight agencies, regulators and tax collection entities.
accounting
A(n) __________ (two words) is an individual (like Carl Icahn) or group that invests in a company and/or obtains seats on the board to effect a major change in the company. Do they pick on women-run companies more than men-run companies?
activist investor
A(n) __________ committee is one of the major operating committees of a company's board of directors. This committee is in charge of overseeing financial reporting and disclosure. All U.S. publicly-traded companies must maintain a qualified committee of this type in order to be listed on a stock exchange. Committee members must be made up of independent outside directors, including a minimum of one person who qualifies as a financial expert.
audit
A(n) __________ is an accountant's (or accounting company's) overview of the financial statements and operations of the business in order to help confirm that the books are an accurate representation of the company's performance.
audit
If income equality is a number one aim of the economy, which accomplishes that the best for its citizens? Select one: a. United States b. North Korea c. South Korea d. Brazil e. Hong Kong
b. North Korea
According to WSJ which word most accurately describes current economic conditions in Latin America? a. growth b.gloom c. optimism d. enthusiasm e. recession
b. gloom
A ________ (two words) is a nationally recognized, well-established, and financially sound company that generally sells high-quality, widely accepted products and services. They are known to weather downturns and operate profitably in the face of adverse economic conditions, which helps to contribute to their long record of stable and reliable growth.
blue chip
A _________market is the condition of a financial market of a group of securities (usually stocks) in which prices are rising or are expected to rise. The term is typically reserved for extended periods in which a large portion of stock prices are rising. Such markets tend to last for months or even years.
bull
For about the last week the DJIA has been trading in the ____range. a. $72,000 range b. $7,000 range c. $26,000 d. $31,000 range e. $14,000 range
c. $26,000
As of the week of October 28-November 1 Tesla shares are trading at around $_____. Select one: a. 700 b. 50 c. 300 d. 10 e. 100
c. 300
Which statement is true about corporate governance? Select one: a. Board elections have been nearly automatic, and recently have become even more automatic. b. Most corporate boards are at least fifty percent female. c. Board elections have been nearly automatic, but it is becoming less so. d. Board elections have become very unpredictable--no better than50/50 chance of reinstatement. e. Board are required to have a sexual harassment committee.
c. Board elections have been nearly automatic, but it is becoming less so.
Which of the following does not appear as a protected category of workers in the Civil Rights Act of 1964? Select one: a. religion b. national origin c. age d. race e. sex
c. age
Part of a corporation's "ESG story" is charitable giving. The average of corporate charitable giving is _____ percent of after tax profits. Select one: a. 31 b.around ten c. less than 1 d. twenty e. just over five
c. less than 1
Which of the following is an example of situations where OM tools and processes might be applicable? a. studying the tricky situation of having a friend as your boss b. considering the effects of raising a product's price c. studying ways to speed up the action in sports events d. promoting alternate uses of a product e. investigating the factors underlying job satisfaction
c. studying ways to speed up the action in sports events
CFO ________________
chief financial officer
China is the world's largest crude importer and the world leader in electric vehicles, but it still gets much of its electric power from ______, the dirtiest source of electricity.
coal
Which of the following is not a synonym of capitalism? a. free enterprise b. command and control c. laissez faire d. market economy e. private enterprise
command and control
A(n) __________ ________ (two words) is between the management of a public company, analysts, investors, and the media to discuss the company's financial results during a given reporting period, such as a quarter or a fiscal year. It is usually preceded by an earnings report. This contains summary information on financial performance for the period.
conference call
Governor Newsom of California could upend Uber's business model by promoting legislation that would change drivers' status from Answer workers to employees.
contract
_____ has a high state income tax, and _____ has no state income tax. Rich people are moving from the former to the latter. Select one: a. California--Mississippi b. Texas--California c. New Jersey--Louisiana d. Connecticut--South Carolina e. New York--Florida
e. New York--Florida
__________(two words) refers to the beliefs and behaviors that determine how a company's employees and management interact and handle outside business transactions. Often implied, not expressly defined, and it develops organically over time from the cumulative traits of the people the company hires. It could be reflected in its dress code, business hours, office setup, employee benefits, turnover, hiring decisions, treatment of clients, client satisfaction, and other aspect of operations.
corporate culture
According to a recent Wall Street Journal article, the current job market is particularly good for: Select one: a. auto workers b. fast-food workers c. earners in the top ten percent of income d. lower-income Americans e.wealthy retirees
d. lower-income Americans
Approximately _____ of U.S. economic output (GDP) is accounted for by American consumer spending. a. half b. 40% c. Three-quarters d. two-thirds e.25%
d. two-thirds
Happily, we Americans have plenty of ___________ income compared to most other nations. It's the money we spend after paying bills on non-essential, even silly items like Dr. Phelps' Lint Lizard (but wait, there's more).
discretionary
The idea behind "defacto discrimination" is that: a. The EEOC will not consider not consider all cases. b. Discrimination by race is more insidious than discrimination by other criteria. c. Discrimination by immutable characteristics is allowed in some cases. d. There must be intent to discriminate. e. A company can discriminate without intending to discriminate.
e. A company can discriminate without intending to discriminate.
Which of the following is not a characteristic of VFINX? a. Minimum investment amounts are small. b. It's a minimum cost investment. c. It attempts to mirror the Russell 2000 d. A person can own a stake in the entire market. e. It's an example of active (as opposed to passive) investing
e. It's an example of active (as opposed to passive) investing
Which statement captures the essence of the marketing function of business? a. you cannot fool all the people all the time b. form follows function c. there is a sucker born every minute d. do I have a deal for you! e. find a need or want and fill it
e. find a need or want and fill it
Women are _____ the long-haul truck driving industry. Select one: a. the leaders in b. flocking out of c. the worst drivers in d. sexually harassed in e. underrepresented in
e. underrepresented in
When it comes to financial practices and literacy, a.outside the U.S. women are more likely than men to "take charge" of the family finances. b. men in the U.S have less understanding than women. c. women have accumulated more student debt than men. d. after age 30, neither men nor women are likely to borrow from their parents. e. women in the U.S.have less understanding than men.
e. women in the U.S.have less understanding than men.
___________(EPS) is calculated as a company's profit divided by the outstanding shares of its common stock. The resulting number serves as an indicator of a company's profitability.
earnings per share
_________ is the study of how to go about making decisions regarding the use of scarce resources.
economics
A(n) ________ is an individual who creates a new business, bearing most of the risks and enjoying most of the rewards. Such a person is commonly seen as an innovator, a source of new ideas, goods, services, and business/or procedures.
entrepreneur
The Wall Street Journal featured Walt Disney as the iconic example of the American Answer and contrasted him with shyster Bernie Madoff.
entrepreneur
Large Corporations boast that they are "on board" with ESG, which stands for ___________ issues. (three words NO punctuation)
environment social governance
CEOs often earn very large salaries. This has caused a hue and cry from critics of big corporations. Their salaries are just too large! One reason the total pay for a CEO is so large is that part of the pay is in the form of an ___________ award--which means that if the stock performs well, the CEO is paid more.
equity
A(n) ___________ is a function of international trade whereby goods produced in one country are shipped to another country for future sale or trade. It is a crucial component of a country's economy, as the sale of such goods adds to the producing nation's gross output.
export
Public companies run by chief executives with _________ personality traits have a higher cost of equity capital--so says a recent WSJ article.
extrovert
Approximately ten percent of American workers earn the federal minimum wage. True false
false
Currently the personal savings rate for Americans is negative--that is, they are actually spending more than they earn. Select one: True False
false
A ____________by definition, purchases the right to use an existing business's trademarks (like Tide) , associated brands, and other proprietary knowledge to market and sell the same brand, and uphold the same standards as the first business--thus becoming an owner and independent operator.
franchisee
A local Taco Bell "owner" is a __________ (f word), which means the person has acquired access to a corporate Taco Bell's proprietary knowledge, processes, and trademarks in order to allow the party to sell a product or provide a service under the business's name.
franchisee
A __________(two words) agreement reduces barriers to imports and exports between countries by eliminating all or most tariffs, quotas, subsidies, and prohibitions.
free trade
Some unicorns (in the business sense) seem to be trying to make investors think the company is profitable when it is not. To go public, these companies MUST abide by GAAP or ____.
generally accepted accounting principles
The issue at question in the case of Mr. Neumann of WeWork is corporate __________. It appears that his board is not doing a sufficient job of providing independent oversight in the months before a potential IPO.
governance
AT&T Chief Executive Randall Stephenson's leadership is being challenged by _______ fund Elliott Management. (aggressively managed portfolio of investments)
hedge
Apparently one of Jack Bogle's motivations in creating the XXXXX fund was his contention that an individual investor can't beat the XXXXX. ___________(total of two words)
index market
According to The Wall Street Journal, investors are "jostling" for stock of Impossible Foods (plant-based meats) even before its IPO or ________. (three words
initial public offering
A(n) ___________ (two words) is an organization that seeks to earn returns for its members--like CALPERS which is a pension fund. Such organizations usually own large numbers of shares.
institutional investor
The Federal Reserve Board of Governors enacts policies that influence our economy--especially by changing the _____ ________(two words) by a quarter point.
interest rate
The companies in GM's supply chain that are most affected by the GM workers' strike are those that operate on a ___________ (three words) inventory basis. These companies make their parts available on the assembly line right at the moment they are needed.
just-in-time
The ________ function of a business includes planning, organizing, leading, and controlling.
management
The business function of ___________ involves all the actions a company undertakes to draw in customers and maintain relationships with them. It includes advertising, selling, and delivering products to consumers or other businesses.
marketing
Traditionally, the purpose of a corporation has been to ___________ (three words m o w)
maximize owner wealth
Kant's second formulation of the categorical imperative is: "Act in such a way that you treat humanity, whether in your own person or in the person of any other, never merely as a __________ (four words), but always at the same time as an end."
means to an end
A business can grow organically--more sales, more profit, more markets, more countries--or a business can grow by M & A. What is the M; what is the A? ___________ (Use NO punctuation.) Our example in class was Newell Brands--which owns Coleman coolers, Ball glass jars, Elmer's Glue, Rubbermaid, Calphalon, Sharpie, Mr. Coffee, and others.
merger acquisition
Your _________ (two words), quite simply, is the dollar amount of your assets minus all your debts.The calculation is the same for businesses.
net worth
Kaizen is a Japanese business philosophy regarding the continuous improvement of processes in an organization. This is most closely related to which of the ten topics of study in BADM120? ___________(spell it out--no abbreviation)
operations management
Most corporate shareholders do not attend the annual shareholders meeting, but they can read the _________ (one word) statement to help them make informed decisions about matters that will be brought up at the stockholder meeting. Our WSJ example was that some NIKE shareholders wanted to express their concerns about Nike's political spending.
proxy
A(n) ___________ is an economics term that refers to a significant decline in general economic activity in a designated region for two consecutive quarters.
recession
Mali, NIgeria, Rwanda and other sub-Sarahan countries are experiencing poverty, disease and poor education. It is safe to say of our world that the rich are getting richer, and the poor are getting _____________.
richer
China's ___________ ________ (two words) system is designed to monitor activities of its citizens and score them based on their adherence to Communist Party standards such as avoiding jaywalking or not making sure one's older-than-sixty parents have enough to eat.
social credit
Should stockholders worry that they are listed right along with vendors, society, customers, and other "stakeholders" when it comes to a corporation's priorities? One of our readings said a big NO to stockholders' worry.--not as long as senior leaders get paid for performance--and performance means _______price.
stock
Rodney McMullen, CEO of Kroger, worked his way up through the ranks. He was a bagger, a checker, a produce manager, etc. Now as CEO he is trying to figure how best to compete with the likes of Walmart and Amazon (Whole Foods). The decisions made at the top level are part of the _________ process of a business. (one of our ten topics)
strategic management
________ __________(two words S and M) refers to the decision making at the highest levels of the company and the most pivotal issues the corporation faces. One of our ten topics, CEOs and boards give careful consideration to SM. An example would be what Ford intends to do about threats by Tesla and others to its dominance in the pickup truck industry.
strategy management
A ________ (one word) borrower is a person considered to have relatively high credit risk (low FICO score) and therefore will have a tougher time borrowing money at attractive interest rates than others with higher FICO scores.
subprime
According to the "Debt Clock", the U.S budget deficit has topped $1 __________ for the first time.
trillion
The per capita GDP of South Korea (capitalism) is more than ten times the per capita GDP of North Korea (socialist/communist). Select one: True False
true
In popular business parlance (speech), Peloton is a __________ (one word), meaning a privately held start-up valued at more than $1 billion .
unicorn
The first formulation of Kant's categorical imperative could be called the rule of _________ (one u word), because it recommends that ethical behavior includes asking "Would I be happy if everyone did this?"
universality
This week the Phelpses got mail inviting them to join Nextdoor--a neighborhood social media platform. The company has just received fresh investment from ________ (two words v and c) Mary Meeker.
venture capitalist
