BFS Test

To expand into foreign markets, an American business owner acquires a small manufacturing plant in Thailand. Which of the following entry modes is the business owner using to expand the company internationally?

Wholly owned subsidiary

Financial managers who are legally responsible for their clients' investments must demonstrate fiduciary responsibility, which involves

acting in the best interests of their clients.

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

allocation.

The purpose of long-term care insurance policies is to pay for

assisted living and nursing care costs.

The result of 4% inflation on the value of money when bank interest rates are 2% is that

consumers will have less money for spending

An individual or family should consult with a lawyer when

estate planning that includes a will

When making a will, a person will choose a trusted individual to make sure that the will is carried out as intended. This individual is the

executor.

The nature of an agent's work and the level of an agent's control are factors that determine if a __________ relationship exists.

master-servant *

Qualified employees who behave unethically on the job may harm themselves by being

passed over for promotions.

The most common headings on a stock table include the 52-week high and low, the stock symbol, the estimated dividend per share, the yield percentage/rate of return, the volume/sales for the day, the closing price for the day, the net change and the

price-earnings ratio.

The purpose of bankruptcy laws is to

protect people from losing all of their property to creditors.

Employees from different departments participate in a group to solve problems related to the company's production processes. This is an example of a

quality circle.

Financial planning can be described as a way to

realize what it takes to get the things you really want.

Sara doesn't take responsibility for her decisions and actions, and she often feels bitter because she thinks others have treated her unfairly. She is experiencing

resentment

A credit plan that allows customers to make purchases that are within their credit limit and pay all or part of the balance due each month is referred to as a(n) __________ credit plan.

revolving

The premium of a person's life insurance policy is likely to be more expensive as a result of

smoking

Colleen will vote next week on the new contract that her union has negotiated with management. Union and management are in the __________ stage of the collective-bargaining process.

tentative agreement

An important aspect of ethical behavior by financial services providers is ensuring that their clients

understand the potential risks and rewards of different financial products.

When giving verbal directions to employees about how to complete a task, it is often helpful to

use visuals

When making online transactions, it is important to minimize the threat of identity theft by

using a unique password and changing it frequently.

When selecting a financial planner for advice, it is important to know the

whether the person has a license or certification

The amount of savings in a bank account that is protected by the Federal Deposit Insurance Corporation (FDIC) is

$250,000.

A business's balance sheet lists $3,800 in cash, $15,125 in accounts payable, $2,775 in taxes, $10,350 in machinery and equipment, and $6,280 in salaries. Calculate the business's total liabilities.

($15,125 + $2,775 + $6,280 = $24,180)

Supervised by the Federal Reserve Board, The DAB Company provides investment advisory services, insurance underwriting, securities underwriting, and merchant banking services. What does the DAB Company exemplify?

A financial holding company

What type of financial statement includes an accounting of the shareholders' equity for a company?

Balance sheet

A major difference between leasing and borrowing to buy is that

Borrowing requires the consumer to make monthly payments with interest

What is one of the benefits to a business of reinforcing service orientation through communication?

Builds positive relationships with customers

Which of the following would most benefit from a customer-service mindset that helps to reduce complaints and increase profits:

Businesses

What is the first step Cameron should take to protect himself from identity theft after he loses his wallet?

Cancel all of his credit and debit cards

Which of the following is a tax-deductible gift:

Charitable-Donation

A business's philanthropic responsibility involves its contributions to

Charity

Which of the following reasoning processes does a virtual auditor use to identify financial system transactions that are very similar to each other but are not exactly alike:

Comparative reasoning

Beverly, the new office manager, just completed a review of the last two years of accounts receivable data. In doing so, she discovered that there are erroneous duplicate entries totaling $25,628 in the system. Unfortunately, due to these duplicate entries, collection letters were sent to many customers who had already paid in full--customers who are angry with the company for sending them the letters. What should Beverly do to try to save these customer relationships and ensure that these customers are not bothered in the future?

Complete a data cleansing of the erroneous entries

What do some investors use to hedge the risk of investing in the foreign exchange market?

Derivatives

When preparing a statement of equity, what does a business deduct from its total net income to obtain its retained earnings?

Dividends Paid

You have a big paper due for your marketing class, and you're almost finished! All you have left to do is check your grammar, punctuation, and spelling. Which step of the writing process do you have left to complete?

Editing

What is a type of informal communication that coworkers often use to communicate with each other?

Grapevine

Which of the following characteristics tends to have a close relationship with initiative:

Industriousness

The general economic growth of a country is supported by its

Level of Productivity

Coaching is mostly about

Listening

When a business has been running successfully for several years, what would be a probable next financial step?

Purchasing a second location

Which of the following is an example of a change in the relative price ratio when the original price of red apples is $0.60 per pound and the original price of green apples is $0.80 per pound:

Red apples @ $0.90 per pound; green apples @ $0.80 per pound

George has decided to purchase a dishwasher. He is checking the newspaper ads for the best place to get quality goods and services at a reasonable price. What type of product is the dishwasher?

Shopping

A person is age 16 and looking for part-time work at a restaurant that is part of a national chain. Which of the following is the employer allowed to ask for on a job application?

Social Security number

Which of the following is included in a standard homeowners or renters policy?

Theft of personal property.

Businesses usually invest in

Themselves

What type of letter should a business include when sending copies of a contract to a vendor?

Transmittal