Business exam 2

Brain has decided to supplement his job application to Wendenlt Corporation with a cover letter to the senior manage of human resources. However, he knows neither the name nor the gender of the senior manager he wishes to address. In the scenario, which of the following is the most appropriate way brain can address the recipient without displaying gender bias?

"Dear Senior Manager of Human Resources"

A pharmaceutical company wanted to create a budget that was practical and that would enable its managers to make more accurate comparisons between actual costs and budgeted costs. Thus, the company created a budget that was developed over a range of possible sales levels and was designed to show the appropriate budgeted level of costs for each different level of sales. Given this information, which of the following budgets did the company create?

A flexible budget

Charles owns a restaurant that is thematically modeled into representing the pop culture of the 1980s. While setting up the restaurant, Charles took care of everything himself, from interior decoration to menu and music. He even got the permit for the restaurant himself. Which entrepreneurial characteristic is highlighted in the given scenario?

self-reliance

In the context of creating and delivering successful verbal presentations, which of the following is a tip for dynamic delivery

slow down and listen to yourself

Lucile, the head of a project, starts her presentation on the project by comparing each team member's work to that of a mountaineer climbing the highest peak in the world. In the given scenario, Lucile uses a ______ to open her presentation

simile

Which of the following is a difference between a C corporation and an S corporation?

A C corporation is double taxed, whereas an S corporation is taxed as a partnership.

A group of five people wants to start a limited liability company (LLC) in their city. The group files a document with the state government to establish the existence of the LLC. In this scenario, which of the following documents is fielded by the group?

Articles of organization

Hot and Black Tide Inc., an electronics manufacturer, merges with Crimp Corp., a food manufacturing brand, to make the firm less vulnerable to adverse conditions in any single market. This scenario is an example of an ______.

Conglomerate merger

Which of the following is a difference between limited partnerships and limited liability partnerships?

In limited liability partnerships, all partners actively participate in the management of the company, whereas in limited partnerships, only the general partners actively manage the company.

IFGI Life Insurance, an insurance company, is one of the stockholders of a pharmaceutical company. Given this information, IFGI Life Insurance is most likely a(n) _____.

Institutional investor

The owners of LLCs are called members because:

LLCs are neither corporations nor partnerships

The owners of limited liability companies (LLCs) are called members because:

LLCs are neither corporations nor partnerships

In the context of an acquisition, the firm that is purchased by another firm is called the _____.

Target firm

A sole proprietorship is a form of business ownership in which

a single owner actively manages the company

In the context of the U.S. economy, small businesses:

are often the first to contact when times are tough

A ______ is a combination of two firms that are in unrelated industries

conglomerate merger

People with an external locus of control:

feel buffeted by forces such as random luck.

The employees of Matconum INC. often feel that they cannot comment on the management of the company even though there is no rule that prevents them from being critical of the management. In the given scenario, the employees of Macronum Inc. are facing a ______

organizational barrier

Ashley, a manager at a toy manufacturing company, needs to create a financial document for the company that would show how the company's operating, investing, and financing activities are expected to affect the asset, liability, and owners' equity accounts. To prepare this document, Ashley needs to collect data from:

the budgeted income statement, the capital expenditure budget, and the cash budget

Sarcosine Chemicals Corp. issues stock in one of its operating units and sets it up as a separate company called Prussic Corp., with its own board of directors and corporate officers. Sarcosine Chemicals Corp. then distributes the stock in Prussic Corp. to its existing stockholders. Which of the following forms of divestitures does this scenario exemplify?

A spin-off

The stockholders of a construction firm decide to start a steel company, but they want to have limited liability. After completing the business plan, they initiate the process of establishing the company by filing articles of incorporation and paying the filing fees to the state government. In this scenario, the stockholders of the firm want to start a ______

C corporation

Ruben owns an astronomy-themed restaurant. The entire restaurant resembles a planetarium. He has also installed a projector that transforms the ceiling into a night sky. Ruben used most of his savings to fund this venture and also borrowed funds from his friends and family. In the given scenario, Ruben used _____ to fund his business.

personal resources

Amanda has always been inclined toward baking and wants to open her own bakery. She takes a loan of $20,000 from the bank and starts a bakery in her hometown. In the context of the four forms of business, Amanda most likely _____.

Has a sole proprietorship

In the context of creating and delivering successful verbal presentations, which of the following statements is true of dynamic delivery?

It begins and ends with preparation

In the context of limited partnerships, which of the following is an aspect that differentiates limited partners from general partners?

Participation in the management of a company

Mikhail, a Korean, wishes to be a stockholder in an airline company in the United States. However, he is told that he cannot buy shares of the company as he is neither a U.S. citizen nor a permanent resident of the country. Besides this, he can become a stockholder only if any of the current stockholders decide to sell their shares as the company already has 100 stockholders. Given this information, it can be assumed that Mikhail wants to be a stockholder of a(n) _____.

S corporation

Raoul is an illiterate who does not have proper skills for any job. As a result, he is unable to find permanent employment. As a last resort, Raoul starts a diner in his home to earn a regular income for his family. In the given scenario, Raoul most likely started the diner because it offered _____.

a chance of survival

The total assets of a dairy products manufacturing company are calculated. However, a sum of $5 million from the value of the company's property, plant, and equipment assets is not taken into account as the machinery is bound to become unusable after a certain period of time. In the context of balance sheets, the amount of $5 million that is subtracted from the original value of the total assets is called

accumulated depreciation

Before starting his presentation on the benefits of taxi services, Mark engages the spectators by asking them to imagine themselves driving in a drunken state. He goes on to ask them about the possible outcomes that they can imagine. This exercise ensures that Mark gets the spectators' complete attention. In the given scenario, Mark uses ______ to open his presentation

audience involvement

Tanya is planning a presentation on the best practices in communication. After much thought, she decides to restrict herself to just three key points. The reason behind Tanya sticking to just a few points in her presentation is because

audiences can only absorb about two to four main points

A textile corporation has two hundred odd stockholders. As it is inconvenient for so many stockholders to manage the company, the stockholders elect a group of individuals to oversee the company's operation and to represent their interests. In this scenario, the stockholders elect a _______

board of directors

Micheal has excellent oratory skills. He is well-spoken and very innovative. However, people are often distracted by his odd mannerisms while speaking, such as his constant foot movements, his slouched posture, and his habit of biting nails. In the given scenario, people get distracted because of _____ to communication

body language barriers

Dylan is a supervisory manager in the production department of a tea manufacturing company. Each year, he actively participates in the budgeting process of the company. His input is valued by the top management as he is able to identify the issues in his department. In this scenario, it can be said that Dylan's company follows the _____ to budgeting.

bottom-up approach

The nature of work and the workflow in the animation department of Hanzel Talkies, a movie production company, completely differs from that of other departments in the company. Hence, Hanzel Talkies decides to branch the animation department out into a new company by selling the stock to outside investors. In this scenario, Hanzel Talkies is using a strategy called a

carve-out

A _______ is a combination of two firms that are in unrelated industries.

conglomerate merger

A premium brand of men's wear introduces a new range of dinner suits and licenses its franchisees to sell this product. However, the brand retains the production rights. This scenario exemplifies a ______

distributorship

Mauve starts a business that specializes in procuring and selling antique items. Her business caters specifically to individuals who have high-income jobs and who like collecting unique artifacts. Mauve does not have much competition and can decide the prices of her products without any external influence. The opportunity of _____ is highlighted in the given scenario.

exploiting market niches

Olivia runs a spa for women. She employs only two helpers and one receptionist. This enables her to focus most of her resources on procuring products required to provide comfort and high-quality services to customers. The opportunity of ____ is highlighted in the given scenario.

having lower overhead costs

Harold, a financial accountant in a company, is asked to identify the changes in the company's account values between 2014 and 2016. To get the required information, he uses comparative financial statements, which state the figures for the two years side by side. These comparative financial statements make it easier for Harold to identify the changes that may have taken place during that period. In this scenario, Harold is most likely using _____ to get the required information.

horizontal analysis

CofBean Corp. and Coffeedust Inc. are leading producers and distributors of coffee beans. They join together to become the world's largest distributor of coffee. This association allows the amalgamated company to increase its size and market power within the coffee industry. This is an example of a(n) _____.

horizontal merger

The first stage in activity-based costing is to:

identify specific activities that create indirect costs and determine the factors that drive the costs of these activities.

FoodieGo, a catering company, is owned by foreign investors and local businessmen. Its earnings are equally divided among its members. It does not face the problem of double taxation as taxes are only levied on the personal income of the members. The owners of FoodieGo is an example of a ______

limited liability company

Tania starts a bookstore with her friend. However, owing to other commitments, Tania is unable to help with the daily operations of the bookstore. Therefore, Tania proposes that she would not actively participate in managing the business but would provide financial support to the business. By doing this, she would be sharing the profits equally with her friend, without incurring any of the business debts personally. In this scenario, Tania is a(n) _____.

limited partner

In low-income countries, a high percentage of entrepreneurs are considered__________.

necessity entrepreneurs

Bertha runs a fashion boutique. She prefers to personally interact with her customers to gauge the styles that would suit their personality. Her customers also prefer talking to her in person to share their preferences in colors, designs, styles, and fabric as they value her suggestions. The opportunity of _____ is highlighted in the given scenario.

providing personal customer service

Andrew is performing an audit of the financial statements of a cosmetics company. While analyzing the financial statements, he identifies some minor concerns. However, he believes that on balance the company's statements are accurate and its accounting methods are consistent with the generally accepted accounting principles. In this scenario, the independent auditor's report will most likely offer a(n) _____.

qualified option

Which of the following is a disadvantage associated with sole proprietorships?

raising money to finance growth can be though for business owners

Which of the following statements is true of business emails

responses to emails should be as prompt as possible

A large production company merges with a popular sound processing studio, resulting in the formation of a new company out of the two previously independent firms. This is most likely an example of a _______.

Vertical merger

A group of five people wants to start a limited liability company (LLC) in their city. The group files a document with the state government to establish the existence of the LLC. In this scenario, which of the following documents is filed by the group?

Articles of organization

Lowell runs a unisex salon and has six 10-hour workdays. If a customer requests him to stay open on the seventh day, he always obliges. He also provides home services if requested. Which entrepreneurial characteristic is most likely highlighted in the given scenario?

energy

Daniel, the owner of a bookstore, decides to reinvest his personal profits from the current fiscal year toward renovating the store and expanding its inventory. In the context of owners' equity, the profits that Daniel reinvests in the bookstore are called:

retained earnings

In the context of the income statement of an organization, accountants use accrual-basis accounting when recognizing _____.

revenues

The preparation of operating budgets begins with the development of a(n) _____.

sales budget

Which of the following practices should ideally be followed when giving a business presentation?

telling the audience the key points before launching into the body of the presentation