Business Final Exam

Which of the following budgets is planned first? a) Production budget b) Personnel budget c) Revenue budget d) Sales budget

Sales Budget

A(n) _____ is a tax added to the gross amount of the sale for goods sold within the taxing jurisdiction. a) use tax b) excise tax c) sales tax d) income tax

Sales Tax

Retailers sometimes refer to losses from both theft by outsiders and theft by employees as _____. a) fidelity b) restitution c) kleptomania d) shrinkage

Shrinkage

_____ provide(s) protection against the failure of a contractor to fulfill contractual obligations. a) Fidelity bonds b) Key person insurance c) Surety bonds d) Business insurance

Surety bonds

Which of the following refers to a small battery-powered package that can be used anywhere? a) A laptop computer b) A desktop computer c) A server d) A mainframe computer

A laptop computer

Which of the following is an example of computer hardware? a) Operating system b) Firewall c) A computer program d) A monitor

A monitor

Which of the following is an example of a tax or fee paid to operate a business? a) An excise tax b) An incorporation tax c) A use tax d) A corporate franchise tax

An incorporation tax

A(n) _____ is a formalized examination and/or review of a company's financial records. a) budget b) audit c) forecast d) deed

Audit

_____ control is the careful planning and control of all financial activities of a firm. a) Budgetary b) Auditing c) Production d) Operating

Budgetary

A(n) _____ budget plans expenditures for obtaining, expanding, and replacing physical facilities. a) capital b) operating c) sales d) cash flow

Capital

_____ as a source of information about computer hardware, software, and training is more oriented to specific hardware and software, but permits comparison of detailed technical specifications. a) Bulletin board b) Industry association c) Government publication d) Computer company promotional material

Computer company promotional material

_____ is the process of ensuring that organizational goals are achieved. a) Audit b) Acid test c) Control d) Credit management

Control

A website's ability to tailor itself to each user is called _____. a) branding b) backward compatibility c) forward compatibility d) customization

Customization

Credit management involves: a) forecasting sales and allocating expenses to achieve them. b) developing new products to achieve a deeper market penetration. c) deciding how customers will pay for purchases. d) examining a company's financial records.

Deciding how customers will pay for purchases

A(n) _____ is an additional tax on certain items imposed by the federal government. a) excise tax b) income tax c) incorporation tax d) value added tax

Excise Tax

Which of the following constitutes a white-collar crime? a) Kidnapping b) Shoplifting c) Physically assaulting one's neighbor d) Falsifying accounts

Falsifying accounts

_____ helps insure against employee fraud or theft. a) Fidelity bonding b) Coinsurance c) Surety bonding d) Casualty insurance

Fidelity bonding

In _____ auditing, an outside certified public accountant (CPA) verifies the records and financial statements of a company—usually once a year. a) financial b) internal c) employee-performance d) personnel

Financial

_____ are inexpensive sources of information, data services, consultant referrals, and possibly even funding, but might not include the most recent technology. a) Industry associations b) Computer stores c) Government publications d) Computer consultants

Government Publications

Which of the following is an effective technique for minimizing theft? a) Reduce the number of electronic noise activators. b) Install wide-angle and one-way mirrors to observe employee or customer behavior. c) Schedule higher inventory levels on weekends. d) Institute a flatter organizational structure and replace the status quo.

Install wide-angle and one-way mirrors to observe employee or customer behavior

The process of building and maintaining customer relationships through online activities to facilitate the exchange of ideas, products, and services that satisfy the goals of both parties is known as _____. a) Internet marketing b) decision engineering c) traditional marketing d) data mining

Internet marketing

What is the function of a management information system (MIS)? a) It runs existing programs designed for older equipment. b) It collects, records, processes, reports, and converts data into a usable form. c) It transmits data about a product when scanned. d) It is a collection of computers and computer networks.

It collects, records, processes, reports, and converts data into a usable form

Which of the following is a characteristic of a pure risk? a) It cannot be analyzed statistically. b) It is typically uninsurable. c) It exists when the possibility of a loss is present but the possible extent of the loss is unknown. d) It refers to the uncertainty as to whether a voluntarily undertaken activity will result in a gain or a loss.

It exists when the possibility of a loss is present but the possible extent of the loss is unknown.

What is the function of cash flow budget? a) It plans expenditures for obtaining, expanding, and replacing physical facilities. b) It forecasts sales and allocates expenses for achieving them. c) It forecasts the amount of money needed to pay expenses and make other purchases. d) It plans and controls revenue and expenses in order to obtain desired profits.

It forecasts the amount of money needed to pay expenses and make other purchases

Which of the following is an attribute of e-commerce? a) It is a form of traditional marketing. b) It is about the exchange of digitized information between parties. c) It does not involve the use of Internet in transaction cycles. d) It heavily relies on real rather than virtual storefronts.

It is about the exchange of digitized information between parties

Which of the following defines risk management? a) It is the process of conserving earning power and assets by minimizing the shock from losses. b) It is the process of managing an organization's workforce. c) It is the process of increasing productivity by strategically managing the workflow. d) It is the process of measuring employee performance in organizations.

It is the process of conserving earning power and assets by minimizing the shock from losses.

Which of the following defines risk avoidance? a) It refers to the practice of refusing to undertake an activity when the risk seems too costly. b) It refers to the practice of using various methods to reduce the possibility of a loss occurring. c) It refers to the shifting of risks to someone outside the company. d) It refers to the strategy of setting aside funds to meet losses.

It refers to the practice of refusing to undertake an activity when the risk seems too costly.

Which of the following is a characteristic of an effective control system? a) It should not be the responsibility of any one individual. b) It should be outsourced. c) It should indicate cause-and-effect relationship. d) It should not be quantifiable.

It should indicate cause-and-effect relationship

Which of the following is a method of computing inventory that small firms tend to use to save taxes when prices rise? a) First-in, first-out method b) Last-in, first-out method c) Average-cost method d) Direct tax method

Last-in, first-out method

_____ provides protection for an employee's estate when he or she dies while still in the income-producing years. a) Workers' compensation policy b) Life insurance c) Health insurance d) Business insurance

Life insurance

A(n) _____ budget forecasts sales and allocates expenses for achieving them. a) capital b) operating c) revenue d) cash flow

Operating

_____ refer to the acceptable levels to which employee achievement should conform. a) Operating standards b) Ethical standards c) Performance standards d) Employee standards

Performance Standards

A _____ is a handheld pocket-sized computer that is often a completely wireless system. a) laptop computer b) firewall c) personal data assistant d) mainframe computer

Personal Data Assistant

After lightweight laptops, further miniaturization has resulted in _____. a) RFID tags b) personal data assistants c) barcodes d) QR codes

Personal Data Assistants

_____ protects a business from losses due to suits resulting from mistakes made or bad advice given by someone in an official context. a) Professional liability insurance b) Workers' compensation policy c) Business interruption coverage d) Surety bond

Professional liability insurance

_____is the uncertainty that some unpredictable event will result in a loss. a) Secondary risk b) Speculative risk c) Pure risk d) Voluntary risk

Pure Risk

_____ transmit(s) data about a product when scanned. a) RFID tags b) Backward compatible hardware c) Smartphones d) Personal data assistants

RFID Tags

In which of the following areas is computer technology likely to be most useful in small firms? a) Repetitive, high-volume tasks b) Unstructured activities c) Open-ended activities d) Tasks that require creativity and judgment

Repetitive, high-volume tasks

Which of the following helps increase the assets or decrease the liabilities of a company? a) Retained earnings b) Long-term mortgages c) Accrued payables d) Inventory

Retained Earnings

_____ is the percentage of net profit the owners' equity earns before taxes. a) Return on net assets b) Surplus value c) Return on equity d) Profit margin

Return on equity

_____ refers to shifting a risk to someone outside the company. a) Risk avoidance b) Risk prevention c) Risk transfer d) Risk assumption

Risk Transfer

Businesses use self-insurance primarily for _____. a) risk avoidance b) risk prevention c) risk transfer d) risk assumption

Risk assumption

_____ refers to using various methods to reduce the possibility of a loss occurring. a) Risk avoidance b) Risk prevention c) Risk transfer d) Risk assumption

Risk prevention

Insurance is an example of _____. a) risk avoidance b) risk prevention c) risk transfer d) loss control

Risk transfer

Working capital indicates: a) the ability a company has to fund innovation. b) the ability a company has to multiply its profits within a short time. c) the ability a company has to lower its variable costs of production. d) the ability a company has to pay its current liabilities.

The ability a company has to pay its current liabilities

Which of the following is true of S corporation shareholders? a) They are taxed at individual rates. b) They are taxed at corporate rates. c) They do not enjoy legal protection that comes with corporate status. d) They have no restrictions on benefit plans.

They are taxed at individual rates

Which of the following is a characteristic of active RFID tags? a) They do not involve any security risk. b) They have a short range of readability. c) They require a battery to transmit data. d) They are cheaper to produce.

They require a battery to transmit data

Which of the following constitute taxable income? a) Total revenues plus deductible expenses b) Total revenues minus dividends paid c) Total revenues plus dividends paid d) Total revenues minus deductible expenses

Total revenues minus deductible expenses

In which of the following areas is computer technology less useful? a) Repetitive tasks b) High-volume tasks c) Quantitative tasks d) Unstructured tasks

Unstructured tasks

Technology-mediated exchanges between parties as well as the electronically based intra- or interorganizational activities that facilitate such exchanges are referred to as _____. a) e-commerce b) backward compatible systems c) market penetration d) branding

e-commerce

Most property insurance contracts have a coinsurance provision to: a) ensure reimbursement for the full amount of covered losses. b) protect a business from losses resulting from the use of its product. c) protect a small business from suits resulting from mistakes made by someone in a professional context. d) facilitate the continuation of a business following the death of its owner.

ensure reimbursement for the full amount of covered losses.