Business Quiz 4A/4B

Which of the following is a true statement about a management information system (MIS): It does not assist with a business's information management program. It includes people, processes, and practices. It may be one part of a business's overall information management program. It is the same thing as an information management program.

It may be one part of a business's overall information management program.

A business that exists to fulfill a specific mission or undertaking is called a __________ business. mission-central focused nonprofit for-profit

Nonprofit.

Within a local pizza shop, financial analysis is most likely used to develop the best recipe. obtain funding for supplies. oversee the baking process. attract customers.

Obtain funding for supplies.

Which of the following demonstrates the interrelationship among primary business activities: A new product is introduced, so business advertisements must adjust. One business activity changes, so the others must adjust. A business changes its goals, so its strategies and tactics change, too. A business manager becomes vice president, so his/her department must adjust to the change.

One business activity changes, so the others must adjust.

A business can be described as a(n) reasonable way to make a profit. disorganized method of manufacturing products. unreasonable means for increasing revenues. organized effort to produce goods and services.

Organized effort to produce goods and services.

Which of the following is a method used to communicate with customers: Personal selling Manufacturing Customer orientation Marketing concept

Personal selling.

Which of the following behaviors demonstrates the primary business activity of strategic management: Regularly updating business processes Obtaining funds for business projects Planning and organizing for the future Recruiting appropriate employees

Planning and organizing for the future.

What provides the basis for all marketing goals and actions? Pricing Planning Budgeting Retailing

Planning.

Which of the following workplace-related safety and health issues would most likely be regulated by law: Smoking cessation support groups Health education information sessions Weight-management programs Storage and disposal of chemicals

Storage and disposal of chemicals

Which of the following activities demonstrates information management: Conducting employee evaluations Researching customers' needs Hiring appropriate employees Storing and retrieving information

Storing and retrieving information.

In an overall sense, where does marketing occur? Wherever advertisements are Wherever stores are Wherever businesses are Wherever customers are

Wherever customers are.

The process of keeping the financial records of a business is known as controlling. bookkeeping. financing. accounting.

accounting

Which of the following makes comparisons of the financial conditions at multiple organizations possible: Bookkeeping Accounting standards Trial balance Source documents

accounting standards

Money the business owes is known as accounts payable assets equity accounts receivable.

accounts payable

Money owed to the business is known as accounts receivable accounts payable assets equity.

accounts receivable

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? Cash method Check method COD method Accrual method

accrual method

For an accounting system to be useful to the business, the accounting information it contains must be accurate and up to date. posted by an accountant. approved by the chief executive officer. recorded using the accrual method.

accurate and up to date

Decisions about financing refer to administration of assets. acquisition of funds. accounting department. accounts receivable.

acquisition of funds

True or false: All employees make an impact on a business. True

all employees make a positive impact on a business. True; all employees make either a positive or negative impact on a business. False; only executives and board members make an impact on a business. False; only managers and supervisors make an impact on a business.; True; all employees make either a positive or negative impact on a business.

Which of the following presents the first three steps in the accounting cycle in the correct order: Post, journalize, and analyze Analyze, journalize, and post Post, analyze, and journalize Analyze, post, and journalize

analyze, journalize, and post

A creditor is most likely to examine a business's financial accounting records if the business is using cash accounting. applying for a bank loan. selecting a new market. complying with regulations.

applying for a bank loan

The cash conversion cycle should be as short as possible. at equilibrium. as long as possible. on an upward trend.

as short as possible

Which of the following categories of information are found on a balance sheet: Revenues, expenses, profit Assets, liabilities, margin Income, expenditures, profit Assets, liabilities, owner's equity

assets, liabilities, owner's equity

A bank denies a business owner's application for credit saying, "We feel that you would be unable to make the monthly payments because of your other debts." What financial report did the bank review? Balance sheet Operating budget Income statement Budget

balance sheet

Which of the following is a true statement: Bookkeeping is the same as accounting. Bookkeeping does not use computers. Bookkeeping records business transactions. Bookkeeping is limited to information on sales.

bookkeeping records business transactions

The finance function is usually responsible for which of the following processes: Budgeting Operations Research Manufacturing

budgeting

Which of the following influences the process of determining price: Customers' perception of value Publicity Purchase location Sales promotion

Customers' perception of value.

Marketing links producers to distributors. retailers. marketers. customers.

Customers.

Which of the following activities is an aspect of marketing a service: Finding out customers' favorite coffee flavors Determining how much to charge for a haircut Developing a new, improved cell phone Advertising the state of Michigan on television

Determining how much to charge for a haircut.

After a company's training needs are determined, what is the next step in training and development? Keeping records for personnel files Managing employee performances Dismissing employees who are not up to standard Determining what training resources are available

Determining what training resources are available

For the long-term success of the business, Stacey's Coffee House has decided to add a self-serve laundromat. Which of the following behaviors describes the business activity that Stacey's Coffee House was likely engaged in before making this decision: Establishing a system for retrieving information Determining what will put it in reach of its goals Organizing itself for meeting its objectives Promoting its new service to potential customers

Determining what will put it in reach of its goals.

Without marketing, producers and customers would be in close communication with each other. highly dependent on advertising agencies. disconnected from each other. exposed to many new and improved products.

Disconnected from each other.

Which of the following actions is a part of information management: Creating data Disseminating information Observing competitors Creating technology

Disseminating information

When Caring Companions and Smiling Pets merged two years ago, what was the most likely effect on the primary business activities of both companies? Each primary business activity combined with the matching activity of the other firm. All of the primary business activities combined into two distinct activities. All of the primary business activities combined into one activity. Each primary business activity became two smaller business activities.

Each primary business activity combined with the matching activity of the other firm.

Information usually comes in either physical form or __________ form. verbal electronic note card book

Electronic.

Who is responsible for information management? The chief executive officer The information management department An information technology manager Everyone in the organization

Everyone in the organization.

Marketing is described as creating exchanges. needs. advertisements. gaps.

Exchanges.

According to the marketing concept, which option demonstrates customer orientation? Convincing a buyer to buy Researching a firm's competitors Finding out what a buyer wants Advertising the features of a product

Finding out what a buyer wants.

An example of performing business activities in an "out of the ordinary" way is when a business operates as the link between customers and products. offers a new product in a popular product line. begins long-term planning and organization. hires an outside firm to perform its marketing.

Hires an outside firm to perform its marketing.

Which of the following items cannot be marketed: Holiday Health Hopefulness Hawaii

Hopefulness.

A risk involved with information management is leaving customers unprotected from faulty products. bad customer service. high prices. identity theft.

Identity theft.

Managing information regarding copyrights and trademarks helps a company to preserve its customers. inventory. correspondence. identity.

Identity.

Which of the following is a trend in information management: Increased compliance laws and regulations Decreased competition Increased number of workers in the office Decreased number of electronic documents

Increased compliance laws and regulations

Wireless networks are now more common due to increased competition. government regulations requiring them. increased distribution of the workforce. information overload.

Increased distribution of the workforce.

Making sure that a business has enough of a product in stock without having too much on hand is the goal of human resources management. quality control. production. inventory management.

Inventory management.

Which of the following is a true statement about information: It is simple to manage. It has no value for an organization. It is the same thing as data. It is data put into a useful form.

It is data put into a useful form.

Determining which projects a business should invest in is known as capital budgeting. return on capital. capital structuring. the cash conversion cycle.

capital budgeting

Which of the following is a key component of managing working capital: Cash conversion cycle Capital budgeting Capital structure Financing

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: Income statement Cash flow statement Balance sheet Bank statement

cash flow statement

What type of accounting method would most likely be used by a small business owner who does not offer credit? Cash method Accrual method COD method Check method

cash method

A commission or bonus is an example of a form of assistance program. benefit. employee contract. compensation

compensation

Making sure a company follows laws and regulations describes the HR management activity of compensation and benefits. compliance. employee relations. staffing.

compliance

The overall purpose of accounting is to control the finances of the business. compile the business's expenses. maintain accurate reports. keep track of sales.

control the finances of the business

In what way might an HR manager be involved in employee benefits? Collecting insurance payments from employees Selecting an employee's personal plan options Determining eligibility and costs Choosing an employee's vacation days

determining eligibility and costs

The first task in the HR Management activity of staffing is determining need. determining job descriptions. recruiting. screening and selecting applicants.

determining need

Labor-union negotiations are part of which HR management activity? Compensation and benefits Employee relations Staffing Training and development

employee relations

Selling shares in the company to raise money for a new venture is referred to as __________ funding. accounts payable dividend debt equity

equity

Which of the following business trends affects HR management: Lack of new technology Costs of business going down No restructuring Globalization

globalization

When return on capital is positive, the company is losing value growing in value paying out dividends low on cash.

growing in value

Which of the following is a capital investment decision: How to manage inventory How to handle accounts payable How to manage cash flow How to finance investments

how to finance investments

The people who produce goods or services are known as capital. raw materials. facilities. human resources.

human resources

Riley is an employee of the federal government who studies the financial reports of major businesses in a specific industry. The government's purpose in assigning this task to Riley is to search for profitable investments. decide if funds are available for pay raises. determine creditworthiness. identify trends in the industry.

identify trends in the industry

Which of the following is a compliance issue: Car-pool organization Conflict mediation Minimum wage Performance management

minimum wage

Finance is the business function that involves managing: marketing. production. money. information.

money

The finance function would definitely be involved in a decision regarding new business projects and strategies personal selling hiring public relations and publicity.

new business projects and strategies

Which of the following is an on-boarding activity: Compliance Exit interviews Orientation Grievances

orientation

Two employees used a business's computerized accounting system to change some records. They were able to steal $50,000 from the business because the accounting system lacked which of the following: Protection from theft and fraud An affordable price A manual system as backup Printed financial statements

protection from theft and fraud

Accounting is distinct from finance because its main focus is on choices acquisition of funds record keeping activities money management decisions administration of assets.

record keeping activities

The part of staffing that involves seeking out and attracting qualified potential job candidates is called interviewing. recruiting. on-boarding. training.

recruiting

The goals of the finance function are to ensure profitability and manufacture raw materials. give out information. reduce risks. advertise products.

reduce risks

Which of the following is a measure of how well a business generates cash flow: Accounts receivable Accounts payable Capital structure Return on capital

return on capital

Checks, receipts, invoices, and purchase orders are examples of department ledgers. financial statements. source documents. accounting standards.

source documents

When HR management executives participate in a company's long-range planning efforts, they are taking part in marketing. strategic management. financial analysis. budgeting.

strategic management

Accounting records for a business show that the week's total sales revenues were $125,000. Cash sales accounted for $50,000 and credit sales, $75,000. This is an example of the accrual method of accounting. an income statement. the cash accounting method. classifying financial information.

the accrual method of accounting

A job specification is an explanation of the responsibilities and tasks associated with a job. where a job is located within the company's facility. the skills, knowledge, and characteristics required for a job. who manages the department where a job position is open.

the skills, knowledge, and characteristics required for a job.

Which of the following is a reason that the role of HR management is changing: Business costs are going down. There is greater diversity in the workforce. Employees place a greater emphasis on work over personal lives. The workforce is younger than ever.

there is greater diversity in the workforce

Human resources are a company's most important resources because they are the most expensive resources. they are controlled by other company resources. they control all other company resources. they are the least expensive resources.

they control all other company resources

Why are accurate accounting records important to a business They give the business an image of success. They prevent any financial losses. They increase the return on investments. They show how the business is doing.

they show how the business is doing

A company's current balance of assets and liabilities falls under the focus on the cash conversion cycle. return on capital. capital investment decisions. working capital management.

working capital management

Which of the following represents a primary business activity: Supervising Marketing Scheduling Designing

Marketing.

Managing information for business continuity is important in case of high employee turnover. low sales volume. a drop in stock price. a disaster.

A disaster.

TeJuan's Fishing Shack demonstrates effective information management by accessing a list of fishing equipment appropriate for a particular customer. promoting new fishing equipment in a popular trade magazine. removing wasted materials from the process of providing goods to customers. hiring fishing experts to explain how to use the goods offered.

Accessing a list of fishing equipment appropriate for a particular customer.

Which of the following is an example of a type of information a business must manage: Employees' personal bills Accounting records Government spending Competitors' payrolls

Accounting records

Janelle's Creative Supplies is opening an additional location on the other side of town. To successfully operate the new location, Janelle primarily needs more advertising spots. extra free time. new carpet and paint. additional employees.

Additional employees.

The purpose of communicating with customers is to gather participants for a survey. befriend customers. determine prices. attract customers' interest.

Attract customers' interest.

A risk involved with information management is being unprepared for a government loan. audit. tax break. election.

Audit.

Appropriate information management helps a business build a good reputation by offering quality products. being consistent. eliminating all mistakes. charging high prices.

Being consistent.

How does appropriate information management affect a business's relationship with its customers? Businesses serve customers more effectively. Businesses lose focus on customers. Businesses earn higher profits. Businesses make better financial decisions.

Businesses serve customers more effectively.

In the marketing concept, whose point of view matters most? Seller's Buyer's Marketer's Planner's

Buyer's.

Which of the following is an example of an employee-assistance program: Compensation Corrective action Training on the use of dangerous power equipment Career and education planning

Career and education planning

Of the following, which is a durable good: Coffee mug Insect repellent Hamburger Lip balm

Coffee mug.

Which of the following is a marketing activity: Balancing customer needs with wants Leading a project team Communicating with customers Lowering operational expenses

Communicating with customers.

Which of the following is the most common reason for businesses to search for ways to make their products better and cheaper: Competition Publicity E-commerce Service marketing

Competition.

Information management can be a challenge because the business world is not open to new technology. constantly changing. suffering from a lack of information. completely dependent on paper files.

Constantly changing.

Financial analysis occurs when a business keeps accurate expense records. effectively retrieves data. communicates with potential customers. plans for long-term success.

Keeps accurate expense records.

Overall, what does marketing allow us to do? Stop buying online Live our daily lives Feel better about shopping Limit our spending

Live our daily lives.

Appropriate information management saves businesses time and money by maintaining higher levels of productivity. increasing information overload. increasing paper trails. maintaining yearly raises for employees.

Maintaining higher levels of productivity.

According to the marketing concept, keeping company goals in mind means making product prices low. containing marketing costs. putting marketing second to other company goals. maintaining the firm's purpose.

Maintaining the firm's purpose.

Carson is a staff accountant, and he needs to look at last year's tax return. However, he can't find it anywhere. Which information management guideline is not being followed in this situation? Prioritize information management needs according to business needs. Set and consistently follow organizational information management practices. Make sure that information is retrievable. Make sure that information is accurate.

Make sure that information is retrievable.

Information management can be a challenge because there is only one right way to do it. no one wants to participate in it. there is often not enough information to manage. many people don't understand what it is.

Many people don't understand what it is.

Every business must accomplish which of the following: Produce or provide goods/services Obtain venture capital Trade or sell business assets/property Issue corporate bonds

Produce or provide goods/services.

Which of the following behaviors best describes the primary business activity of operations: Producing goods and services Hiring qualified employees Keeping accurate financial records Planning for future success

Producing goods and services.

Franco's Bread Shop is introducing a new type of sandwich bread to the community this week. Which of the following describes the business activity that the bread shop will likely partake in before the release: Collecting information on last year's new breads Creating a system for storing new bread recipes Promoting the new bread through advertising Planning for the long-term results of introducing new breads

Promoting the new bread through advertising.

A benefit of informed decisions is that they hurt a business's chances at competing. are usually bad decisions. reduce a business's risk. cost less money.

Reduce a business's risk.

According to the marketing concept, which option shows company commitment? Leaving marketing to the marketing department Teaching marketing to college marketing students Setting aside funds to research what customers want Pricing a product to maximize profitability per item

Setting aside funds to research what customers want.

Which of the following is an example of communicating with customers: Creating a new product Sponsoring a charity event Choosing a store to distribute products Developing a marketing plan

Sponsoring a charity event.

Which of the following U.S. laws relates to information management: The Landrum-Griffin Act The Sherman Anti-Trust Act The Taft-Hartley Act The Sarbanes-Oxley Act

The Sarbanes-Oxley Act.

Which of the following activities demonstrates the primary business activity of marketing: The business hires qualified employees to perform complex job duties. The business prepares for long-term success by planning and organizing. The business meets customers' needs by offering appropriate products. The business expects to merge with another business in the industry.

The business meets customers' needs by offering appropriate products.

Which of the following activities demonstrates human resources management: The business includes top-level managers in long-term planning. The business gives its preferred customers a special discount. The business acts on new information about a competitor. The business takes care of the responsibilities associated with having employees.

The business takes care of the responsibilities associated with having employees.

When the Pretty Pictures framing business underwent internal restructuring last year, how would its primary business activities have reacted? They changed radically. They stayed the same. They adjusted according to the external changes. They adjusted according to the internal changes.

They adjusted according to the internal changes.

Which of the following is a purpose of an exit interview: To gauge employee attitudes about social issues To negotiate compensation and benefits To gather further insight into the competition To gain constructive suggestions for improvement

To gain constructive suggestions for improvement

Marketing encourages people from different countries to __________ frequently. travel train think trade

Trade.

True or false: Companies without an HR department do not participate in HR management activities. False

in companies without HR departments, all employees participate in HR management activities True; smaller companies have no need for HR management. True; only HR managers can complete these activities. False; in companies without HR departments, other managers and supervisors participate in HR management activities.;False; in companies without HR departments, other managers and supervisors participate in HR management activities.

The finance function ensures that a company's financial goals are in line with organizational priorities. related to product development. acceptable to the marketing department. easy to accomplish.

in line with organizational priorities

What accounting record would summarize a business's profit or loss for a previous year? Balance sheet Bank statement Income statement Inventory record

income statement

To keep communication flowing with other departments, the finance function depends on accounts receivable marketing production information systems.

information systems

The administration of assets refers to decisions about spending. accounting. financing. investments.

investments

How does the finance function relate to company spending? It produces reports about spending. It spends on investments only. It plans and controls spending. It does not relate to spending.

it plans and controls spending

Which of the following is a requirement for a good accounting system: It should be updated annually. It should be replaced every two or three years. It should provide needed information quickly. It should eliminate the need for an accountant.

it should provide needed information quickly

Which of the following groups makes regular use of a business's managerial accounting information Investors Managers Customers Creditors

managers