Exam 2 BUSI 1301
Q5.) Kenneth prepares a PowerPoint presentation for the board meeting by adding only the essential information and discarding any unnecessary details that could confuse the board members. He ensures to keep his sentences short but not at the expense of completeness. In the given scenario, which of the following communication guidelines is Jeffrey following?
Be concise.
Q5.) Callie, an assistant supervisor in an automobile company, wants to actively contribute to the growth of the company by suggesting some changes in its administrative policies. However, she does not get the opportunity to do so because of a high power distance in the company. In the given scenario, Callie faces a(n) _____.
organizational barrier
Q6.) A sole proprietorship is a form of business ownership in which:
a single owner actively manages the company.
Q5.) 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(n) _____ to open her presentation.
simile
Q6.) Which of the following statements is true of a franchisor-franchisee relationship?
A franchisor limits the franchisee's territory from expanding into other areas.
Q8.) In the context of balance sheets, resources owned by a firm are known as__________.
Assets
Q8.) Which of the following is a difference between managerial accounting and financial accounting?
Financial accounting is governed by a set of generally accepted accounting principles, whereas managerial accounting uses procedures developed internally that are not required to follow generally accepted accounting principles.
Q8.) 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.
Q6.) The owners of limited liability companies (LLCs) are called members because:
LLCs are neither corporations nor partnerships.
Q7.) 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
Q8.) 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 opinion
Q8.) In the context of the income statement of an organization, accountants use accrual-basis accounting when recognizing _____.
revenues
Q8.) The preparation of operating budgets begins with the development of a (n) _____.
sales budget
Q7.) In the context of entrepreneurs, which of the following statements is a difference between an internal locus of control and an external locus of control?
An internal locus of control involves personal responsibility, whereas an external locus of control does not.
Q7.) In the context of various funding options for small businesses, which of the following statements is a difference between angel investors and venture capital firms?
Angel investors are wealthy individuals, whereas venture capital firms are companies.
Q7.) A__________is a formal document that describes a business concept, outlines core business objectives, and details strategies and timelines for achieving those objectives.
business plan
Q5.) Olivia, the CEO of a company, uses words such as "she" and "her" to refer to a manager or an employee in the general sense. She also uses feminine examples in all her emails to the entire company. As a result, the male employees of the company feel excluded. Given this information, it can be concluded that Olivia shows _____.
gender bias
Q6.) Three brothers of a family own a furniture showroom. Each of them is actively involved in handling the day-to-day business activities. However, when the business suffered huge losses at the end of the last fiscal year, the personal wealth and assets of the brothers did not get affected. This is most likely because the brothers have a:
limited liability partnership.
Q7.) Julian wants to open a bakery. He uses his savings and borrows some funds from his family to start his business. In the given scenario, Julian uses _____ to fund his business.
personal resources
Q7.) 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
Q6.) 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
Q7.) Timothy wanted to start a coffeehouse. However, he could not buy a space to start his business because of lack of funds. Which of the following threats is highlighted in the given scenario?
Too little money
Q8.) In the context of budgeting, a flexible budget:
Is designed to show the appropriate budgeted level of costs for each different level of sales.
Q6.) 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
Q5.) Fiona, an industrial psychologist, is asked to give a presentation on the benefits of healthy colleague relationships to the employees of a textile company. In her presentation, Fiona uses various technical terms, all related to the subject of psychology, because of which the employees find it difficult to understand her and quickly lose interest in the presentation. In the given scenario, the employees of the textile company face a(n) _____ to communication.
language barrier
Q6.) 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 do not have personal liability for any debts incurred by the company. In the given scenario, FoodieGo is an example of a _____.
limited liability company
Q7.) In low-income countries, a high percentage of entrepreneurs are considered__________.
necessity entrepreneurs
Q5.) In the context of active listening, one of the dos for better listening is the use of _____.
nonverbal communication
Q7.) 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
Q8.) The management of an electronics company created the annual budget on a single assumed level of sales. This level of sales is to remain constant for the whole year. Later, the management finds it difficult to accurately measure the financial progress of the firm as the values in the estimated budget vary significantly from the actual sales. In the given scenario, the management most likely created a _____.
static budget
Q6.) In the context of an acquisition, the firm that is purchased by another firm is called the _____.
target firm
Q5.) Brian has decided to supplement his job application to Wendenlt Corporation with a cover letter to the senior manager of human resources. However, he knows neither the name nor the gender of the senior manager he wishes to address. In this scenario, which of the following is the most appropriate way Brian can address the recipient without displaying gender bias?
"Dear Senior Manager of Human Resources"
Q8.) The assets of Prosian Italia, a marble and Granite Company, amount to $400 million, and its liabilities add up to $180 million. Based on the accounting equation, Prosian Italia's owners' equity is equal to _____.
$220 million
Q8.) The owners' equity of Senesta Corp., an event management company, adds up to $23 million, and its liabilities add up to $17 million. Based on the accounting equation, the assets of Senesta Corp. are worth _____.
$40 million
Q6.) 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.
Q5.) When George, an American, went to represent his company in a global conference that was being held in Germany, he was unaware of the social practices of the host country. While talking to a German representative, he used the "ok" gesture, which created tension and uneasiness between him and the German representative. Which of the following communication barriers did George most likely face in the given scenario?
A cultural barrier
Q8.) 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
Q6.) 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
Q7.) Howard is a young entrepreneur who is invested in creating a new form of social media. He is sure of his idea and believes that it will be successful in the long run. However, he is careful not to be overoptimistic about it and works on other ideas as well. In the given scenario, which of the following statements is true of Howard?
He is confident but not overconfident regarding his abilities.
Q6.) Which of the following is a difference between limited partnerships and limited liability partnerships?
In limited liability partnerships, all the partners actively participate in the management of the company, whereas in limited partnerships, only the general partners actively manage the company.
Q5.) 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.
Q7.) Gemini Inc., a large conglomerate, offered Timothy's new logistics company the much required financial support in exchange for a 40% ownership in the company. It also provided Timothy with an experienced group of people to help him make crucial decisions for the company. In the given scenario, which of the following statements is true of Gemini Inc.?
It is a venture capital firm.
Q8.) In the context of balance sheets, which of the following is a difference between liabilities and owners' equity?
Liabilities indicate the claims outsiders have against the firm's assets, whereas owners' equity refers to the claims the owners have against their firm's assets.
Q8.) Sidney is a member of the Financial Accounting Standards Board (FASB) and is entrusted with the responsibility of establishing accounting principles in the United States. As a member of the board, Sidney:
Must sever all ties with any firms or institutions that she served prior to joining the board.
Q6.) 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
Q8.) Luke works in an accounting firm that offers services such as tax preparation and external auditing to corporate companies. Luke is currently providing consultation to a client that deals in automobile parts. In this scenario, Luke is most likely a:
Public accountant.
Q6.) Which of the following is a disadvantage associated with sole proprietorships?
Raising money to finance growth can be tough for business owners
Q5.) Which of the following statements is true of business emails?
Response to emails should be as prompt as possible.
Q8.) 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.
Q6.) 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
Q7.) 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
Q5.) 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.
Q5.) 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.
Q8.) 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.
Q6.) Which of the following is a disadvantage of franchising?
The franchise agreement usually requires the franchisee to follow the franchisor's procedures to the letter.
Q7.) David wants to open a new gymnasium with state-of-the-art equipment and qualified trainers. However, he can only afford either of the two. He decides to get the equipment first to start the gym. However, without qualified trainers to operate the equipment, David loses his customers and is forced to shut down the gym. Which of the following threats is most likely highlighted in the given scenario?
Too little money
Q5.) Maurice, the marketing head of a nonprofit organization, always begins his presentation on a project by sharing a lesser-known fact about the issue that the project focuses on. This helps the members of the audience get a better picture of the importance of the issue and makes them more attentive. Given this information, it can be assumed that Maurice uses _____ to open his presentations.
a startling statistic
Q6.) 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(n) _____.
distributorship
Q7.) The primary reason people choose to become entrepreneurs is to:
earn more money.
Q7.) According to small business experts, while raising start-up funds from friends and relatives, it is:
essential to keep the relationship as professional as possible.
Q7.) 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
Q7.) Rahul owns a guitar store that is famous for customizing guitars. From choosing the wood for the body to the type of pickups, everything can be selected by the customer. This feature attracts beginners and professionals alike to Rahul's store. The specific nature of the business makes it unique and results in fewer competitors. This allows Rahul to choose the prices for his services. The opportunity of _____ is highlighted in the given scenario.
exploiting market niches
Q7.) People with an external locus of control:
feel buffeted by forces such as random luck.
Q8.) To give the company's stockholders, creditors, and other external stakeholders an accurate idea of the company's overall performance, Rowen sport Corporation, a multinational company, releases statements that contain details of the company's profits and losses over the past five years. In this scenario, the company is most likely involved in _____.
financial accounting
Q6.) 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
Q7.) 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
Q8.) 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
Q6.) 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
Q5.) Bill, a marketing analyst in Godren Inc., is required to address all employees of the company on their sales targets for the next fiscal quarter. To help employees get a clear understanding of their targets and reduce any pressure on them, Bill decides to use several jokes and innuendos that are not received well by his supervisors. In the given scenario, which of the following communication guidelines does Bill not take into consideration?
Avoid slang.
Q6.) 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
Q7.) The nation of Rhodasia has the lowest entrepreneurship rate globally. A new government, headed by President Harold David Wengerd, aims to make the country's business environment more supportive toward burgeoning entrepreneurs. Which of the following measures should be taken to increase the entrepreneurship rate in Rhodasia?
Eliminating complex regulations placed on businesses
Q7.) 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
Q5.) Amanda, a client service executive in an advertising company, is unsure if the business relations manager of a potential client is male or female. Therefore, while sending her proposal to the representative, Amanda chooses to address the person by his or her designation. In this scenario, which of the following biases does Amanda avoid?
Gender bias
Q5.) Lawrence wants to pursue a law degree in a renowned law school in her city. She writes an application to the dean of the school. However, she is unsure if the dean is male or female, and therefore, she decides to address the dean by his or her official title. In this scenario, which of the following biases is Lawrence avoiding?
Gender bias
Q8.) In the context of balance sheets, accounts receivable is an example of__________.
current assets
Q8.) 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
Q5.) Mixter Prix, a multinational company, wants to hire a new salesperson. It posts a job advertisement in a newspaper that states that the company is looking for an older individual who is creative and has a graduate degree in marketing. In the given scenario, Mixter Prix's advertisement shows _____.
age bias
Q7.) In the event that a large company has to downsize, the middle-aged workers who are laid off find it difficult to find new jobs. When such workers decide to start their own businesses, they:
are called necessity entrepreneurs.
Q7.) In the context of the U.S. economy, small businesses:
are often the first to contract when times are tough.
Q5.) 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 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
Q5.) 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 key points in her presentation is because:
audiences can only absorb about two to four main points
Q5.) Maverk, a human resources manager at a multinational company, has to explain the ethical policies of the company to a batch of new employees. To convey that the company has a low power distance, he says, "The manager who loses his temper must apologize." From the given statement, it can be inferred that Maverk does not follow the business communication guideline of _____.
avoiding bias
Q5.) The management of Minstrel Magik, an event management company, ensures to use gender-neutral language in its emails to both customers and employees. In the given scenario, it can be inferred that the management follows the business communication guideline of _____.
avoiding bias
Q6.) 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
Q5.) Michael 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 movement, his slouched posture, and his habit of biting nails. In the given scenario, people get distracted because of _____ to communication.
body language barriers
Q8.) 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 _____ too budgeting.
bottom-up approach
Q8.) Sigborne Corp., a food and beverage company, commences its budgeting process by requesting the middle managers of the company to collect data from their respective departments and submit a consolidated report stating the needs of their departments. Harold, the manager of the packaging department, overstates the needs of his department. In this scenario, Harold is guilty of _____.
budgetary slack
Q5.) When writing high-impact messages, a _____ is an invaluable tool that you can use to engage your reader's attention whenever you have more than one of anything in your writing.
bulleted list
Q6.) 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(n):
carve-out.
Q6.) A(n)__________is a combination of two firms that are in unrelated industries.
conglomerate merger
Q6.) Hot and Black Tide Inc., an electronics manufacturer, merges with Crimp Corp., a food manufacturing brand, to make the firms less vulnerable to adverse conditions in any single market. This scenario is an example of a(n) _____.
conglomerate merger
Q7.) Maude worked as a lead animator in an animation company. However, she could not exercise her freedom while working on projects because she was bound by the decisions made by the company. Fed up with this, Maude quit her job and started an independent animation firm where she accepts only those projects that allow her a free rein in terms of creativity. In the given scenario, Maude most likely started her own firm because it offered _____.
independence
Q8.) A famous musician sells the copyright of one of his songs to a record company for $2 million. In this scenario, the sale of the copyright of the song exemplifies the sale of a (n) _____.
intangible asset
Q8.) The employees of an information technology company complain that the company has been spending a lot of funds in wasteful activities, such as office renovation, instead of revising the employees' salaries. In this case, the company should hire a (n) _____ to keep a check on the company's expenses and prevent the problem from aggravating.
internal auditor
Q6.) 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
Q8.) The management of a sugar manufacturing company sets aside a sum of $50,000 in its budget for the purchase of new machinery that would double the production. In the given scenario, the management is in the process of planning the _____ of the company.
operating budget
Q5.) The employees of Marconium 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 about the management. In the given scenario, the employees of Marconium Inc. are facing a(n) _____.
organizational barrier
Q5.) Miguel has an idea for a new project management software application that can enhance the efficiency of his unit's operations. His supervisor has asked him to present his ideas to the entire unit. Miguel is excited about the opportunity, however, he is a little nervous because he has never presented in front of a big audience, such as his project unit. To mitigate his speech anxiety, Miguel should:
remind himself that his project unit wants him to succeed.
Q7.) Priscilla is a trader of silver and diamond jewelry. Due to a recessionary trend in the industry, her business has not been making any profits for a few months. As the end of this economic trend cannot be easily ascertained, she decides to get her house mortgaged so that she can add a new line of business of trading in semi-precious stones. This financial risk appetite of Priscilla illustrates her _____ as an entrepreneur.
tolerance of uncertainty
Q6.) A large film 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