Intro to Buisness final

Which of the following statements about equity financing is false?

Because preferred stock represents a type of equity financing, preferred stockholders are guaranteed dividend payments.

Kobe and Akeelah decide to open a new restaurant. They each contribute $10,000 to get the business off the ground. How should their contributions be classified?

Equity Capital

A list of skills, abilities, education, and experience required for a position is called a job analysis.

False

A skills inventory is a computerized list of all the skills a prospective employee needs to fill a position. (T/F)

False

An initial public offering occurs anytime that a corporation sells stock to the general public. (T/F)

False

Bonds that are secured by various assets of the issuing corporation are called debenture bonds. (T/F)

False

Interest on corporate bonds is paid quarterly. (T/F)

False

Judgmental appraisal methods use some measurable quantity, such as dollar volume of sales, as the basis for assessing performance.

False

When a firm makes the decision to borrow money, it is a clear sign that the firm is in financial trouble. (T/F)

False

Which of the following statements is true?

Financial managers generally strive for a balance between risk and reward.

Which of the following is false?

Financial managers should establish a means of monitoring financial performance on an interim basis.

Which of the following is likely to receive some or all of their compensation in the form of a commission?

Foot Locker sales representative

Employee compensation systems are generally developed and administered by _______, and pay increases and promotions are usually recommended by _______.

HRM specialists; line managers

Rowan, a human resources manager, is reviewing the applicants for a new position along with the line manager for that position to decide which ones to bring in for interviews. Rowan cautions the line manager that the _______ is the stage of the selection process most likely to introduce discrimination into the hiring process.

Interview

Which of the following generally helps a firm determine whether an applicant will be a good fit within the organization's culture?

Interview

All of the following would be considered appropriate collateral for a long-term loan except _______.

Inventory

Which of the following is not a characteristic of short-term financing?

It must be repaid within 3 years

Which of the following statements regarding compensation is true?

The compensation system must be designed carefully to provide for employees' needs while keeping labor costs within reasonable limits.

Which of the following is not a compensation decision?

The wage-cut decision

Alphabet, the parent company of Google, has never issued dividends. If it doesn't issue dividends, what happens to its profits?

They Become Retained earning

Which of the following is not a goal of the Dodd-Frank Act?

Tighten access to long-term financing by large corporations

A flexible benefit plan allows an employee to allocate a predetermined amount of benefit dollars to various categories of benefits to design a benefit mix that best fits that employee's needs.

True

Most financial managers consider long-term financing to be money that will be used for longer than one year. (T/F)

True

Venture capital is money invested in small firms that have the potential to become very successful.

True

A tool that managers use to estimate expenditures for major assets, such as facilities expansion, new product development, and mergers and acquisitions is called a(n) _______.

capital budget

Nike's board of directors is elected by its _______.

common stockholders

If Alpine Electronics, a maker of consumer electronic products, wanted to determine the relative worth of jobs within its organization, it should _______.

conduct a job evaluation

The primary sources of funds available to a business include all of the following except _______.

government grants

All of the following are likely to be paid an hourly wage except workers in _______.

management

Senior management in your organization wants you to explain to the board of directors the key concept that makes compensation systems work. It would be correct to tell them that the ideal compensation system must _______.

provide for employees' needs while keeping labor costs within reasonable limits

Billie, a direct-to-consumer marketer of women's grooming products, maintains a searchable database of information that describes the various skills and abilities of its employees. This database can be referred to as a _______.

skills inventory

Upper management needs to know the results of training evaluations because _______.

the results may be the basis for making decisions about the training program itself

Randall Lee was hurt on the job last week. His medical bills for this injury are covered under _______.

workers' compensation insurance

N'Style Salon has ordered $5,000 worth of merchandise from Sally's Beauty Supply, Inc. The invoice to N'Style Salon has discount terms of 2/10, net/30. The salon owner writes a check within ten days for _______.

4900

Maggie Chen is paid a specific amount of money for work during a set calendar period, regardless of the actual number of hours worked. This money is called _______.

A salary

The most basic form of ownership in a corporation is _______.

Common Stock

Shohreh purchases a corporate bond from Hasbro. On the bond it states that Shohreh will receive her money back on February 15, 2027. This is the bond's _______ date.

Maturity date

How many times can a corporation's stock be sold in the primary market?

Once

All of the following are common methods of obtaining information about applicants except _______.

Private Investigators

Which of the different forms of performance feedback interviews is most likely to motivate employees to work toward organizational goals?

Problem-solving

Which of the following is most likely to develop onboarding programs and manage the recruiting and selecting new employees?

Staff specialists