BUS 285 Sample Questions

________________ is the part of economics concerned with decision making by individual customers, workers, households, and business firms.

Microeconomics

In the statement of cash flows, the section for cash flows from operating activities will include which of the following? a. dividends paid b. issuance of common stock c. a decrease in accounts payable d. purchase of a building financed entirely by a mortgage

a decrease in account payable

A small number of people with complementary skills who are committed to a common purpose, a set of performance goals, and an approach for which they hold themselves mutually accountable is reffered to as a...

team

_______ is an ongoing process through which thee company creates marketing strategies and plans its implementations in the target market.

strategic marketing planning

____ is the way a corporation finances its assets through some combination of equity, debt, or hybrid securities.

capital structure

From data collected by the retail jewelers' trade association, Ms. Thornton learns that sales of antique jewelry are rising and that the most common purchasers are older, upper-income couples. Though initially reluctant to purchase online, these customers are beginning to overcome their concerns. From United States Census Bureau data, she learns that this population segment is growing in number and will continue to do so throughout the next two decades. At this point, what should Ms. Thornton do?

Collect primary data to determine whether these trends and preferences are reflected in Priceless Treasures' customer base.

Ms. Thornton plans to conduct an online survey of her customers. What is the most significant problem with using this survey method rather than a traditional mail approach?

Customers who do not use the internet will not be in the sample

Which of the following would most likely occur as a result of the US government's imposing tariffs on foreign steel imports?

Employment in the US steel industry would increase.

Which of the following statements about a systems flowchart is true? a. It is used in systems design to define and describe each piece of data. b. It is a method of writing programs using only three basic constructs: sequence, selection, and reputation. c. It documents the sequence of processing steps that take place in an information system. d. It documents the logical design of an information system.

It documents the sequence of processing steps that take place in an information system.

Which of the following statements about the tort of negligence is true? a. It cannot be used as basis for liability for defective products. b. It is a strict liability tort with no defenses. c. It requires proof of some intentional conduct. d. It requires proof of breach of a statutory or common-law duty.

It requires proof of breach of a statutory or common-law duty.

What are the 2 economic systems?

Market economy and Mixed economy

The organization of Petroleum Exporting Countries (OPEC) reduces production by 10%, and the growth rate of the world economy begins to escalate. How will the simultaneous occurrence of these events affect the equilibrium price and quantity in the world petroleum market?

Price will increase, but quantity is indeterminate.

Product costing is the accounting process of determining all business expenses pertaining the creation of...

company products

Which of the following is an appropriate Federal Reserve action to stimulate the US economy? a. Selling government bonds on the open market. b. Increasing the discount rate. c. Reducing the reserve requirement. d. Cutting taxes.

Reducing the reserve requirement

The central processing unit (CPU) in a personal computer contains the...

The control unit and the arithmetic logic unit

____ is the ability of an individual or group to carry out a particular economic activity (such as making a specific product) more efficiently than another activity.

comparative advantage

____ costing identifies the activities in an organization and assigns the cost of each activity with resources to all products and services.

activity-based costing

____ is the total demand of final goods and services in an economy at a given time.

aggregate demand

_____ is the total supply of goods and services available to a particular market from producers.

aggregate supply

An information system that enables all business departments in the same firm to share the relevant information and data is called...

an enterprise resource planning (ERP) system

______ is the process of reviewing and analyzing a company's financial statements to make better economic decisions.

financial statement analysis

_____ is the process in which a business determines and evaluates potential expenses or investments that are large in nature- such a building a new plant or investing in a long-term venture.

capital budgeting

Green desires to form a new company to manufacture lawn mowers. Green is concerned about having his personal assets exposed to liability for the new company's contracts and torts. Furthermore, he wants to retain control over the company's operations and growth for the next few years. He will need an infusion of equity capital to begin operations. He hopes to take the company public in about five years if it is advantageous to do so at the time. Which of the following types of business associations would be best for Green's new company?

corporation

____ is the cost of a company's funds, or, from the investor's point of view, " the required rate of return on a portfolio company's existing securities"- used to evaluate new projects.

cost of capital

The term "net working capital" refers to...

current assets less short-term liabilities

6 factors influencing the _____. 1. demographic 2. economic 3. ecological 4. technology 5. political 6. culure

market

Lassiez-faire capitalism is an example of which economic system that is "hands off"?

market economy

Family branding refers to a group of...

different products marketed under a single brand name

A project consists of 150 jobs. The expected completion time for each job is given in days. The project has three critical paths with two jobs in common, J and K. In order to finish the project one day early, the completion time should be reduced one day for...

either Job J or Job K

In organization decision making, managers are able to exercise the greatest degree of discretion in the...

enforcement of internal policies

____ markets are where financial assets are traded.

financial

____ policy refers to the use of government spending and tax policies to influence macroeconomic conditions, including aggregate demand, employment, inflation, and economic growth.

fiscal policy

The _____ is the combination of factors that can be controlled by a company to influence consumers to purchase its products. Identified as product, price, place, and promotion.

marketing mix

Which economic system is a hybrid that blends some aspects of both market and planned economies?

mixed economy

_____ policy consists of the actions of a central bank, currency board, or other regulatory committee that determines the size and rate of growth of the money supply, which in turn, affects interest rates.

monetary policy

Based on his scientific management theory, Frederick Taylor developed what pay principle?

incentive pay

In an economy the unemployment rate is 10% and the inflation rate is 1%. An appropriate fiscal policy in this phase of the business cycle would be to...

increase government spending

Saint Martin Hospital boasts one of the world's leading medical imaging programs. Its radiology department specializes in the early detection of particularly serious forms of stomach, intestinal, and colon cancer. The hospital plans to invest in a new system of digital medical imaging and image transmission technologies that will enable its radiologists to view and evaluate intestinal scan results from anywhere in the world. With this investment, the hospital is attempting to overcome which of the constraints of services marketing? a. inventory b. intangibility c. inconsistency d. insperability

inseperability

If the spread between the spot and the forward exchange rates of two currencies equals the interest rate difference between two countries, the phenomenon is referred to as..

interest-rate parity

In a period of rising prices, which inventory valuation method would generally yield both the LOWEST ending inventory value and the LOWEST net income figure? a. first in, first out (FIFO) b. Last in, first out (LIFO) C. weighted average d. standard cost

last in, first out

A department manager telephones 2 managers in other departments to discuss a cost savings idea that would benefit their departments as well as her own. Which of the following most accurately defines the communication channel that the manager is using? a. upward b. lateral c. downward d. hierarchial

lateral

When a domestic firm permits a foreign company to manufacture and sell its product in exchange for a fee or royalty, the process is termed...

licensing

A firm that would like to know whether it has enough cash to meet its bills would be most likely to use which category of financial ratio?

liquidity

________________ is the part of economics concerned with large scale or general economic factors, such as interest rates and national productivity.

macroeconomics

Resource markets can be distinguished from ____ markets, where finished goods and services are sold to customers.

product

___ costs can include raw material purchases, worker wages, production transportation costs, and retail stocking fees.

product

The ____ shows the maximum possible output combinations of two goods or services an economy can achieve when all resources are fully and efficiently employed.

production possibility frontier

Because pictures of products, either in print or on the Internet, can differ from the actual appearance of a piece of jewelry, Priceless Treasures' customers are sometimes disappointed by items they have purchased. To reduce customer dissatisfaction, the firm's customer service representatives call customers to answer any questions they have, confirm their satisfaction with the purchase, and communicate the firm's refund/return policies. The firm is seeking to influence the customers' purchase decision process by

reducing cognitive dissonance through the reassurance of personal contact

A _____ is a market where a business can go and purchase resources to produce goods and services.

resource market

Within the context of the capital asset pricing model (CAPM), the risk measure known as beta is often computed by regressing the return of the company's stock against the...

return on the market portfolio

____ is the fundamental economic problem of having seemingly unlimited human wants and needs in a world of limited resources.

scarcity

In marketing research, a firm might consider using secondary data over primary data because...

secondary data usually cost less

Web 2.0 is best represented by which of the following phenomena? a. social networking sites b. word processing c. internet browsers d. text messaging

social networking sites

____ is when someone concentrates in or is an expert in a particular area.

specialization

______ is the practice of substituting an expected cost for an actual cost in the accounting records, then periodically recording variances showing the difference between the expected and actual costs.

standard costing

All of the following are true regarding a seller's rights to reduce legal liability in the sale of non-consumer goods EXCEPT: a. the seller can disclaim consequential damages if it is done clearly and conspicuously b. the seller can limit the remedy available to the buyer if he or she does so clearly and fairly c. the seller can place reasonable conditions on the warranty coverage d. the seller can disclaim all implied warranties by simply stating that there are no implied warranties

the seller can disclaim all implied warranties by simply stating that there are no implied warranties

The _____ is the concept that money available at the present time is worth more than the identical sum in the future, due to its potential earning capacity.

time value of money

A ____ is a civil wrong that causes a claimant to suffer loss or harm, resulting in legal liability for the person who committed the act.

tort