Ch5

What is a dividend? Refer to the costs incurred in operating and maintaining a business A distribution of earnings to shareholders Refers to the amount earned resulting from the delivery or manufacture of a product or from the rendering of a service Anything owned that has value or earning power

A distribution of earnings to shareholders

What analyzes the transactional information of the business so the owners and investors can make sound economic decisions? Bookkeeping Financial Accounting Accounting Managerial Accounting

Accounting

What is an asset? Anything owned that has value or earning power A distribution of earnings to shareholders Refers to the amount earned resulting from the delivery or manufacture of a product or from the rendering of a service Refers to the costs incurred in operating and maintaining a business

Anything owned that has value or earning power

Which of the following financial statements gives an accounting picture of property owned by a company and of claims against the property on a specific date? Income statement Balance sheet Statement of owner's equity Statement of cash flows

Balance sheet

Which of the following represents geographic segmentation? Based on variables such as age, gender, ethnicity, education, occupation, income, and family status Based on regional variables such as region, climate, population density, and population growth rate Based on variables such as values, attitudes, and lifestyles Based on variables such as usage rate, usage patterns, price sensitivity, and brand loyalty

Based on regional variables such as region, climate, population density, and population growth rate

Which of the following represents psychographic segmentation? Based on variables such as age, gender, ethnicity, education, occupation, income, and family status Based on regional variables such as region, climate, population density, and population growth rate Based on variables such as usage rate, usage patterns, price sensitivity, and brand loyalty Based on variables such as values, attitudes, and lifestyles

Based on variables such as usage rate, usage patterns, price sensitivity, and brand loyalty

What is a means to conduct a periodic check on the company's financial health? Return on investment (ROI) Cash flow analysis Internal rate of return (IRR) Break-even analysis

Cash flow analysis

A profit occurs when businesses sell products or services for less then they cost to produce. True False

False

What involves preparing financial reports that provide information about the business's performance to external parties such as investors, creditors, and tax authorities? Bookkeeping Managerial accounting Financial accounting Accounting

Financial accounting

What reports operating results (revenues minus expenses) for a given time period ending at a specified date? Income statement Statement of owner's equity Balance sheet Statement of cash flows

Income statement

What is the rate at which the net present value of an investment equals zero? Cash flow analysis Break-even analysis Internal rate of return (IRR) Return on investment (ROI)

Internal rate of return (IRR)

What is a hybrid entity that has the legal protections of a corporation and the ability to be taxed (one time) as a partnership? Limited proprietorship Limited shareholder Limited liability corporation Limited partnership

Limited liability corporation

What involves analyzing business operations for internal decision making and does not have to follow any rules issued by standard-setting bodies such as GAAP? Financial accounting Managerial accounting Accounting Bookkeeping

Managerial accounting

What is the division of a market into similar groups of customers? Market management Market communications Market segmentation Market mix

Market segmentation

What is calculated by dividing the firm's sales by the total market sales for the entire industry? Break-even point IRR Market share Income statement

Market share

Which of the following is not a reason to increase market share? Reputation Increased bargaining power Economies of scale Nearing production capacity

Nearing production capacity

Which of the following is not one of the four phases in the product life cycle? Decline Place Introduction Growth

Place

What occurs when businesses sell products or services for more than they cost to produce? Expense Profit Revenue Loss

Profit

What refers to the amount earned resulting from the delivery or manufacture of a product or from the rendering of a service? Loss Profit Revenue Expense

Revenue

Partnership agreements typically include all of the following, except: Shareholder's expectations for a successful business Methods for conflict resolution Expectations for sharing profits and losses Partner's salary requirements

Shareholder's expectations for a successful business

What describes the basic transaction data such as its date, purpose, and amount and includes cash receipts, canceled checks, invoices, customer refunds, employee time sheet, etc? Transaction Balance sheet Financial statement Source document

Source document

What tracks and communicates changes in the shareholder's earnings? Balance sheet Income statement Statement of cash flows Statement of owner's equity

Statement of owner's equity

What is the function of the sales department? Deals with the strategic financial issues associated with increasing the value of the business while observing applicable laws and social responsibilities The process associated with promoting the sale of goods or services. The marketing department supports the sales department by creating promotions that help sell the company's products The function of selling a good or service and focuses on increasing customer sales, which increases company revenues Includes the policies, plans, and procedures for the effective management of employees

The function of selling a good or service and focuses on increasing customer sales, which increases company revenues

What is operations management? The function of selling a good or service and focuses on increasing customer sales, which increases company revenues The function that plans for, develops, implements, and maintains IT hardware, software, and the portfolio of applications that people use to support the goals of an organization The management of systems or processes that convert or transforms resources into goods and services A field concerned with the use of technology in managing and processing information

The management of systems or processes that convert or transforms resources into goods and services

What is the function of the marketing department? The function of selling a good or service and focuses on increasing customer sales, which increases company revenues The process associated with promoting the sale of goods or services. The marketing department supports the sales department by creating promotions that help sell the company's products Includes the policies, plans, and procedures for the effective management of employees Deals with the strategic financial issues associated with increasing the value of the business while observing applicable laws and social responsibilities

The process associated with promoting the sale of goods or services. The marketing department supports the sales department by creating promotions that help sell the company's products

A loss occurs when businesses sell products or services for less then they cost to produce. True False

True

Break-even analysis is the point at which revenues equal costs. True False

True

For profit corporations primarily focus on making money and all profits and losses are shared by the business owners. True False

True

Human resources management includes the policies, plans, and procedures for the effective management of employees ('human resources'). True False

True

Introduction, growth, maturity, and decline represent the product life cycle. True False

True

Match the following organizational forms with their definition. ____ Partnership ____ Corporation ____ Limited Liability Corporation ____ Limited Partnership ____ Sole Proprietorship 1. A business form in which a single person is the sole owner and is personally responsible for all the profits and losses of the business 2. A legal structure that allows for more than one owner but each owner is personally responsible for all the profits and losses of the business 3. An owner's legal liability in the business is limited to the amount of his or her investment 4. An artificially created legal entity that exists separate and apart from those individuals who created it and carry on its operations 5. A hybrid entity that has the legal protections of a corporation and the ability to be taxed (one time) as a partnership

__2__ Partnership __4__ Corporation __5__ Limited Liability Corporation __3__ Limited Partnership __1__ Sole Proprietorship