BUS 414 small bus man test 4

burglary

... entering a building unlawfully with intent to commit a felony or to steal valuable property

communication

.... A process through which you send messages to and receive messages from others.

sole proprietorship (advantages)

.... Easiest to start Least regulated Single owner keeps all the profits Taxed once as personal income

Worker Adjustment and Retraining Notification Act (WARN)

.....

infringer

..... Someone who uses intellectual property without the permission of the owner.

unemployment insurance

..... a government program that partially protects workers' incomes when they become unemployed

case studies

..... a research method that involves the intensive examination of unusual people or organizations

crime insurance

..... insurance that covers money, securities, merchandise, and other property from various causes of loss such as burglary, robbery, theft, and employee dishonesty

legal entity

A being, human or nonhuman, such as a corporation, that is recognized as having rights and duties, such as the right to own property.

internal control

A set of rules and procedures that work to limit the opportunity for employee theft or malfeasance.

Which of the following statements is true regarding a trademark?

A trademark can sometimes also function as a service mark.

refers to money that is owed to a business by its customers who purchased a product on credit.

Accounts Receivable

deductible

Amount you must pay before you begin receiving any benefits from your insurance company

Sharing your mission and your vision of the business is part of the ________ factor that employees find among the most valuable

Communication

Which of the following is true with regard to pricing of legal services

Correct answer: Pricing of legal services is based on supply and demand

If a business offers its assets as collateral, lenders are most interested in the ________ value

Disposal

contingency fee

Fee paid by a client to an attorney for legal services that is dependent upon the outcome of a case.

which of the following is true of co-insurace

It requires that an owner carry insurance equal to a stated minimum percentage of the market value of their property.

Regulation in the workplace

Laws and governmental rules that limit the freedom of business owners to manage their businesses as they please.

Which of the following statements is true of sharing business risk with the government?

Risk for a government is very different from risk for private business.

An ideal situation is where a business receives new inventory just as the last unit of the previous order is sold. However, this rarely occurs because the

Sales volumes are not constant

payback period

The amount of time it takes a business to earn back the funds it paid out to obtain a capital asset.

replacement value

The cost incurred to replace one asset with an identical asset.

Just-in-time inventory

The practice of purchasing and accepting delivery of inventory only after it has been sold to the final customer.

which of the following is true of insurance coverages

Vehicle liability insurance is mandated by the legislatures of all the states and territories of the United States.

insurance

a contract between two parties in which one party agrees for a fee to assume the risk of another

subcontracts

a contract by which a new party agrees to perform a duty that one of the original parties to a contract was already legally obligated to perform

exempt

a federal government descriptor of employees who are exempt from the fair labor standards act and are generally paid salary

nepotism

a management philosophy of selecting and promoting people based on family ties

perpetual inventory

a system of recording the receipt and sale of each item as it occurs

When determining the cost of a capital asset, the ________ is the sum of everything that you spend to obtain and prepare the asset for its first productive use.

acquisition cost

The Immigration Reform and Control Act of 1886 is applicable to

all employers

Age Discrimination in Employment Act

an act of congress that makes it ilegal to discriminate against people who are older than 40 years of age

Which among the following is an example of an on-the-job training method

coaching

Which of the following federal employment laws requires the payment of same wages to males and females for work requiring equal skill, effort, and responsibility in similar working conditions

fair labor standards act

Vicarious Liability

indirect liability or responsibility for the actions of another

Partnerships through which two or more businesses combine to undertake a specific economic activity are called

joint ventures

Which of the following terms refers to the privileges, services, or even tangible items given to employees as part of the overall compensation and benefits package?

perks

A person or other entity filing a lawsuit is known as

plaintiff

periodic inventory

process of physically counting business assets on a set schedule

inventory

products that are held for sale of land buildings equipment and securities

Potential buyers and investors are most interested in the ________ value of a business's assets.

replacement

insurable value is defined as

the amount of an asset for which a company will write an insurance policy.

When determining the value of your operating assets, discounted cash flow valuation methods define utility as being

the net cash inflows that the asset will produce

Which of the following is an advantage of corporations?

they are better equipped in raising large amounts of money

The first task to be completed before a comprehensive insurance program for a business can be developed is

to identify risks

probationary period

trial period in which an employee has temporary status before a formal offer to work full time is presented

is collected by the IRS and state agencies as a percentage of tax upon payroll.

unemployment insurance

Responsibility for the actions of another is referred to as

vicarious liability

Independent contractors who provide specialized business services or support from a distance, through different methods of communication are known as

virtual employees

Which among the following federal employment laws requires employers to give 60 days' advance warning prior to a plant shutdown or layoff of 50 or more employees?

worker adjustment and retraining notification act

Which of the following is a disadvantage of providing credit to customers

you must replace the missing cash

adverse possession

...... A person takes possession & use of a property belonging to another. Possession must be open, notorious, hostile & uninterrupted for a certain period of time.

executive order no. 11246

...... Affirmative action passed by President Johnson in 1965; requires government contractors to take 'affirmative action' to ensure their employment practices are not discriminatory

general partnership

...... partnership in which partners share equally in both responsibility and liability

on the job training

....... Employee training at the place of work while he or she is doing the actual job.

tax codes

Laws and regulations that specify the requirements of taxation.

employee theft

Misappropriation of business property by employees of that business.

Which of the following is true regarding a small-claims court?

Most small-claims courts are designed so that ordinary citizens can bring their cases in.

mediation

a dispute resolution process held instead of court cases in which both sides present their case to a neutral third party who is not a judge unlike arbitration and court decisions meditation decisions are not binding on the two parties

are typical in accident (especially personal injury) situations, but are not usually used in everyday contract and business-related matters.

contingency fees

Which of the following factors refers to providing meaningful work for employees, which gives them the feeling or belief that the day's work had a valuable impact to the company and that they made a difference

contribution

are contractual provisions of insurance policies that specify what risks the insurance company is assuming.

coverages

A(n) ________ is an amount of loss that is specifically excluded by the insurance contract.

deductible

Scenario-JG Sawmills To meet the high production demand, Jack Wilson—the owner of JG Sawmills—needs to invest in a frame saw. He has narrowed down to two choices: a double cut frame CZ84 saw with chipper and a HY-200 saw with double arbor bearings. The cost of CZ84 will be $91,000, whereas the cost of HY-200 will be $110,000. The salvage value of each type is $0 (zero) and both will have a useful life of 4 years. Data for Capital Budgeting Estimated cash flows and accounting profits for each saw type Double cut frame CZ84 saw HY-200 saw Years Cash Flows Accounting Profits Cash Flows Accounting Profits 0 $(91,000) $(110,000) 1 $20,000 $13,000 $30,000 $20,000 2 $37,000 $21,000 $45,000 $33,000 3 $37,000 $21,000 $45,000 $33,000 4 $42,000 $32,000 $50,000 $41,000 The primary disadvantage of the payback period is that

it disregards the time value of money

________ means having a way for the person who has failed to meet a metric, or made a mistake, or is facing firing to have their side of the story heard

line of appeal

The practice of acquiring inventory only in response to a completed sale is called a(n)

pull through system

factoring

selling the rights to collect accounts receivable to an entity outside your business

One of the three guidelines of training is that training

should be thought of as an investment

General partnerships are similar to limited partnerships in that

General partnerships are similar to limited partnerships in that

litigation

a formal dispute resolution method that operates using the court system typically with a lawyer representing each party

Americans with Disabilities Act (ADA)

an act of congress that requires that bus make provisions for access for people with disabilities

safety stock

an amount of inventory carried to ensure that you will not run out of inventory because of fluctuating levels of sales

There are three general types of events that cause business risk. Which of the following is not one of those three general types of events?

events related to the competitors of the bus

Which of the following statements concerning business and labor laws is not true

executive order No. 11246 is only applicable if you have 10 or more employees

After determining an organization's compensation philosophy, the next step in developing a compensation plan is to

find comparison factors for salary

Which of the following methods is the only formal way of dealing with problems of contract or tort law?

litigation in the regular courts

Accounts Receivable

money owed to your bus by customers who purchased your product on credit

Which of the following management philosophies refers to selecting and promoting people based on family ties?

nepotism

As a small business owner, which of the following scenarios could land you in prison

not paying your taxes

_ are programs designed to report on a user's keystrokes or data, or give remote control of a PC to others.

spyware

The price at which goods and services are bought and sold between willing sellers and buyers in an arm's-length transaction is called a

Fair market Value

plant

a general term for the facilities of a bus

virtual employees

an independent contractor who provides specialized bus services or support from a distance through the the internet telephone fax or another method of communication

job description

defines and discusses all the essential knowledge skills and abilities that are needed to fill a position

inventory valuation

determination of the amount of assets held by the firm for sale or production

When managing risk to buildings and land, small business owners can manage risks to tools, equipment, inventory, and other physical assets by

developing and enforcing appropriate business policies and procedures.

In a(n) ________ , all partners are equally and fully responsible for the business's obligations.

general partnership

point-of-scale system

hardware and software combinations that integrate inventory management directly into accounting software

Which of the following explains the difference between limited partnership and general partnership?

in general partnerships, no government permission is required for the setup and maintenance of business unlike limited partnerships.

A(n) ________ refers to a contract among LLC members outlining how the LLC will conduct itself.

operating agreement

A(n) ________ is the amount of inventory that results in the minimum cost, considering the cost of lost sales resulting from running out of stock, the number of units sold per day, and the number of days required to receive inventory.

optimum stocking level

The amount of time it takes a business to earn back the funds it paid out to obtain a capital asset is referred to as the

Payback Period

A system of recording the receipt and sale of each item as it is soldis called a

Perpetual inventory

Which federal law describes the steps publicly traded businesses must take to protect and provide their key financial information?

Sarbanes - Oxley act

_ provides funds to pay the ordinary operating expenses of a business should it be forced to close temporarily because of an insured event.

bus interruption insurance

refers to property coming from some sort of original thought such as trademarks, patents, and copyrights.

intellectual property

speeds up the hiring process and vastly increases the accuracy of the job-search process

internet recruiting

If a risk-averse small business owner can't reduce the level of risk to where they are comfortable, they can either ensure against future losses or

spread the risk among other people or businesses

errors and omissions insurance

...... protects broker if the seller misrepresents property condition, the broker is unaware, and could not have detected by visual inspection

small claims court

........ A special court in which parties may litigate small claims (such as $5,000 or less). Attorneys are not required in small claims courts and, in some states, are not allowed to represent the parties.

refers to the filing made with a state(s) in which the business operates disclosing the trade name or assumed name of the business along with the owners of the business.

Fictitious name filing

Scenario-JG Sawmills To meet the high production demand, Jack Wilson—the owner of JG Sawmills—needs to invest in a frame saw. He has narrowed down to two choices: a double cut frame CZ84 saw with chipper and a HY-200 saw with double arbor bearings. The cost of CZ84 will be $91,000, whereas the cost of HY-200 will be $110,000. The salvage value of each type is $0 (zero) and both will have a useful life of 4 years. Data for Capital Budgeting Estimated cash flows and accounting profits for each saw type Double cut frame CZ84 saw HY-200 saw Years Cash Flows Accounting Profits Cash Flows Accounting Profits 0 $(91,000) $(110,000) 1 $20,000 $13,000 $30,000 $20,000 2 $37,000 $21,000 $45,000 $33,000 3 $37,000 $21,000 $45,000 $33,000 4 $42,000 $32,000 $50,000 $41,000 ________ is the ratio measure of how well a firm does in using its inputs to create outputs.

Productivity

As a business owner, if you have a group of people you assemble because you trust their judgment and goodwill toward you and your firm who may meet with you as a group, or individually for impromptu meetings are considered your

board of advisers

Scenario-JG Sawmills To meet the high production demand, Jack Wilson—the owner of JG Sawmills—needs to invest in a frame saw. He has narrowed down to two choices: a double cut frame CZ84 saw with chipper and a HY-200 saw with double arbor bearings. The cost of CZ84 will be $91,000, whereas the cost of HY-200 will be $110,000. The salvage value of each type is $0 (zero) and both will have a useful life of 4 years. Data for Capital Budgeting Estimated cash flows and accounting profits for each saw type Double cut frame CZ84 saw HY-200 saw Years Cash Flows Accounting Profits Cash Flows Accounting Profits 0 $(91,000) $(110,000) 1 $20,000 $13,000 $30,000 $20,000 2 $37,000 $21,000 $45,000 $33,000 3 $37,000 $21,000 $45,000 $33,000 4 $42,000 $32,000 $50,000 $41,000 The process of transforming materials, labor, and energy into goods or services is termed as

operations

Limited partnership

..... partnership in which only one partner is required to be a general partner