Business Final

Which of the following is NOT one of the main activities for a human resource manager?

coordinating marketing and production activities

The _____ summarizes an organization's financial status at the end of an accounting period.

Balance sheet

_____ is the system used to record a firm's financial transactions in a routine and clerical process.

Bookkeeping

An economic system based on competition in the marketplace and private ownership of the factors of production is known as:

Capitalism

The World Trade Organization (WTO):

Has emerged as the world's most powerful institution for reducing trade barriers and opening markets

_____ is the process of hiring, developing, motivating, and evaluating people in order to achieve organizational goals.

Human resource management

A "mixed economy" is an economic system that:

combines private and government ownership of the factors of production Combines aspects of both capitalism and socialism

The U.S. money supply is composed of:

currency, demand deposits, and time deposits

After graduating from college, Joseph Tantillo decided to start a retail Web site that specializes in personalized Greek apparel. To fund his Web site, he borrowed money from his parents (who expect to be repaid with interest). In other words, he used _____ financing.

debt

One of the three basic functions performed by the Equal Employment Opportunity Commission is:

developing diversity management plans

When Grand Metropolitan, a British company, purchased U.S.-based Pillsbury Co. in order to expand its product line and the market for its existing consumer products, it was an example of a(n):

direct foreign investment

International accounting standards:

do not exist

The least costly and least risky method for selling a product on the global market is:

exporting

_____ deals with reporting to outsiders. _____ accounting deals with the internal operations of the firm.

financial accounting and managerial accounting

The key element in socialism is:

governmental control*

On a statement of cash flows for a manufacturer of digital thermometers, the cash flows from operating activities would include:

increases in the manufacturer's inventory

U.S. plane manufacturer McDonnell-Douglas has authorized Mitsubishi Heavy Industries, a Japanese company, to use its trademarks, patents, and other proprietary knowledge to manufacture F-15 fighter planes. Mitsubishi Heavy Industries pays McDonnell-Douglas. This is an example of:

licensing

CoolBrands International has entered an agreement with Binney & Smith to create a line of frozen novelties based on the Crayola brand, including pops, bars, sandwiches, cups, cones, sundaes and shakes. CoolBrands will pay Binney & Smith a royalty for the right to use the Crayola trademark. This is an example of:

licensing agreement

_____ refers to sending work functions to another country resulting in domestic workers losing their jobs.

outsourcing

Pete Yankin and Ken Lowery consider themselves to be experts on hunting in the mountains in North Carolina. As a result, the two men established a company that markets hunting expeditions. Yankin and Lowery share responsibilities for booking the trips, gathering supplies, and guiding groups of five to seven hunters into locations where they can hunt for deer and bear. Since the two will share any profit equally, this would be an example of a(n):

partnership

Manila Water, the provider of the water and sewerage services in the capital of the Philippines has purchased the government owned water and sewerage system for the entire country. It promises to make the nation's water and sewerage system run as efficiently and profitably as the one it operates in Manila. The development, maintenance, and allocation of resources to achieve its goal will require:

planning

_____ is the amount of money remaining from a firm's sales revenue after it deducts production costs, interest costs, and taxes.

profit

The most common form of business organization is the:

sole proprietorship

Accounting involves the _____ of the financial activities for firms.

summarizing

In a mixed economy, the government is involved in the economic system through:

taxing, spending, and welfare activities*

_____ is financing obtained from investment firms that specialize in financing small, high-growth companies and receive an ownership interest and a voice in management in return for their money.

venture capital

Which of the following is NOT one of the four functions of management?

budgeting

Which of the following calculations is a formal expression of the accounting equation?

Assets = Liabilities + Owner's Equity

What is the primary difference between a good and a service?

A good is tangible, and a service is intangible.

customer satisfaction

A marketing term that is used to describe how well an organization is doing in providing products and services that meet or exceed a customer's needs and expectations.

Which of the following is the BEST example of a not-for-profit business?

American Cancer Society

Which of the following statements about incorporations is true?

Articles of incorporation may vary slightly from state to state.

In a _____, the factors of production are owned collectively rather than individually, and no incentives to work harder or to produce quality products are provided.

Communist economic system

Internal stakeholder are groups outside a business or people who don't work inside the business but are still affected in some way by the decisions and actions of the business.

False

Supplies are internal stakeholders.

False

According to the _____, a firm should first identify customer needs and then produce the goods and services that will satisfy them.

Marketing concept

With a communist economy system:

None of the above is true*

A(n) _____ is the financial statement that is used to assess the sources of cash flow during the year.

Statement of cash flow

Which of the following statements about the Federal Deposit insurance corporation (FDIC) is true?

The FDIC examiner looks at banks' loan quality, management practices, earnings, liquidity, and whether the bank has enough equity to safely support it's activities.

Which of the following about a socialist economic system is true?

The government owns or controls the majority of industries

A business is an organization that strives for a profit by providing goods and services desired by its customers.

True

A stakeholder is an individual or group that has a legitimate interest in a company, organization, or business.

True

Management is the process of guiding the development, maintenance, and allocation of objectives.

True

The local community is an external stakeholder.

True

The _____ is an arrangement that dramatically lowered trade barriers worldwide and created the new World Trade Organization (WTO).

Uruguay Round

Managerial accounting provides information that would probably be most beneficial to:

a middle manager of the company

Andy Yocom was looking to start a small business so he could be his own boss. While golfing one day, he saw prime advertising space on the flags on the course. He has decided to call his new venture Invision Golf Group Inc. What should he include in his business plan?

all of the above

Which of the following factors affects an employee's compensation?

all of the above

Jeff Arnold and Reggie Bradford created WebMD, an Internet provider of health care information. Early in the development of this high-growth company, Arnold and Bradford attracted a group of investors who provided them with money needed to acquire other Internet companies with similar missions. The investment group is called:

angel investors

_____ is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.

marketing

On an income statement, expenses, such as professional salaries, utilities, office supplies, rent, and insurance, are called _____ expenses.

general and administrative

A company that has a global vision:

recognizes and reacts to international business opportunities

What type of business organization generates the most total sales?

corporation

_____ financing is a form of business financing consisting of borrowed funds that must be repaid with interest over a stated time period.

debt

The two forms of business financing are _____ (borrowed funds) and _____ (ownership funds).

debt; equity