Business Principles EXAM 4 (chapters 13, 15, 16)

Match the evolution of the name given by businesses to the function responsible for managing hardware, software, and networks with the date the title was used.

Data Processing -1970s Information Technology Late- 1980s Information Systems Early -1980s

The organization responsible for conducting monetary policy in the United States is the:

Federal Reserve System.

Louis owns an import business. After traveling to France on numerous occasions, he developed a taste for fine French wines. A radio report that he heard this morning indicated that the dollar has fallen sharply against the euro. Based on this information, Louis expects that:

French wines will become more expensive in the United States.

Match the term with its best descriptive phrase.

Information - processed and organized data needed to make good decisions Data - raw, unanalyzed, unorganized Database - electronic storage for information

Barry has $22,000 in a savings account with the Scott Credit Union. While economic conditions have caused financial institutions to struggle, Barry feels that his money is safe due to the fact that the credit union's accounts are protected by the:

National Credit Union Administration (NCUA).

Match the business area with the benefit it has experienced from using information technology.

Operations - faster production cycle times, fewer product defects, and less waste New Markets - online businesses reach new customers Customer Service - complaints handled faster New Product Development - faster development cycles with products that better meet the needs of customers

Match the security issue with an action to mitigate the risk.

Phishing -donâ t access websites through links on email or text messages Identity Theft- donâ t store customer personal financial information Viruses- install antivirus software programs on computers

Which of the following institutions monitors the monetary policies of member nations to ensure a global monetary system that works best for all nations?

The International Monetary Fund

Which of the following historical events motivated Congress to establish the Federal Reserve System?

The banking panic and cash shortage of 1907

Match the finance position title with the duties performed.

Treasurer - cash management, liquidity, credit policy, corporate finance CFO - business strategy, financial planning, business performance Comptroller - accounting, tax, financial reporting, internal controls

Ways to improve cash flow include which of the following? Select the 3 best answers.

accelerating new product time to market getting paid by customers faster reducing costs

Which of the following statements about credit cards is true? Select the best answer.

are convenient, costly, and risky

__________ occurs when goods are traded directly for other goods.

barter

Which of the following are sources of funds? Select the 3 best answers.

cash from operations debt financing (e.g. loans and bonds) equity financing (e.g. new stock issuances)

A secured loan is backed by _________________. Select the best answer.

collateral which is a tangible item of value

Other sources of financing for small businesses include which of the following? Select the best answer.

crowdfunding

Commercial banks primarily serve two types of customers:

depositors and borrowers.

Designed to create more confidence in banking institutions, the FDIC was established:

during the Great Depression of the 1930s.

Cloud computing advantages include which of the following? Select the 2 best answers.

easier access lower software and equipment costs

Consumers have complete privacy regarding information they share on social media platforms.

false

Debt to Equity Ratio = Net Income divided by Total Equity.

false

Private cloud computing networks are shared across many organizations.

false

Public cloud computing networks are dedicated solely to your organization.

false

The time value of money suggests that $1 one year from now is more valuable than $1 today.

false

When capital projects are completed, the money spent is immediately expensed.

false

A reason businesses donâ t get financing includes which of the following? Select the best answer.

have no business plan

Search engine optimization (SEO) is used to ________________________________. Select the best answer.

increase the visibility to your web site when consumers search the web

Which of the following statements about extranets is true? Select the best answer.

is used to securely connect business partners

Which of the following statements about debt financing are true? Select the 2 best answers.

lenders do not have voting rights funds raised are repaid including interest

H & Q Importers arranged to have a French winery ship a large quantity of fine wine to the United States. By signing a(n) ______________ H & Q authorized its bank to make full payment to the French winery if and when the wine arrives at the H & Q warehouse in Boston.

letter of credit

Which statement about the Cost of Capital is true. Select the best answer.

minimum rate of return to justify a new investment

Which of the following are elements of a business intelligence system. Select the best 2 answers.

online analytical processes data mining

When comparing a letter of credit and a banker's acceptance for financing international business transactions, a letter of credit:

pays a specified amount if certain conditions are met. Conversely, a banker's acceptance represents an unconditional promise to pay.

A(n) __________ accepts savings and checking account deposits and provides home mortgage loans.

savings and loan association

Which of the following statements about the term factoring are true? Select the two best answers.

selling accounts receivable at a discount to gain access to cash usually costs more than a loan

Which of the following can include an embedded radio-frequency antenna that allows the holder to access secure areas in buildings or buy gas with the swipe of a card?

smart cards

Which of the following statements about equity financing are true? Select the 2 best answers.

stockholders have voting rights funds raised are not repaid

The strength of the U.S. dollar relative to other currencies depends mainly on:

the performance of the U.S. economy relative to other economies.

The technical name for a savings account is a:

time deposit.

Businesses gather data from social media to sense and respond to changing preferences for products and services.

true

Lenders charge higher interest rates to higher risk borrowers.

true

Net neutrality ensures all broadband users receive the same level of access to websites.

true

Return on Equity Ratio = Net Income divided by Total Equity.

true

U.S. companies can legally access all email messages you send or receive using a company provided email account.

true

Which of the following are characteristics of virtual private networks? Select the 3 best answers.

-have firewalls that block access to unauthorized users -are networks that enable on demand access to a companyâ s systems anywhere, anytime, from any type of electronic device -uses the internet

Net 30 means that you can pay a supplier ______________? Select the best answer.

30 days after invoice date

The Annual Operating Budget is a financial plan for the business. Match the element of the plan with its corresponding description.

Cash Flow - sources and uses of funds Balance Sheet - assets and liabilities Income Statement - revenues, expenses, and profits Metrics - performance targets

Complete each phrase about the 5 câ s of credit.

Character - of the borrower Conditions - of the economy and industry Capacity - to repay the loan Collateral - to secure the loan Capital - being invested by the borrower