IGB 2

FALSE

360-degree performance appraisals rely on the ratings from one rater. TRUE FALSE

B. an imported good for Canada.

A Toyota is produced in the United States and sold in Canada. That Toyota would be considered A.an imported good for the United States. B. an imported good for Canada. C.an exported good for Canada. D. an exported good for Japan.

D. general partnership

A ________ has three essential elements: sharing of profits or losses, joint ownership of the business, and an equal right to be involved in the management of the business. A. corporation B. limited partnership C. sole proprietorship D. general partnership

C. franchise fee

A ________ is a monetary payment made up front to the owner of a trademark, a trade name, business operation, or a copyright for the right to use it. A. dividend B. royalty C. franchise fee D. tariff

D. royalty

A ________ is an ongoing fee based on the amount of revenue the franchise earns. A. dividend B. tariff C. franchise fee D. royalty

C. shareholder

A ________ is an owner of a corporation. A. manager B. sole proprietor C. shareholder D. distributive member

C. limited partnership

A ________ maintains the rights to a share of the company's profits and joint ownership for those who are partners, but gives up the rights to management decisions of the business. A. sole proprietorship B. corporation C. limited partnership B. general partnership

200

A company's net income is $16 million, and its owner's equity is $8 million. The company's return on equity is ________. $24 million $8 million 50 200

A. code of ethics

A firm's ________ is an important means of minimizing the uncertainty regarding the decisions that employees may encounter when faced with ethical dilemmas in the workplace. A. code of ethics B. advertising C. annual report D. employment contract

C. a lump-sum payment

A fixed amount of money that an employee receives--regardless of the number of hours worked or the worker's output--is called ________. A. a gain-sharing plan B. a commission payment C. a lump-sum payment D. a piece-rate payment

C. job qualifications

A job applicant's knowledge, abilities, skills, and other characteristics are referred to as a ________. A. job clusters B. job descriptions C. job qualifications D. job components

B. merger

A(n) ________ is when two companies combine to create a new company. A. franchise B. merger C. business deal D. acquisition

C. high performance work systems

ABC Organization uses strategies to retain employees who achieve a high level of customer service. These employees are committed to ABC Organization. ABC Organization is reaping the advantages of ________. A. validated selection tools B. optimized organizational processes C. high performance work systems D. external benchmarking analysis results

C. socialism

According to Milton Friedman, corporate social responsibility is the equivalent of ________. A.capitalism B.communism C.socialism D.charity

C. the only social responsibility of a business is to increase its profits so long as it stays within the rules of the game.

According to Milton Friedman: A.the short-term performance of a business is the most important issue. B.as long as customers are happy, nothing else matters. C. the only social responsibility of a business is to increase its profits so long as it stays within the rules of the game. D. capitalism is an inferior economic system, because it leads managers to make decisions that harm some stakeholders.

C. money expected to be received in the near term

Accounts receivables are best described as ________. A. long-term debts owed by a company B. new customers who were gained by the company during the year C. money expected to be received in the near term D. financial obligations that need to be paid in the short term

D. double taxation

All C corporation income are taxed twice. This is known as ________. A. the corporate curse B. an incorporation fee C. duplicate taxes D. double taxation

personal income

All earnings of a partnership are taxed as:

B. access to local knowledge

Both international joint ventures and strategic alliances have the advantage of ________. A. little risk B. access to local knowledge C. access to governmental officials D. shared profits

A. social, environmental, and ethical issues.

Corporate social responsibility considers A. social, environmental, and ethical issues. B. political, legal, and economic issues. C. environmental, economic, and legal issues. D. social, legal, and political issues.

Double Taxation

Disadvantage of forming a corporation is:

B. mutually beneficial to both parties.

Economic exchanges between two parties should be A. maliciously intended. B. mutually beneficial to both parties. C. beneficial to the strongest party in the exchange and detrimental to the other. D. illegal and ethical.

B. validated selection tools

Employers that use ________ when hiring job candidates can gain a better assessment of job candidates' performance. A. subjective assessments B. validated selection tools C. demographic information D. stereotypes

False

Everyone within a country is better off if that country opens up to increased global trade. True False

leverage, profitability, liquidity

Financial Ratios:

record, organize, analyze and report previous financial transactions

Financial accountants

the organization that the mirrors the Financial Accounting Standards board is..

IASB

C. $2 million

If a company's assets are $10 million and its liabilities are $8 million in liabilities, the company's owner's equity is ________. A. $18 million B. $8 million C. $2 million D. $10 million

B. compute the return on the training investment.

In the evaluation phase of training, managers may do the following: A.conduct a needs assessment. B. compute the return on the training investment. C.consider the merits of lecture-based training. D.consider the benefits of massed versus spaced training.

C. pay for similar jobs within the organization.

Internal factors that correspond to pay in organizations include A. external salary surveys. B. typical pay levels for the occupation. C. pay for similar jobs within the organization. D. pay for jobs in industry.

B. diversification

International trade can lower a country's risk by enabling it to trade with multiple countries. This concept is known as ________. A. absolute advantage B. diversification C. global competition D. comparative advantage

A. operating activities

On the Statement of Cash Flows, the revenues received by a company are considered ________. A. operating activities B. expense activities C. financing activities D. investing activities

A. investing

On the Statement of Cash Flows, the sale or purchase of property is an example of ________ activities. A. investing B. financing C. operating D. expense

A. a good method of providing applicants with a realistic job preview.

Relying on referrals from existing employees to reach new job applicants is A. a good method of providing applicants with a realistic job preview. B. detrimental to the performance of the organization. C. a problem because applicants are given a biased job preview. D. extremely costly to organizations.

the government agency that creates, updates, and enforces the rules of accounting for publicly traded companies

SEC

True

Safety or environmental regulations often serve as non-tariff barriers to trade. True False

To protect investors, maintain fair, orderly and efficient markets and facilitate capital information

Security and Exchange Commission

C. people

Strategies that capitalize on ________ can result in high-performance work systems. A. products B. profits C. people D. costs

D. more valid than

Structured interviews are ________ unstructured interviews. A. more biased than B. more subjective than C. less valid than D. more valid than

B. The employees who lost their jobs were harmed by the company's actions, and it is possible that other stakeholders were as well.

Suppose a company attempts to improve its financial performance by downsizing its operations. As a result of this downsizing, some of the company's employees lose their jobs. However, the company does become more profitable. Which of the following statements is true? A. All of its stakeholders benefited from the company's actions. B. The employees who lost their jobs were harmed by the company's actions, and it is possible that other stakeholders were as well. C. The employees who lost their jobs were the only stakeholders who were harmed by the company's actions. D.None of the company's stakeholders benefited from its actions.

D. employees 40 years and older.

The Age Discrimination in Employment Act protects A. younger employees. B. all employees, regardless of age. C. organizations from having to hire workers over 60. D. employees 40 years and older.

A. FASB

The ________ is the group that works with the SEC to help with create, update and enforce the rules of accounting in the United States. A. FASB B. Legislature C. IASB D. IRS

B. sole proprietorship

The ________ is the most common form of legal business organization in the United States. A. partnership B. sole proprietorship C. corporation D. limited liability company

D. Organizations can access internal employees' performance appraisals, which can help them make informed decisions.

The following statement regarding hiring from within an organization is true: A. Unlike external hires, internal hires will need to be trained on company processes and goals. B. internal promotions are viewed negatively. C.Internal promotions are generally frowned upon in organizations. D. Organizations can access internal employees' performance appraisals, which can help them make informed decisions.

Assets= liabilities + owners equity

The fundemental equation is

C. International Accounting Standards Board

The international equivalent to the Financial Accounting Standards Board is the ________. A. International Financial Accounting Association B. Internal Revenue Service C. International Accounting Standards Board D. Securities and Exchange Commission

D. foreign direct investment

The most committed, risky, and expensive way to access a foreign market is ________. A. international franchises B. international strategic alliances C. international joint ventures D. foreign direct investment

C. Generally Accepted Accounting Principles

The set of standards that govern accounting in the United States are known as ________. A. the Financial Accounting Standards Board B. the Securities and Exchange Commission C. Generally Accepted Accounting Principles D. Certified Public Accountant Standards

C. It ensured the independence of the audit process by placing restrictions on the relationship between auditors and a firm.

What did the Sarbanes-Oxley Act of 2002 do? A.It created a timeline for companies in the United States to conform with International Financial Reporting Standards. B. It created the Financial Accounting Standards Board and required that all companies in the United States prepare their financial statements in accordance with those standards. C. It ensured the independence of the audit process by placing restrictions on the relationship between auditors and a firm. D. It defined the steps of the accounting cycle.

A.What the competition is doing.

When faced with an ethical challenge, a person in an organization must respond to the challenge in a way that is consistent with all of the following, except A.What the competition is doing. B.Her own ethical values. C.The legal environment in which the organization operates. D.Her organization's ethical code.

C. if they will be able to get away with their actions.

When faced with an ethical dilemma, people should consider all of the following, except A.if they would like to have someone treat them that way. B. if the action is legal. C.if they will be able to get away with their actions. D.if they would want to hide their actions.

B. relativism

When people in some societies consider corruption acceptable due to the norms within their societies, they are applying ethical ________. A. universalism B. relativism C. rationalization D. utilitarianism

D. It may be different from the code of ethics of another firm in the same industry.

Which if the following statements about a firm's code of ethics is true? A. It does not apply to everyone in the organization. B. It should not be communicated to people outside of the company, because that creates unreasonable expectations on the part of customers. C.It should be modified frequently, because what is considered ethical is always changing. D. It may be different from the code of ethics of another firm in the same industry.

B. knowledge, abilities, skills, and other characteristics

Which of the following are examples of an employee's job qualifications? A. race, religion, and color B. knowledge, abilities, skills, and other characteristics C. national origin, gender, and sexual orientation D. age, disability status, and personality

D. Manufacturing moves to the country with the fewest environmental regulations.

Which of the following best describes a "race to the bottom" in reference to a pollution haven? A.Manufacturing moves to the country with the cheapest labor. B.Manufacturing moves to countries with the highest environmental standards to receive positive press. C.Manufacturing moves based on comparative advantage. D. Manufacturing moves to the country with the fewest environmental regulations.

D. Anything owned of value by a company

Which of the following best describes a company's assets? A. Anything owed to non-owners B. Anything owed to owners C. The total profit of a company D. Anything owned of value by a company

A. lower income inequality

Which of the following is not a benefit of global trade? A. lower income inequality B. access to more markets C. exposure to new product ideas D. exposure to new technology

A. collecting funds from customers

Which of the following is not a step in the accounting cycle? A. collecting funds from customers B. bookkeeping C. creating a journal where all transactions are recorded D. preparing a trial balance

D. Adhering to U.S. government requirements

Which of the following is not a vital role for managerial accountants? A. Preparing forecasts B. Preparing budgets C. Cost accounting D. Adhering to U.S. government requirements

B. High costs

Which of the following is not an important type of cost within cost accounting? A. Opportunity costs B. High costs C. Fixed costs D. Variable costs

A. People face ethical dilemmas, because the proper course of action is not always clearly defined.

Which of the following statements about ethical dilemmas is true? A. People face ethical dilemmas, because the proper course of action is not always clearly defined. B. Employees whose companies have ethical codes do not face ethical dilemmas. C. Ethical dilemmas do not really exist, because there is always an obvious difference between what is right and what is wrong. D. Only people who act unethically face ethical dilemmas.

D. Only general partners have input into business operations, but limited partners have limited liability.

Which of the following statements best describes crucial differences between general and limited partners? A. Only limited partners have input into business operations, but both have a degree of limited liability, B. Only general partners have input into business operations, but both have a degree of limited liability, C. Both general and limited partners have input into business operations, but only limited partners face limited liability. D. Only general partners have input into business operations, but limited partners have limited liability.

B. An S corporation is taxed like a partnership, while a C corporation faces double taxation.

Which of the following statements correctly describes the difference between the way S corporations and C corporations are taxed? A. An S corporation faces double taxation, while a C corporation is a nonprofit that pays no taxes. B. An S corporation is taxed like a partnership, while a C corporation faces double taxation. C. An S corporation is taxed like a partnership, while a C corporation faces varying tax responsibilities. D.An S corporation is a nonprofit that pays no taxes, while a C corporation faces double taxation.

C. To maintain competition between companies

Why does the government oversee and regulate mergers and acquisitions? A. To ensure maximum profits B. To slow down the process C. To maintain competition between companies D. To control economic growth

A. Exports

_______ are products produced abroad and bought domestically. A. Exports B. Imports C. Strategic alliances D. Franchises

D. Contract manufacturing

________ allows a company to access international markets by simply allowing a foreign company the ability to produce its product. A. Foreign direct investment B. Exporting C. International franchising D. Contract manufacturing

C. International joint ventures

________ are a special type of partnership between two or more companies in different countries that share many parts of the business, including technology, costs, profits, and risks. A. International strategic alliances B. Foreign franchises C. International joint ventures D. Foreign licenses

C. Revenues

________ are the total money received by a company during a given time period due to business activities. A. Assets B. Retained earnings C. Revenues D. Expenses

B. Trade alliances

________ have lowered the trade barriers for some previously non-tradable products. A. Advances in technology B. Trade alliances C.Fewer quotas D. Lower tariffs

A. Absolute advantage

________ refers to the idea that one country is more productive than another. A. Absolute advantage B. Comparative advantage C. Franchising D. Licensing

preparing trial balance, journaling, bookkeeping

accounting cycle

a legal entity created and recongnized by state law with assets and liabilities separate from those of its owners

corporation

the branch of accounting that focuses primarily on the needs and requirements of external stakeholders

financial accounting

importance of overall trade in a country is measured by...

imports plus exports as a share of gdp

long term

international joint ventures

short term

international strategic alliances

has no say in business operations

limited partner

the branch of accounting that centers on the needs of internal stakeholders

managerial accounting

to put financial records into context is a process known as...

ratio analysis

a type of accounting systems that are very specific and detailed are known to be

rule based