TEST

"A company manager is making a decision concerning promotional strategy. What managerial accounting technique can assist in the implementation phase of her decision-making process? A. Budgeting expected revenue B. Recording and classifying transactions C. Comparing results to the budget D. Representing plans financially "

". B Recording and classifying transactions. Managerial accounting can aid in the implementation phase of a decision-making process through the practice of recording and classifying transactions. For example, if a payment is made to a designer, the payment will be recorded and classified for future reference. Budgeting expected revenue is a managerial accounting technique that would assist during the planning stages of the decision-making process. Comparing results to the budget would occur during the evaluation stage of the decision-making process. Representing plans financially is manifested in the budget and other reports that are completed during the planning phase, rather than during implementation. SOURCE: FI:660 SOURCE: Datar, S.M., & Rajan, M.V. (2014). Managerial accounting: Making decisions and motivating performance (p. 11). Upper Saddle River, NJ: Pearson Education."

"Communication among coworkers and supervisors should be A. an opportunity for feedback. B. an optional formality. C. contained in one meeting. D. saved for individual performance reviews. "

"A An opportunity for feedback. Staff communication should not be a one way street. Maintaining open lines of communication in a business setting is important, and employees need to feel comfortable giving feedback to their coworkers and supervisors. Staff communication is not an optional formality; it's a crucial part of running a successful business. It should be continual, not saved for individual performance reviews or contained in one meeting. SOURCE: CO:014 SOURCE: Go2. (2013). Speak easy: The importance of ongoing employee communication. Retrieved September 15, 2017, from https://www.go2hr.ca/articles/speak-easy-importance-ongoingemployee-communications"

"To contribute to a discussion in a useful way, you should avoid A. blurting out statements without thinking. B. stating opinions and stick to the facts. C. talking about what's on your mind. D. paying attention when others are speaking. "

"A Blurting out statements without thinking. To contribute to a discussion in a useful way, you should think about what you want to say before speaking. Make sure that you state accurate information and that you don't say something in a way that is offensive to others. You should communicate facts and express opinions when appropriate. You should talk about what's on your mind. And, you should pay attention when others are speaking. SOURCE: CO:053 SOURCE: Lehman, C., & DuFrene, D. (2011). Business communication (16th ed.) [pp. 332-338]. Mason, OH: South-Western."

"Information management can be a challenge because the business world is A. constantly changing. B. suffering from a lack of information. C. not open to new technology. D. completely dependent on paper files. "

"A Constantly changing. Information management can be a challenge because the business world is constantly changing. Companies can't sit back and assume their current programs will continue to fit the bill. They must stay alert to information management needs and trends and be willing to adjust accordingly. Business technology is always changing, and companies' information is often electronic rather than paper. Employees often suffer from too much information, known as information overload. SOURCE: NF:110 SOURCE: LAP-NF-110—In the Know (Nature of Information Management)"

"Which of the following businesses best represents an innovative entrepreneurial endeavor: A. Developing a new wood-cutting device to sell B. Buying a small boutique coffee shop C. Opening a brand new sushi franchise D. Running a trendy online clothing store "

"A Developing a new wood-cutting device to sell. An innovative entrepreneurial endeavor is one that involves creating or inventing something new to sell in the marketplace, such as a new wood-cutting device. A coffee shop, a sushi franchise, and a trendy online clothing store all sell commonly known products and are not examples of innovative endeavors because nothing new is being developed or invented. SOURCE: EN:039 SOURCE: Burrow, J.L. (2012). Marketing (3rd ed.) [pp. 587-588]. Mason, OH: South-Western Cengage Learning."

"When preparing a statement of equity, what does a business deduct from its total net income to obtain its retained earnings? A. Dividends paid B. Depreciation of assets C. Sales tax payable D. Bad debt "

"A Dividends paid. Retained earnings are the income that a corporation keeps after paying dividends to its stockholders. This amount, which includes any forwarding balance of retained earnings from the previous accounting period, is reported on the company's statement of equity, which is also called the statement of retained earnings. The depreciation of assets, sales tax payable, and bad or uncollectible debt are not included on the statement of equity. SOURCE: FI:630 SOURCE: Peavler, R. (2017, March 17). What is a statement of retained earnings? Retrieved September 15, 2017, from http://bizfinance.about.com/od/yourfinancialposition/tp/Statement_Retained_Earnings.htm"

"The business manager tried to write a promotional letter that was simple, clear, and interesting so that customers who received it would A. easily understand it. B. need to read it many times. C. find it entertaining. D. ask what it really meant."

"A Easily understand it. Effective written communications are those that are presented clearly, in simple language, and in an interesting style so that readers will easily understand the message. Written business messages do not need to be entertaining. When written communications are unclear, complicated, or difficult to understand, readers tend to lose interest and ignore them. Readers should not have to read written communications many times to find out what they really mean. SOURCE: CO:016 SOURCE: Lehman, C., & DuFrene, D. (2011). Business communication (16th ed.) [pp. 179-188]. Mason, OH: South-Western."

"Unethical actions typically lead to an increase in A. financial risk. B. stock values. C. sales revenue. D. positive customer relations. "

"A Financial risk. Businesses that exhibit unethical behavior expose themselves to increased financial risk through lost productivity, fines, employee turnover, and more. Unethical behavior often leads to decreased sales, because customers prefer to buy from companies they perceive as ethical. Unethical actions typically lead to a negative public image among customers. Stock values often decrease as a result of declining sales revenue and a diminished public image. SOURCE: EC:106 SOURCE: LAP-EC-106—On the Up and Up (Business Ethics)"

"Stocks in which of the following industry sectors are least likely to be affected by changes in the business cycle: A. Healthcare B. Energy C. Technology D. Capital goods "

"A Healthcare. Healthcare, food, drink, and tobacco are generally considered to be non-cyclical industries, meaning that they are not greatly impacted by changes in the business cycle. The demand for such products and their stocks remains fairly steady regardless of the stage of the business cycle. Stocks in industry sectors such as energy, technology, and capital goods, on the other hand, often change in response to changes in the business cycle. The energy sector is affected by supply and demand of energy around the world, and political unrest can impact the industry considerably. Energy stocks seem to perform best late in the business cycle. Technology stocks are also affected by the business cycle, often in direct relation to the demand for capital goods. Technology stocks and capital goods stocks do well during business cycle expansion. SOURCE: FI:574 SOURCE: Moffatt, M. (2016, May 12). A beginner's guide to economic indicators. Retrieved September 18, 2017, from http://economics.about.com/cs/businesscycles/a/economic_ind.htm"

"When Penny started her job, she believed that lying was completely wrong. However, after two years, she has started to exaggerate financial projections and now believes that lies are only wrong when they cause direct harm. This is an example of A. incrementalism. B. self-interest. C. obedience to authority. D. conformity. "

"A Incrementalism. Incrementalism is the diminishing of ethical values over time. Penny's ethical standards have decreased over time. She might have once thought she would never exaggerate financial projections, but now she does it frequently and does not believe it is wrong. Self-interest is looking out for your own wellbeing and acting accordingly. Obedience to authority is the tendency to please authority figures and go along with them. Conformity is the tendency to behave in the same way that everyone else does, rather than exercising our own judgment. SOURCE: FI:355 SOURCE: LAP-FI-355—Money Morals (The Role of Ethics in Finance)"

"The best way for businesses to communicate with customers is to A. listen respectfully. B. rent billboards on major highways. C. send direct mail. D. give as much information as possible. "

"A Listen respectfully. The best way for businesses to communicate with customers is to listen respectfully. Customers have a lot of useful information to give businesses if they will listen. Renting billboards, sending direct mail, and providing information about the business are all forms of communication, but none is as valuable as listening. SOURCE: CR:003 SOURCE: LAP-CR-001—Accentuate the Positive (Nature of Customer Relations)"

"In business, economic downturns and technological changes are likely to cause businesses to A. make changes of their own. B. hire unskilled workers. C. expand their operations. D. resist beneficial changes."

"A Make changes of their own. Some outside changes create problems for businesses and make it necessary for them to make changes of their own. These may be changes in the organizational structure, workloads, or functions. Most successful businesses realize that change is a fact of life and that they should not resist changes that will benefit the company. Economic changes would only prompt the business to expand if the economic change is for the better. Technological changes would cause the business to hire more skilled workers with special training. SOURCE: EI:026 SOURCE: Quick Base. (2012, January 19). Being an adaptable leader is a new requirement. Retrieved September 15, 2017, from http://www.quickbase.com/blog/being-an-adaptable-leader-is-anew-requirement"

"Planning ahead and estimating the time it will take to complete your tasks will help you to A. manage your work commitments effectively. B. learn how to procrastinate. C. improve your technical skills. D. reduce your workload. "

"A Manage your work commitments effectively. By planning ahead and determining how long it will take you to complete your tasks, you can better manage your commitments. Planning your work helps you to avoid scheduling too many activities that are close together, which may cause you problems in maintaining commitments. Planning your workload also reduces procrastination, which is putting tasks off until the last minute. Training and practice, rather than planning ahead, will help you to improve your technical skills. Planning ahead and estimating the time it will take to complete various tasks will not reduce your workload, but will help you work more efficiently. SOURCE: EI:077 SOURCE: Birkinshaw, J., & Cohen, J. (2013, September). Make time for the work that matters. Retrieved September 15, 2017, from https://hbr.org/2013/09/make-time-for-the-work-thatmatters"

"A financial institution fails to comply with an important government regulation. The financial institution will most likely A. pay a fine. B. get a better reputation. C. gain new business. D. avoid an audit."

"A Pay a fine. Financial institutions often have to pay fines for noncompliance. Noncompliance does not typically lead to a better reputation or new business. In fact, clients may be reluctant to do business with a financial institution known for breaking the rules. Financial institutions can be audited by government agencies. SOURCE: BL:148 SOURCE: Maguire, A. (2015, January 30). The dangers of non-compliance for your business. Retrieved September 15, 2017, from http://quickbooks.intuit.com/r/hr-laws-and-regulation/the-dangersof-non-compliance-for-your-business"

"Gary believes that the upper class should pay a higher income tax rate than the middle and lower classes. What tax structure does Gary favor? A. Progressive B. Regressive C. Proportional D. Exclusive "

"A Progressive. Gary favors a progressive tax structure. A progressive tax structure is one in which those who earn more are required to pay a higher percentage of their income in taxes. In other words, as the income increases, the tax rate also increases. The U.S. income tax is a progressive tax. If using a regressive tax structure, people who earn more income pay a lower percentage of income in taxes. As income increases, the tax rate decreases. Sales and excise taxes are considered to be regressive taxes, because people with lower incomes ultimately pay a larger percentage of their income in sales and excise taxes. A proportional tax structure is one in which everyone pays the same percentage of income in taxes, regardless of income level. Few taxes are completely proportional in nature. Exclusive is not a type of tax structure. SOURCE: EC:072 SOURCE: LAP-EC-027—Pay Your Share (Business Taxes)"

"Banks limit their employees' and vendors' access to confidential financial information to A. protect their customers' privacy. B. maintain a safe working environment. C. safeguard cash drawers. D. ensure that collection procedures are followed"

"A Protect their customers' privacy. Businesses have an ethical responsibility to maintain the privacy of their customers' financial information. Businesses must take precautions to ensure that customers' credit information, bank accounts, and other types of financial data are kept confidential. To maintain confidentiality, businesses must develop and implement security policies. These policies may restrict the employees' access to customers' financial information. Maintaining a safe work environment involves physical safety. Safeguarding cash drawers is a security issue rather than privacy issue regarding information. Collection procedures are the steps that employees take to collect money from others. SOURCE: FM:003 SOURCE: Kothari, J. (2010). Conceptual framework for financial reporting. Retrieved September 15, 2017, from http://catalogue.pearsoned.co.uk/assets/hip/gb/hip_gb_pearsonhighered/samplechapter/Kot hariCh2.pdf"

"What is an advantage of setting ideal standards? A. Provide a lofty goal for employees to strive for B. Recognize that errors can occur in production C. Reduce the frustration associated with easily attainable goals D. Allocate time for re-work when errors occur"

"A Provide a lofty goal for employees to strive for. Some businesses challenge employees by setting ideal standards—standards that are or are almost unattainable because they're set so high. They identify the quantity and quality of output that can occur if no mistakes or errors occur and if workers do not need to rest. These businesses feel that these standards help employees to strive to achieve more than they would if attainable standards were set. Although some workers are challenged by the lofty goals, others question why they should bother with the work since the standards can't be reached. SOURCE: FI:662 SOURCE: Crosson, S.V., & Needles, B.E. (2014). Managerial accounting (10th ed.) [p. 218]. Mason, OH: South-Western Cengage Learning. "

"Which of the following budgeting software applications tracks a business's cash, interest, and dividends: A. Revenue recognition B. Workflow management C. Inventory planning D. Capital expenses"

"A Revenue recognition. The primary function of budgeting software is to help a business forecast and monitor income and expenses for all of its functions, including sales, promotion, production, payroll, etc. Advanced software can generate different types of reports by integrating financial data from a variety of sources (e.g., cash flows) to help the business make decisions about how to best manage its money. Because an important aspect of budgeting involves knowing how much money the business has at any given time, revenue recognition applications help the business track various sources of revenue. Analyzing the amount of revenue available helps the business determine how to allocate funds to cover its various cash outflows, such as capital expenses, inventory purchases, and operating (e.g., workflow) expenses. SOURCE: FM:013 SOURCE: Centage Corporation. (2001-2014). Compare Budget Maestro budgeting software products. Retrieved September 15, 2017, from http://centage.com/Products/Editions/Budget-MaestroCompare.asp"

"Joan borrowed $10,000 from a relative to start her own business. Assuming she takes all responsibility for the company's financial risks, the company is most likely a A. sole proprietorship. B. limited partnership. C. corporation. D. partnership. "

"A Sole proprietorship. A sole proprietorship is owned and operated by one individual. Although Joan obtained a loan, she is still the sole owner/operator. A partnership is owned and operated by two or more people. A limited partnership exists when some (but not all) partners have limited legal liability for the business. A corporation is a form of business ownership in which the business is owned by stockholders who have purchased shares of stock. SOURCE: BL:003 SOURCE: LAP-BL-001—Own It Your Way (Types of Business Ownership)"

"The overall objective of workers who form labor unions is to A. strengthen their bargaining power. B. obtain reasonable working hours. C. promote better working conditions. D. obtain fair wages. "

"A Strengthen their bargaining power. Workers want better wages, working conditions, and hours, but they have no real power as individuals to bargain effectively with management for these things. Banding together in a union gives them this power. SOURCE: EC:015 SOURCE: LAP-EC-005—Get United (Organized Labor)"

"Which of the difficult customer types may become your best and most loyal customer, once they learn to trust you? A. Suspicious B. Dishonest C. Disagreeable D. Slow/Methodical "

"A Suspicious. Suspicious customers only want the facts, and they don't like being pushed. Once you gain their confidence and trust, you will have a customer for life. Dishonest customers may steal goods or purchase items, use them, and return them for a full refund, if they can get away with it. Disagreeable customers are negative, quick tempered, and may never be your best customer. Slow/Methodical customers generally need help to feel comfortable about buying a good/service each time they go shopping. SOURCE: CR:009 SOURCE: LAP-CR-009—Making Mad Glad (Handling Difficult Customers)"

"In a document released to stakeholders, Truman Enterprises summarized the overall performance of the organization by evaluating economic, environmental, and social factors. Truman Enterprises developed a(n) A. sustainability report. B. mission statement. C. executive summary. D. action plan. "

"A Sustainability report. Sustainability reporting looks beyond the business's financial data and summarizes its position in terms of social responsibility—its governance practices, commitment to stakeholders, and the economic effect on the natural environment and community at large. A business that uses all of its resources responsibly and has a positive effect on the external environment is more likely to be sustainable—in a position to continue operating long-term. Existing and potential stakeholders often review a business's sustainability report when making investment decisions because they do not want to invest in a company that is not sustainable. A mission statement is a brief summary of what the business owner wants a business to be doing—it defines the business's overall purpose. An executive summary is the component of a complex report that summarizes the key points of the entire document. An action plan documents the methods in which a business will carry out a project or activity. SOURCE: FM:016 SOURCE: Global Reporting Initiative. (2011). Sustainability reporting guidelines: The purpose of a sustainability report. Retrieved September 15, 2017, from https://www.globalreporting.org/resourcelibrary/G3.1-Guidelines-Incl-Technical-Protocol.pdf"

"Businesses usually invest in A. themselves. B. bonds. C. stocks. D. real estate. "

"A Themselves. Businesses invest money just as individuals do, with the hope for a healthy return. Often, businesses invest back into themselves by researching and developing new products, purchasing the latest and most efficient technologies, expanding into new markets, etc. They may also invest in stocks, bonds, or real estate, but putting money back into the company is the most common form of business investment. SOURCE: FI:077 SOURCE: LAP-FI-077—Invest for Success (Types of Investments)"

"What activity does accounting software help businesses do? A. Track credit transactions B. Place orders for raw materials C. Create and play AV media D. Create virtual situations "

"A Track credit transactions. Accounting software programs allow businesses to efficiently track various financial data and generate financial reports. Accounting software tracks bank and credit transactions, generates invoices, and maintains tax information. Some accounting software programs have inventory applications. Inventory software applications are used to track various types of stock, including office supplies, raw materials, and resale items. Multimedia software is used to create and play audio and video media. Simulation software applications are used to create virtual situations that are similar to real-life situations, such as aircraft-flight simulations. SOURCE: FI:352 SOURCE: Shanker, S. (n.d.). Information on accounting and information technology. Retrieved September 15, 2017, from http://www.ehow.com/about_6603681_information-accountinginformation-technology.html"

"What is an example of an internal stock information resource? A. The Value Line Investment Survey® B. A company's annual report C. Brokerage firm research D. A financial website portal "

"B A company's annual report. A company's annual report is an example of an internal source, because it comes from the company itself. The Value Line Investment Survey®, brokerage firm research, and financial web portals are all examples of external stock information resources. SOURCE: FI:274 SOURCE: Madura, J., Casey, M., & Roberts, S. (2014). Personal financial literacy (2nd ed.) [pp. 268- 278]. Upper Saddle, NJ: Pearson."

"Which of the following is a question you should ask yourself when determining whether you're facing an ethical dilemma: A. Which choice sounds more enjoyable? B. Are ethical principles being violated? C. Is one decision more difficult? D. Could someone be punished? "

"B Are ethical principles being violated? When determining whether you're facing an ethical dilemma, you should ask yourself, "Are ethical principles being violated?" The other three alternatives are not questions that determine whether or not you are facing an ethical dilemma. SOURCE: EI:125 SOURCE: LAP-EI-125—Make the Right Choice (Recognizing and Responding to Ethical Dilemmas)"

"Which of the following is an action of a person who is fair: A. Gets her/his own way all the time B. Balances her/his needs with those of others C. Pursues vengeance D. Makes sure no one takes away her/his rights"

"B Balances her/his needs with those of others. A person who is fair balances her/his personal needs with the needs of others. Fairness doesn't mean that we always get what we want. No one gets her/his own way all the time. Fairness is making sure that one person doesn't always win out over the other. Fairness also means pursuing justice rather than vengeance. People who are fair protect their rights, but not at the expense of others. SOURCE: EI:021 SOURCE: LAP-EI-021—Make the Honor Role (Acting Responsibly)"

"Which of the following is most likely to have a negative effect on financial markets: A. Interest rates fluctuate daily. B. Business expansion slows quickly. C. Unemployment rates stabilize steadily. D. Consumer spending increases consistently. "

"B Business expansion slows quickly. Slower business expansion is one factor that indicates an economic recession. When business productivity slows, there is less work for laborers. When there is less work for laborers, businesses tend to lay off employees, causing unemployment rates to rise. Unemployment leads to less consumer spending because the displaced workers do not have income available to buy goods and services, including financial products. Fluctuating interest rates do not always indicate problems with financial markets because slight daily fluctuations are normal. Increased consumer spending usually indicates that the economy is rebounding, that people are working, and that people have more money to invest in the financial markets. SOURCE: FI:574 SOURCE: Moffatt, M. (2016, May 12). A beginner's guide to economic indicators. Retrieved September 18, 2017, from http://economics.about.com/cs/businesscycles/a/economic_ind.htm"

"Cara hasn't met Joan, but she doesn't want to work with her. Cara believes that because Joan is an attractive blonde, she is probably dumb and won't do her share of the work. What does Cara need to learn about herself? A. Cara is a good judge of people. B. Cara stereotypes other people. C. Cara is open-minded and fair. D. Cara tolerates others' faults."

"B Cara stereotypes other people. A stereotype is a set image or an assumption about a person or thing. Stereotyping is believing that all the people in a particular group are alike or very similar. In this case, Cara believes that all blondes are dumb and lazy. She is not a good judge of people because her opinions of others are based on prejudice or bias. Stereotyping is often the result of a closed mind. It is unfair and creates problems for everyone because it makes people less tolerant of others. SOURCE: EI:017 SOURCE: LAP-EI-139—Don't Jump to Conclusions! (Recognizing and Overcoming Personal Biases and Stereotypes)"

"An individual or business can minimize capital losses on investment property by A. liquidating remaining assets. B. claiming the loss as a tax deduction. C. obtaining a long-term loan. D. renegotiating property insurance premiums. "

"B Claiming the loss as a tax deduction. The difference between the cost of an investment and the selling price of that same investment is either a capital gain or capital loss. The federal government taxes the capital gains on investments. If an investment suffers a loss in value in relation to its purchase price, the government allows the owner to claim the loss as a tax deduction. Liquidating remaining assets, obtaining a loan, and renegotiating lower insurance premiums may provide the investor with needed cash or savings, but these actions do not change or minimize the monetary loss on the investment property. SOURCE: BL:134 SOURCE: Internal Revenue Service. (2017, August 17). Capital gains and losses - 10 helpful facts to know. Retrieved September 15, 2017, from https://www.irs.gov/newsroom/capital-gains-andlosses-10-helpful-facts-to-know"

"The most environmentally friendly way for producers to respond to limited natural resources is by A. tapping the resources. B. conserving the resources. C. decreasing prices. D. increasing production. "

"B Conserving the resources. The most environmentally friendly way to make the most of limited resources is to decrease (conserve) the amount being used. Tapping the resources and increasing production would increase usage. When resources are scare and demand is high, prices tend to increase rather than decrease. SOURCE: EC:003 SOURCE: LAP-EC-014—Be Resourceful (Economic Resources)"

"Which of the following are examples of deposit-taking financial institutions: A. Commercial banks, corporations, and mutual savings banks B. Credit unions, savings and loan associations, and commercial banks C. Savings and loan associations, mutual savings banks, and insurance firms D. Commercial banks, credit unions, and brokerages "

"B Credit unions, savings and loan associations, and commercial banks. Deposit-taking financial institutions accept funds from customers (depositors) and pay interest on the funds. Credit unions, commercial banks, savings and loan associations (banks), and mutual savings banks are types of deposit-taking financial institutions. A corporation is a form of business ownership that is owned by stockholders who have purchased units or shares of the company. Brokerages are financial intermediaries that sell securities. Insurance firms sell insurance and securities. Corporations, brokerages, and insurance firms are not types of deposit-taking financial institutions. SOURCE: FI:336 SOURCE: Investopedia. (2015). Introduction—Types of financial institutions and their rates. Retrieved September 15, 2017, from http://www.investopedia.com/walkthrough/corporatefinance/1/financial-institutions.aspx "

"Customer Relationship Management (CRM) processes should support the basic steps of the __________ cycle. A. accounting B. customer life C. customer complaint D. business"

"B Customer life. The basic steps of the customer life cycle involve attracting current customers, acquiring new customers, serving the customers, and retaining the customers. The accounting cycle begins when a sale is made and ends when the books are closed in accounting. Business cycles are the rise and fall in economic activity that businesses experience. Customer complaint cycle is a fictitious term. SOURCE: CR:024 SOURCE: CRMsolution.com. (n.d.). CRM software strategy: Sample CRM objectives. Retrieved September 15, 2017, from http://www.crmsolution.com/crm-strategy.html"

"In the past 20 years, Country X has reformed its trade policies and currency exchange rate system. As a result, foreign investment is increasing, and the country's business activity and gross domestic product is rapidly growing. This is an example of a(n) A. integrated financial market. B. emerging market economy. C. recession-proof economy. D. industrial-based market. "

"B Emerging market economy. Emerging markets are growing markets (e.g., stock, bond, commodities, etc.) that result when a country initiates reforms that move it from a closed economy to an open or market economy. An integrated financial market involves a market with barrier-free financial flow. An economic recession is a six-month contraction in the gross domestic product (GDP). Because circumstances change and many factors affect the health of an economy, economic systems are not recession-proof. An industrial-based market is a market in which businesses sell goods and services to industrial businesses. SOURCE: FI:575 SOURCE: Investopedia. (2015). Emerging market economy. Retrieved September 15, 2017, from http://www.investopedia.com/terms/e/emergingmarketeconomy.asp "

"When giving verbal instructions, you should always A. avoid eye contact. B. give concrete examples. C. provide written directions. D. use as many steps as possible. "

"B Give concrete examples. When giving verbal instructions, it's important to give concrete examples. This will ensure that your listeners will understand exactly what they're supposed to do. You should make eye contact with your listeners, not avoid eye contact. Information should be given in as few steps as possible. This makes it easier for your listeners to remember information and keep things straight. Although writing your directions can be helpful to your recipients, it may not always be practical. SOURCE: CO:083 SOURCE: Sweet, K. (2015). How to give verbal directions. Retrieved September 15, 2017, from http://www.ehow.com/how_2108584_give-verbal-instructions.html."

"As a new employee, you receive constructive criticism about your job performance. This criticism is designed to A. show your lack of ability. B. improve your ability to do the job. C. hurt and discredit you. D. demonstrate the supervisor's superior job knowledge. "

"B Improve your ability to do the job. Constructive criticism points out mistakes for the purpose of helping someone to improve. It is your responsibility to accept the criticism and to improve your job performance. Showing you your lack of ability, demonstrating the supervisor's superior job knowledge, or trying to hurt or discredit you are examples of destructive criticism. SOURCE: EI:003 SOURCE: LAP-EI-015—Grin and Bear It (Using Feedback for Personal Growth)"

"Brittanie's coworker asks her a question about a software program. Brittanie isn't familiar with the program, so she can't answer the question. Brittanie has a A. prejudice. B. knowledge gap. C. viability problem. D. bias. "

"B Knowledge gap. Brittanie has a knowledge gap—something she simply doesn't know. It isn't a bias or prejudice—preconceived idea about something or someone. And, it isn't necessarily a viability problem— an issue with the long-term value of Brittanie's choices. She can learn about the program or help her coworker find a person who can answer the question. SOURCE: EI:137 SOURCE: LAP-EI-137—Choose for the Future (Assessing the Long-Term Value and Impact of Actions on Others)"

"Over the years, Splash-O-Rama Water Park has worked hard to develop and maintain an image of a fun and friendly entertainment venue for families. What action can the front-line employees take to maintain this image? A. Arrive an hour after the park opens to ensure that the park is clean and ready for business. B. Learn where activities are located in the park to answer visitors' questions courteously. C. Develop a public relations campaign to reinforce the park's commitment to the community. D. Print flyers to hand out at the entrance that lists the park's daily activities and shows. "

"B Learn where activities are located in the park to answer visitors' questions courteously. Businesses work hard to develop and maintain a certain brand or image in the minds of their customers. Employees are touch points that help the business reinforce that image by the ways in which they conduct their work. Front-line employees (e.g., ticket takers, concession workers, ride operators) should greet the customers pleasantly and be able to direct them to various park services. So employees understand what is expected of them, management should communicate and train the employees and familiarize them with the park. Front-line employees may hand out brochures, but they usually do not print them. The public relations function carries out public relations activities. Designated employees will arrive at the park before it opens to perform pre-opening duties. SOURCE: MK:015 SOURCE: LAP-MK-002—Act Now! (Employee Actions and Company Goals) "

"The primary purpose of managerial accounting is to provide accurate data about a business's activities that help internal users A. control external factors. B. make informed decisions. C. obtain necessary loans. D. understand corporate policies. "

"B Make informed decisions. Managerial or cost accounting involves obtaining and analyzing data about a business's activities (e.g., financial), which the business's employees use to make decisions. For example, managerial accounting information might reveal that sales are lower than anticipated and overhead is higher than expected for a specific time period. The appropriate employees can use the information to make decisions to help the business get back on track (e.g., cut unnecessary costs, increase efficiency). Businesses can monitor external factors, but cannot control them. Obtaining a loan might be a decision that a business makes as a result of the managerial accounting information it obtains. Not all businesses are legally established as corporations, so the primary purpose of managerial accounting is not to help employees understand corporate policies, which is usually a human resources function. SOURCE: FI:657 SOURCE: Investopedia. (2017). Managerial accounting. Retrieved September 27, 2017, from http://www.investopedia.com/terms/m/managerialaccounting.asp"

"The yen, peso, and euro are types of A. bonds. B. money. C. stock. D. dollars. "

"B Money. Money is the most common medium of exchange. Countries use different forms of currency. For example, the Japanese use the yen, Mexico uses the peso, many European countries use the euro, and the United States and Canada use the dollar. A bond is a lending security, and stock is an ownership security. SOURCE: FI:059 SOURCE: Phelps, C. (1999-2012). Types of foreign currency. Retrieved September 15, 2017, from http://www.ehow.com/about_5349743_types-foreign-currency.html"

"What often happens to businesses when interest rates rise? A. Consumer demand increases. B. Output decreases. C. Profits increase. D. Cost of goods decreases. "

"B Output decreases. Interest is the money payments for the use of borrowed money. Payment amounts vary when interest rates change. When interest rates rise, the economy often experiences a decline in consumer demand, in consumer spending, in job growth, and in output. Output refers to the goods and services produced as the result of combining inputs—an output is a product available for sale. Output decreases because product demand and consumer spending decrease when interest rates rise. High interest rates do not necessarily result in higher profits for businesses or mean that the costs of goods decrease. SOURCE: EC:084 SOURCE: Economics Help. (2016). Effect of raising interest rates. Retrieved September 15, 2017, from www.economicshelp.org/macroeconomics/monetary-policy/effect-raising-interest-rates"

"Andrew received an official-looking email that appeared to be from a government agency. The message requested that Andrew reply immediately to the email and provide his bank account information and credit card account numbers. Fortunately, Andrew found out that the message was fraudulent before he provided the information. What illegal activity does this situation exemplify? A. Ponzi scheme B. Phishing C. Affinity fraud D. Accounting fraud "

"B Phishing. Phishing is an online identity theft scam that fools its victims into believing they are submitting sensitive, personal information such as bank or credit card numbers to a legitimate website. A Ponzi scheme is an investment scam that lures new investors by promising high rates of return with little to no risk. Accounting fraud occurs when a company or organization knowingly publishes incorrect information on its financial statements. Affinity fraud is an investment scam in which the scammer claims to be a member of the group s/he is targeting. By claiming to be a member of the group, the target audience is more likely to trust the scammer and turn over its money to him/her. SOURCE: BL:133 SOURCE: Clark, B., Basteri, C.G., Gassen, C., & Walker, M. (2014). Marketing dynamics (3rd ed.) [pp. 89-90]. Tinley Park, IL: Goodheart-Willcox"

"To participate effectively in a staff meeting, you should A. bring up any personal concerns so that they can be discussed with the group. B. read important documents and do research ahead of time so you're prepared. C. answer emails during slow points so you don't waste any company time. D. share your opinion on each topic discussed so your manager knows you're paying attention. "

"B Read important documents and do research ahead of time so you're prepared. The most important way to participate in a staff meeting is by making sure you're prepared! Read any necessary documents and do research if needed. Personal concerns should not be brought up in staff meetings; instead, bring these up in private meetings with your manager. Although you may be tempted to respond to emails or check your phone during any slow points in the meeting, it's important to pay attention. Even if you don't know much about the topic everyone else is discussing, listen politely. You don't need to share your opinion about everything being discussed. You don't want to dominate the conversation—give someone else a chance to speak! Quietly listening is appropriate and polite. SOURCE: CO:063 SOURCE: Ashe-Edmunds, S. (n.d.) Six tips on how to participate in a meeting. Retrieved September 15, 2017, from http://work.chron.com/six-tips-participate-meeting-2014.html"

"Which of the following statements about following directions is true: A. Most people don't need to ask questions about directions. B. Restating directions in your own words helps clarify them. C. Hearing directions is the same as listening to them. D. You should avoid taking notes while listening to directions"

"B Restating directions in your own words helps clarify them. When you restate the directions, the person giving the directions can correct any misunderstanding you may have had about what you are to do. Listening is more than hearing. Listening is an active behavior that involves understanding, evaluating, and responding to what is being said. Asking questions and taking notes will also help you to understand and to follow directions accurately. SOURCE: CO:119 SOURCE: Lehman, C., & DuFrene, D. (2011). Business communication (16th ed.) [p. 327]. Mason, OH: South-Western."

"Which of the following is one of the main components of an income statement: A. Assets B. Revenue C. Taxes D. Liabilities"

"B Revenue. Revenue is the money received by resource owners and by producers for supplying goods and services to consumers. Revenue is an important component of an income statement because it indicates the total amount of money a business earns from all sources such as sales, interest, and dividends. A business's revenue should exceed its expenses in order for the business to make a profit. Taxes are calculated on the net income determined by the income statement. Assets are anything of value that a business owns. Liabilities are debts that a business owes. SOURCE: FI:094 SOURCE: LAP-FI-004—Watch Your Bottom Line (Income Statements)"

"Avoiding the use of slang falls under which guideline for dealing effectively with people from different cultures? A. Show respect. B. Strive to communicate clearly. C. Expect differences to arise. D. Be patient. "

"B Strive to communicate clearly. Avoiding the use of slang is a way to communicate more clearly with those from other cultures, who might not understand the hidden meaning of the words. This is a communication issue, not necessarily an issue of respect, patience, or expecting differences to arise. SOURCE: EC:045 SOURCE: LAP-EC-045—On Top of the World (Impact of Culture on Global Trade)"

"When writing an email to your coworkers, you should always A. use all capitals to get important points across. B. write "please" and "thank you" when necessary. C. make sure your message is as long as possible. D. put your main point in your last paragraph. "

"B Write "please" and "thank you" when necessary. It's important to be polite when writing professional emails. This means using "please" and "thank you" when necessary. You should avoid using all capitals, as this can make your recipient(s) think that you are angry. Your email should be brief, not as long as possible. You should get to your main point immediately, as some recipients may not read your entire email. SOURCE: CO:090 SOURCE: Gillett, R., & Smith, J. (2016, September 7). 19 unprofessional email habits that make everyone hate you. Retrieved September 15, 2017, from http://www.businessinsider.com/bad-email-habits-that-make-you-look-unprofessional-2016- 9/#-2"

"Which of the following statements regarding the financial-information management function is true: A. The financial-information management function's responsibilities have declined in recent years. B. The financial-information management function is an electronic, web-based activity. C. A financial-information management system can be used to support operations management decisions. D. Data in a financial-information management system are typically at least four-to-six months old. "

"C A financial-information management system can be used to support operations management decisions. Operations managers might use a financial-information management system to determine operating efficiency, manage inventory, or evaluate key suppliers. Although technology is an integral part of financial-information management function, it is not the only part. The financial-information management function involves people, processes, and equipment/technology. Due to increased compliance requirements, the financial-information management function's responsibilities have increased in recent years. Much more data must be maintained by the financial-information management system for longer periods of time as a result of new laws and regulations. Data in a financial-information management system should be current. In many situations, decision makers need to know what is happening right now, not what happened months or even years ago. SOURCE: FM:002 SOURCE: Dlabay, L.R., Burrow, J.L., & Kleindl, B.A. (2012). Principles of business (8th ed.) [pp. 294- 298]. Mason, OH: South-Western Cengage Learning. "

"A company purchases an expensive new software system and divides the cost of it between the two departments that will use the system. This is an example of cost A. dividing. B. accumulation. C. allocation. D. precision. "

"C Allocation. Cost allocation is the assignment of costs to cost objects, such as a project, a department, a customer, etc. The company in this example allocates the cost of its new software system to two departments. This is not considered cost accumulation, dividing, or precision. SOURCE: FI:663 SOURCE: Averkamp, H. (2004-2015). What is cost allocation? Retrieved September 15, 2017, from http://www.accountingcoach.com/blog/what-is-cost-allocation"

"Many nations have developed environmental regulations in order to encourage A. moral conduct. B. ethical behavior. C. conservation. D. industrialization. "

"C Conservation. Many nations have developed environmental regulations to conserve their natural resources by requiring businesses to control pollution, dispose of hazardous waste properly, and use nonrenewable resources wisely. These regulations set pollution standards that businesses must meet, establish rules for disposing of waste, encourage recycling, and monitor illegal dumping. Nations realize that natural resources are limited and must be conserved or renewed in order to be available for future generations. Nations did not develop environmental regulations to encourage ethical behavior or moral conduct, although some environmental regulations deal with ethical and moral issues. Industrialization is the changeover from producing goods by hand labor to the use of machines and the organization of such production into industries. SOURCE: BL:073 SOURCE: HG.org Legal Resources. (n.d.). Environment law—Environmental and natural resources law. Retrieved September 15, 2017, from http://www.hg.org/environ.html"

"During its 20 years of operation, the Normandy Company has made very few changes to its accounting methods and system. As a result, the company's financial information is likely to be very A. reliable. B. comparable. C. consistent. D. conservative. "

"C Consistent. Consistent financial information results from the application of similar or identical accounting methods and systems over time within an organization. The Normandy Company has applied very similar accounting methods over its 20 years of operation. Therefore, the company's financial information is likely to be consistent. However, consistent information is not necessarily comparable, reliable, or conservative. There is no way of knowing if the company's accounting methods are similar to those of other businesses in the industry, so the accounting information may not be comparable. Reliable information is accurate and unbiased. The Normandy Company, though, could easily have inaccurate financial information, even though it is consistent. Conservative financial information does not overstate assets and sales or understate liabilities and expenses. There is no indication that the Normandy Company's information is conservative. SOURCE: FI:579 SOURCE: LAP-FI-009—By the Numbers (The Need for Financial Information)"

"Irene has always kept and filed every piece of paperwork she receives. When she needs to find a specific document for her boss, Irene wastes hours looking through her filing cabinets before she finally finds it. What should Irene do to make her filing more efficient? A. Hire a new employee to handle her files. B. Store all of her documents virtually online. C. Create a system and keep only what she needs. D. Purge her old documents, throwing everything away. "

"C Create a system and keep only what she needs. Irene may think she's playing it safe by keeping every single piece of paperwork, but she's actually making her job much harder. When she keeps everything, it's more difficult to find the things she actually needs. This leads to frustration and wasted time. Irene should create a system to decide what she actually needs to keep and then toss all other documents. Although Irene may want to consider storing her documents virtually instead of physically, this wouldn't necessarily help her become more organized. While virtual storage wouldn't take up physical space, Irene could still waste just as much time searching through a mess of documents if she insists on saving everything. Irene doesn't need to hire a new employee to handle the filing; instead, creating a system will make Irene's files easier to use. Irene should resist purging all of her old documents—there are many things she'll need to keep, both for practical and legal reasons. SOURCE: NF:081 SOURCE: Lawson, S. (2009, May 6). Why IT should start throwing data away. Retrieved September 18, 2017, from http://www.pcworld.com/businesscenter/article/164457/article.html"

"One benefit of using technology in compliance is that technology is typically more __________ than maintaining manual compliance processes. A. time-consuming B. costly C. efficient D. error-prone"

"C Efficient. Technology can make compliance processes more efficient and effective. Manual compliance processes can be more costly, more time-consuming, and more error-prone. SOURCE: BL:149 SOURCE: PricewaterhouseCoopers. (2011). Integrating technology into your compliance program to improve effectiveness and efficiency. Retrieved September 15, 2017, from http://www.financial-tracking.com/docs/pwc_integrating-technology-into-your-complianceprogram.pdf"

"Having a personal vision makes handling difficult decisions easier because you will A. be successful no matter what decision you make. B. be faced with tough decisions less frequently. C. have a clear picture of what your goals in life are. D. not need to reflect as much before making decisions. "

"C Have a clear picture of what your goals in life are. Having a personal vision allows you to set goals for yourself that fully align with your ultimate ambitions, making seemingly tough decisions much easier. Having a personal vision does not mean that you will face tough decisions less frequently, or that you will be successful no matter what decisions you make. You will still need to reflect carefully before making any decisions to ensure that your choice will help you achieve your goals. SOURCE: EI:063 SOURCE: LAP-EI-063—Picture This! (Determining Personal Vision)"

"Nasim is under a lot of stress, and she's finding it difficult to be enthusiastic about her job. Nasim isn't doing her best at work because she's dealing with A. endorphins. B. productivity. C. low morale. D. burnout. "

"C Low morale. Companies work best when employees are enthusiastic about the work they do. However, it's hard for employees to get excited about their work when they're under a lot of stress. Productivity is usually reduced in people who are stressed. Burnout is a type of exhaustion that is usually caused by too much stress. Endorphins are released through exercise and make people feel happier and calmer. SOURCE: EI:028 SOURCE: LAP-EI-025—Keep Your Cool (Stress Management)"

"Convergence and consolidation in the finance industry have resulted in a(n) A. more accurate picture of financial firms' financial condition. B. highly compartmentalized finance industry. C. one-stop shopping environment for consumers. D. single supervisory agency to regulate the finance industry."

"C One-stop shopping environment for consumers. Convergence, which is the merging of financial providers from different financial sectors, and consolidation, which is the merging of financial providers within the same institutional category, have created a one-stop shopping environment for consumers. Rather than having to go to different financial providers for different financial products and services, customers can find all of the financial products that they need—banking services, insurance policies, brokerage services, etc.—in one place, from one company. Rather than creating a highly compartmentalized finance industry, convergence and consolidation have created finance companies that want to be everything to everybody. Rather than specializing in any one service, many of today's financial firms offer a vast array of products and services. As financial firms merge and grow in size, it becomes more difficult for financial experts and the government to get an accurate picture of the firms' current financial condition. As finance corporations expand their product offerings to encompass several financial sectors, it becomes increasingly difficult to determine which agency should oversee the companies. There is no single supervisory agency to regulate the entire finance industry. SOURCE: FI:573 SOURCE: MBA Research and Curriculum Center. Introduction to finance course guide (pp. 4-49—4-51). Columbus, OH: Author."

"What economic activity is necessary for consumption to occur? A. Financing B. Opportunity C. Production D. Management"

"C Production. The movement of goods, services, and resources is possible because of four economic activities: consumption, production, exchange, and distribution. In order for consumption to occur, goods and services must be made or produced. Production relies on consumers to provide resources, and consumption relies on producers to provide goods and services. Opportunity is a chance or benefit. Financing is a marketing function that involves understanding the financial concepts used in making business decisions. Management is the process of coordinating resources in order to accomplish an organization's goals. SOURCE: EC:001 SOURCE: LAP-EC-006—Are You Satisfied? (Economics and Economic Activities)"

"One disadvantage of marginal analysis is that it does not account for A. outsourcing. B. sunk costs. C. qualitative factors. D. labor costs. "

"C Qualitative factors. Marginal analysis only focuses on quantitative differences among choices and does not consider qualitative factors, such as customer service or trusted recommendations. Marginal analysis does account for sunk costs, which are costs that cannot be recovered and thus should not be included in marginal analysis. Outsourcing is using suppliers outside of an organization, and is one possible decision that could come out of a marginal analysis. Labor costs are generally considered when a marginal analysis is performed. SOURCE: FI:659 SOURCE: Crosson, S.V., & Needles, B.E. (2014). Managerial accounting (10th ed.) [pp. 332-344]. Mason, OH: South-Western Cengage Learning."

"Which of the following is a business risk that can be covered by purchasing insurance: A. Competition B. Spoilage C. Robbery D. Economic conditions"

"C Robbery. Robbery and theft insurance covers specific risks such as theft of equipment or merchandise or risk of holdups. Spoilage, competition, and economic conditions are risks that usually cannot be covered by insurance. SOURCE: EC:011 SOURCE: LAP-EC-003—Lose, Win, or Draw (Business Risk)"

"Which of the following securities is most likely to be bought and sold on a money market: A. Short-term equity securities B. Long-term debt securities C. Short-term debt securities D. Long-term equity securities "

"C Short-term debt securities. Investors who put their funds into a money market are typically looking for a source of additional capital that will mature in a short period of time, usually less than one year. Examples of short-term debt securities include Treasury bills and certificates of deposit. Short-term debt securities often carry less risk than long-term debt and equity securities, which are bought and sold on capital markets. SOURCE: FI:337 SOURCE: Maverick, J.B. (2015, May 13). What's the difference between short-term investments and marketable securities? Retrieved September 15, 2017, from http://www.investopedia.com/ask/answers/051315/whats-difference-between-shortterminvestments-and-marketable-securities.asp"

"When reconciling your check register, it is important to __________ your balance. A. subtract your earned interest from B. add your debit card transactions to C. subtract all applicable fees from D. add ATM withdrawals to "

"C Subtract all applicable fees from. The check register is a central location to record and track all of the checks that you write and the amount of money you spend in your checking account. Each month, you receive a bank statement that details your checking account activity. You should reconcile your check register with your bank statement to ensure that they match. This step is important for many reasons. For example, if you forget to enter transactions in your check register, you may overdraft your account and be fined for insufficient funds. When reconciling your check register, you want to make sure that you have subtracted all fees including debit card transactions and ATM withdrawals. You should add the interest earned if your account is set up to earn interest. SOURCE: FI:069 SOURCE: Mycreditunion.gov. (2016). Understanding a check and balancing a checkbook. Retrieved September 15, 2017, from http://www.mycreditunion.gov/Pages/pocket-cents-understandinga-check-and-balancing-checkbook.aspx"

"The most efficient way to obtain the current interest rates on certificates of deposit purchased through Main Street Community Bank is to A. make an appointment with a bank teller. B. call the bank's financial officer. C. visit the bank's website. D. go to the bank to get a product brochure. "

"C Visit the bank's website. Because many businesses post and update product information on their websites, their customers can access information they need 24 hours a day, seven days a week. Many customers obtain product information from websites because it is quick, convenient, accurate, and secure. A bank's financial officer does not usually take routine customer-service calls and may not be available to take a customer's call. Customers usually do not need to make appointments with bank tellers. Driving to the bank to get a product brochure is not as efficient as visiting the bank's website. Because the interest rates for financial products change, product brochures may not contain the most current rates. SOURCE: NF:078 SOURCE: Madura, J., Casey, M., & Roberts, S. (2014). Personal financial literacy (2nd ed.) [pp. 250- 251]. Upper Saddle, NJ: Pearson."

"What question should finance professionals ask to provide the appropriate types and levels of service to their clients? A. How can I maximize my returns? B. Should I follow up with the clients? C. What are the client's expectations? D. Are my goals realistic and attainable? "

"C What are the client's expectations? To provide the level of service that their clients desire, finance professionals need to understand and know the level of service and communication that their clients expect. To build long-term client relationships, finance professionals should participate in ongoing communication with clients, which includes following up with clients to answer questions and resolve problems. Answering questions about personal career goals and personal financial returns are not directly related to providing the appropriate levels of service to clients. SOURCE: CR:012 SOURCE: Jarrell, M. (2015, August 4). 7 questions all financial advisors need to ask. Retrieved September 15, 2017, from http://www.investopedia.com/articles/financial-advisors/080415/7- questions-all-financial-advisors-need-ask.asp"

"You want to have $8,000 in three years to purchase a car. You can earn 4% compound interest on your investment. How much should you invest today? A. $7,821.47 B. $7,364.10 C. $7,692.31 D. $7,111.75 "

"D $7,111.75. To determine how much you should invest today, calculate the present value of your investment using the formula Present Value = Future Value / (1 + Interest Rate)Number of Years. So, the present value of your investment is equal to $8,000 / (1 + 0.04)3 . To solve this equation, first add one to the interest rate (1 + 0.04 = 1.04). Next, raise this sum to the third power, which is the same as multiplying the sum by itself three times (1.043 = 1.04 X 1.04 X 1.04 = 1.1249). Finally, divide the future value of your investment by this product ($8,000 / 1.1249 = $7,111.75). To have $8,000 in three years, you need to invest $7,111.75 today. SOURCE: FI:238 SOURCE: Garrison, S. (n.d.). Time value of money: Self-paced overview. Retrieved September 15, 2017, from http://www.studyfinance.com/lessons/timevalue/index.mv"

"If Kayla wants to obtain the most current pricing for various stocks, she should A. review a business's annual report. B. pick up a business-oriented newspaper. C. log onto the "About Us" section of a business's website. D. access a financial website. "

"D Access a financial website. Pricing on the stock exchange fluctuates constantly, so accessing a financial website such as Bloomberg can give Kayla the most current information. A newspaper is typically printed on a daily basis so some of the information in the stock table is likely to be outdated by the time Kayla reads it. The ""About Us"" section of a business's website discusses the purpose of the business. The annual report is an overview of the business's performance for the previous year. Neither the ""About Us"" section of a business's website nor a business's annual report will contain the most current pricing for different stocks. SOURCE: FI:275 SOURCE: Madura, J., Casey, M., & Roberts, S. (2014). Personal financial literacy (2nd ed.) [pp. 268- 278]. Upper Saddle, NJ: Pearson."

"Which of the following types of behavior tries to improve the general quality of relationships: A. Independent B. Negative C. Aggressive D. Assertive"

"D Assertive. Assertive behavior is characterized by a willingness to stand up for one's own rights while showing respect for the rights of others. The goals of assertive behavior include improving the general quality of relationships, self-esteem, mutual respect and understanding, and cooperation. Aggressive behavior is characterized by a willingness to ignore the rights of others and to exploit others in order to achieve personal goals. Aggressive behavior is one kind of negative behavior. Independent behavior is characterized by the tendency to make decisions without consulting others. SOURCE: EI:008 SOURCE: LAP-EI-018—Assert Yourself (Assertiveness)"

"Seth's manager asked him to develop a report that compares their company's fourth-quarter performance with others in its industry. Which financial-analysis software feature should Seth use to generate information for his report? A. Forecasting B. Ratio analysis C. DuPont modeling D. Benchmarking"

"D Benchmarking. Many financial-analysis software applications can provide users with benchmarking information that compares a company's financial performance with other specific companies in its industry and/or with industry standards. Other financial-analysis software features include ratio analysis, DuPont modeling, and forecasting. Financial ratios are comparisons of different numbers from a business's financial statement. Most financial-analysis software calculates the different financial ratios automatically and then evaluates those ratios to determine company strengths and weaknesses for the user. DuPont modeling helps the user to examine the impact of each financial ratio on return on equity. Forecasting features are often used to make predictions, develop budgets, and experiment with "what-if" scenarios. SOURCE: FM:014 SOURCE: Jackson, A. (2014, June 13). Ratio analysis and industry benchmarking reveal hidden messages in your financial statements. Retrieved September 15, 2017, from http://www.mondaq.com/unitedstates/x/320334/Audit/Ratio+Analysis+and+Industry+Benchm arking+Reveal+Hidden+Messages+in+Your+Financial+Statements"

"By analyzing a customer's financial information, a finance professional should be able to A. determine the customer's newest target market. B. declare Chapter 11 bankruptcy for the customer. C. protect the security of the customer's financial information. D. develop a financial strategy to help the customer."

"D Develop a financial strategy to help the customer. Whether the finance professional works internally or externally, or works with individuals or businesses, s/he should be able to analyze the customer's financial information to recommend an appropriate financial strategy for the ""customer."" Business management would declare a company in bankruptcy based on information provided by the finance professional. Just having a customer's financial information requires finance professionals to protect its privacy—analysis is not required. The customer's marketing department would determine its newest target market, while the finance professional will measure the target market's profitability. SOURCE: FM:009 SOURCE: Kolakowski, M. (2017, March 12). Financial planner. Retrieved September 15, 2017, from http://financecareers.about.com/od/financialplanner/a/finplanner.htm "

"Which of the following is a technological tool that businesses use to archive their financial records: A. Web-development programs B. Direct-response software C. Electronic data interchange D. Digital microfilm scanner "

"D Digital microfilm scanner. Businesses must keep a variety of financial information for a certain length of time, often for several years. Many businesses have saved their archived financial information on microfilm. Microfilm is a type of film that stores photographed images and text in a condensed format for easy storage. A digital microfilm scanner can take existing microfilm, which is older technology, and convert it into a digital format. The advantage to switching microfilm records to a digital format is that businesses can easily view the data on computers and share information quickly through the Internet. Direct-response software is a computer program that helps businesses automate their direct-marketing efforts. Electronic data interchange (EDI) is a network of computers that allows businesses to share information. Businesses use web-development programs to develop and maintain web sites. SOURCE: FM:011 SOURCE: Tomas, L. (n.d.). How to convert mircrofilm with personal scanner. Retrieved September 15, 2017, from https://ourpastimes.com/scan-microfilm-personal-scanner-7470174.html"

"Making employment information available to job seekers in many locations at the same time is one way that computer technology impacts A. organizational decision-making. B. business development. C. corporate communications. D. human resources management. "

"D Human resources management. This is the process of planning, staffing, leading, and organizing the employees of a business. One way that computer technology impacts this process is by making it possible for businesses to post employment information online so it is available to job seekers in many locations at the same time. As a result, potential job applicants throughout the world have an opportunity to access the Internet and view information about job openings and, in many cases, complete online applications. Business development usually involves attracting more customers to increase sales. Corporate communications usually involves communication within the business. Organizational decisionmaking involves making decisions about the structure of the business. SOURCE: HR:412 SOURCE: Dlabay, L.R., Burrow, J.L., & Kleindl, B.A. (2012). Principles of business (8th ed.) [pp. 176- 177]. South-Western, Cengage Learning."

"One of the direct benefits to individuals of being part of a team is that it can improve A. product quality. B. overall productivity. C. expense control. D. job satisfaction. "

"D Job satisfaction. Knowing that you are making a contribution to the business by being part of a team can improve your self-confidence and job satisfaction. It can also improve your decision-making and problemsolving skills. Teams often improve overall productivity, expense control, and product quality; however, these are benefits to the business rather than to the individual. SOURCE: EI:045 SOURCE: LAP-EI-045—Team Up (Participating as a Team Member)"

"Unethical actions A. are acceptable if everyone else does them B. always have legal consequences. C. are not always illegal D. only affect the person doing them. "

"C Are not always illegal. Being unethical does not always mean breaking the law, so it doesn't always have legal consequences. An unethical action doesn't become acceptable if everyone is doing it. Behaving ethically means doing the right thing, no matter what. Unethical behavior doesn't just affect the person doing it—it can affect everyone. SOURCE: EI:123 SOURCE: LAP-EI-123—Rules to Live By (Nature of Ethics)"

"A benefit of informed decisions is that they A. reduce a business's risk. B. are usually bad decisions. C. cost less money. D. hurt a business's chances at competing."

"A Reduce a business's risk. Informed decisions are better decisions, and they reduce a business's risk. Informed decisions help businesses compete better. They may or may not cost less money. SOURCE: NF:110 SOURCE: LAP-NF-110—In the Know (Nature of Information Management)"

"What type of tax are businesses required to pay on the profits they earn? A. Excise B. Income C. Sales D. Property"

"B Income. Income tax is a tax on profit. When businesses earn a profit from supplying goods and services to consumers, they pay a certain percentage of that profit to the government. The tax that businesses pay on the profits they earn is not an example of excise or sales tax. Property tax is a tax on material goods rather than on profit. SOURCE: EC:072 SOURCE: LAP-EC-027—Pay Your Share (Business Taxes)"

"Setting the overall goals for a business, guiding the activities of the business, and keeping the business moving toward its goals are part of the role of A. employees. B. managers. C. consultants. D. supervisors."

"B Managers. Managers are responsible for setting the overall goals and motivating their employees to work toward accomplishing them so the business can be successful. Employees are responsible for working toward the goals of the business, but they are not responsible for setting goals. Consultants do not set goals for businesses other than their own. Supervisors guide employees in carrying out the activities of the business. SOURCE: SM:001 SOURCE: LAP-SM-003—Manage This! (Concept of Management)"

"Justin is trying to decide whether he wants to spend a $50 birthday check on a new video game or tickets to a concert. If he chooses the video game, what is the opportunity cost of this decision? A. Birthday check B. Video game C. Concert tickets D. $50"

"C Concert tickets. Opportunity cost is the benefit that is lost when a decision is made to use scarce resources for one purpose rather than for another. In this case, the concert tickets were given up; therefore, they are the opportunity cost. SOURCE: EC:001 SOURCE: LAP-EC-006—Are You Satisfied? (Economics and Economic Activities)"

"By understanding the time value of money concept, you know that A. saving money can buy time on debt payment. B. it is better to receive $101 a year from now than $100 today. C. it is better to receive $100 today than $101 a year from now. D. time and money are related by due date. "

"C It is better to receive $100 today than $101 a year from now. According to the concept of the time value of money, the sooner money is received the more time you have to let it grow. Receiving money later costs you the opportunity to earn interest or other appreciation. Saving money will not buy time on debt payment. Time and money are not related by due date. SOURCE: FI:062 SOURCE: Carther, S. (2018, May 18). Understanding the time value of money. Retrieved September 14, 2018, from http://www.investopedia.com/articles/03/082703.asp"

"What is the most negative information possible on a credit report? A. Collection agency report B. Late payment C. Lien D. Bankruptcy "

"D Bankruptcy. Bankruptcy is the last-resort action for poor credit. Late payments, liens, and collection agency reports all appear on a credit report, but none have as negative of an impact as bankruptcy. SOURCE: FI:568 SOURCE: Griffin, R. (2014, August 7). Bankruptcy may prevent qualifying for a credit card. Retrieved September 13, 2018, from http://www.experian.com/blogs/ask-experian/bankruptcy-credit- card/ "

"What is the first step toward building trusting relationships? A. Increasing sales B. Increasing productivity C. Developing ideas D.Being transparent"

"D Being transparent. Being transparent is the first step toward building trusting relationships. Increased productivity, better ideas, and increased sales are all benefits of transparency. SOURCE: EI:129 SOURCE: LAP-EI-129—Can We Talk? (Fostering Open, Honest Communication"

"Which of the following is a benefit of putting your goals in writing: A. Clarifies the goals B. Develops your perseverance C. Makes the goals attainable D. Provides a challenge"

"A Clarifies the goals. Writing out your goals helps you clarify them. It makes the goals real, and it also serves as a reminder. Writing out your goals does not make the goals attainable or provide a challenge. Perseverance is the ability to keep at something until it is finished, and you must develop that on your own. SOURCE: PD:018 SOURCE: LAP-PD-016—Go for the Goal (Goal Setting)"

" Which of the following is a true statement about stock information resources: A. It has never been easier to find stock information. B. There are very few stock information sources. C. Only wealthy investors have access to stock information. D. It is very difficult to find stock information. "

"A It has never been easier to find stock information. A few short years ago, only professionals and wealthy investors had access to in-depth stock information. Now, there is a great deal of easy-to-find information, all available to the individual investor. SOURCE: FI:274 SOURCE: Ryan, J.S. (2012). Personal financial literacy (2nd ed.) [pp. 377-380]. Mason, OH: South- Western Cengage Learning."

"Being able to put yourself in another person's place means that you have A. perspective B. respect C. empathy D. understanding "

"C Empathy. Empathy is the ability to put yourself in another person's place or to ""walk in another person's shoes."" Respect is honor and esteem. Perspective is the way in which people view life. Understanding is the ability to comprehend or to think and learn. SOURCE: EI:030 SOURCE: LAP-EI-030—Have a Heart (Showing Empathy for Others)"

"When you react defensively to criticism, the result is likely to be A. pleasant. B. sympathetic. C. negative. D. cooperative."

"C Negative. A person who is defensive is easily angered or upset by criticism or suggestions perceived as criticism. His/Her defensive response is usually irritating to the person offering the criticism or suggestions, which may trigger an unsympathetic, unpleasant, or uncooperative reaction from the speaker. SOURCE: EI:003 SOURCE: LAP-EI-015—Grin and Bear It (Using Feedback for Personal Growth)"

"What form of business ownership is best to use when the business owners have difficulty acquiring enough money to pay for the startup costs and initial operating expenses? A. Partnership B. Sole proprietorship C. Franchise D. Corporation"

"D Corporation. By starting a corporation, the business owners can sell stock to raise the necessary capital to cover business expenses. By owning the majority of the stock themselves, they can still control the business. A sole proprietorship is a business owned by one person. A major disadvantage of a partnership is that the capital available is limited to the partners' resources, so partnership is not the best option for the business owners. A franchise owner buys the right to sell the goods or services of the parent company. Franchises are business ownership options rather than legal business structures. SOURCE: BL:003 SOURCE: LAP-BL-001—Own It Your Way (Types of Business Ownership)"

"Which of the following is most likely to affect the selling price of roses: A. A large number of rose bushes are killed by disease. B. Plants and small shrubs are also sold at the flower shop. C. The flower shop also carries silk flowers. D. A reorder shipment of roses arrives."

"A A large number of rose bushes are killed by disease. This would reduce the supply of roses and increase the price of the flowers. Any factor that causes changes in supply and demand will also cause changes in prices. The assortment carried does not affect the price of the other flowers. SOURCE: EC:006 SOURCE: LAP-EC-012—When More Is Less (Functions of Prices)"

"When a person is inspired, s/he is A. driven to take action. B. disengaged from work. C. uninterested and bored. D. likely to break the rules."

"A Driven to take action. When a person is inspired, s/he is driven to take action. An inspired individual is not disengaged from work, uninterested, bored, or likely to break the rules. In fact, inspired people are typically more engaged, enthusiastic, and excited about their work. SOURCE: EI:133 SOURCE: LAP-EI-133—A Force for Good (Inspiring Others)"

"Margot wants to be sure that when she dies, her money, house, and cars will go to her sister. Margot should create a A. will. B. retirement fund. C. college savings fund. D. bank account."

"A Will. A will is a legal document that outlines how a person wishes his/her assets to be distributed once s/he dies. If Margot wants to be sure that her sister receives her assets, she should set up a will. Retirement funds, college savings funds, and bank accounts do not guarantee that Margot's assets will be given to her sister. SOURCE: FI:064 SOURCE: Williams, G. (2018, June 19). 10 steps to writing a will. Retrieved September 14, 2018, from https://money.usnews.com/money/personal-finance/family-finance/articles/steps-to-writing-a- will "

"Which of the following serves as an organization's conscience during decision-making: A. The public B. The "C-Suite" (CEO, CFO, etc.) C. Employees D. Board of directors "

"D Board of directors. The board of directors guides the organization during the decision-making process so that the organization continues to accomplish its mission in an efficient and ethical way. It would not be appropriate for the C-Suite, an organization's employees, or the public to act as an organization's conscience during decision-making. SOURCE: PD:303 SOURCE: Management Study Guide. (n.d.). Corporate governance - definition, scope and benefits. Retrieved September 16, 2018, from http://www.managementstudyguide.com/corporate- governance.htm"

"Which of the following is a result of globalization: A. Shrinking product life cycles B. Decreased competition C. Increased consumer spending D. Higher productivity"

"D Higher productivity. Higher productivity is a result of globalization. When countries or regions concentrate on creating specific goods or services in which they have a production advantage, productivity goes up all over the world. Globalization also results in increased competition. The trend does not necessarily affect consumer spending or product life cycles. SOURCE: EC:107 SOURCE: LAP-EC-107—Keep the Change (Adapting to Markets)"

"Which of the following is a main cause of prejudice and discrimination: A. A lack of knowledge about a group of people B. Exposing yourself to new situations C. Openly discussing bias with others D. Naturally occurring differences of opinion "

"A A lack of knowledge about a group of people. If you are surrounded by those who are just like you, you may not understand people who are different. You may experience discomfort or even fear when you do encounter someone different, which can lead you to resort to prejudicial thinking. Exposing yourself to new situations and openly discussing bias with others can decrease prejudice and discrimination rather than causing it. Finally, naturally occurring differences of opinion might cause disagreements, but they do not cause prejudice and discrimination. SOURCE: EI:017 SOURCE: LAP-EI-139—Don't Jump to Conclusions! (Recognizing and Overcoming Personal Biases and Stereotypes)"

"When businesses in a particular industry carry risks that commercial insurance companies typically do not cover, they often form __________ to __________ risk. A. captive insurance companies; transfer B. insurance rating companies; avoid C. insurance brokerage firms; assume D. independent life insurance agencies; minimize"

"A Captive insurance companies; transfer. Organizations (i.e., corporations, industry/professional/trade associations) often form their own insurance companies, which are known as captive insurance companies. The founding organizations control their captive insurance companies' underwriting processes, premium rates, and claims-processing policies. This is an advantage to the founding companies because a primary reason they form their own insurance companies is they often carry risks that commercial insurance companies do not cover. For example, mining companies tend to carry more risk due to the dangerous nature of the mining process. When businesses purchase insurance, they are minimizing risks by transferring them to another entity; therefore, in these situations, businesses are not avoiding or assuming risks. Organizations do not form insurance rating companies, insurance brokerage firms, or independent life insurance agencies to transfer unusual types of risks. SOURCE: RM:043 SOURCE: Wallace, O., & Foster, N. (2014, November 6). What is captive insurance? Retrieved September 13, 2018, from http://www.wisegeek.com/what-is-captive-insurance.htm"

"What type of system synchronizes sales and marketing efforts? A. Customer relationship management B. Transaction processing C. Supply chain management D. Decision support"

"A Customer relationship management. Customer relationship management systems accumulate and track customer activities and allow for interactions between customers and businesses. Transaction processing systems collect data from user inputs and generate outputs that assist in the core operations of a business. Supply chain management systems allow companies to work with suppliers and partners to improve operations. Decision support systems give companies access to financial, marketing, and operational data that helps them make better decisions. SOURCE: NF:083 SOURCE: Davoren, J. (2018, June 27). Types of information systems in an organization. Retrieved September 13, 2018, from http://smallbusiness.chron.com/types-information-systems- organization-43097.html"

"Which of the following is an example of a finance professional exhibiting responsible behavior: A. During their first meeting, a financial planner asks Colin specific questions about his financial goals. B. Katherine wants to make a large commission, so she tries to sell a high-risk financial product to a client. C. A financial advisor delays contacting Olivia to advise her that the value of some of her stock is rapidly declining. D. During a dinner party, Ryan tells his friend specific details about a client's stock portfolio and financial status."

"A During their first meeting, a financial planner asks Colin specific questions about his financial goals. Responsible financial planners ask questions to determine their clients' financial goals and their comfort levels with risk. When financial planners understand their clients' financial needs and wants, they are better equipped to help their clients set realistic financial goals. The statement does not provide enough information to determine if Katherine's client is comfortable buying a high-risk financial product. If the client is not a risk-taker, then Katherine is acting irresponsibly. Sharing a client's confidential information with a friend and delaying bad news about an investment are irresponsible and unethical behaviors. SOURCE: FI:355 SOURCE: Peavler, R. (2018, April 26). Financial ethics will improve the profitability of your small business. Retrieved September 14, 2018, from http://bizfinance.about.com/od/fraud/a/Financial_Ethics.htm"

"One way that organizations can achieve their corporate governance objectives is by A. encouraging employee participation at board meetings. B. preventing stakeholders from viewing financial information. C. allowing senior managers to serve on the board of directors. D. releasing an annual report detailing their failures and losses."

"A Encouraging employee participation at board meetings. Achieving corporate governance objectives requires the participation of all people involved with a company. It is especially important for an organization's employees to be actively engaged in corporate governance. Employees should be encouraged to participate in board meetings to raise questions or concerns that they may have about the company's actions. Preventing stakeholders from viewing financial information, allowing senior managers to serve on the board of directors, and releasing an annual report detailing their failures and losses are not appropriate steps companies should take to achieve corporate governance objectives. SOURCE: PD:301 SOURCE: Safetrac. (2015, January 19). Achieving good corporate governance. Retrieved September 13, 2018, from http://www.safetrac.com.au/achieving-good-corporate-governance/"

"Businesses must comply with regulations that limit the amount and type of pollution and waste they produce. These regulations are referred to as __________ laws. A. environmental B. antitrust C. property D. industrial"

"A Environmental. The purpose of environmental laws is to protect the natural environment—the air, soil, and water. Environmental laws help reduce pollution and govern the ways in which individuals and all types of businesses (e.g., service, industrial businesses) dispose of waste. Businesses that do not comply with environmental laws may be fined by the government or shut down. Antitrust laws protect free trade and competition in the marketplace. Property laws regulate the ownership of land and buildings. SOURCE: BL:073 SOURCE: Brown University. (2018). Fields of law. Retrieved September 13, 2018, from https://www.brown.edu/academics/college/advising/law-school/fields-law/fields-law"

"Amanagerialaccountantcanhelpacompanymarketitsproductsby A. examining the relevant costs of advertising options. B. determining whether to make or buy a component. C. developing a target market analysis. D. creating a budget for hiring increases."

"A Examining the relevant costs of advertising options. Managerial accountants can use techniques such as relevant cost analysis to assist marketers in making decisions regarding advertising options. They can determine which will have the lowest and highest costs. Determining whether to buy or make a component is not necessarily a marketing decision. Developing a target market analysis would generally not be a task for a managerial accountant. Creating a budget for hiring increases is not directly related to marketing products. SOURCE: FI:660 SOURCE: Freedman, J. (2018, June 27). Why management accounting is important in decision- making. Retrieved September 14, 2018, from http://smallbusiness.chron.com/management- accounting-important-decisionmaking-53947.html"

"An effective financial-information management system enables managers to obtain reports to determine how the company is using its funds. If the managers find that the company is not operating efficiently, they may reallocate funds from one business function to another to improve profitability. In this situation, the reports generated by the financial-information management system are A. guiding decision-making. B. ensuring compliance. C. improving customer service. D. tracking purchasing behavior."

"A Guiding decision-making. One activity of the financial-information management function is to provide accurate financial reports so that managers can make sound decisions about business activities. For instance, managers use the financial reports to make decisions about how to use or reallocate money to operate more efficiently. The reports are not being used to ensure compliance. There is not enough information provided to determine if the managers want to improve customer service or track purchasing behavior by reallocating funds to different departments or business activities. SOURCE: FM:002 SOURCE: Stair, R., & Reynolds, G. (2014). Fundamentals of information systems (7th ed.) [pp. 300- 303]. Boston, MA: Course Technology Cengage Learning. "

"Why will it benefit you to learn as much as possible about a prospective employer before you go for a job interview? A. It prepares you to ask good questions. B. It shows that you do a lot of reading. C. It ensures that you'll be considered for the job. D. It gives you something to discuss during the interview."

"A It prepares you to ask good questions. As a job applicant, you should find out as much as possible about the business before a job interview so that you are prepared to ask intelligent questions about the company. This does not ensure that you'll be considered for the available job, but it does indicate your interest in the company and the job. It does not necessarily indicate that you have done a lot of reading, since you may have obtained information about the company from other sources such as current employees or television news. It is not necessary for you to have something to discuss with the interviewer as the interviewer decides what will be discussed. SOURCE: PD:028 SOURCE: Kimbrell, G. (2012). Succeeding in the world of work (pp. 90-91). Columbus, OH: McGraw- Hill Education."

"Ethical behavior increases productivity and morale because it A. makes employees want to support the organization's mission. B. makes sure people are following the rules. C. leads to increased profits and more product sales. D. makes sure laws are never broken."

"A Makes employees want to support the organization's mission. When all people involved in a group behave ethically, it runs better. Productivity and morale are higher because everyone feels respected and wants to contribute to the success of the organization. They are likely to agree with and support the organization's mission. Ethical behavior does not necessarily ensure that people are following the rules. It also does not necessarily lead to increased profits and more product sales, although it can help make an organization more successful. While ethical behavior generally correlates with the law, it does not necessarily make sure that laws are never broken. SOURCE: EI:132 SOURCE: LAP-EI-132—Practice What You Preach (Modeling Ethical Behavior)"

" Internal audits are used by __________, while external audits are used by __________. A. management; stakeholders B. stakeholders; employees C. creditors; management D. employees; competitors "

"A Management; stakeholders. Internal audits are performed for management within a company to analyze practices and examine risks. External audits are done by outside firms and are used by stakeholders such as investors, creditors, and lenders. External audits are generally not used by employees, management, or competitors. Internal audits are not used by stakeholders or creditors. SOURCE: PD:214 SOURCE: Bragg, S. (2017, December 24). The difference between internal and external audits. Retrieved September 12, 2018, from http://www.accountingtools.com/questions-and- answers/the-difference-between-internal-and-external-audits.html"

"When preparing a statement of changes in an owner's equity document, which of the following are specifically represented on the statement: A. New investments by the owner B. Property taxes paid by the owner C. Depreciation of company assets D. Lost revenue due to discharged debt"

"A New investments by the owner. New investments or withdrawals by the owner are specifically represented on a statement of changes in an owner's equity document, as well as the business's net income or loss. Property taxes, depreciation of company assets, and lost revenue are considered when determining net income or loss, but they are not specifically listed on the statement of changes in an owner's equity document. SOURCE: FI:630 SOURCE: Guerrieri, D.J., Haber, F.B., Hoyt, W.B., & Turner, R.E. (2012). Accounting: Real-world applications & connections (First-year course) [pp. 228-231]. Columbus, OH: Glencoe/McGraw-Hill."

"The rate of underemployed workers is often highest when a nation is experiencing an economic A. recession. B. expansion. C. peak. D. inhibition."

"A Recession. A recession occurs when an economic contraction exists for at least six consecutive months. During this time, consumer spending decreases and companies reduce hiring or lay off workers. As a result, jobs are more difficult to obtain and many workers take jobs for which they are overqualified. These workers are underemployed workers. During times of expansion or when a business cycle peaks, employment opportunities tend to increase, reducing the number underemployed workers. Inhibition is not a common term that describes a phase of a business cycle. SOURCE: EC:082 SOURCE: LAP-EC-029—Help Wanted? (Impact of Unemployment Rates)"

"It is appropriate for a participant to ask questions during a staff meeting when A. s/he needs a point clarified. B. another participant is speaking. C. the agenda is being distributed. D. s/he does not agree with the speaker."

"A S/He needs a point clarified. When employees do not understand what the speaker has said, it is appropriate to raise their hand to ask for clarification; however, it is rude to interrupt another person while s/he is speaking. In many meetings, the leader will ask the participants if they have questions, and it would be appropriate to ask for clarification at that time. Asking questions due to differing opinions or when the agenda is being distributed may not be appropriate. SOURCE: CO:063 SOURCE: Jarrow, C. (2013). Did you participate in the meeting or were you just there? Retrieved September 14, 2018, from http://timemanagementninja.com/2013/10/did-you-participate-in- the-meeting-or-were-you-just-there/"

"The most important reason why workplace accidents which do not result in injuries should be reported to supervisors is because A. the next accident could result in an injury. B. this is required by state law. C. the report prevents future liability. D. this is an OSHA requirement."

"A The next accident could result in an injury. The fact that one accident does not result in an injury does not ensure that the next accident will have the same results. An accident that does not cause an injury should be reported to a supervisor so that the circumstances causing the accident can be corrected if possible. This may save someone else from injury. Government regulations vary from state to state and for different industries. Reporting an uninjurious accident does not prevent future liability. SOURCE: OP:009 SOURCE: Clark, B., Basteri C.G., Gassen, C., & Walker, M. (2014). Marketing dynamics (3rd ed.) [pp. 565-566]. Tinley Park, IL: The Goodheart-Willcox Co. "

"52 WEEK HI: 37.03 LOW:26.62 STOCK: Home Depot P/E:18.92 CLOSE:35.01 CHG: +.62 EARNINGS: 1.85 DIV:.95 YLD %: 2.7 Based on the information provided, which of the following statements about Home Depot is most likely to be accurate: A. The previous day's closing price was $34.39, $0.62 less than the last price for today. B. Home Depot's stock share price is 2.7 times higher than its earnings per share. C. The lowest price paid for Home Depot stock during the last year was $18.92. D. An investor who owned 100 shares of Home Depot's stock last quarter earned $27 in dividends."

"A The previous day's closing price was $34.39, $0.62 less than the last price for today. To calculate the previous day's closing price, investors can subtract the net change (the difference between the closing price and the previous day's closing price) from the last price for the day ($35.01 - $0.62 = $34.39). The price/earnings ratio (P/E) indicates how much higher the stock share price is than its earnings per share. So, Home Depot's stock share price is 18.92 times higher than its earnings per share. The lowest price paid for Home Depot stock during the last year was $26.62. An investor who owned 100 shares of Home Depot's stock last quarter earned $95 in dividends (100 shares X $0.95 per share = $95). SOURCE: FI:275 SOURCE: Ryan, J.S. (2012). Personal financial literacy (2nd ed.) [p. 394]. Mason, OH: South-Western Cengage Learning."

"What is one of the main purposes of a business's sales budget? A. To estimate income B. To forecast trends C. To predict the economy D. To track the competition "

"A To estimate income. The sales budget sets the financial pace for a business by estimating what amount of expenses and income can be expected from the sale of the business's goods and services. Sales budgets are extremely important because they estimate the major source of income, which helps a business determine if it will be profitable. Businesses take into consideration future trends, the state of the economy, and the level of competition when developing sales budgets. SOURCE: FI:106 SOURCE: LAP-FI-106—Money Tracks (Nature of Budgets)"

"Bobbi, who works for an insurance company, is responsible for calculating the risk of loss, establishing premium rates, and designing insurance policies to cover risk. Bobbi works as a(n) A. underwriter. B. agent. C. accountant. D. financial analyst."

"A Underwriter. The work of underwriters is important to the insurance industry. Underwriters are responsible for calculating the risk of loss, establishing premium rates, and designing policies to cover risk. Many choose to specialize in life insurance, health insurance, or property and casualty insurance. Insurance agents are responsible for selling insurance policies and other financial services. Accountants are responsible for preparing, analyzing, and verifying a variety of financial data. Financial analysts evaluate companies and industries and make recommendations to buy, sell, or hold certain securities. Financial analysts are also known as securities analysts or investment analysts. SOURCE: PD:152 SOURCE: LAP-PD-020—Career Opportunities in Finance"

"What computer application enables a business to access information from its enterprise resource planning (ERP) software program for use in its budgeting software program? A. Cross-reference B. Automated data transfer C. Group D. Data-validation"

"B Automated data transfer. Businesses typically use different software programs to accommodate their various needs. To quickly and efficiently obtain the financial information stored in other programs, some budgeting software programs have applications that automatically transfer data from other programs (e.g., ERP and CRM) to facilitate budget development and report generation. The cross-reference function in a spreadsheet program enables computer users to locate related data or information in other worksheets, spreadsheets, etc. The group function in a spreadsheet program enables computer users to group different cells of data. In spreadsheet applications, the data validation function ensures that computer users input correct values into specific spreadsheet cells. SOURCE: FM:013 SOURCE: Centage Corporation. (2018). ERP system data integration with your accounting or g/l system. Retrieved September 14, 2018, from http://centage.com/Products/Editions/Link- Maestro.asp"

"Comparing the prices offered by different vendors for the same goods and services is what part of the purchasing process? A. Price fixing B. Bid analysis C. Invoice payment D. Receipt of goods "

"B Bid analysis. Businesses compare the prices offered by different vendors for the same goods and services in order to decide from whom to make the purchase. Analyzing the bids allows businesses to find out which vendor is offering the best price. Price fixing involves businesses agreeing on prices of their products resulting in little choice for the consumer. Receipt of goods is the arrival of the order at its destination. Invoice payment is paying for the goods once they have been received. SOURCE: OP:015 SOURCE: LAP-OP-002—Buy Right (Purchasing)"

"A legal issue associated with the use of information might involve the violation of __________ laws. A. patent B. copyright C. trademark D. contract"

"B Copyright. Copyright is the legal protection of books and other artistic works granted by government and gives their creators sole rights to them for a certain period of years. If a business uses information that is copyrighted without obtaining permission from the copyright holder, the business is violating copyright laws. Copyright infringement is a legal issue because businesses can be sued and required to pay a substantial penalty. Patent, trademark, and contract laws do not involve the use of information. SOURCE: NF:076 SOURCE: Tysver, D. (1996-2018). Copyright law in the United States. Retrieved September 13, 2018, from https://www.bitlaw.com/copyright/index.html"

"What is an example of a topic that would be addressed in an informational message? A.Request for payment on a past-due account B. Date and time of appointment with customer C. Charitable appeal for a corporate donation D.Invitation to speak at a national conference "

"B Date and time of appointment with customer. Informational messages are written every day in business in order to send routine information to others. Sending a customer a message confirming the date and time of the next appointment is an example of a topic that would be addressed in an informational message. The topic concerns routine information and deals with common business situations. Requesting payment on a past-due account, a charity appealing for a donation, or inviting someone to speak at a conference are examples of topics that would be addressed in persuasive messages. SOURCE: SOURCE: CO:039 Whalen, S. (2016, September 4). Written communication: Informative versus persuasive messages. Retrieved September 14, 2018, from https://salemwhalen.wordpress.com/2016/09/04/written-communication-informative-versus- persuasive-messages/"

"When the unemployment rate rises, stock values typically A. increase. B. decrease. C. stabilize quickly. D. remain unchanged."

"B Decrease. Economic factors such as the unemployment rate can affect stock prices. If trends indicate a rise in unemployment rates, the economy may be heading into a recession. In this situation, individuals are often fearful about losing their jobs and are likely to hold onto their money rather than invest it. They may also sell their stock in anticipation of needing the money for living expenses. Businesses often react the same way—they may hold onto their funds until the economy rebounds before making major investments. All these factors can cause the value of stocks to decrease. SOURCE: FI:574 SOURCE: Levitt, A. (n.d.). Economic indicators that affect the U.S. stock market. Retrieved September 11, 2018, from http://www.investopedia.com/articles/investing/031413/economic-indicatiors- affect-us-stock-market.asp"

"Which of the following is a true statement regarding enterprise risk management (ERM): A. All risks considered in ERM are negative. B. ERM focuses on the combined impact of all risks. C. ERM can make achieving goals more difficult. D. Risks usually relate to relationships between employees. "

"B ERM focuses on the combined impact of all risks. Enterprise risk management takes into account all of the risks that an organization may face and looks at their combined impact. Not all risks are negative; risks can be positive, and positive risks must be considered as well as negative risks. Enterprise risk management does not make it more difficult to achieve goals; in fact, it can help an organization achieve its goals. Risks are not usually related to relationships between employees; there are many types of risks related to all aspects of an organization. SOURCE: RM:062 SOURCE: Investopedia. (2018). What is enterprise risk management and why is it important? Retrieved September 13, 2018, from http://www.investopedia.com/ask/answers/031715/what- enterprise-risk-management-and-why-it-important.asp "

"What must a business be organized to do to be able to contribute to society? A. Preserve the environment B. Earn a profit C. Sell an idea D. Hire an advisor"

"B Earn a profit. The goal of business is to earn a profit. If businesses do not earn a profit, they will not be able to contribute to society. Businesses contribute to society in many ways, and most of these require money. For example, they create jobs and hire employees so members of the community have income to support themselves and their families. Businesses often allow employees to participate in certain community activities on company time, such as cleaning up a neighborhood. Businesses also donate money to support community programs. None of this would be possible if the business was not organized in a way that allowed it to earn a profit. SOURCE: EC:103 SOURCE: LAP-EC-103—Designed To Work (Organizational Design of Businesses)"

"Which of the following is a computer-based time-management tool that helps employees keep track of their appointments and activities: A. Perpetual calendar B. Electronic task organizer C. Instant-messaging program D. Alarm clock "

"B Electronic task organizer. Electronic task organizers and calendars help employees keep track of their appointments and tasks, which help them be more efficient, organized, and productive workers. Spreadsheet software programs record and calculate numerical data. Instant-messaging programs allow Internet users to communicate in real time. Perpetual calendars and alarm clocks may not be computer- based. SOURCE: SOURCE: NF:005 Hein, R. (2013, April 18). 9 top iPhone and iPad productivity and time management apps. Retrieved September 13, 2018, from http://www.networkworld.com/article/2357942/smb/96495-9-Top-iPhone-and-iPad- Productivity-and-Time-Management-Apps.html"

"What can you do to help your company control expenses? A. Focus strictly on how much work you can get done. B. Follow company policies and procedures. C. Handle sales transactions as quickly as possible. D. Carry out research and development activities."

"B Follow company policies and procedures. Most businesses have specific policies that provide guidelines for the ways in which employees are expected to carry out their tasks. Following these guidelines can save the business money. For example, some company policies limit the time during which customers can return purchases. When employees follow this rule, the company avoids losing money on products it can neither return to the vendor nor sell to other customers. Although you should try to work as efficiently as possible, it's not a good idea to focus strictly on how much work you can get done. The quality of the work is often more important than the quantity. Instead of handling customer transactions as quickly as possible, it's better to focus on accuracy. Handling sales transactions correctly is a great opportunity to save the company money. Carrying out research and development activities is one of the effects of expense control, not a way an employee can help his or her company with expense control. SOURCE: OP:025 SOURCE: LAP-OP-025—Buck Busters (Employee Role in Expense Control)"

"Typical characteristics of a person with a negative attitude are that s/he is A. courteous and considerate toward others. B. inflexible and resistant to change. C. generous and helpful to others. D. flexible and open to new ideas."

"B Inflexible and resistant to change. Negative people tend to be inflexible and resistant to change. Being flexible and open to new ideas, generous and helpful, courteous and considerate are all characteristics of someone with a positive attitude. SOURCE: EI:019 SOURCE: LAP-EI-003—Opt for Optimism (Positive Attitude)"

"Why is the choice of a risk measure for internal and external risk of great practical importance? A. It determines the maximum number of clients that can be served effectively by a financial institution. B. It determines the minimum reserve requirements in financial trading. C. It identifies the types of risks that the financial institution will encounter. D. It designates the audience that will receive the resulting financial reports."

"B It determines the minimum reserve requirements in financial trading. Different measures can result in a lower or higher minimum reserve requirement, which results in a lower or higher profit for the financial institution. Although it does not designate the audience that will receive the resulting financial reports, some financial measures should be used for internal purposes while other measures are more appropriate for external audiences. The number of clients to serve and the types of risks to be encountered are not aspects of selecting a risk measure. SOURCE: RM:058 SOURCE: Ingram, D. (n.d.). External and internal factors of financial risk. Retrieved September 18, 2018, from http://smallbusiness.chron.com/external-internal-factors-financial-risk-4563.html"

"Gathering and communicating financial information that businesses can use to plan the business's operations is the focus of __________ accounting. A. accrual B. managerial C. financial D. equity"

"B Managerial. Managerial accounting involves obtaining and analyzing financial data, which the business can use to make decisions about how to operate the business. For example, businesses gather financial information to develop budgets to guide the business's operations. They also analyze costs in relation to profit in order to make decisions about which products to produce and sell. Accrual is a method of accounting that records transactions at the time they occur even if no money changes hands at the time. The focus of financial accounting is preparing information for external users. Equity is the net worth of the business. SOURCE: FI:657 SOURCE: Investopedia. (n.d.). Managerial accounting. Retrieved September 14, 2018, from http://www.investopedia.com/terms/m/managerialaccounting.asp"

"What method of note-taking involves using headings and subheadings to record the relationships and content in a well-organized, multi-level structure? A. Sentence B. Outline C. Mapping D. Shorthand"

"B Outline. The outline format of note-taking involves organizing the content in levels. Under each heading or subheading, the note taker writes short descriptive phrases or key points that relate to the heading or subheading. The sentence method of note-taking involves writing each new thought, topic, or point on a separate line. A disadvantage to using the sentence method is that the content is not always connected to or organized in relation to a previous topic, point, or category of information. Mapping is a visual method of note-taking that involves writing the main topic in a shape (e.g., circle or rectangle) and writing supporting ideas around the shape. Shorthand is a note-taking method that involves the use of symbols and abbreviations to represent words. SOURCE: CO:085 SOURCE: University of Redlands. (2015, June 18). Five notetaking methods. Retrieved September 14, 2018, from https://www.redlands.edu/globalassets/depts/student-life/academic- success/skills-worksheets/1five_methods_of_notetaking_2015.pdf "

"What is the first step in designing a multi-table query? A. Determine the criteria. B. Pinpoint exactly what you want to know. C. Locate the correct tables. D. Set the correct join direction. "

"B Pinpoint exactly what you want to know. In order to create a successful multi-table query, the first step is figuring out exactly what question you want the database to answer. If you aren't exactly sure what you want to know, the database cannot provide you with the information you need. Determining the criteria for the query, locating the correct tables, and setting the correct join direction are all important steps to take before creating the query, but none of them will be successful unless the exact question has been determined first. SOURCE: NF:124 SOURCE: GCF LearnFree.org. (1998-2018). Access 2013: Designing a multi-table query. Retrieved September 13, 2018, from https://www.gcflearnfree.org/access2013/designing-a-multitable- query/1/"

"An important purpose of full-disclosure laws and regulations is to A. allow company employees to use inside information for personal gain. B. provide information to investors so they can make informed decisions. C. require companies to disclose all information about their operations. D. prevent a stock's par value from dropping below its market value."

"B Provide information to investors so they can make informed decisions. Full-disclosure laws and regulations require companies to disclose—publicize—any information that could affect the value of the firms' stocks. Investors need this information so they can make informed buy, hold, or sell decisions about investments. Full-disclosure laws also prevent company employees and other insiders from using privileged information for their personal gain. Full-disclosure laws do not require companies to disclose every bit of information about their operations—some undisclosed trade secrets are permitted. Full- disclosure laws and regulations are not designed to impact par values of stock. SOURCE: BL:133 SOURCE: Investopedia. (2018, April 18). Full disclosure. Retrieved September 13, 2018, from https://www.investopedia.com/terms/f/fulldisclosure.asp"

"What type of variance analysis involves determining the difference between the standard costs and the actual costs of raw materials used for production? A. Selling price B. Purchase price C. Material yield D. Fixed overhead"

"B Purchase price. A variance is the difference between an established standard and the actual outcome. It is important for a business to monitor variances in the price of raw materials because they affect its bottom line. When a vendor increases the prices that it charges for raw materials, it costs the business (manufacturer) more money to produce an item. The business may need to find a vendor that charges less for the materials or parts, or it may need to increase its selling price—the amount that the business charges its customers for the finished good. Fixed overhead costs are expenses that do not change in relation to changes in sales volume and include things such as rent and employee salaries. Material yield analysis involves analyzing variances in the number of materials/products that are supposed to be used/sold with the actual number of materials/products that have been used/sold in a certain timeframe. SOURCE: FI:661 SOURCE: Bragg, S. (2017, August 30). Variance analysis. Retrieved September 14, 2018, from https://www.accountingtools.com/articles/what-is-variance-analysis.html"

"What type of information is often transmitted through upward communication? A. Instructions B. Suggestions C. Evaluations D. Corrections"

"B Suggestions. Upward communication involves sending a message to someone at a higher level in the business. Many businesses encourage upward communication by making it possible for employees to send suggestions and comments to management. Employees who have suggestions on how to improve quality or make positive changes are given an opportunity to transmit that information upward to managers. Instructions, evaluations, and corrections are usually transmitted from a higher level down to employees at a lower level. SOURCE: CO:014 SOURCE: Roberts, S.J. (2012). Fundamentals of business communication (1st ed.) [pp. 27-28]. Tinley Park, IL: The Goodheart-Willcox Company."

"A new employee left JRB Manufacturing two weeks after s/he completed the company's training program. The expense of training the new employee is a(n) __________ for the company. A. external cost B. sunk cost C. current asset D. capital liability"

"B Sunk cost. Sunk costs are costs that are incurred and cannot be recovered. In the situation described, the business spent money to train an employee who quit shortly thereafter. The business will not be able to recoup the training costs because the employee is no longer there to perform the work that s/he was trained to do. Training is an internal cost. Current assets include things such as inventory, cash, accounts receivable, etc. A capital liability is the responsibility incurred when purchasing a capital asset such as a building or a piece of equipment. This often involves borrowing a large amount of money to obtain the asset. SOURCE: FI:658 SOURCE: Bragg. S. (2017, August 23). Sunk cost. Retrieved September 14, 2018, from https://www.accountingtools.com/articles/what-is-a-sunk-cost.html"

"Marketing encourages people from different countries to __________ frequently. A. train B. trade C. think D. travel "

"B Trade. Since marketing creates exchanges between people and nations, it encourages people from different countries to trade frequently. Traveling, training, and thinking are reputable activities, but they are not specifically encouraged by marketing. SOURCE: MK:001 SOURCE: LAP-MK-004—Have It Your Way! (Nature of Marketing)"

"Businesses use data-cleansing applications to A. calculate statistical data. B. update their databases. C. duplicate internal records. D. generate necessary reports."

"B Update their databases. Businesses use data-cleansing applications to ensure that their customer databases contain useful, relevant, and accurate data. The data-cleansing process removes duplicate records, updates expired data, and completes incomplete data fields. When a business's database is current and up to date, it can generate accurate reports that help the business make well-informed decisions. Businesses do not use data-cleansing applications to calculate statistical data. SOURCE: CR:024 SOURCE: Technopedia. (2010-2018). Data cleansing. Retrieved September 14, 2018, from http://www.techopedia.com/definition/1174/data-cleansing-"

"Which of the following statements regarding debt and equity markets is correct: A. If a company suffers financial difficulties, its stockholders are paid before its bondholders. B. Investors who purchase a company's bonds gain partial ownership of the business. C. Bonds, which are debt instruments, are typically less risky investments than stocks. D. Common stock, an example of a debt instrument, is traded on the equity market. "

"C Bonds, which are debt instruments, are typically less risky investments than stocks. Equity instruments such as common stock are traded on the equity market. Individuals who purchase equity instruments, not debt instruments such as bonds, gain partial ownership of a business. If a company suffers financial difficulties, its bondholders are paid before its stockholders. SOURCE: FI:337 SOURCE: Scrofano, J. (2017, September 26). Debt and equity instruments. Retrieved September 14, 2018, from https://bizfluent.com/list-7178096-debt-equity-instruments.html"

"Which of the following is a tax-deductible gift: A. Stocks B. Vacation home C. Charitable donation D. Inherited items"

"C Charitable donation. Gifts are money, financial products, or property given to an individual or organization. Some gifts, such as charitable donations, are tax deductible. This means that the donor pays a reduced amount of tax or is exempt from paying the tax, depending on the type and value of the gift. Vacation homes, stocks, and inherited items are taxable gifts. SOURCE: BL:134 SOURCE: Internal Revenue Service. (2018, August 20). Frequently asked questions on gift taxes. Retrieved September 13, 2018, from https://www.irs.gov/businesses/small-businesses-self- employed/frequently-asked-questions-on-gift-taxes"

"Philippe wants to find out the average length of time that visitors spend on his business's website. Which of the following data would be most useful to Philippe: A. Receiving data B. External data C. Clickstream data D. Qualitative data"

"C Clickstream data. Clickstream data are information about the number of people who visit a particular website, how long they spend on the website, and what they do while visiting the website (e.g., browsing, reading reviews, purchasing products, etc.). External data are facts and figures available outside the business. Philippe needs internal data, not external data. Receiving data are information about shipments of goods received by the business. Qualitative data are facts and figures based on opinions and personal interpretations. Philippe needs quantitative data containing specific numerical facts and figures, not qualitative data. SOURCE: NF:014 SOURCE: Sentance, R. (2017, September 11). Using clickstream data to know your customer's entire online journey. Retrieved September 13, 2018, from https://www.clickz.com/using- clickstream-data-to-know-your-customers-entire-online-journey/112816/"

"Which of the following statements regarding corporate governance is true: A. Corporate governance makes a firm's shareholders accountable to its managers. B. Corporate governance emphasizes individual goals over group goals. C. Corporate governance aligns the interests of individuals, corporations, and society. D. Corporate governance is only used to protect the interests of the shareholders. "

"C Corporate governance aligns the interests of individuals, corporations, and society. Corporate governance aligns the interests of all stakeholders and emphasizes group goals. It makes a firm's managers accountable to the shareholders and protects the interests of all stakeholders. SOURCE: PD:213 SOURCE: Klazema, A. (2014, May 14). The importance of corporate governance. Retrieved September 13, 2018, from https://blog.udemy.com/importance-of-corporate-governance/"

"What should you do when creating a schedule for your project? A. Break down the work into specific activities and tasks. B. Figure out exactly when you will get each part of the project done. C. Determine when certain parts of the project are due. D. Identify the risks that could affect your schedule."

"C Determine when certain parts of the project are due. When you are creating a schedule for your project plan, you should determine when certain parts of the project are due and make sure your schedule accounts for it. You cannot figure out exactly when you will get each part of the project done, but you can make estimates. Breaking down the work into specific activities and tasks happens before the schedule is created. Identifying risks happens after you create your schedule. SOURCE: OP:519 SOURCE: LAP-OP-519—Plan On It! (Planning Projects) "

"At what stage of the entrepreneurial process does an entrepreneur determine the amount of capital needed to launch the business? A. Actualization B. Discovery C. Development D. Harvesting "

"C Development. An entrepreneur determines the amount of capital needed to launch a business during the development stage of the entrepreneurial process. The discovery stage involves exploring potential business opportunities for feasibility and profitability. Actualization, the actual launching and running of the business, cannot occur until capital has been obtained. Harvesting is the final step when the entrepreneur determines how to exit the business. SOURCE: EN:039 SOURCE: Business Jargons. (n.d.). Entrepreneurial process. Retrieved September 14, 2018, from https://businessjargons.com/entrepreneurial-process.html"

"Kenneth is easily able to guide the actions of his employees by referring to his budget. This is an example of which function of budgets? A. Controlling B. Planning C. Directing D. Monitoring"

"C Directing. Budgeting involves setting goals, executing those goals, and comparing results to those goals. Kenneth is executing his goals by directing his employees' actions with the help of his budget. Planning is setting goals. Controlling is comparing performance to expectations. Monitoring is tracking progress. They are all functions of budgets, but they are not specifically related to Kenneth's example. SOURCE: FI:662 SOURCE: Warren, C.S., Reeve, J.M., & Duchac, J. (2014). Managerial accounting (12th ed.) [p. 230]. Mason, OH: South-Western Cengage Learning. "

"Which of the following is an example of an indirect cost in an automobile factory: A. Shipping B. Glass C. Electricity D. Assembly line workers' salaries"

"C Electricity. Indirect costs are those which are not associated with one particular business activity and cannot easily be assigned to specific cost objects. Because electricity is used for many purposes in an automobile factory, it is considered an indirect cost. Glass is not an indirect cost because it goes toward specific products. Shipping costs, too, can be easily allocated to a particular product or business activity. Because the workers on an assembly line are contributing their efforts toward a particular product, their salaries can also be considered direct costs. Some employees' salaries are considered indirect, depending on the nature of their jobs. SOURCE: FI:663 SOURCE: Speilman, E. (2018, February 9). Direct costs vs. indirect costs: Understanding each. Retrieved September 14, 2018, from http://www.businessnewsdaily.com/5498-direct-costs- indirect-costs.html"

"The Halifax Retail chain uses computer applications to track its inventory and order goods from its vendors. What form of technology is the company using to streamline its purchasing processes? A. Customer relationship management (CRM) B. Global positioning system (GPS) C. Electronic data interchange (EDI) D. Territorial routing application (TRA)"

"C Electronic data interchange (EDI). EDI systems allow businesses to transmit information to and from their suppliers. EDI applications can track a business's inventory and determine when the business should reorder, which increases the purchasing function's efficiency. GPS technology involves guiding and tracking vehicles en route to a destination. CRM technology is used to monitor customer data and build ongoing customer relationships. Sales departments use territorial routing software to develop efficient sales-call patterns. SOURCE: OP:191 SOURCE: Bozarth, C.C., & Handfield, R.B. (2013). Introduction to operations and supply chain management (3rd ed.) [p. 368]. Upper Saddle River, NJ: Pearson Education Prentice Hall. "

"Allowing employees to make more decisions, set their own work pace, and supervise coworkers is considered to be job A. rotation. B. satisfaction. C. enrichment. D. enlargement. "

"C Enrichment. Job enrichment refers to adding interest and satisfaction to a job task. Making decisions, setting work pace, and supervising fellow employees could all be ways of adding interest and satisfaction to a job. Job rotation refers to exposing employees to more than one job task. Job satisfaction refers to an employee's contentment with his/her job tasks. Job enlargement refers to combining specific job tasks in an effort to create exposure to more than just one work area. All four of these are ways in which companies combat job boredom, decreased morale, or other negatives in the workplace. SOURCE: EC:014 SOURCE: LAP-EC-007—Divide and Conquer (Specialization and Division of Labor)"

"A researcher should consider an author's expertise in a particular topic when assessing the validity of written articles and publications to A. analyze the author's emotional intelligence. B. verify the timeliness of the information. C. evaluate the author's level of credibility. D. confirm personal understanding of the information."

"C Evaluate the author's level of credibility. When conducting research for a business, it is important to consider the source's level of credibility. A person who has extensive knowledge of or expertise in a specific topic is more credible and more likely to present valid or reliable information. For example, an article about the side effects of a medication tends to be more credible if it was written by a doctor or pharmacist rather than if the article was written by a financial planner or mechanic. Although the timeliness of written material is a consideration, it is not related to the author's level of expertise. A researcher cannot always determine the author's level of emotional intelligence by reading a written document. And, it is possible to possess a high level of knowledge about a subject and have low emotional intelligence. The way in which the article is written, rather the author's expertise, will impact the understandability of the information. SOURCE: CO:054 SOURCE: University of California Santa Cruz. (2018, September 6). Evaluate the quality and credibility of your sources. Retrieved September 14, 2018, from https://library.ucsc.edu/help/research/evaluate-the-quality-and-credibility-of-your-sources"

"Because Caroline does not have enough time to read an entire 400-page business report, what section of the report should she review to obtain an overview of the most important content? A. Appendices B. Table of contents C. Executive summary D. Conclusions"

"C Executive summary. The executive summary provides an overview of the entire report and contains the most important information included in the body of the report. When businesspeople have time constraints, they often read the executive summary of a lengthy report. The table of contents is the portion of the report in which the various report sections are listed with their page numbers for easy access. The appendices are segments that are added to the end of the report and provide supporting information. The conclusion section of the report summarizes results and in some reports, this section includes recommendations for a certain course of action. SOURCE: CO:091 SOURCE: Roberts, S.J. (2012). Fundamentals of business communication (1st ed.) [pp. 420, 423]. Tinley Park, IL: The Goodheart-Willcox Company."

"Helena's manager asked her to put together a report containing a number of different financial ratios, including the company's current ratio and rate of return on equity. To create the report, Helena should use __________ software. A. data-mining B. budgeting C. financial analysis D. field service"

"C Financial analysis. Businesses often use financial analysis applications to quickly and easily examine their financial health. The software calculates and reports many different financial ratios, compares a business's financial performance to that of competitors and industry standards, and increases the finance department's productivity. Budgeting software allows business owners and managers to develop budgets, study each item in a budget individually and together as a whole, and measure the impact that different actions would have on the budget. Data mining software is often used to find relationships or patterns among a vast amount of company data. Data mining software is also used to analyze data; however, not all data mining software analyzes financial data. Field service software is typically used by businesses with sales and service teams who do most of their work outside the office. Professionals such as plumbers and home health care aides use field service software to report their hours, activities, clients, etc. SOURCE: FM:014 SOURCE: Thomson Reuters. (n.d.). Financial analysis CS: Features and benefits. Retrieved September 14, 2018, from http://cs.thomsonreuters.com/financial-analysis/features.aspx"

"Businesspeople must be cautious not to offend their international customers by understanding the importance of nonverbal cues, which include the use of A. proper grammar. B. accurate word pronunciation. C. hand gestures. D. interactive feedback."

"C Hand gestures. Nonverbal communication (body language) involves gestures or facial expressions rather than the use of words. Because different countries have unique cultural and social behaviors, it is important for businesspeople to understand these differences when doing business in other nations. For example, a hand gesture may mean a sign of friendship in one country but be a sign of disrespect in another country. Word pronunciation and grammar usage are language (verbal) issues. Interactive feedback is a general term that includes both verbal and nonverbal communication elements. SOURCE: EC:045 SOURCE: LAP-EC-045—On Top of the World (Impact of Culture on Global Trade)"

"An example of assertive verbal behavior would be A. complimenting someone to obtain a favor. B. maintaining appropriate eye contact. C. initiating conversations with others. D. giving a progress report in a staff meeting."

"C Initiating conversations with others. Taking the initiative to approach other people and begin conversations is a good example of assertive verbal behavior. Other examples include openly expressing your positive or negative thoughts, asking questions, and requesting help. Maintaining appropriate eye contact is an example of nonverbal behavior. Giving a progress report in a staff meeting is a routine job task that does not demonstrate assertive verbal behavior. Complimenting someone to obtain a favor is not assertive but dishonest and manipulative. SOURCE: EI:008 SOURCE: LAP-EI-018—Assert Yourself (Assertiveness)"

"To build professional relationships, Brynn serves on several trade association committees, co-authors articles with other finance professionals to publish in the local newspaper, and treats business contacts to dinner or golf. These activities are forms of A. advertising. B. cooperating. C. networking. D. up-selling."

"C Networking. Networking involves connecting with individuals who might help accomplish career and professional goals. By serving on trade association committees, co-authoring articles for publication, and treating business contacts to dinner or golf, Brynn creates situations in which she has the opportunity to get to know other professionals and possibly build relationships that will be beneficial for everyone involved. Cooperating with others shows a willingness to work together to resolve differences or achieve common goals. Although Brynn is cooperating with others while carrying out these activities, her ultimate goal is to build a network of business professionals who can help her achieve her career goals. Advertising is any paid form of nonpersonal presentation of ideas, images, goods, or services. Up-selling is a sales technique in which a salesperson suggests a higher priced product than the one originally requested by the customer. SOURCE: PD:153 SOURCE: Hoban, S. (n.d.). Building business relationships. Retrieved September 14, 2018, from http://www.ccim.com/cire-magazine/articles/building-business-relationships"

"A business can protect its computerized financial data from losses associated with fire, flood, and electrical outages by A. changing passwords and encryption techniques periodically. B. installing intrusion detection systems. C. performing backup procedures on a regular basis. D. implementing a manual filing system."

"C Performing backup procedures on a regular basis. Backing up the computer system and storing the backup information off-site can reduce financial losses due to uncontrollable circumstances such as electrical outages or fire. Businesses that do not perform backup procedures on a regular basis may lose the data for good or take a lot of time and money to replace if a disaster harms its computer systems. Computer systems help make businesses operate more efficiently than manual systems do. Different types of intrusion detection systems (e.g., firewalls) are designed to protect the business's computer systems from unauthorized access. Passwords and encryption are additional techniques used to secure access to computer information. SOURCE: RM:042 SOURCE: Patterson, T. (2015, September). The use of information technology in risk management. Retrieved September 16, 2018, from https://www.aicpa.org/InterestAreas/FRC/AssuranceAdvisoryServices/DownloadableDocume nts/ASEC_Whitepapers/Risk_Technology.pdf"

"A customer asked a salesperson whether a hair dryer purchased last month could be returned or exchanged. In order to answer the question, the salesperson should be familiar with the business's A. finances. B. promotions. C. policies. D. products."

"C Policies. Policies are established by businesses to ensure that employees make consistent decisions in handling transactions. All staff should be thoroughly familiar with the business's policies and use them as guidelines. Salespersons should also be familiar with the business's products and promotions, but that information will not help in this situation. Some salespersons are knowledgeable about the business's finances, but that information would also not be useful here. SOURCE: CR:007 SOURCE: Burrow, J., & Kleindl, B. (2013). Business management (13th ed.) [pp. 88-89]. Mason, OH: South-Western Cengage Learning."

"What should job applicants offer to do in the closing paragraph of an interview follow-up letter? A. Send an appropriate gift B. Work for a reduced salary C. Provide further information D. Accept any available job"

"C Provide further information. By offering to provide further information, applicants are indicating their interest in the job without stating it directly. They are reinforcing their desire to be hired. Interviewers usually take this type of offer to mean that the applicant wants to be seriously considered for the position. Applicants have applied for a specific job and should not offer to take anything that is available. The job they have applied for has a specific salary range, and it would be inappropriate to offer to work for less. Applicants are not expected to send gifts of any type to interviewers. SOURCE: PD:029 SOURCE: Kimbrell, G. (2012). Succeeding in the world of work (pp. 90-91). Columbus, OH: McGraw- Hill Education."

"Businessesmayreviewinvoicestoevaluatetheircustomers' A. storage needs. B. business plans. C. purchasing habits. D. selling policies."

"C Purchasing habits. An invoice is the formal, printed record of a sale that includes all necessary information as to the buyer, the seller, items purchased, amounts, prices, delivery date, credit or discount terms, etc. By analyzing past sales records such as invoices, a business can determine what its customers are buying, when they are buying, and how much they are buying. This helps a business forecast future sales and to be prepared to offer the products that customers want. Businesses do not review invoices to evaluate their customers' business plans, storage needs, or selling policies. SOURCE: NF:002 SOURCE: Entrepreneur. (2018). Sales records. Retrieved September 13, 2018, from https://www.entrepreneur.com/encyclopedia/sales-records"

"Why is it important for businesses to manage employee information in a way that keeps it secure? A. To beat the competition B. To be secretive C. To be ethical D. To avoid publicity"

"C To be ethical. Businesses gather and maintain a wide range of information, and some of this information may be private or confidential. For example, businesses may have personal information about customers and employees. Making sure that this information is secure is a matter of ethics. Businesses have an ethical obligation to protect certain information so it does not become public and cause harm to individuals. Businesses do not keep information secure to be secretive, beat the competition, or avoid publicity. SOURCE: SOURCE: NF:111 Australian Association of Social Workers. (2015, December). Ethics and practice guideline- Information management. Retrieved September 13, 2018, from http://www.aasw.asn.au/document/item/4680"

"What is the primary reason that creditors analyze their customers' financial information? A. To determine how often their customers' inventory turns over B. To know whether they're making a good investment C. To determine the likelihood of getting paid D. To understand the type of accounting method customers use "

"C To determine the likelihood of getting paid. Creditors take risks when extending credit to customers whether they are letting them borrow money or defer payment for product. By analyzing customers' financial information, they have a better idea of whether the customers pay their debts. Stockholders analyze financial information to determine whether they are making good investments. The accounting method customers use indicates when sales and expenses are recorded in the customers' books. Determining how often inventory turns must be compared with other companies in the same industry to determine whether inventory is being held too long. The figure by itself does not communicate anything to creditors. SOURCE: FM:009 SOURCE: Inc. (2018). Credit evaluation and approval. Retrieved September 13, 2018, from http://www.inc.com/encyclopedia/credit-evaluation-and-approval.html"

"What type of technology do businesses use to inspect financial transactions and ensure that they are in compliance with government regulations? A. Domain computing B. Cyber mapping C. Virtual auditors D. Simulation browsers"

"C Virtual auditors. A virtual auditor is a type of compliance technology that uses multiple reasoning processes to help businesses identify errors that affect their compliance with government regulations. Using this technology provides a business with the ability to fix problems quickly and reduce risks associated with noncompliance. Businesses do not use cyber mapping, domain computing, or simulation browsers to inspect financial transactions and ensure that they are in compliance with government regulations. SOURCE: BL:149 SOURCE: Virtual Auditor. (2018). Virtual auditor. Retrieved September 14, 2018, from http://www.virtualauditor.com/"

"Which of the following international financial institutions provides financing and advice to countries to encourage economic development: A. Commonwealth of Nations B. Small Business Administration C. World Bank Group D. Liberty Institute"

"C World Bank Group. The World Bank Group, which includes the World Bank as well as several other international organizations, is an international financial institution that provides financing and advice to impoverished countries to encourage economic development and eliminate poverty. The Small Business Administration is a U.S. government financial institution that provides financial assistance and advice to American small businesses. The Commonwealth of Nations and the Liberty Institute are not financial institutions. The Commonwealth of Nations is an international organization that promotes world peace, democracy, and free trade. The Liberty Institute is an international organization based in the country of Georgia that advocates civil liberties as well as public accountability and effective governance. SOURCE: FI:336 SOURCE: Investopedia (n.d.) The world bank. Retrieved September 14, 2018, from https://www.investopedia.com/terms/w/worldbank.asp "

"If a question on a job application does not apply to you, how should you respond? A. Leave it blank B. Make up a response C. Write "does not apply" D. Write "cannot answer""

"C Write "does not apply." Writing "does not apply" lets the employer know you read and completed the entire application. Making up a response is deceptive and inappropriate. If the question is left blank, the employer might think you forgot to answer the question. If you write "cannot answer," the employer might think you are hiding something because you are not willing to answer the question. SOURCE: PD:027 SOURCE: Littrell, J.J., Lorenz, J.H., & Smith, H.T. (2012). School to career (9th ed.) [p. 343]. Tinley Park, IL: Goodheart-Willcox. "

" Yazmin earned $5,000 from her summer job. If she invests it at a rate of 5%, how much will it be worth in two years? A. $5,025.50 B. $10,250 C. $5,500 D. $5,512.50 "

"D $5,512.50. The formula for calculating future value is Future Value = Present Value X (1 + Interest Rate)number of periods. To calculate the future value of Yazmin's investment, first add one to the interest rate (1+ 0.05 = 1.05). Then square that sum, which is the same as multiplying that sum by itself (1.052 = 1.05 X 1.05 = 1.1025). Finally, multiply the product by the original investment to determine the value of Yazmin's investment in two years (5,000 X 1.1025 = $5,512.50). SOURCE: FI:238 SOURCE: Carther, S. (2017, May 18). Understanding the time value of money. Retrieved September 13, 2018, from http://www.investopedia.com/articles/03/082703.asp "

"Which of the following has contributed to financial globalization: A. An increase in restrictions on foreign investment and international trade B. An increase in taxes on international financial transactions C. A reduction in foreigners' access to domestic financial markets D. A movement from fixed exchange rates to floating exchange rates "

"D A movement from fixed exchange rates to floating exchange rates. A fixed exchange rate is one that the government sets and maintains. A fixed exchange rate does not change very often. A floating exchange rate, on the other hand, is constantly in flux—determined by the market through supply and demand. To enable capital to flow more freely across their national borders, countries around the world have moved from fixed to floating exchange rates, lowered taxes on international financial transactions, increased foreigners' access to domestic financial markets, and decreased restrictions on foreign investment and international trade. SOURCE: FI:575 SOURCE: Pologeorgis, N. (n.d.). The globalization of financial services. Retrieved September 14, 2018, from https://www.investopedia.com/articles/financial-theory/09/risk-free-rate-return.asp"

"When should you record bank transactions in your check register? A. When checks bounce B. When bank statements are received C. As bank statements are reconciled D. As soon as each check is written "

"D As soon as each check is written. To keep accurate records, you need to record all information in the check register as each transaction occurs. Otherwise, the date, check number, or check amount may be recorded inaccurately. Waiting to record check information can result in difficulties with balancing bank statements when they arrive. This could also result in checks being returned to you for inadequate funds. SOURCE: FI:069 SOURCE: Mycreditunion.gov. (2018). Understanding a check and balancing a checkbook. Retrieved September 14, 2018, from http://www.mycreditunion.gov/Pages/pocket-cents-understanding- a-check-and-balancing-checkbook.aspx"

"In a formal business letter, the salutation is written A. after the body of the letter. B. on the front of the envelope. C. on the back of the envelope. D. before the body of the letter."

"D Before the body of the letter. The word "salutation" comes from the Latin word "salve," which means "hello" or "welcome." Therefore, the salutation is a greeting that is written immediately before the beginning of the business letter. Salutations usually begin with the word "dear," followed by the addressee's name and sometimes his/her title. The salutation is not written on the front or back of the envelope or after the body of the letter. SOURCE: CO:133 SOURCE: Purdue Online Writing Lab. (1995-2018). Writing the basic business letter. Retrieved September 14, 2018, from https://owl.purdue.edu/owl/subject_specific_writing/professional_technical_writing/basic_busi ness_letters/index.html"

"Susan is a purchasing manager for a manufacturer. On Monday, Susan received a call from the plant manager, who frantically told Susan that the production line ran out of 3/8" washers, which has forced production to stop. Because Jason is the senior buyer in charge of ordering the washers, Susan set up a meeting with Jason to discuss the problem. During the meeting, Susan asked Jason to explain why the washers were out of stock. Jason replied, "Well, I told the office assistant to check the inventory. It's not my fault that we don't have the washers in stock." What is Jason doing? A. Denying that a problem exists B. Helping Susan resolve the problem C. Providing Susan with a valid reason for the stock-out D. Blaming another person for his mistake"

"D Blaming another person for his mistake. Taking responsibility for your actions involves accepting the consequences (good or bad) of your behavior, admitting and learning from your mistakes, and trying to do better in the future. In the example, Jason blamed the office assistant for the mistake, but he is the employee who is responsible for ordering the washers. By blaming another employee, Jason is failing to accept responsibility for his actions. Jason was not helping Susan resolve the problem, providing a valid reason for the stock-out, or denying that a problem exists. SOURCE: EI:075 SOURCE: LAP-EI-075—It's Up to You (Taking Responsibility for Decisions and Actions)"

"The Money for You Bank recently merged with the Keeping You Safe Insurance Company. The merger is an example of __________ in the finance industry. A. licensing B. consolidation C. tactical planning D. convergence"

"D Convergence. Convergence occurs when financial providers from different financial sectors (e.g., banking services and insurance) merge. Consolidation takes place when financial providers within the same institutional category merge. For example, if two banks were to merge, they would be consolidating their companies. Tactical planning is short-range planning (one year) of specific actions the business will take. Two businesses should look much further ahead than just one year before making the decision to merge. Licensing is a business structure that requires the authorization or permission from an owner of another entity to use trademarked, copyrighted, or patented material for a specific activity, during a specific time period, for the profit of both parties. Businesses that enter into licensing agreements do not merge. SOURCE: SOURCE: FI:573 Abel, S., & Back, C. (2016). Achieving convergence of finance, risk and actuarial functions: Beyond transformations. Retrieved September 14, 2018, from http://www.ey.com/Publication/vwLUAssets/ey-achieving-convergence-of-finance-risk-and- actuarial-function-beyond-transformation/$FILE/ey-achieving-convergence-of-finance-risk- and-actuarial-function-beyond-transformation.pdf"

"Certificates of deposit and collectibles are types of A. earnings. B. accounts. C. securities. D. investments."

"D Investments. There is a wide range of investments available to individuals who want the opportunity to increase their worth. Some investments are riskier than others, which means that individuals might lose money rather than make money. Certificates of deposit are safe investments because they pay a guaranteed amount of interest over a specific period of time. Collectibles are a riskier type of investment because the collectible, such as a baseball card, might lose value over time and not have any worth. Certificates of deposit and collectibles are not types of accounts or securities. Certificates of deposit earn interest while collectibles may or may not increase in value. SOURCE: FI:077 SOURCE: LAP-FI-077—Invest for Success (Types of Investments)"

"Latisha, a human resources manager at a hospital, is writing a list of the skills, knowledge, and characteristics for a nurse position she hopes to fill. She focuses on what education a nurse in that position should have, what personal traits s/he should have, and what s/he should be like. Latisha is working on a(n) A. onboarding activity. B. job description. C. strategic plan. D. job specification."

"D Job specification. A job specification is an explanation of the skills, knowledge, and characteristics required for a job. It describes what a person in that position should be. When Latisha lists the education and personal traits she wants a nurse to have, she's creating a job specification. A job description is an explanation of the responsibilities and tasks associated with a specific job. It describes what an employee in the position does. If Latisha wrote a job description for the nurse position, she would explain the actual duties of the job. Strategic planning is long-range planning (about three to five years) for the company as a whole. Onboarding activities are part of the staffing process and include employee orientation and various types of paperwork, like insurance, tax withholding, direct deposit, and citizenship information. SOURCE: HR:410 SOURCE: LAP-HR-035—People Pusher (Nature of Human Resources Management)"

"What is the most common reason for a client to leave or fire his/her financial advisor? A. Location of the office B. Poor investment return C. High commission fees D. Lack of communication"

"D Lack of communication. Although a poor investment return, high commission fees, or the geographic location of the financial advisor's office may influence a client's decision to leave the advisor, the most common reason given for firing a financial advisor is a lack of communication. Above all else, financial clients expect—and need—their advisors to communicate on a regular basis. This means returning the clients' phone calls as soon as possible, replying quickly to their emails, and contacting them regularly to discuss their accounts and answer any questions that they might have. SOURCE: CR:012 SOURCE: O'Connell, B. (n.d.). Why clients fire financial advisors. Retrieved September 14, 2018, from https://www.investopedia.com/articles/professionals/071113/why-clients-fire-financial- advisors.asp"

"Tank's Trucking Company is focusing on eliminating waste and creating more value with fewer resources. Which of the following methodologies is Tank's Trucking Company using: A. Sustainability B. Six sigma C. Activity-based costing D. Lean "

"D Lean. Lean is a production practice that focuses on eliminating wasteful processes that do not add value. It increases implementation speeds and productivity. Six sigma is a set of strategies that focuses on limiting defects and variability in order to improve process control. Its focus is on quality rather than speed and waste elimination. Activity-based costing is a strategy for assigning overhead costs in a logical manner. Tank's Trucking Company is not necessarily focused on costing methods. Finally, sustainability is the management of social, environmental, and financial demands to minimize impact on the environment or society. Eliminating waste could be a part of sustainability, but creating more value with fewer resources is not related to sustainability. SOURCE: FM:016 SOURCE: Process Excellence Network. (2013, April 22). Process excellence explained: What's the difference between lean, six sigma, and business process management? Retrieved September 14, 2018, from http://www.processexcellencenetwork.com/business-process- management-bpm/articles/process-excellence-explained-what-s-the-difference/"

"Joe has a two-hour sales meeting with a new customer at 10 a.m. today. Early this morning, a vendor telephoned Joe to schedule a one-hour luncheon meeting to discuss a co-op advertising program. The vendor would like to meet at a restaurant that is 30 minutes from Joe's office at 1:00 p.m. today. Joe must be back at his office by 2:00 p.m. for an important computer training session. Should Joe meet with the vendor today? A. Yes. Joe can meet with the vendor after the vendor changes the lunch reservation to 12:45 p.m. B. No. It is rude for the vendor to assume that Joe has time to meet today. C. Yes. Joe can meet with the vendor after he reschedules his training session. D. No. Joe would have only 30 minutes to meet with the vendor before he needs to return to the office."

"D No. Joe would have only 30 minutes to meet with the vendor before he needs to return to the office. Managing work commitments in a timely manner involves allowing enough time to complete the most important tasks first. Joe had commitments that he needs to keep from 10 a.m. to 12 p.m. and at 2:00 p.m. Because the vendor asked Joe to meet at a restaurant that was 30 minutes away from his office, he doesn't have enough time to meet with the vendor for one hour at 1:00 p.m. If the vendor is not available at an earlier time at a closer location, Joe must decline the luncheon invitation and schedule it at a time that is more convenient for both of them. It's not unusual for last-minute meetings to take place, if other commitments are not an issue. Therefore, the vendor was not being rude by asking Joe if he had time to meet. There is not enough information to determine if Joe had the authority to reschedule the training session. Moving the lunch reservation to 12:45 p.m. would not help because Joe would be 15 minutes late to his training session. SOURCE: EI:077 SOURCE: LAP-EI-077—Commit to It! (Managing Commitments in a Timely Manner)"

"Why has online technology's use increased in financial-information management? A. Protection of customers' right to privacy B. Removal of electronic information exchange procedures C. Recognition that the security of transactions is no longer an issue D. Passage of laws that recognize electronic documents as legally binding "

"D Passage of laws that recognize electronic documents as legally binding. As businesses have become more comfortable with the use of electronic information, their willingness to accept electronic documents as legally binding contracts has also increased. This has been buoyed by the passage of laws recognizing electronic documents and signatures as legally binding. Electronic information exchange procedures have not been removed. These procedures provide a way for people to exchange information electronically. Security remains an issue for online financial-information management. Although customers' right to privacy is an issue, it has not contributed to the increased use of online technology in financial-information management. SOURCE: FM:011 SOURCE: Swan, E. (2015, October 1). Electronic signature laws in the U.S. and around the world. Retrieved September 14, 2018, from https://www.efilecabinet.com/electronic-signature-laws- in-the-u-s-and-around-the-world/"

"Which of the following is a true statement about creativity: A. Creativity is primarily demonstrated through entertainment and the arts. B. Only people born with a natural gift can display creativity. C. Creativity is a skill we only use on special occasions. D. People show creativity in a variety of ways. "

"D People show creativity in a variety of ways. People show creativity in a variety of ways, not just through entertainment and the arts. Creativity is a skill we use all the time. You don't have to be born with it— anyone can enhance and develop her/his creativity. SOURCE: PD:012 SOURCE: LAP-PD-012—Imagine That (Demonstrating Creativity)"

"In which stage of project management does risk analysis take place? A. Closing B. Initiation C. Execution D. Planning"

"D Planning. A risk analysis takes place in the planning stage of project management. Project managers analyze risk in an effort to prepare to minimize its effects as much as possible. In the initiation phase, the idea for the project is assessed and a statement of work and project charter are drafted. In the execution phase, the work of the project is completed. In the closing phase, project managers deliver the final product and tie up any loose ends. SOURCE: OP:158 SOURCE: LAP-OP-158—Projected To Win (Nature of Project Management)"

"Which of the following types of customer relationship management software would be most appropriate for a company that is looking for a more efficient way to track potential new clients and customers: A. Matching engine technology B. Campaign management software C. Personalization technology D. Sales force automation "

"D Sales force automation. Many companies use sales force automation (SFA) technology to support, coordinate, and increase the productivity of their sales professionals. SFA technology, which is a type of customer relationship management software, can help automate many aspects of the sales process, such as tracking leads, prospects, and customers. Other SFA technology features include contact management, sales forecasting, and sales report generation. Campaign management software is used by marketers to develop, execute, and track the effectiveness of promotional campaigns to targeted groups of potential or established customers. Businesses often use personalization technology to target certain products to certain customers based on the customer's purchase history. Matching engine technology works in a similar manner. Based on a particular customer's needs or preferences, matching engine technology determines the product offering that would best appeal to that customer. SOURCE: CR:018 SOURCE: Krasnoff, B. (2018, July 13). The best lead management software of 2018. Retrieved September 14, 2018, from https://www.pcmag.com/roundup/356147/the-best-lead- management-software"

"Which of the following is an example of a preventive internal control: A. Physical inventories B. Data reconciliations C. Variance analyses D. Segregation of duties"

"D Segregation of duties. Several types of internal controls are used in compliance. Preventive controls such as the segregation of duties attempt to prevent unwanted events (noncompliance) from occurring. Detective controls, on the other hand, are used to identify and document noncompliance. Data reconciliations, variance analyses, and physical inventories are all detective internal controls. Corrective controls are used after noncompliance has been identified. They may include disciplinary action or additional training. SOURCE: BL:148 SOURCE: Bradford, C. (2017, November 21). Examples of internal controls. Retrieved September 13, 2018, from https://smallbusiness.chron.com/examples-internal-controls-57039.html"

"Pamela was dismissed from her job as a financial database administrator because she shared her username and password with a coworker so that he could access a customer database that is typically off-limits to him. Pamela failed to fulfill her responsibilities as a data A. processor. B. auditor. C. sponsor. D. steward."

"D Steward. A data steward is, in essence, responsible for ensuring the integrity of an organization's data. To ensure those data's integrity, data stewards must make sure that data are used ethically and honestly—and only by those individuals authorized to do so. Pamela failed to fulfill her responsibilities as a data steward because she allowed a coworker to access data that he was not authorized to see or use. An auditor is responsible for verifying the accuracy of business records. In business, a sponsor is typically an individual or organization that financially supports a project, event, or promotion. A data processor is responsible for analyzing facts and figures and putting them into formats useful to the business. SOURCE: FM:003 SOURCE: Smith, A.M. (2013). A new view of data stewardship—Unbiased data presentation. Retrieved September 14, 2018, from http://www.information-management.com/news/1056150- 1.html?zkPrintable=1&nopagination=1"

"How can management reduce the business's level of risk associated with ethics? A. Advise employees that following business ethics depends on the situation. B. Allow employees to follow their own set of ethics. C. Assume employees know what constitutes ethical behavior. D. Train employees about expectations in relation to workplace ethics."

"D Train employees about expectations in relation to workplace ethics. Employees must clearly understand the business's ethical standards and expectations. Offering ethics training can help employees understand the business's rules and ethical standards. Employees who do not have a clear understanding of the business's expectations in relation to ethical behavior put the business at risk. Employees who do not follow the business's ethics guidelines may cross a legal line without knowing they have done so. Because employees' experiences and beliefs often vary and because there are many gray areas in the business world, the business should not allow employees to follow their personal set of ethics or assume that the employees know what the business considers ethical behavior. Ethics are a set of principles that do not vary by situation. SOURCE: RM:041 SOURCE: Queensland Government. (2018). Costs and benefits of holding stock. Retrieved September 14, 2018, from https://www.business.qld.gov.au/running-business/finances-cash-flow/stock- control/costs-benefits"

"Determining project costs involves taking the information gained from assessing needed resources and A. asking the client for at least twice as much funding. B. using it for scheduling purposes. C. adjusting the project purpose as necessary. D. translating it into a realistic budget."

"D Translating it into a realistic budget. Determining project costs involves taking the information gained from assessing needed resources and translating it into a realistic budget, with the client's input. It shouldn't be necessary to ask the client to double the project's funding at this point in the planning process. Cost information shouldn't be necessary for creating a project schedule. The project purpose shouldn't be dependent on costs; rather, costs and budget should fit with project purpose. SOURCE: OP:001 SOURCE: LAP-OP-001—Chart Your Course (Developing a Project Plan) "