BUS 101 Final
The banking panic of 1907 in the United States created pressure for Congress to find a way to stabilize the nation's banking system. The result was the:
Federal Reserve Act of 1913
In the context of operations management, for the first 25 years after World War II, which of the following was true of the United States?
It had an increasingly well-educated labor force.
Which of the following statements is true of product-use-based market segmentation?
It helps small companies in narrowing the target markets for their products.
Which of the following practices is recommended for an effective business presentation?
Citing trusted sources, specific data, and expert quotations
In the context of the social environment of business, which of the following is likely to happen as the American population rapidly ages?
Creative companies will reimagine their current products to serve older clients.
Which of the following is an issue associated with general partnerships?
Difficulty faced by a partner when withdrawing from the company
Which of the following statements is true of the wage gap between CEO pay and worker pay in the United States?
In 2011, CEO pay was correlated to how well companies fared in the stock market
Which of the following statements best defines the producer price index (PPI)?
It measures the change over time in the prices that businesses pay each other for goods and services.
Which of the following statements is true of the Dodd-Frank Act?
It required large firms in the financial sector to hold more equity and less debt in their capital structures.
Which of the following statements is true of the formation of a partnership?
Partnerships can be established based on a simple verbal agreement.
In the context of the history of American business, which of the following statements is true of the production era?
The assembly line became standard across major manufacturing industries.
Which of the following statements is true of enterprise resource planning (ERP) systems?
They help manage activities along an entire value chain
Temont Esson, a pharmaceutical company, saw a drastic increase in its sales in 2016 when compared to 2015. A survey showed that the growing percentage of the elderly was directly responsible for improving the company's sales. Identify the dimension of the social environment that this scenario exemplifies.
aging population
Which of the following is a major challenge faced by most human resources departments?
being considered irrelevant by many employees
Harry is one of the top managers in RPLD Corporation. He, along with seven other members, takes the major decisions of the company and oversees its operation. Although Harry is not the owner of the corporation, he holds stocks in the company and has the power to appoint a chief executive officer (CEO) for the company. In this scenario, Harry is part of the _____ of RPLD Corporation.
board of directors
A firm's _____ refers to its holdings of currency plus demand deposits.
cash
A-n-Y dominates its market section by offering a wide range of toys that includes soft toys, plastic construction toys, electronic toys, and board games to the public. It is evident that A-n-Y is a _____.
category killer
The government of Brunasia issues bonds with a guarantee to make periodic interest payments on the par value. The government offers a 6.5% interest on its bonds. In this case, the percentage of interest offered by the government of Brunasia is called the _____.
coupon rate
Which of the following elements is a personal influence on the consumer decision-making process?
demographics
In _____, firms either acquire foreign firms or develop new facilities from the ground up in foreign countries.
direct investment
In the context of open-end mutual funds, the net asset value per share (NAVPS) is computed by:
dividing the total value of the fund's cash, securities, and other assets by the number of fund shares outstanding.
A budgeted income statement is a detailed forecast of future cash flows that helps financial managers identify when their firm is likely to experience temporary shortages or surpluses of cash.
false
The Fair Labor Standards Act of 1938 mandated that men and women doing equal jobs receive equal pay.
false
The date a bond comes due is called its record date
false
The members of the Financial Accounting Standards Board (FASB) are appointed by the Securities and Exchange Commission.
false
The two key aspects of product quality are level and longevity.
false
In the context of the characteristics of good information, when information is accurate, it means that it is:
free of errors and biases
_____ means buying products domestically that have been produced or grown in foreign nations.
importing
Which of the following is a negative factor that interferes with the effectiveness of socialist economic systems?
inefficiencies and corruption
Investors using a(n) _____ often invest in stocks of relatively new companies with innovative products in a hot sector of the economy.
investing for growth strategy
In the context of short-term financing, which of the following statements is true of a factor?
it buys the accountants receivable of other firms
In the context of budget preparation, which of the following is a disadvantage of participatory budgeting?
it can lead to budgetary slack
Which of the following statements is true of licensing?
it involves a payment of fee to the core brand
the biggest advantage of publicity is that :
it is usually credible
Chestelle Corporation, a sports equipment manufacturing company, borrows a considerable sum of money as loan from GRJ Bank, a private bank, at a time of financial crisis. The corporation has four years to repay the principal amount along with the interest to the bank. In this scenario, the money that Chestelle Corporation owes the bank represents its
long-term liability
The advantage of electronic communication networks (ECNs) is that they:
make it possible for investors to trade securities after the U.S. exchanges are closed.
_____ provide analysis and prepare reports and financial statements for their organization.
management accountants
Businesses adopt and identify target markets for their products to:
maximize the impact of the cost of marketing.
In the context of communication barriers, _____ can range from a document that looks like a wall of type to a room that's freezing cold.
physical barriers
Grydon Inc. has applied for a business loan in the United Bank. To best assess the loan case, the loan officer at the bank, Cerejo, decides to look at the company's net income. Cerejo will find this information in Grydon's _____.
profit and loss statement
In the context of international trade restrictions, _____ are limitations on the amount of specific products that may be imported from certain countries during a given time period.
quotas
In the context of consumer promotion tools, _____ entice consumers with cash-back offers and act as purchase motivators for higher-priced items.
rebates
In the context of debt financing, if a firm invests the borrowed funds profitably, the use of debt can improve the _____ to the shareholders by not diluting existing shares of stock.
return on equity
In the context of the income statement of an organization, accountants use accrual-basis accounting when recognizing _____.
revenues
Adhering to a new act passed in 2002, the CEO of Pearsil & Pearsil, a real estate company, now personally certifies the validity of the company's financial statements. Given this information, the CEO most likely follows the_____.
sarbanes-oxley act
MVJ Corp., a market research firm, borrowed $2 million from Trimitium Bank. While negotiating with the bank, the firm signs a promissory note, which specifies that the firm must pay the borrowed amount in 90 days with interest. However, the bank also requires the firm's inventories and receivables to be pledged as collateral to back the loan. Which of the following short-term financing options is being offered by Trimitium Bank in the given scenario?
short-term bank loans
With an increasing number of workers facing challenges such as raising kids and caring for elderly parents, responsible companies are stepping in with programs such as on-site day care, company-sponsored day camp, and referral services for elder care. These actions show that these companies are fulfilling their _____.
social responsibility
_____ refers to the programs that provide instructions to a computer so that it can perform a desired task.
software
Demi loves playing online games. She surfs through many websites to find new, interesting games. One day she finds that her mailbox is filled with emails suggesting websites for online games and ads promoting a few online offers. In this scenario, a(n) _____ tracks Demi's computer behavior to send her targeted mails and ads.
spyware
The extent to which decision-making power is held by a small number of people at the top of the organization is known as _____.
the degree of centralization
Consumers tend to view sponsorships in a positive light because:
they are clearly connected to events that matter to the target audience.
Which of the following statements is true of people with an external locus of control?
they feel buffeted by the actions of others
_____ is a spontaneous financing granted by sellers when they deliver goods and services to customers without requiring immediate payment.
trade credit
Lily, a salesperson at a clothing store, observes the department head misbehaving with a customer. She brings the issue to the notice of the store manager, and the offender is immediately dismissed from his job. In this scenario, Lily is a _____.
whistle-blower
A firm's _____ include cash and other assets expected to be converted into cash in the following year
current assets
In-person presentation is a communication channel with high channel richness.
true
Money market mutual funds raise money by selling shares to large numbers of investors.
true
The prices of unsought products vary wildly.
true
When conflicts arise between the long-term interests of owners and those of other stakeholders, the fiduciary duty required of financial managers generally leads them to make decisions that are most consistent with the interests of ownership.
true
Your target market is the group of people who are most likely to buy your product
true
A health and fitness startup company goes for an initial public offering. For assistance, it enters into a firm commitment arrangement with an investment bank. As per the agreement, the investment bank itself will purchase all the shares at a specified price. This will guarantee that the company will receive a fixed amount of new funds. This scenario exemplifies a(n) _____.
underwriting
A public accounting firm takes up a contract to perform an external audit for an oil manufacturing company. The firm, however, is already in a consulting contract with the oil company. Because of its prior association with the oil company and the hefty fee the oil company pays the firm, the firm manipulates the audit report. Which of the following laws is violated in this scenario?
The Sarbanes-Oxley Act
Megan wants to start a company that makes handmade products. She has limited capital, and she does not want to spend it on maintaining a large inventory of raw materials. She plans to maintain only two weeks' worth of stock of finished goods as she does not want to end up with a large inventory of products that may not sell. Which of the following production systems would be most suitable for Megan's company?
The just-in-time production system
Lawrence recently bought a new luxury car, but he is not completely satisfied with it. He now wishes he had bought something that would have made a better impression on his colleagues. Lawrence's friend Howard, on the other hand, bought a secondhand sedan and is extremely happy with it. Howard becomes even more proud of his purchase when his friends compliment his car. From the marketing point of view, which of the following concepts has contributed to Howard feeling satisfied with his car?
The perceived value of the car
Which of the following is a difference between corporate philanthropy and corporate responsibility?
Unlike corporate philanthropy, corporate responsibility focuses on the actions of the business itself rather than donations.
Small firms tend to be effective innovators for a number of reasons. Most importantly, their very reason for being often ties to:
a brand-new idea
Saffexo, a company that manufactures sports goods, hikes the prices of its entire range of athletic shoes. However, the company does not experience a fall in the sales of its shoes following the hike as the consumers continue to buy them. The information given in the scenario indicates that Saffexo has a good _____.
brand equity
Donton Inc. dominates its market section by offering a wide range of office supplies that includes printers, furniture, and cleaning supplies to final consumers. It is evident that Donton Inc. is a _____.
category killer
Lydia sells her ancestral property for a handsome amount of money. She invests this money in various securities. She decides not to trade the securities for a while and lets her money increase with the growth of the overall market. However, after almost eight years, when she feels that the value of the securities has risen considerably, Lydia sells her stocks and receives high returns on her investment. In this scenario, Lydia has used the _____ investment strategy.
buy-and-hold
Timoth Steels, a steel manufacturing company, wants to install a new factory in Temenia. The company decides to use funds from its own account and refrain from borrowing money from banks. Which of the following sources of long-term funds is being used by Timoth Steels in the given scenario?
direct investments from owners
Delvry Inc. is a solid fuel supplier. It supplies coal to different thermal power plants. The company takes legal possession of the coal, and they hire outside transporters to aid the delivery process. In this scenario, Delvry Inc. is a(n) _____.
drop shipper
In the context of employee selection, the main categories of employment testing include _____.
drug testing
Brestine Inc., a European multinational corporation, wants to expand its customer base and decides to target the Asian market. As most Asian countries have comparatively low per capita income, the company introduces cheaper versions of its products that would appeal to the target market. In this scenario, Brestine Inc. is most likely facing the barrier of
economic differences
Osmectes Corp. has included a feature in its website that enables its employees to receive help from other employees. This support system allows employees to provide information and guidance to others. Employees can seek help regarding any work-related issue through this system. In this scenario, Osmectes Corp. is using _____.
enterprise 2.0
The management of McCord Corp. makes an announcement that the top three employees of the firm will be rewarded with expensive gifts at the end of the month. These employees will be selected on the basis of their performance. Following the announcement, all the employees start putting in more effort by working extra hours and improving the quality of their work. In this scenario, McCord uses _____ to motivate employees.
expectancy theory
A limited partnership is an agreement between two or more individuals to operate a business as co-owners for a limited period of time.
false
Demographic segmentation refers to dividing the market based on where consumers live.
false
In the context of monetary policy, the money supply includes credit cards.
false
In the context of self-reliance, people with an external locus of control rely more on their own efforts and less on the actions of others.
false
It is possible to establish a corporation by a simple verbal agreement.
false
Manufacturers rarely emphasize packaging because this aspect of the product has little relevance to a customer's decision-making process.
false
No firm can determine upfront how much money it needs to make for each item it sells.
false
_____ refers to the physical components used to collect, input, store, and process data, and to display and distribute information.
hardware
Kiddiecon, a company that manufactures stationery products for children, signs a contract with an animation studio to use one of its popular cartoon characters as a design on its school bags. Kiddiecon's contract with the animation studio is an example of _____.
licensing
_____ refers to Federal Reserve decisions that shape the economy by influencing interest rates and the supply of cash.
monetary policy
In the context of a SWOT (strengths, weaknesses, opportunities, and threats) analysis of a company, which of the following is an example of an external opportunity?
new social trends in the market
Which of the following is the most costly form of foreign direct investment?
offshoring
Which of the following tools is most frequently used by the Fed to expand and contract the money supply in the economy?
open market operations
Graham's Choicest is a popular brand of dairy products. The brand plans to introduce two new flavors of milkshakes in the market. Before starting the production and manufacturing of the new products, the company asks mall visitors in three different locations to try out the samples of its new offerings and give their feedback. In the given scenario, Graham's Choicest is most likely in the _____ stage of the new product development process.
testing
Debbilie, a chain of retail cosmetic stores, offers loyalty cards to its regular customers. The cardholders can earn points and get discounts for the purchases they make at any of the company's stores. In the context of the evolution of marketing, which of the following eras does this scenario most likely refer to?
the relationship era
The difference between the prices at which securities dealers buy and sell a security is called _____.
the spread
Moat & Meet, a travel agency, wants to widen its customer base. It adopts a strategy that allows customers to visit their favorite destinations through a virtual reality (VR) machine before visiting the place in person. In this context, which dimension of the business environment is affected the most?
the technological environment
A business email should have a compelling subject line.
true
A job description is an explanation of the responsibilities for a specific position in an organization.
true
A limited liability company (LLC) can elect to be taxed as a corporation.
true
An advantage of starting a business from scratch is that the entrepreneur has the freedom to use his or her own ideas and concepts.
true
Each person in a line organization is directly accountable to the person immediately above.
true
Each year, the Federal Open Market Committee holds eight regularly scheduled meetings to make decisions about open market operations.
true
In a cellular layout, cells are designed to be operated by a few workers who perform a wider array of tasks than assembly-line workers.
true
In the context of modes of transportation, ships have limited availability.
true
