Busi 1301 exam 2

The assets of Prosian Italia, a marble and granite company, amount to $400 million, and its liabilities add up to $180 million. Based on the accounting equation, Prosian Italia's owners' equity is equal to _____.

$220 million

Which of the following is a difference between a C corporation and an S corporation?

A C corporation is double taxed, whereas an S corporation is taxed as a partnership.

When George, an American, went to represent his company in a global conference that was being held in Germany, he was unaware of the social practices of the host country. While talking to a German representative, he used the "ok" gesture, which created tension and uneasiness between him and the German representative. Which of the following communication barriers did George most likely face in the given scenario?

A cultural barrier

Which of the following statements is true of a franchisor-franchisee relationship?

A franchisor limits the franchisee's territory from expanding into other areas

Sarcosine Chemicals Corp. issues stock in one of its operating units and sets it up as a separate company called Prussic Corp., with its own board of directors and corporate officers. Sarcosine Chemicals Corp. then distributes the stock in Prussic Corp. to its existing stockholders. Which of the following forms of divestitures does this scenario exemplify?

A spin-off

In the context of various funding options for small businesses, which of the following statements is a difference between angel investors and venture capital firms?

Angel investors are wealthy individuals, whereas venture capital firms are companies.

The stockholders of a construction firm decide to start a steel company, but they want to have limited liability. After completing the business plan, they initiate the process of establishing the company by filing articles of incorporation and paying the filing fees to the state government. In this scenario, the stockholders of the firm want to start a _____.

C corporation

The nation of Rhodasia has the lowest entrepreneurship rate globally. A new government, headed by President Harold David Wengerd, aims to make the country's business environment more supportive toward burgeoning entrepreneurs. Which of the following measures should be taken to increase the entrepreneurship rate in Rhodasia?

Eliminating complex regulations placed on businesses

In the context of creating and delivering successful verbal presentations, which of the following statements is true of dynamic delivery?

It begins and ends with preparation.

Gemini Inc., a large conglomerate, offered Timothy's new logistics company the much required financial support in exchange for a 40% ownership in the company. It also provided Timothy with an experienced group of people to help him make crucial decisions for the company. In the given scenario, which of the following statements is true of Gemini Inc.?

It is a venture capital firm.

In the context of balance sheets, which of the following is a difference between liabilities and owners' equity?

Liabilities indicate the claims outsiders have against the firm's assets, whereas owners' equity refers to the claims the owners have against their firm's assets.

Mauve starts a business that specializes in procuring and selling antique items. Her business caters specifically to individuals who have high-income jobs and who like collecting unique artifacts. Mauve does not have much competition and can decide the prices of her products without any external influence. The opportunity of _____ is highlighted in the given scenario.

Mauve starts a business that specializes in procuring and selling antique items. Her business caters specifically to individuals who have high-income jobs and who like collecting unique artifacts. Mauve does not have much competition and can decide the prices of her products without any external influence. The opportunity of _____ is highlighted in the given scenario.

Which of the following is a disadvantage associated with sole proprietorships?

Raising money to finance growth can be tough for business owners.

Mikhail, a Korean, wishes to be a stockholder in an airline company in the United States. However, he is told that he cannot buy shares of the company as he is neither a U.S. citizen nor a permanent resident of the country. Besides this, he can become a stockholder only if any of the current stockholders decide to sell their shares as the company already has 100 stockholders. Given this information, it can be assumed that Mikhail wants to be a stockholder of a(n) _____.

S corporation

Charles owns a restaurant that is thematically modeled into representing the pop culture of the 1980s. While setting up the restaurant, Charles took care of everything himself, from interior decoration to menu and music. He even got the permit for the restaurant himself. Which entrepreneurial characteristic is highlighted in the given scenario?

Self-reliance

Which of the following practices should ideally be followed when giving a business presentation?

Telling the audience the key points before launching into the body of the presentation.

A sole proprietorship is a form of business ownership in which:

a single owner actively manages the company.

Maurice, the marketing head of a nonprofit organization, always begins his presentation on a project by sharing a lesser-known fact about the issue that the project focuses on. This helps the members of the audience get a better picture of the importance of the issue and makes them more attentive. Given this information, it can be assumed that Maurice uses _____ to open his presentations.

a startling statistic

In the event that a large company has to downsize, the middle-aged workers who are laid off find it difficult to find new jobs. When such workers decide to start their own businesses, they:

are called necessity entrepreneurs.

In the context of balance sheets, resources owned by a firm are known as__________.

assets

Before starting his presentation on the benefits of taxi services, Mark engages the spectators by asking them to imagine themselves driving in a drunken state. He goes on to ask them the possible outcomes that they can imagine. This exercise ensures that Mark gets the spectators' complete attention. In the given scenario, Mark uses _____ to open his presentation.

audience involvement

Bill, a marketing analyst in Godren Inc., is required to address all employees of the company on their sales targets for the next fiscal quarter. To help employees get a clear understanding of their targets and reduce any pressure on them, Bill decides to use several jokes and innuendos that are not received well by his supervisors. In the given scenario, which of the following communication guidelines does Bill not take into consideration?

avoid slang

The management of Minstrel Magik, an event management company, ensures to use gender-neutral language in its emails to both customers and employees. In the given scenario, it can be inferred that the management follows the business communication guideline of _____.

avoiding bias

When writing high-impact messages, a _____ is an invaluable tool that you can use to engage your reader's attention whenever you have more than one of anything in your writing.

bulleted list

A__________is a formal document that describes a business concept, outlines core business objectives, and details strategies and timelines for achieving those objectives

business plan

The nature of work and the workflow in the animation department of Hanzel Talkies, a movie production company, completely differs from that of other departments in the company. Hence, Hanzel Talkies decides to branch the animation department out into a new company by selling the stock to outside investors. In this scenario, Hanzel Talkies is using a strategy called a(n):

carve-out.

According to small business experts, while raising start-up funds from friends and relatives, it is:

essential to keep the relationship as professional as possible.

To give the company's stockholders, creditors, and other external stakeholders an accurate idea of the company's overall performance, Rowensport Corporation, a multinational company, releases statements that contain details of the company's profits and losses over the past five years. In this scenario, the company is most likely involved in _____.

financial accounting

Olivia, the CEO of a company, uses words such as "she" and "her" to refer to a manager or an employee in the general sense. She also uses feminine examples in all her emails to the entire company. As a result, the male employees of the company feel excluded. Given this information, it can be concluded that Olivia shows _____.

gender bias

Olivia runs a spa for women. She employs only two helpers and one receptionist. This enables her to focus most of her resources on procuring products required to provide comfort and high-quality services to customers. The opportunity of _____ is highlighted in the given scenario.

having lower overhead costs

IFGI Life Insurance, an insurance company, is one of the stockholders of a pharmaceutical company. Given this information, IFGI Life Insurance is most likely a(n) _____.

institutional investor

Fiona, an industrial psychologist, is asked to give a presentation on the benefits of healthy colleague relationships to the employees of a textile company. In her presentation, Fiona uses various technical terms, all related to the subject of psychology, because of which the employees find it difficult to understand her and quickly lose interest in the presentation. In the given scenario, the employees of the textile company face a(n) _____ to communication.

language barrier

Sidney is a member of the Financial Accounting Standards Board (FASB) and is entrusted with the responsibility of establishing accounting principles in the United States. As a member of the board, Sidney:

must sever all ties with any firms or institutions that she served prior to joining the board.

The management of a sugar manufacturing company sets aside a sum of $50,000 in its budget for the purchase of new machinery that would double the production. In the given scenario, the management is in the process of planning the _____ of the company.

operating budget

Callie, an assistant supervisor in an automobile company, wants to actively contribute to the growth of the company by suggesting some changes in its administrative policies. However, she does not get the opportunity to do so because of a high power distance in the company. In the given scenario, Callie faces a(n) _____.

organizational barrier

The employees of Marconium Inc. often feel that they cannot comment on the management of the company even though there is no rule that prevents them from being critical about the management. In the given scenario, the employees of Marconium Inc. are facing a(n) _____.

organizational barrier

Bertha runs a fashion boutique. She prefers to personally interact with her customers to gauge the styles that would suit their personality. Her customers also prefer talking to her in person to share their preferences in colors, designs, styles, and fabric as they value her suggestions. The opportunity of _____ is highlighted in the given scenario.

providing personal customer service

Luke works in an accounting firm that offers services such as tax preparation and external auditing to corporate companies. Luke is currently providing consultation to a client that deals in automobile parts. In this scenario, Luke is most likely a:

public accountant

Which of the following statements is true of business emails?

response to emails should be prompt

The preparation of operating budgets begins with the development of a(n)

sales budget

Lucile, the head of a project, starts her presentation on the project by comparing each team member's work to that of a mountaineer climbing the highest peak in the world. In the given scenario, Lucile uses a(n) _____ to open her presentation.

simile

The management of an electronics company created the annual budget on a single assumed level of sales. This level of sales is to remain constant for the whole year. Later, the management finds it difficult to accurately measure the financial progress of the firm as the values in the estimated budget vary significantly from the actual sales. In the given scenario, the management most likely created a _____.

static budget

In the context of an acquisition, the firm that is purchased by another firm is called the _____.

target firm

Maverk, a human resources manager at a multinational company, has to explain the ethical policies of the company to a batch of new employees. To convey that the company has a low power distance, he says, "The manager who loses his temper must apologize." From the given statement, it can be inferred that Maverk does not follow the business communication guideline of

avoiding bias

Kenneth prepares a PowerPoint presentation for the board meeting by adding only the essential information and discarding any unnecessary details that could confuse the board members. He ensures to keep his sentences short but not at the expense of completeness. In the given scenario, which of the following communication guidelines is Jeffrey following?

be concise