Business Management Midterm
a business earns $200,000 in sales, has expenses of $80,000 and COGS are $90,000. what is the gross profit?
$110,000
banks and other lenders would be most interested in looking at which financial ratio
acid test
which of the following is a liquidity ratio
acid test
which of the following statements relates best to a laissez-faire leader
allows the experienced staff to complete tasks with little or no intervention
which item is not a qualitative factor when considering an investment appraisal
alternative investment projects and their potential return on investment or APR
autocratic leaders excel when dealing with
an unexpected crisis
what is the common time frame for employee appraisals
annually
the document that outlines the work history and achievements of a job applicant is known as the
application form
suppliers would be interested in the accounts of a business in order to
assess business profitability
which management or leadership style is most suitable during a hostile takeover
autocratic
which of the following is most likely to be a long-term liability
bonds
which of the following sources of finance will raise the value of the gearing ratio
bonds (long-term liabilities)
all of the following are considered current assets except
building
identify the option from the list that would be considered verbal communication
business meeting
the ARR can best be described as an investment appraisal technique that
calculates the average annual profit of a project as a percentage of the initial investment
which item is a strength of oral communication
can be questioned quickly
according to the management theory of Herzberg, hygiene factors
can cause a worker dissatisfaction in the job, but cannot, by themselves, cause motivation of workers
what is the purpose of a workforce audit
check on the skills and qualifications of existing employees
who is usually at the top of a hierarchal management
chief executive
the exchange of information between people or groups with feedback is
communication
off-the-job training refers to training that is
conducted by specialist trainers located outside the workplace
what are liquid assets
current assets that are cash or can be considered cash (i.e. accounts receivable)
which of the following ratios has an acceptable range of 1.5-2
current ratio
in the worst case scenario, firms struggling to survive may sell ___ in order to generate working capital
debentures
which ratio would a business prefer to be low in value
debtor days
the net profit margin can be used to identify a firm's
degree of overhead expense control
a workforce plan will determine what vacancies exist in an organization and include a relevant job ___ and person ___ for each vacant position
description, specification
which statement below best describes hire purchase
differs from leasing in that ownership occurs with last payment
current assets do not include
dividends
calculating the return on capital employed provides information on a firm's
effective use of capital resources
julie sends an email to her manager. which communication method did she use?
electronic
informal communication could include of the following except
emails to a supplier
which of the following is considered an asset
equipment
a non-cash form of reward is
fringe benefits
if expenses are greater than gross profit for a business, then the business
has made an overall loss
which term is used to describe the system of organizing people within business by rank
hierarchy
an advantage of using internal funds vs. external funds to purchase a new office building could inclue
increased value of fixed assets
which of the following is not an overhead cost
interest
which option is an advantage of a wide span of control
it is more cost effective due to less hierarchal prospects
which option is likely to be a problem for XYZ Company if they use financial incentives to improve motivation at the firm
it may be divisive rather than promote teamwork
increasing the amount of work an employee performs is
job enlargement
making a job more challenging is an example of
job enrichment
which option is likely to cause communication failure
lack of interest in the message from the recipient
the management style that sees the leader allowing subordinates to achieve targets in their own way is known as
laissez-faire
money owed to other people or organizations are shown on a balance sheet as
liabilities
capital employed is equal to
long-term liabilities plus shareholder's equity
when a business is responsible for money owed to another party for more than 12 months, this is called a
long-term liability
all of the following statements apply to Maslow's theory of level of needs except
lower level needs do not have to be satisfied in order to move to the next level on the hierarchy of needs
taylor's theory of the "economic man" states that
man is motivated by money alone
the employer pays education costs for an employee who is willing to seek a CPA certification in accounting so the business can lower monthly fees to a corporate CPA firm. this is an example of what?
management by objective
which of the following is an advantage of commission-based pay
may encourage high-pressure sales tactics
which business would be least pleased with a stock turnover ratio of 95 days
mcdonald's
the document that outlines the discussions that occurred at a business meeting is called
minutes
accounts payable means
money owed to suppliers
which two items must agree to consider the balance sheet "balanced" and correct
net assets and capital employed
revenue-COGS-overheads is the formula for calculating
net profit
the ratio that measures profit after all expenses have been paid is the
net profit margin
which of the following is considered a disadvantage to teamwork
not everyone is a team player
the inability of a worker to switch from one job to another due to a particular skill set is known as
occupational immobility
what is meant by employee "poaching"
other businesses extending job offers to well-trained staff
which of the following is a current liability
overdrafts/credit line
if an employee works beyond their contracted hours, they are usually entitled to
overtime pay
which quantitative factor applies to a firm considering investing in a new computerized stock control system
pay-back period
intrinsic motivation is the result of
personal satisfaction derived from completing a task
the payment system that rewards workers for each item that they produce is known as
piece rate
businesses might choose to use external sources of finance because
potential cash flow problems are avoided
the payment system where employees receive a share of the company's profits is known as
profit-related pay
one major purpose of constructing a cash flow forecast is to
provide a planning and decision-making tool for managing a firm's cash flow
which of the following is an example of investment in a business context
purchasing new machinery
human resources management deals with
recruitment and selection
which of the following describes being dismissed for reasons not caused by the employee
redundancy
all of the following are sources of external financing for a public limited company except
retained profits
a business that has a relatively high staff turnover rate has a low rate of
retention
raising finance by selling an asset and then renting it back immediately on a long-term basis is known as
sale and leaseback
a democratic management style is useful when managers
seek and value the opinions of employees
the main purpose of constructing a balance sheet is to
show the value of a business at a particular point in time
which type of leader adapts their style of leadership to the situation or employee skill levels
situational
the gearing ratio measures
size of long-term finance in relation to a firm's capital employed
which of the following is least likely to appear in a person specification for a person working in new product design
skilled in customer relations
according to Maslow, identification with and acceptance from a particular group can help to meet which level of human needs
social
which item is an advantage of using electronic media to communicate
speed
which of the following features applies to organizations with flat structures
suitable when employees are multi-skilled
which of the following is not an internal constraint
supply chain issues
what is a criterion rate
the acceptable level of payback for a project
the payback period is used to calculate
the amount of time required for the investment to be paid and the project to begin returning a profit
induction training is likely to cover
the basics of a worker's job
the chain of command refers to
the direct relationship between a superior and subordinates
stock turnover is the ratio used to measure
the frequency of stock purchased and sold by shareholders
the trading account gives details of
the gross profit made during a trading period
the average rate of return is
the return on a capital investment expressed as a percentage
on an income statement, dividends represent
the share of "after-tax profits" that is distributed to shareholders
which of the following is a factor in determining the structure of an organization
the size and number of employees in a business
which of the following is a drawback to a business that issues debentures to raise working capital for the business
the value of liabilities increase
which payment system is preferred for situations where quality and quantity of output cannot be easily measured
time based
which of the following is a reason for conducting a financial ratio analysis
to aid management decision making
what is the ratio used to measure the proportion of an organization's workforce that leaves during the course of a year
turnover rate
a firm could increase its gross profit by
using cheaper suppliers of raw materials
a consequence of paying workers by hourly wage is that
workers may ignore quality due to the emphasis on speed of work
there must be sufficient finance to pay for the daily running of the business. this money is known as
working capital
which of the following is not a financial ratio used to evaluate business performance
working capital