COBA Core Econ 2010, Acct 2050 test bank questions, COBA Core MKTG 2400, COBA Core MGT 3680 Review, FIN 343, COBA Core Acct 2060, COBA Core Econ 2020, BUS 3265 Test Bank Questions

Using the income approach, calculate the national income used to calculate GDP with the information provided below: Interest $8,000 Salaries and wages 50,000 Net foreign factor income 7,000 Partnership income 10,000 Rents 20,000 Indirect business taxes 1,000 Corporate profits 25,000 Proprietor income 4,000

$117,000

Fire Cat, Inc. selected cost data for the year are shown below: Cost of Goods Manufactured $145,500 Work-in-Process Inventory, Jan. 1 19,500 Work-in-Process Inventory, Dec. 31 22,000 Direct Materials Used 18,600 What is the total of manufacturing costs incurred by Fire Cat, Inc. during the year?

$148,000

Venus Corp. sold goods, with a selling price of $17,221, for cash. The state sales tax rate is 8%. What amount is credited to the Sales Revenue account? (Round calculations to the nearest dollar.)

$17,221

Fact pattern: The financial transactions for the country of Panglossia with values stated in billions of dollars are listed below. Gross domestic product (GDP) $4,000 Transfer payments 500 Corporate income taxes 50 Social Security contributions 200 Indirect business taxes 210 Personal taxes 250 Undistributed corporate profits 25 Depreciation 500 Net income earned abroad for the country 0 Panglossia's disposable income is

$3265

A bank with a reserve ratio of 20% and reserves of $1,000,000 can increase its total demand deposits by

$5,000,000

The controller of Gray, Inc., has decided to use ratio analysis to analyze business cycles for the past 2 years in an effort to identify seasonal patterns. Which of the following formulas should be used to compute percentage changes for account balances for Year 1 to Year 2?

(Current balance - Prior balance) ÷ Prior balance

A hospital is comparing last year's emergency rescue services expenditures to those from 10 years ago. Last year's expenditures were $100,500. Ten years ago, the expenditures were $72,800. The CPI for last year is 168.5, as compared to 10 years ago when it was 121.3. After adjusting for inflation, what percentage change occurred in expenditures for emergency rescue services?

0.6% decrease

Carter Co. paid $1,000,000 for land 3 years ago. Carter estimates it can sell the land for $1,200,000, net of selling costs. If the land is not sold, Carter plans to develop the land at a cost of $1,500,000. Carter estimates net cash flow from the development in the first year of operations would be $500,000. What is Carter's opportunity cost of the development?

1,200,000

Elephant, Inc.'s cost of goods sold for the year is $2,000,000, and the average merchandise inventory for the year is $129,000. Calculate the inventory turnover ratio of the company. (Round your answer to two decimal places.)

15.50 times

If 34,000 units are 80% complete with respect to direct materials, then the equivalent units of production for direct materials are ________. The weighted-average method is used.

27,200

From the following information, calculate economic profit: Total sales revenue $600,000 Total cost of sales 200,000 Selling expenses 50,000 General and administrative expenses 25,000 Forgone interest 20,000 Forgone entrepreneurial income 15,000

290000

In which of the following situations would there be inelastic demand?

A 5% price increase results in a 3% decrease in the quantity demanded

A normal profit is

A cost of resources from an economic perspective

The graph above depicts a relationship between the price and the quantity of a good. The movement depicted by the arrow could be caused by

A decrease in the cost of inputs to the production process

If a group of consumers decide to boycott a particular product, the expected result would be

A decrease in the demand for the product

Each of the following describes one of the functions of money except

A hedge against inflation

The effect of a boycott on a firm's demand curve can be depicted as

A leftward shift of the entire curve

A characteristic of a monopoly is that

A monopoly will produce when marginal revenue is equal to marginal cost.

In an analysis of long-run costs of production, "long run" means

A period of time long enough for the firm to make all resource costs available

If the price elasticity of demand for a product is inelastic,

A price increase causes total revenue to increase

Which of the following individuals would be most hurt by an unanticipated increase in inflation?

A retiree living on a fixed income

An improvement in technology that in turn leads to improved worker productivity would most likely result in

A shift to the right in the supply curve and a lowering of the price of the output

If the federal government regulates a product or service in a competitive market by setting a maximum price below the equilibrium price, what is the short-run effect?

A shortage

Given a legal price floor of $3.00, what will be the result given the supply and demand curves below?

A surplus of 20 units

A company purchased 500 units for $30 each on January 31. It purchased 550 units for $33 each on February 28. It sold a total of 650 units for $45 each from March 1 through December 31. What is the cost of ending inventory on December 31 if the company uses the first-in, first-out (FIFO) inventory costing method? (Assume that the company uses a perpetual inventory system.) A) $13,200 B) $10,200 C) $12,000 D) $1,8000

A) $13,200

An adjusted trial balance is given below. D Cash$13,000 D Accounts Receivable 2,000 D Prepaid Rent 700 D Merchandise Inventory 25,000 C Accounts Payable $4,100 C Salaries Payable 2,000 C Notes Payable 800 C Common Stock 8,000 C Retained Earnings 3,800 D Dividends 1,000 C Sales Revenue 86,900 D Cost of Goods Sold 23,000 D Salaries Expense 18,000 D Rent Expense 12,000 D Selling Expense 8,500 D Delivery Expense 1,800 D Supplies Expense 600 Total $105,600 What will be the final balance in the corporation's Retained Earnings account after recording the closing entries? A) $25,800 B) $26,800 C) $14,000 D) $2,8000

A) $25,800

An invoice of $600 for merchandise purchased is showing 2/15, n/30 as terms of credit. If the invoice is paid on or before the fifteenth day after the invoice date, the amount to be paid is ________. A) $588 B) $600 C) $612 D) $615

A) $588

The entries that transfer the revenue, expense, and dividends balances to the Retained Earnings account to prepare the company's books for the next period are called ________ entries. A) closing B) opening C) adjusting D) end of period

A) closing

If an adjusting entry includes a debit to Rent Expense, it indicates that the payment of rent had been previously recorded as a(n) ________. A) deferred expense B) depreciation expense C) accrued expense D) accrued revenue

A) deferred expense

Each of the following business functions is considered part of a company's value chain except A. Accounting. B. Customer service. C. Marketing. D. Research and development.

A. Accounting.

Net working capital is the difference between A. Current assets and current liabilities. B. Fixed assets and fixed liabilities. C. Total assets and total liabilities. D. Shareholders' investment and cash.

A. Current assets and current liabilities.

If a firm is considering the use of learning curve analysis in the determination of labor cost standards for a new product, it should be advised that this technique ordinarily is most relevant to situations in which the production time per unit decreases as additional units are produced and the unit cost A. Decreases. B. Does not change. C. Increases or decreases in an unpredictable manner. D. Increases slightly.

A. Decreases.

Given demand in excess of capacity, no spoilage or waste, and full use of a constant number of assembly hours, the number of components needed for an assembly operation with an 80% learning curve should I. Increase for successive periods. II. Decrease per unit of output. A. I only. B. II only. C. Both I and II. D. Neither I nor II.

A. I only.

The difference between the required rate of return on a given risky investment and that on a riskless investment with the same expected return is the A. Risk premium. B. Coefficient of variation. C. Standard deviation. D. Beta coefficient.

A. Risk premium.

A put is an option that gives its owner the right to do which of the following? A. Sell a specific security at fixed conditions of price and time. B. Sell a specific security at a fixed price for an indefinite time period. C. Buy a specific security at fixed conditions of price and time. D. Buy a specific security at a fixed price for an indefinite time period.

A. Sell a specific security at fixed conditions of price and time.

Which security is most often held as a substitute for cash? A. Treasury bills. B. Common stock. C. Gold. D. AAA corporate bonds.

A. Treasury bills.

Short-term interest rates are A. Usually lower than long-term rates. B. Usually higher than long-term rates. C. Lower than long-term rates during periods of high inflation only. D. Not significantly related to long-term rates.

A. Usually lower than long-term rates.

A country recently experienced a drop in consumer purchases and a rise in business inventories of durable goods. Wages grew slowly and unemployment increased. Business investment in plant and equipment dropped sharply and profits fell. Both interest rates and stock prices fell. Which of the following statements best represents the country's current economy?

Amidst an economic recession

Which one of the following factors would cause the aggregate supply curve shown below to shift from AS1 to AS2?

An improvement in technology

Which of the following may provide a leading indicator of a future increase in gross domestic product?

An increase in the average hours worker per week of production workers

The money supply in a nation's economy will decrease following

An increase in the reserve ratio

Aqua Co. manufactures and sells boats in San Francisco, California. Aqua Co. has hired a consultant to evaluate entry into the Fort Lauderdale, Florida, market. The consultant determined that at the projected level of output the price would be $90,000, the average variable cost would be $55,000, the average total cost would be $70,000, and the marginal cost would be $62,000. The consultant's recommendation would include the following remark:

Aqua Co. should not enter the market

A privately owned subchapter S corporation increases its inventory of paper towels held for sale by 35% this year. How will this be reflected in the GDP calculation?

As an increase in gross private domestic investment

Drop shippers perform which of the following functions?

Assumes title and ships coal, lumber, or heavy equipment to a buyer

Anderson Corporation has purchased a group of assets for $20,300. The assets and their relative market values are listed below. Land $6800 Equipment 2300 Building 3600 Which of the following amounts would be debited to the Land account? (Round any intermediate calculations to two decimal places, and your final answer to the nearest dollar.) A) $4233 B) $10,962 C) $3654 D) $5684

B) $10,962

A business makes a cash payment of $12,000 to a supplier for supplies purchased two weeks earlier. Which of the following accounts is debited? A) Cash B) Accounts Payable C) Supplies D) Accounts Receivable

B) Accounts Payable

Regarding the double-entry system, which of the following statements is incorrect? A) A transaction would be incomplete if only one side were recorded. B) Because of technology, the use of the double-entry system of accounting is optional. C) The double-entry system is a system of accounting in which every transaction affects at least two accounts. D) If office supplies are purchased on account, the account Office Supplies increases and the account Accounts Payable increases.

B) Because of technology, the use of the double-entry system of accounting is optional.

Revenues and expenses may be transferred to the ________ account before their final transfer into the Retained Earnings account. A) Net Income B) Income Summary C) Dividends D) Assets

B) Income Summary

A corporation has $50,000 in equity and a debt-to-total-assets ratio of 0.5. The firm wants to reduce this ratio to 0.2 by selling new common stock and using the proceeds to repay principal on outstanding long-term debt. What amount of additional equity financing must the corporation obtain to accomplish this objective? A. $20,000 B. $30,000 C. $80,000 D. $100,000

B. $30,000

Bates Corp. has $100,000 in bonds payable with a fair market value of $120,000. It also has 1,000 shares of common stock issued at $50 per share with a fair market value of $80 per share. What amount represents the corporation's market capitalization? A. $50,000 B. $80,000 C. $170,000 D. $180,000

B. $80,000

A company purchased $10,000 of merchandise inventory on May 1. The terms of the purchase were 2/10, net 30. The company would pay what amount on May 9? A. $7,000 B. $9,800 C. $9,980 D. $10,000

B. $9,800

The coefficient of correlation that indicates the weakest linear association between two variables is A. -0.73 B. -0.11 C. 0.12 D. 0.35

B. -0.11

A measure that describes the risk of an investment project relative to other investments in general is the A. Coefficient of variation. B. Beta coefficient. C. Standard deviation. D. Expected return.

B. Beta coefficient.

In general, it is more expensive for a company to finance with equity capital than with debt capital because A. Long-term bonds have a maturity date and must therefore be repaid in the future. B. Investors are exposed to greater risk with equity capital. C. Equity capital is in greater demand than debt capital. D. Dividends fluctuate to a greater extent than interest rates.

B. Investors are exposed to greater risk with equity capital.

The expected monetary value of an event A. Is equal to the conditional value or profit of the event. B. Is equal to the payoff of the event times the probability the event will occur. C. Is the profit forgone by not choosing the best alternative. D. Is the absolute profit from a particular event.

B. Is equal to the payoff of the event times the probability the event will occur.

What does Beta measure in the capital asset pricing model? A. The volatility of a stock relative to its competitors. B. The volatility of a stock relative to the market. C. The additional return required over the risk-free rate. D. Unsystematic risk.

B. The volatility of a stock relative to the market.

If the ratio of total liabilities to equity increases, a ratio that must also increase is A. Times interest earned. B. Total liabilities to total assets. C. Return on equity. D. The current ratio.

B. Total liabilities to total assets.

The risk of a single stock is A. Interest rate risk. B. Unsystematic risk. C. Portfolio risk. D. Market risk.

B. Unsystematic risk.

During the accounting period, office supplies were purchased on account for $3,200. A physical count, on the last day of the accounting period, shows $1,100 of office supplies on hand. Supplies Expense for the accounting period is $3,300. What was the beginning balance of Office Supplies? A) $4,400 B) $2,100 C) $1,200 D) There is not enough information to answer this question.

C) $1,200

A company reports net accounts receivable of $152,000 on its December 31, 2019 balance sheet. The Allowance for Bad Debts has a credit balance of $19,000. What is the balance of Accounts Receivable? A) $157,000 B) $152,000 C) $171,000 D) $133,000

C) $171,000

Which of the following represents the correct flow of accounting data? A) transactions occur; transactions are analyzed; transactions are journalized and posted; source documents are prepared B) transactions occur; source documents are prepared; transactions are journalized and posted; C) transactions occur; source documents are prepared; transactions are analyzed; transactions are journalized and posted D) source documents are prepared; transactions occur; transactions are analyzed; transactions are journalized and posted

C) transactions occur; source documents are prepared; transactions are analyzed; transactions are journalized and posted

A company has equity of $9,000. Long-term debt is $1,900. Net working capital, other than cash, is $2,500. Fixed assets are $2,200. What amount of cash does the company have? A. $7,400 B. $6,800 C. $6,200 D. $2,400

C. $6,200

Scrunchy-Tech, Inc., has determined that it can minimize its weighted-average cost of capital (WACC) by using a debt-equity ratio of 2/3. If the firm's cost of debt is 9% before taxes, the cost of equity is estimated to be 12% before taxes, and the tax rate is 40%, what is the firm's WACC? A. 6.48% B. 7.92% C. 9.36% D. 10.80%

C. 9.36%

If Dexter Industries has a beta value of 1.0, then its A. Return should equal the risk-free rate. B. Price is relatively stable. C. Expected return should approximate the overall market. D. Volatility is low.

C. Expected return should approximate the overall market.

The use of derivatives to either hedge or speculate results in A. Increased risk regardless of motive. B. Decreased risk regardless of motive. C. Offsetting risk when hedging and increased risk when speculating. D. Offsetting risk when speculating and increased risk when hedging.

C. Offsetting risk when hedging and increased risk when speculating.

To assist in an investment decision, Gift Co. selected the most likely sales volume from several possible outcomes. Which of the following attributes would that selected sales volume reflect? A. The midpoint of the range. B. The median. C. The greatest probability. D. The expected value.

C. The greatest probability.

Which of the following pricing policies results in establishment of a price to external customers higher than the competitive price for a given industry?

Collusive pricing

The primary purpose of the consumer price index (CPI) is to

Compare relative price changes over time

Setting the promotion budget so as to match the budgets of the competition is characteristic of which of the following budget methods?

Competitive-parity method

The primary mechanism of monetary control of the Federal Reserve System is

Conducting open market operations

The measurement of inflation that is a calculation based on a monthly pricing of items on a typical household shopping list is the

Consumer price index

Price ceilings

Create prices below equilibrium prices.

Rosewood Corporation purchased land for $100,000 by making a cash payment of $38,000 and promising to pay the remaining amount in a later accounting period. What is the net effect of this transaction on Rosewood's accounting equation? A) Assets increase by $100,000 and liabilities decrease by $38,000. B) Assets increase by $100,000 and liabilities decrease by $62,000. C) Assets and equity increase by $62,000. D) Assets and liabilities increase by $62,000.

D) Assets and liabilities increase by $62,000.

What is the price of a 10-year, 10% coupon bond with a $1,000 face value if investors require a 12% return? Assume annual coupon payments.Present Value of an Ordinary Annuity %, 10 Periods 10, 6.14 12, 5.65 Present Value of $1 %, 10 Periods 10, .386 12, .322 A. $565.00 B. $322.00 C. $604.50 D. $887.00

D. $887.00

Listed below are four numbers. Which of these numbers represents the coefficient of correlation of a stock portfolio with the least unsystematic risk? A. 100.0 B. 1.0 C. 0.0 D. -1.0

D. -1.0

What is the after-tax cost of preferred stock that sells for $5 per share and offers a $0.75 dividend when the tax rate is 35%? A. 5.25% B. 9.75% C. 10.50% D. 15%

D. 15%

Which of the following is considered a corporate equity security? A. A shareholder's preemptive right. B. A shareholder's appraisal right. C. A callable bond. D. A share of callable preferred stock.

D. A share of callable preferred stock.

As a company becomes more conservative with respect to working capital financing policy, it would tend to have a(n) A. Increase in the ratio of current liabilities to noncurrent liabilities. B. Decrease in the operating cycle. C. Decrease in the quick ratio. D. Increase in the ratio of current assets to noncurrent assets.

D. Increase in the ratio of current assets to noncurrent assets.

Marketers are sometimes accused of deceptive practices that lead consumers to believe they will get more value than they actually do. includes practices such as falsely advertising "factory" or "wholesale" prices or a large price reduction from a phony high retail price.

Deceptive pricing

_____________ includes practices such as overstating the product's features or performance, luring the customer to the store for a bargain that is out of stock, or running rigged contests.

Deceptive promotion

An increasing federal deficit implies which of the following conditions?

Decreased tax revenues and increased entitlement payments.

Personal income is equal to

Disposable income plus personal tax payments

EM Co. is considering acquiring Chairy Co., which manufactures wooden rocking chairs. EM's accountant determined, at the projected output level, the following: Price $250 Average variable cost 125 Average total cost 160 Marginal cost 140 The accountant's report would include the following remark:

EM Co. should acquire Chairy Co.

Which one of the following is not a key assumption of perfect competition?

Each firm can price its product above the industry price.

When long-run average cost is declining over a range of increasing output, the firm is experiencing

Economies of scale

Rolls Royce uses which of the following distribution formats?

Exclusive distribution

A good example of monopolistic competition is the

Fast food industry

Providing an adequate supply of money to accommodate the needs of U.S. business is the task of the

Federal Reserve System

The theory of cognitive dissonance was proposed by ________.

Festinger

Demand for a product tends to be price inelastic if

Few good substitutes are available for the product

Goods that are produced by a manufacturing company and are ready to sell are recorded in the _______ account.

Finished Goods Inventory

Mr. Smith is hired as a consultant to a firm evaluating entry into a perfectly competitive industry. Mr. Smith determined that at the projected level of output the price would be $100, the average variable cost would be $50, average total cost would be $80, and marginal cost would be $70. Mr. Smith's report will include the following remarks:

Firms should enter the market

Fact pattern: A company produced the following data (rounded) on its product: Unit Cost Number of Marginal Marginal Units Produced Fixed Variable Total Cost Revenue 1 $100 $85 $185 $ 85 $90 2 50 70 120 55 90 3 33 65 98 55 90 4 25 67 92 73 90 5 20 75 95 107 90 How many units should be produced? A

Four

Given recent information about growth trends and growth potential of ethnic populations within the U.S. market, which of the following ethnic groups would be a best bet to double during the next half century and become one of the U.S. market's most viable segments?

Hispanics and Asians

During which of the following periods will prices generally increase the fastest?

Hyperinflation

Which one of the following statements about supply and demand is true?

If demand increases and supply decreases, equilibrium price will increase

Demand-pull inflation occurs when

Incomes rise suddenly

Which of the following changes would most effectively halt a period of inflation?

Increasing interest rates by a large amount

The value of money varies

Inversely with the general level of prices

If a normal good competes with 30 similar goods and all 31 goods give the consumer equal satisfaction, the demand for the normal good

Is relatively elastic

If oil producers and retailers were to increase the price of gasoline for cars during the summer season by $.05 per gallon, these suppliers anticipate that the demand for gasoline

Is relatively inelastic

In addition to increasing the demand for lendable funds, government borrowing to finance large deficits has which of the following effects?

It puts upward pressure on interest rates

All of the following are commonly recognized promotion budget formats EXCEPT :

LIFO method

The total number of items that the company carries within its product lines refers to the of the product mix.

Length

A country reduces its rate of monetary growth. Which of the following is the expected result for the country's economy?

Lower GDP growth

The change in total product resulting from the use of one unit more of the variable factor is known as

Marginal product

Which of the following traits is most likely to aid someone in becoming a leader?

Narcissism

If an advertiser wants flexibility, timeliness, good local market coverage, broad acceptability, and high believability, the advertiser will probably choose which of the following mass media types?

Newspapers

The amounts paid to laborers are

Nominal wages

Mr. Smith is hired as a consultant to a firm in a perfectly competitive industry. At the current output level the price is $20, the average variable cost is $15, average total cost is $22, and marginal cost is $20. In order to maximize profits in the short-run, Mr. Smith will recommend that the firm should

Not change output

The most logical budget setting method is found in the list below. Which is it?

Objective-and-task method

The kinked demand curve is associated with the analysis of

Oligopoly

According to the price/quality strategy matrix, when a company overprices its product in relation to its quality it is considered to be using which type of strategy?

Overcharging strategy

Is a person's distinguishing psychological characteristics that lead to relatively consistent and lasting responses to his or her own environment.

Personality

Which of the following indicates that the economy is in a recessionary phase?

Potential national income exceeds actual national income

A supply curve illustrates the relationship between

Price and quantity supplied

. The choice between high markups and high volume is part of which of the following retailer marketing decisions?

Pricing decisions

The shrinking of distances due to technological advances such as computer and fax connections by telephone, are one characteristic of what new challenge to marketing?

Rapid globalization

The prime rate is the

Rate charged on business loans to borrowers with high credit ratings

A business cycle is a record of the

Recurrent fluctuations that occur in time series data for key macro variables such as real GDP

________is quoted as saying that "everyone lives by selling something.

Robert Louis Stevenson

_________beliefs and values are open to some degree of change.

Secondary

The "Big Five" personality traits include all but which of the following?

Self-confidence

If a firm were to bid to do a "turnkey" operation where they would choose a building site, designing a cement factory to build the plant, hire construction crews, assemble materials and equipment to run the new factory, and turn over the finished factory ready to operate to the owners, the firm would be using which of the following?

Systems selling

Each salesperson is assigned to an exclusive area in which to sell the company's full line of products or services in which type of sales force structure?

Territorial sales force

Which of the following statements is true if a bond's stated interest rate is the same as the market rate?

The bond will be issued at par

Marginal revenue is

The change in total revenue associated with producing and selling one more unit.

Which one of the following scenarios related to Music For You, Inc., who manufactures headphones, is not considered an illegal pricing practice?

The company allows customers who spend over a hundred dollars to purchase another set of headphones for half the price. The price for other customers who don't spend over a hundred dollars remains the same.

Which of the following is a reason why a job order costing system is appropriate for a custom furniture manufacturer?

The cost incurred for each job will differ as per the order specifications.

Derived demand can best be described as

The demand for an input generated by the demand for the final product.

Which of the following is true of a corporation?

The earnings of a corporation may be subject to double taxation.

Which of the following statements is correct regarding an economy at the peak of the business cycle?

The economy will be at the natural rate of unemployment

Which of the following statements is correct if there is an increase in the resources available within an economy?

The economy will be capable of producing more goods and services

The elasticity of resource demand tends to be high when

The elasticity of product demand is high

All of the following are characteristics of monopolistic competition except that

The firms sell a homogeneous product

The demand curve for a product reflects which of the following?

The impact that price has on the amount of a product purchased

Which of the following characteristics would indicate that an item sold would have a relatively high price elasticity of demand?

The item has many similar substitutes.

If a rent control law in a competitive housing market establishes a maximum or ceiling rent that is above the market or equilibrium rent,

The law has no effect on the rental market

Which of the following conditions is the primary cause of fluctuations in business activity resulting in the alternating rise and fall of economic growth?

The level of total spending

Which of the following is NOT an assumption of cost-volume-profit (CVP) analysis?

The price per unit changes as volume changes.

Which of the following is correct regarding the consumer price index (CPI) for measuring the estimated decrease in a company's buying power?

The products a company buys should differ from what a consumer buys.

The discount rate of the Federal Reserve System is

The rate that the central bank charges for loans granted to commercial banks

Which of the following statements is true regarding oral communication?

The sender can quickly obtain feedback from the receiver

Long Lake Golf Course has raised greens fees for a nine-hole game due to an increase in demand. Average Average Games Games Played at Played Previous New Previous at New Rate Rate Rate Rate Regular weekday $10 $11 80 70 Senior citizen 6 8 150 82 Weekend 15 20 221 223 Which one of the following is true?

The senior citizen demand is elastic, and weekend demand is inelastic

Because of economies of scale, as output from production expands,

The short-run average cost of production decreases

In an example discussed in your text, Johnson & Johnson's recall of their Tylenol product following the discovery that several bottles of Tylenol had been laced with cyanide is consistent with which business philosophy?

The societal marketing concept

The definition of economic cost is

The sum of all explicit and implicit costs of the business firm.

ncreased demand for Product A increases the demand for resources used to produce Product A. What is the best explanation for the increase in the demand for resources?

The theory of derived demand is working.

In 1985, the Coca-Cola Company made a classic marketing blunder with its deletion of its popular Coca-Cola product and introduction of what it called New Coke. Analysts now believe that most of the company's problems resulted from poor marketing research. As the public demanded their "old Coke" back, the company relented and reintroduced Coca-Cola Classic (which has regained and surpassed its former position) while New Coke owns only 0.1 percent of the market. Which of the following marketing research mistakes did Coca-Cola make?

They defined their marketing research problem too narrowly

Regulations that arise to ensure that firms take responsibility for the social costs of their products or production processes stem from which reason for government legislation of business?

To protect the interests of society

Concerns that the manufacturers of harmful products such as tobacco have influence on lawmakers to the detriment of the public interest is used as evidence of which criticism of marketing?

Too much political power

The creation of deposit money by US commercial banks increases the

US money supply

Which of the following is foreign owned (even though it is traditionally thought of as a U.S. company)?

Universal Studios

The trough of a business cycle is generally characterized by

Unused productive capacity and an unwillingness to risk new investments

An oligopolist faces a "kinked" demand curve. This terminology indicates that

When an oligopolist lowers its price, the other firms in the oligopoly will match the price reduction, but if the oligopolist raises its price, the other firms will ignore the price change.

Under which of the following conditions is the supplier most able to influence or control buyers?

When the supplier does not face the threat of substitute products.

________, the most widely used intelligence test in hiring decisions, takes only 12 minutes to complete.

Wonderlic Cognitive Ability Test

Goods that have been started in the manufacturing process but are not yet complete are included in the ________.

Work-in-Process Inventory account

Which one of the following companies is most likely to use job order costing?

a law firm

Research finds that when nothing in particular is happening, called positivity offset, most individuals experience ________.

a mildly positive mood

McClelland's theory of needs concentrates on which three needs?

achievement, power, and affiliation

Which of the following is an example of a period cost for a manufacturing company?

advertising expense

Outstanding stock represents shares of stock that ________.

are held by the stockholders

As compared to high self-monitors, low self-monitors ________.

are less likely to emerge as leaders

Colorado Company uses the indirect method to prepare the statement of cash flows. Refer to the following section of the comparative balance sheet: Colorado Company Comparative Balance Sheet December 31, 2019 and 2018 2019 2018 Increase/(Decrease) Accounts Payable $4,000 $6,000 $(2,000) Accrued Liabilities 2,000 1,000 1,000 Long-term Notes Payable 84,000 90,000 (6,000) Total Liabilities $90,000 $97,000 $(7,000) How will the change in Accrued Liabilities be shown on the statement of cash flows?

as an addition to Net Income

The test for the equality of two population variances is based on a) the difference between the 2 sample variances. b) the ratio of the 2 sample variances. c) the difference between the 2 population variances. d) the difference between the sample variances divided by the difference between the sample means.

b) the ratio of the 2 sample variances.

Which of the following is most likely a parameter as opposed to a statistic? a)The average score of the first five students completing an assignment. b)The proportion of females registered to vote in a county. c)The average height of people randomly selected from a database. d)The proportion of trucks stopped yesterday that were cited for bad brakes.

b)The proportion of females registered to vote in a county.

A ____ is a numerical quantity computed from the data of a sample and is used in reaching a decision on whether or not to reject the null hypothesis. a) significance level b) critical value c) test statistic d) parameter

c) test statistic

________ refers to the degree to which decision making is concentrated at a single point in the organization.

centralization

A child in the United States is normally exposed to all of the following values EXCEPT :

collectivism

How can the gaps between what managers think employees feel and what employees really feel be reduced?

conducting regular surveys

Many U.S. firms have sought relief from foreign competition by demanding protectionism policies by the U.S. government. A better way for companies to compete is to expand into foreign markets and:

continuously improve their products at home

The direct labor costs and manufacturing overhead costs required to produce finished goods from raw materials are called ________.

conversion costs

Which of the following represents the combined sum of direct labor costs and manufacturing overhead costs?

conversion costs

Thirty-six of the staff of 80 teachers at a local intermediate school are certified in Cardio- Pulmonary Resuscitation (CPR). In 180 days of school, about how many days can we expect that the teacher on bus duty will likely be certified in CPR? a) 5 days b) 45 days c) 65 days d) 81 days

d) 81 days

The power of a statistical test is a) the probability of not rejecting H0 when it is false. b) the probability of rejecting H0 when it is true. c) the probability of not rejecting H0 when it is true. d) the probability of rejecting H0 when it is false.

d) the probability of rejecting H0 when it is false.

________ is a systematic effort to make an organization leaner by selling off business units, closing locations, or reducing staff.

downsizing

Role ________ indicates the way others believe you should act in a given context.

expectation

State Street Beverage Company issues $805,000 of 9%, 10-year bonds on March 31, 2017. The bonds pay interest on March 31 and September 30. Which of the following statements is true?

f the market rate of interest is 10%, the bonds will issue at a discount.

In regards to job engagement, having a good manager they enjoy working for and ________ were found to be the top causations.

feeling appreciated by one's supervisor

Generally speaking, the most effective teams have ________ members.

five to nine

Macroeconomic stability theory includes the concepts of full employment and price stability. Which of the following are usually considered unavoidable factors preventing the achievement of 100% employment?

frictional and structural unemployment

________ conflict supports the goals of the group while ________ conflict hinders group performance.

functional; dysfunctional

Research on employee stock ownership plans indicates that they ________.

increase employee satisfaction

During a recession, the goal of government fiscal policy is to raise equilibrium output. An appropriate governmental action in this situation is to

increase government spending

Which of the following actions is the acknowledged preventive measure for a period of deflation?

increasing the money supply

Which of the following will be included in manufacturing overhead costs?

indirect labor and indirect materials used

The long-run average total cost (ATC) curve

is ordinarily U-shaped

The ultimate source of an organization's culture is ________.

its founders

The type of sales presentation approach that requires good listening and problem-solving skills is the:

need-satisfaction approach

For a manufacturing company, which of the following is a period cost?

office rent

The fact that services cannot be stored for later use or sale is evidence of their:

perishability

Groups of approximately ________ members tend to be more effective for taking action.

seven

Which of the following would most likely be accounted for using a job order costing system?

the creation of wedding photography portraits

The course of a product's sales and profits over its lifetime is called:

the product life cycle

Loud people are more likely to be noticed in a group than quiet ones. So, too, are extremely attractive or unattractive individuals. Which of the following statements best explains the reason behind this fact?

the relationship of a target to its background influences our perception of the target

The conflict-handling intention of accommodating is ________.

unassertive and cooperative

The American Marketing Association suggests a list of code of ethics. All of the following are ethics suggested in the area of distribution EXCEPT :

using gray marketers whenever possible to save the consumer money

Which of the following is not an example of a performance norm?

when an employee needs to look busy

Which of the following is not a consequence of discrimination for employers? A) reduced productivity B) workplace diversity C) citizenship behavior D) negative conflicts E) increased turnover

workplace diversity

All of the following are high in channel richness except ________.

writing

The place in the business buying behavior model where interpersonal and individual influences might interact is called the:

buying center

A positive organizational culture emphasizes all of the following except which?

tailoring positions to encourage work life balance

A United States-based faculty member goes on sabbatical and works in Finland for a government-run university teaching classes for its International MBA program. The faculty member returns to the U.S. with a paycheck for $50,000 and spends $38,000 of it on a German manufactured car from a dealership in Miami, Florida. Using the classic expenditure model, how much does the GDP increase in each country?GermanyFinland United States

$38000, $50000, $0

Investment figures are for planned investment. Amounts are in billions.PersonalConsumptionReal GDPExpenditures$510$492520500530508540516550524560532570540Assuming that taxes and net exports are zero, government purchases of goods and services are equal to $12, and gross private domestic investment is equal to $10, the equilibrium real gross domestic product will be

$530

On March 1, 2018, Mandy Services issued a 3% long-term notes payable for $15,000. It is payable over a 3-year term in $5000 principal installments on March 1 of each year, beginning March 1, 2019. Each yearly installment will include both principal repayment of $5000 and interest payment for the preceding one-year period. What is the amount of total cash payment that Mandy will make on March 1, 2019?

$5450

Dynamic Production Services started the year with total assets of $120,000 and total liabilities of $55,000. The revenues and the expenses for the year amounted to $100,000 and $80,000, respectively. During the year, the company did not issue any common stock, but it distributed dividends of $50,000. Calculate Dynamic's net income for the year. A) $20,000 B) $100,000 C) $80,000 D) $120,000

A) $20,000

Newton Corporation settles a liability by making a payment in cash. How does paying this liability affect the accounting equation of the business? A) Assets and liabilities decrease. B) Liabilities decrease and equity increases. C) Assets and liabilities increase. D) Assets increase and equity decreases.

A) Assets and liabilities decrease.

Metropolitan Casting Services started the year with total assets of $130,000 and total liabilities of $45,000. The revenues and the expenses for the year amounted to $130,000 and $50,000, respectively. During the year, the company did not issue any common stock, but it distributed dividends of $60,000. Calculate the amount of increase or decrease in stockholders' equity for the year. A) a $20,000 increase B) a $105,000 increase C) a $85,000 decrease D) a $60,000 increase

A) a $20,000 increase

Maxwell Plumbing Services earned $500 by completing a job for Smith Company. The $500 earned by Maxwell Plumbing Services is its ________. A) revenue B) equity C) gain D) debt

A) revenue

Beginning January 2, Year 1, a company deposited $50,000 in a savings account for 2 years. The account earns 10% interest, compounded annually. What amount of interest did the company earn during the 2-year period? A. $10,500 B. $10,000 C. $5,500 D. $5,000

A. $10,500

Global companies that deal with the political and financial risks of conducting business in a particular foreign location face which of the following types of risk? A. Country risk. B. Principal risk. C. Interest rate risk. D. Commodity price risk.

A. Country risk.

If a CPA's client expected a high inflation rate in the future, the CPA would suggest to the client which of the following types of investments? A. Precious metals. B. Treasury bonds. C. Corporate bonds. D. Common stock.

A. Precious metals.

Which of the following classes of securities are listed in order from lowest risk/opportunity for return to highest risk/opportunity for return? A. U.S. Treasury bonds; corporate first mortgage bonds; corporate income bonds; preferred stock. B. Corporate income bonds; corporate mortgage bonds; convertible preferred stock; subordinated debentures. C. Common stock; corporate first mortgage bonds; corporate second mortgage bonds; corporate income bonds. D. Preferred stock; common stock; corporate mortgage bonds; corporate debentures.

A. U.S. Treasury bonds; corporate first mortgage bonds; corporate income bonds; preferred stock.

Amounts owed for products or services purchased on account are called ________.

Accounts payable

The graph above depicts a relationship between the price and the quantity of a good. The movement depicted by the arrow can be described as

An increase in quantity supplied

The subject of organizational culture has been most influenced by which behavioral science discipline? A) anthropology B) psychology C) social psychology D) political science E) corporate strategy

Anthropology

Montgomery Equipment Rental Company received $1,000 cash from a customer; the amount was owed to the business from the previous month. What is the effect of this transaction on the accounting equation? A) Accounts Receivable increases and Service Revenue increases. B) Cash increases and Accounts Receivable decreases. C) Cash increases and Service Revenue increases. D) Cash increases and Accounts Payable decreases.

B) Cash increases and Accounts Receivable decreases.

Mitchell Company receives a bill from one of its suppliers for advertising services received and will pay the supplier next month. How does the receipt of the bill from the supplier affect the accounting equation of Mitchell? A) Assets and equity decrease. B) Liabilities increase and equity decreases. C) Assets and liabilities increase. D) Liabilities and equity increase.

B) Liabilities increase and equity decreases.

Jason Repair Corporation incurred $1,500 as advertising expense and promised to pay the advertising agency within 30 days. Which of the following will decrease as a result of this transaction? A) Assets B) Stockholders' equity C) Liabilities D) Revenues

B) Stockholders' equity

Precision Camera Services started the year with total assets of $90,000 and total liabilities of $65,000. The revenues and the expenses for the year amounted to $100,000 and $70,000, respectively. During the year, the company did not issue any common stock, but it distributed dividends of $40,000. What is the amount of stockholders' equity at the end of the year? A) $70,000 B) $100,000 C) $15,000 D) $40,000

C) $15,000

________ is the equity earned by profitable operations that is not distributed to stockholders. A) Assets B) Dividend C) Retained earnings D) Common stock

C) Retained earnings

The owners' claims to the assets of the business are called ________. A) return on assets B) expenses C) equity D) debt

C) equity

At the beginning of Year 1, $100,000 is invested at 5% interest, compounded annually. What amount of interest is earned in Year 2? A. $5,000.00 B. $5,512.50 C. $5,250.00 D. $10,000.00

C. $5,250.00

The risk of loss because of fluctuations in the relative value of foreign currencies is called A. Expropriation risk. B. Multinational beta. C. Exchange rate risk. D. Undiversifiable risk.

C. Exchange rate risk.

Prior to the introduction of the euro, O&B Company, a U.S. corporation, is in possession of accounts receivable denominated in Deutsche marks. To what type of risk are they exposed? A. Liquidity risk. B. Political risk. C. Exchange-rate risk. D. Price risk.

C. Exchange-rate risk.

Tennis rackets and tennis balls are

Complementary goods

On March 1, 2018, Everson Services issued a 4% long-term notes payable for $16,000. It is payable over a 4-year term in $4000 annual principal payments on March 1 of each year plus interest, beginning March 1, 2019. Each yearly installment will include both principal repayment of $4000 and interest payment for the preceding one-year period. On March 1, 2019, ________. The accounting period ends on December 31.

Everson must pay $640 of interest to the note holder

It is mandatory for both the employer and employee to pay ________.

FICA

Which one of the following components of gross domestic product (GDP) has the greatest fluctuation from year to year?

Gross domestic private investment

The level of aggregate demand will decline if the level of

Gross private domestic investment decreases

Which is the best manner in which to deal with racial and ethnic diversity in the workplace? A) Ignore the differences...we are all the same. B) Implement policies which prohibit cultural conversations. C) Create work groups which have members of all possible racial groups. D) Hold an orientation in which team members can discuss their differences. E) Force people to work with people with whom they are uncomfortable.

Hold an orientation in which team members can discuss their differences

An increase in the market supply of beef would result in a(n)

Increase in the quantity of beef demanded

In any competitive market, an increase in both demand and supply can be expected to always

Increase market-clearing quantity

Is products bought by individuals and organizations for further processing or for use in conducting a business.

Industrial products

Which of the following information forms available to the marketing manager can usually be accessed more quickly and cheaply than other information sources?

Internal databases

On average, managers spend the least amount of time doing which managerial activity? A) Traditional management B) Communication C) Human resource management D) Networking E) Systems

Networking

If both the supply and the demand for a good increase, the market price will

Not be predictable with only these facts

Which of the following is not a stereotype? A) Older workers will tire more quickly than younger workers. B) Women are too emotional to be police officers. C) College professors are narcissistic. D) Politicians are sleazy and dishonest. E) People of Asian descent have dark hair.

People of Asian descent have dark hair

Cognitive dissonance occurs in which stage of the buyer decision process model?

Post purchase behavior

Setting call objectives is done during which of the following stages of the selling process?

Pre approach

Which of the following is not included in the gross domestic product (GDP)?

Purchase of common stock

Pricing to cover variable costs and some fixed costs, as in the case of some automobile distributorships that sell below total costs, is typical of which of the following pricing objectives?

Survival

Regarding net pay, which of the following statements is incorrect?

The net pay amount is not important for accounting purposes.

Which one of the following changes will cause the demand curve for gasoline to shift to the left?

The price of cars increase

Gross domestic product includes which of the following measures?

The total monetary value of all final goods and services produced within a nation in 1 year

All of the following are components of the formula used to calculate gross domestic product except

The value of a homemaker's work

In regards to corporate income tax, which of the following statements is incorrect?

When the corporation makes payment for federal income taxes, the account Income Tax Payable is credited

The chancellor of a major university was concerned about alcohol abuse on her campus and wanted to find out the proportion of students at her university who visited campus bars on the weekend before the final exam week. Her assistant took a random sample of 250 students. The answer on "whether you visited campus bars on the weekend before the final exam week" from students in the sample is an example of. a)a categorical variable. b)a discrete variable. c)a continuous variable. d)a table of random numbers.

a)a categorical variable.

The portion of the universe that has been selected for analysis is called a)a sample. b)a frame. c)a primary data source. d)a secondary data source.

a)a sample.

A study is under way in Yosemite National Forest to determine the adult height of American pine trees. Specifically, the study is attempting to determine what factors aid a tree in reaching heights greater than 60 feet tall. It is estimated that the forest contains 25,000 adult American pines. The study involves collecting heights from 250 randomly selected adult American pine trees and analyzing the results. Identify the population from which the study was sampled. a)The 250 randomly selected adult American pine trees. b)The 25,000 adult American pine trees in the forest. c)All the adult American pine trees taller than 60 feet. d)All American pine trees, of any age, in the forest.

b)The 25,000 adult American pine trees in the forest.

To monitor campus security, the campus police office is taking a survey of the number of students in a parking lot each 30 minutes of a 24-hour period with the goal of determining when patrols of the lot would serve the most students. If X is the number of students in the lot each period of time, then X is an example of a)a categorical variable. b)a discrete variable. c)a continuous variable. d)a statistic.

b)a discrete variable.

Researchers suspect that the average number of units earned per semester by college students is rising. A researcher at Calendula College wishes to estimate the number of units earned by students during the spring semester at Calendula. To do so, he randomly selects 100 student transcripts and records the number of units each student earned in the spring term. He found that the average number of semester units completed was 12.96 units per student. Identify the population of interest to the researcher. a)All Calendula College students. b)All college students. c)All Calendula College students enrolled in the spring. d)All college students enrolled in the spring.

c)All Calendula College students enrolled in the spring.

Most analysts focus on the cost of tuition as the way to measure the cost of a college education. But incidentals, such as textbook costs, are rarely considered. A researcher at Drummand University wishes to estimate the textbook costs of first-year students at Drummand. To do so, she monitored the textbook cost of 250 first-year students and found that their average textbook cost was $600 per semester. Identify the population of interest to the researcher. a)All Drummand University students. b)All college students. c)All first-year Drummand University students. d)The 250 students that were monitored.

c)All first-year Drummand University students.

Researchers are concerned that the weight of the average American school child is increasing implying, among other things, that children's clothing should be manufactured and marketed in larger sizes. If X is the weight of school children sampled in a nationwide study, then X is an example of a)a categorical variable. b)a discrete variable. c)a continuous variable. d)a table of random numbers.

c)a continuous variable.

Raymond is completing a study on discrimination in which he has noted that saleswomen who wear skirt suits make more sales than saleswomen who only wear pant suits. However, Raymond determined that his findings only pertained to those industries in which the purchasing decision maker is traditionally masculine. For example, the sales results were the same for all women selling to medical office managers, a female dominated field. Raymond used ________ variables to more accurately explain his results. A) global B) general C) dependent D) non-reactive E) contingency

contingency

Which of the following is most likely a population as opposed to a sample?a)respondents to a newspaper survey. b)the first 5 students completing an assignment. c)every third person to arrive at the bank. d)registered voters in a county.

d)registered voters in a county.

Differences in characteristics such as personality, values, and beliefs form part of ________. A) surface-level diversity B) deep-level diversity C) lateral-level diversity D) organizational-level diversity E) individual-level diversity

deep-level diversity

Whereas ________ focuses on differences among people from different countries, ________ addresses differences among people within given countries. A) workforce diversity; globalization B) globalization; workforce diversity C) culture; diversity D) culturalization; workforce diversity E) psychology; social psychology

globalization; workforce diversity

That the company that overlooks new and better ways to do things will eventually lose customers to another company that has found a better way of serving customer needs is a major tenet of:

innovative marketing

All of the following are considered to be drawbacks of local marketing EXCEPT :

it can attract unwanted competition

The matching principle requires businesses to report Warranty Expense ________.

n the same period that the company records the revenue related to that warranty

The is a person within a reference group who, because of special skills, knowledge, personality, or other characteristics, exerts influence on others.

opinion leader

________ influences employees' behavior so strongly that organizations have started employing specific employees to preserve the status quo of the company. A) Organizational culture B) Socio-economic environment C) Politics D) Human resources E) Social media

organizational culture

Which of the following is not an action characteristic of an organization in flux? Which of the following is not an action characteristic of an organization in flux? A) replacing temporary workers with permanent ones B) reorganizing divisions C) downsizing operations D) subcontracting noncritical services and operations to other organizations E) selling off poorly performing divisions

replacing temporary workers with permanent ones

Which of the following is NOT core topic of organizational behavior? A) motivation B) attitude development C) conflict D) resource allocation E) work design

resource allocation

The following information pertains to a company's potential investment in security X: Maturity risk premium: 1% Liquidity risk premium: 3% Default risk premium: 2% Risk-free rate: 4% What is the company's required rate of return for the investment in this security? A. 4% B. 6% C. 9% D. 10%

D. 10%

One type of risk to which investment securities are subject can be offset through portfolio diversification. This type of risk is referred to as A. Market risk. B. Undiversifiable risk. C. Liquidity risk. D. Company unique risk.

D. Company unique risk.

An investment security with high risk will have a(n) A. Low expected return. B. Lower price than an asset with low risk. C. Lower coefficient of variation. D. High standard deviation of returns.

D. High standard deviation of returns.

When purchasing temporary investments, which one of the following best describes the risk associated with the ability to sell the investment in a short period of time without significant price concessions? A. Interest-rate risk. B. Purchasing-power risk. C. Financial risk. D. Liquidity risk.

D. Liquidity risk.

An investor is currently holding income bonds, preferred stocks, subordinated debentures, and U.S. Treasury bonds. Which of these securities traditionally is considered to have the least risk? A. Income bonds. B. Preferred stocks. C. Subordinated debentures. D. U.S. Treasury bonds.

D. U.S. Treasury bonds.

For a given level of tax collections, prices, and interest rates, a decrease in governmental purchases will result in a(n)

Decrease in aggregate demand

In relation to the laws of supply and demand, an increase in supply will

Decrease the equilibrium price and increase the equilibrium quantity exchanged

If the average household income increases and there is relatively little change in the price of a normal good, then the

Demand curve will shift to the right

Under the income approach, gross domestic product (GDP) is measured as

Depreciation charges and indirect business taxes + Wages + Rents + Interest + Profits - Net American income earned abroad

The biggest or greatest amount of involvement in a foreign market comes through which of the following?

Direct investment

The demand curve for a normal good is

Downward sloping because of the income and substitution effects of price changes

A decrease in the price of a complementary good will

Shift the demand curve of the other commodity to the right

A study is under way in Yosemite National Forest to determine the adult height of American pine trees. Specifically, the study is attempting to determine what factors aid a tree in reaching heights greater than 60 feet tall. It is estimated that the forest contains 25,000 adult American pines. The study involves collecting heights from 250 randomly selected adult American pine trees and analyzing the results. Identify the sample in the study. a)The 250 randomly selected adult American pine trees. b)The 25,000 adult American pine trees in the forest. c)All the adult American pine trees taller than 60 feet. d)All American pine trees, of any age, in the forest.

a)The 250 randomly selected adult American pine trees.

Which of the following is a continuous quantitative (numerical) variable? a)The color of a student's eyes b)The number of employees of an insurance company c)The amount of milk in a 2-liter carton. d)The number of gallons of milk sold at the local grocery store yesterday

c)The amount of milk in a 2-liter carton.

Most analysts focus on the cost of tuition as the way to measure the cost of a college education. But incidentals, such as textbook costs, are rarely considered. A researcher at Drummand University wishes to estimate the textbook costs of first-year students at Drummand. To do so, she monitored the textbook cost of 250 first-year students and found that their average textbook cost was $600 per semester. Identify the sample in the study. a)All Drummand University students. b)All college students. c)All first-year Drummand University students. d)The 250 students that were monitored.

d)The 250 students that were monitored.

Which of the following is a discrete quantitative (numerical) variable? a)The Dow Jones Industrial average b)The volume of water released from a dam c)The distance you drove yesterday. d)The number of employees of an insurance company

d)The number of employees of an insurance company

All of the following would be ways to segment within the category of psychographic segmentation EXCEPT :

occupation

A is a good offered either free or at low cost as an incentive to buy a product.

premium

Which of the following concepts represent the time value of money?

the concept that money earns interest over time

The Federal Reserve System's reserve ratio is the

Specified percentage of a commercial bank's deposit liabilities that must be deposited in the central bank or kept on hand.

Which one of the following is a characteristic of pure competition?

Standardized product

Which of the following types of unemployment typically results from technological advances?

Structural

In a capitalistic society, it is not considered possible to have 100% employment of the labor force. Therefore, full employment is defined as something less than 100% employment because of the existence of

Structural and frictional unemployment

How can United States managers be culturally sensitive?

by listening more

Research has indicated that in gender-diverse groups, strong politically correct norms increase group ________.

creativity

Wal-Mart owned Sam's club is an example of a retail form called a(n):

warehouse club

The beginning inventory costs and the product costs of the current period are combined to determine the average cost of equivalent units of production under the ________.

weighted-average method

The owner of a fish market has an assistant who has determined that the weights of catfish are normally distributed, with mean of 3.2 pounds and standard deviation of 0.8 pound. If a sample of 64 fish yields a mean of 3.4 pounds, what is probability of obtaining a sample mean this large or larger? a) 0.0001 b) 0.0013 c) 0.0228 d) 0.4987

c) 0.0228

The following are the duration in minutes of a sample of long-distance phone calls made within the continental United States reported by one long-distance carrier. RelativeTime (in Minutes)/ Frequency 0 but less than 5/0.37 5 but less than 10/0.22 10 but less than 15/0.15 15 but less than 20/0.10 20 but less than 25/0.07 25 but less than 30/0.07 30 or more/0.02 Referring to Scenario 2-5, if 100 calls were randomly sampled, how many calls lasted 15 minutes or longer? a) 10 b) 14 c) 26 d) 74

c) 26

140. Costs that do not vary with production or sales levels are called:

fixed costs

The major advantage of survey research is its:

flexibility

The major advantage of the virtual organization is its ________.

flexibility

When personal interviewing involves inviting six to ten people to gather for a few hours with a trained interviewer to talk about a product, service, or organization, the method is called:

focus group interviewing

Successful depends on how well a company blends its people, organizational structure, decision and reward systems, and company culture into a cohesive program that supports its strategies.

marketing implementation

Research suggests that when members feel confident to ________ without fear of punishment, ________ can be beneficial and boost team performance.

speak up; conflict

Which of the following indicators is used by the federal government to measure inflation?

Consumer price index

Which of the following is NOT one of the five stages of the buyer decision process?

brand identification

If your company were to make light bulbs to be used in photocopiers, you would most likely be selling to a ________market.

business

If a government were to use only fiscal policy to stimulate the economy from a recession, it would

Lower consumer taxes and increase government spending

Fleetwood, Inc. signed a three-year note payable for $59,000 at 7% annual interest. What is the interest expense for 2019 if the note was signed on August 1, 2019? (Do not round any intermediate calculations, and round your final answer to the nearest dollar.)

$1,721

A small country that uses the U.S. dollar as its currency is measuring its GDP for the current year. Personal consumption expenditure was $69,000 last year, and it increased by 10% this year. Gross private domestic investment was $18,000, and it decreased by 5% this year. Government purchases was $19,000, and it increased by 20% this year. Net exports of $2,000 remained the same as last year. What is the current year's GDP based on the classic expenditure model?

$117,800

On January 1, 2018, Benbrook Company purchased equipment and signed a six-year mortgage note for $160,000 at 15%. The note will be paid in equal annual installments of $42,278, beginning January 1, 2019. Calculate the balance of Mortgage Payable after the payment of the first installment. (Round your answer to the nearest whole number.)

$141,722

f bonds with a face value of $209,000 are issued at 93, the amount of cash proceeds is ________.

$194,370

Fact pattern: The financial transactions for the country of Panglossia with values stated in billions of dollars are listed below.Gross domestic product (GDP) $4,000 Transfer payments 500 Corporate income taxes 50 Social Security contributions 200 Indirect business taxes 210 Personal taxes 250 Undistributed corporate profits 25 Depreciation 500 Net income earned abroad for the country 0 Panglossia's national income is`

$3290

Jones Supply Services paid $350 cash, the amount owed from the previous month, to a materials supplier. Which of the following accounts decrease? A) Accounts Receivable B) Accounts Payable C) Retained Earnings D) Office Supplies

B) Accounts Payable

Lamar Corporation originally purchased land for $20,000. It later sold the land for $20,000 in cash. Which of the following is true of the effect of the sale of land on the accounting equation? A) Assets increase and liabilities decrease by $20,000. B) Assets and equity increase by $40,000. C) Assets increase by $20,000; equity increases by $20,000. D) The amount of total assets remains the same.

D) The amount of total assets remains the same.

_____________describes changes in an individual's behavior arising from experience.

Learning

Which behavioral science discipline is most focused on understanding individual behavior? A) sociology B) social psychology C) psychology D) anthropology E) organizational behavior

Psychology

On average, managers spend most of their time doing which managerial activity? A) Traditional management B) Communication C) Human resource management D) Networking E) Systems

Traditional management

A government price support program will

Lead to surpluses

Yahoo, Info seek, and Excite are all called:

search engines

Even though buying roles in the family change constantly, the _____ has traditionally been the main purchasing agent for the family.

wife

Which of the following statements is true about the difference between men and women when it comes to emotional reactions?

women tend to "hold onto" emotions longer than men

The two most common forms of representative participation are ________ and board representatives.

work councils

Highly conscientious individuals may tend to do all but which of the following?

work to create new and more effective methods

In determining sales force size, when a company groups accounts into different size classes and then determines the number of salespeople needed to call on them the desired number of times, it is called the:

work-load approach

Your fellow employees have a terrible work situation. They work in an old, run-down building with an antiquated heating system. The work itself is tedious and the supervisor is rarely available and only shows up to give reprimands for production shortfalls. Nobody has received a promotion in two years. The work is boring, repetitious, and unrewarding. You are trying to improve this situation with the help of Herzberg's two-factor theory. You decide that your first job should be to improve the hygiene factors. Which of the following would you consider a hygiene factor?

working conditions

Zander Company has fixed costs of $14,000. The company's contribution margin ratio is 46%. What is the breakeven point in sales dollars? (Round your answer to the nearest dollar.)

$30,435

Catalog marketing is big business in the United States. The average household receives catalogs per year.

75

The situation depicted in the graph below could be caused by

A rise in the country's population

The net income of Hollywood Talent Services is $26,000. The beginning and ending stockholders' equity balances were $35,000 and $56,000, respectively. The company issued no common stock. Calculate the amount of dividends. A) $15,000 B) $5,000 C) $9,000 D) $8,000

B) $5,000

A period of rising inflation

Increases the price level, which is negatively related to the purchasing power of money.

Because of the existence of economies of scale, business firms may find that

Increasing the size of a factory will result in lower average costs.

____________is a principle of enlightened marketing that requires that a company seek real product and marketing improvements.

Innovative marketing

_______ represents a short-term liability created by purchasing "on account." A) Accounts Receivable B) Notes Payable C) Accounts Payable D) Expenses

C) Accounts Payable

The fact that services are sold, produced, and consumed at the same time refers to which of the following service characteristics?

Inseparability

_________is the process of evaluating each market segment's attractiveness and selecting one or more segments to enter.

Market targeting

What is the amount needed to close the recessionary gap if the economy's full-employment real gross domestic product (GDP) is $1.2 trillion and its equilibrium real GDP is $1.0 trillion?

$200 billion divided by the multiplier

Singh Enterprises manufactures picture frames. Its production operations are divided into two departments — Assembly and Finishing. The company uses a process costing system. Singh incurred the following costs during the year to produce 6000 picture frames: Assembly $9700 Finishing $2250 If Singh can only sell 5100 picture frames during the year, what will be the cost per unit of the picture frames produced? (Round your answer to the nearest cent.)

$1,99

A lender and a borrower signed a contract for a $1,000 loan for 1 year. The lender asked the borrower to pay 3% interest. Inflation occurred and prices rose by 2% over the next year. The borrower repaid $1,030. What is the amount worth in real terms, after inflation?

$1009.80

Lakeshore Manufacturing provided the following information for the month ended March 31: Sales Revenue $30,000 Beginning Finished Goods Inventory 17,000 Ending Finished Goods Inventory 11,500 Cost of Goods Manufactured 12,600 Compute gross profit.

$11,900

Fact pattern: The table below concerns the money supply for the economy of the hypothetical country of Petasus. Billions Itemof Dollars Checkable deposits 2,400 Small time deposits 500 Currency 60 Noncheckable savings deposits 950 Money market deposits accounts 300 Money market mutual funds 550 Large time deposits 1,000 The size of Petasus' M1 money supply is

$2,460 billion

The full-employment gross domestic product (GDP) is $1.3 trillion, and the actual gross domestic product is $1.2 trillion. The marginal propensity to consume (MPC) is 0.8. When inflation is ignored, what increase in government expenditures is necessary to produce full employment?

$20 billion

Artisan Inspiration, Inc. is a merchandiser of stone ornaments. The company sold 8000 units during the year. The company has provided the following information: Sales Revenue $593,000 Purchases (excluding Freight In) 304,000 Selling and Administrative Expenses 68,000 Freight In 14,000 Beginning Merchandise Inventory 46,000 Ending Merchandise Inventory 42,000 What is the operating income for the year? (Round your answer to the nearest whole dollar.)

$203,000

A corporation used $34,000 of direct materials. It incurred $74,000 in direct labor costs and $112,500 in manufacturing overhead costs during the period. What is the cost of goods manufactured if the beginning and ending Work-in-Process Inventories were $27,500 and $20,500, respectively?

$227,500

Fact pattern: The table below concerns the money supply for the economy of the hypothetical country of Petasus. Billions Itemof Dollars Checkable deposits 2,400 Small time deposits 500 Currency 60 Noncheckable savings deposits 950 Money market deposits accounts 300 Money market mutual funds 550 Large time deposits 1,000 The size of Petasus' M2 money supply is

$4,760 billion

Venus Manufacturing uses a predetermined overhead allocation rate based on direct labor cost. At the beginning of the year, it estimated the manufacturing overhead rate to be 30% of the direct labor cost. In the month of June, Venus completed Job 13C and its details are as follows: Direct materials cost $6820 Direct labor cost $26,000 Direct labor hours 31 hours Units of product produced 200 What is the total cost incurred for Job 13C?

$40,620

The entry to record depreciation includes a credit to the ________ account. A) Depreciation Payable B) Cash C) Accumulated Depreciation D) Depreciation Expense

C) Accumulated Depreciation

Milton, Inc. had the following transactions in 2019, its first year of operations: • Issued 8000 shares of common stock. Stock has par value of $0.01 per share and was issued at $40.00 per share. • Earned net income of $200,000. • Paid dividends of $8.00 per share. At the end of 2019, what is total stockholders' equity?

$456,000

Given the following information, determine the cost of goods manufactured. Direct Labor Incurred $62,000 Manufacturing Overhead Incurred 177,000 Direct Materials Used 151,000 Finished Goods Inventory, Jan. 1 197,000 Finished Goods Inventory, Dec. 31 99,000 Work-in-Process Inventory, Jan. 1 221,000 Work-in-Process Inventory, Dec. 31 108,000

$503,000

The following information was obtained from Durand, Inc.: Advertising Costs $11,600 Indirect Labor 8000 CEO's Salary 470,000 Direct Labor 53,000 Indirect Materials Used 8000 Direct Materials Used 390,000 Factory Utilities 840 Factory Janitorial Costs 1000 Manufacturing Equipment Depreciation 1700 Delivery Vehicle Depreciation 2110 Administrative Wages and Salaries 22,300 How much were Durand's period costs?

$506,010

Assume that real gross domestic product (GDP), measured in Year 1 dollars, rose from $3,000 billion in Year 1 to $4,500 billion in Year 10. Assume also that the price index rose from 100 to 200 during the same period. The GDP for Year 1 expressed in terms of Year 10 prices is

$6,000 billion

The financial statements of Carrier Office Furniture Company include the following items: 2019 2018 Cash $42,500 $42,000 Short-term Investments 28,000 19,000 Net Accounts Receivable 102,000 98,000 Merchandise Inventory 166,000 148,000 Total Assets 527,000 547,000 Total Current Liabilities 273,000 285,000 Long-term Note Payable 64,000 60,000 What is working capital for 2019?

$65,500

Aaron, Inc. estimates direct labor costs and manufacturing overhead costs for the coming year to be $760,000 and $520,000, respectively. Aaron allocates overhead costs based on machine hours. The estimated total labor hours and machine hours for the coming year are 16,000 hours and 8000 hours, respectively. What is the predetermined overhead allocation rate? (Round your answer to the nearest cent.)

$65.00 per machine hour

Avia Company sells a product for $150 per unit. Variable costs are $70 per unit, and fixed costs are $1200 per month. The company expects to sell 640 units in September. The unit contribution margin is ________.

$80 per unit

Clay Earth Company sells ceramic pottery at a wholesale price of $5 per unit. The variable cost of manufacture is $2.50 per unit. The fixed costs are $6200 per month. It sold 5700 units during this month. Calculate Clay Earth's operating income (loss) for this month.

$8050

Assuming a required reserve ratio of 10%, the value of the monetary multiplier will be

10

The Assembly Department of Interface, Inc., manufacturer of computers, had 4500 units of beginning inventory in September, and 8000 units were transferred to it from the Production Department. The Assembly Department completed 4000 units during the month and transferred them to the Packaging Department. The weighted-average method is used. Calculate the total number of units to account for by the Assembly Department.

12,500 units

National, Inc. provides the following data: 2019 2018 Cash $45,000 $25,000 Accounts Receivable, Net 138,000 62,000 Merchandise Inventory 70,000 50,000 Property, Plant, and Equipment, Net 200,000 120,000 Total Assets $453,000 $257,000 For the year ending December 31, 2019: Net Credit Sales $250,000 Cost of Goods Sold (110,000) Gross Profit $140,000 Calculate the accounts receivable turnover ratio for 2019. (Round your answer to two decimal places.)

2.50 times

Below are the recent monthly unemployment figures for an economy: Persons moving to a new city and seeking work 100,000 Persons out of work because their industry has just been rendered obsolete by technological change 12,000 Persons in all industries laid off due to general economic slowdown 120,000 Persons taking 2 months off from work to pursue education 100,000 Applying the Bureau of Labor Statistics' guidelines for calculating the official unemployment statistics, what is the "natural" level of unemployment for this economy?

212,000

Allstate Moving Company reported the following amounts on its balance sheet as of December 31, 2019 and December 31, 2018: 2019 2018 Cash and Receivables $75,000 $145,000 Merchandise Inventory 175,000 250,000 Property, Plant and Equipment, net 820,000 710,000 Total Assets $1,070,000 $1,105,000 Total Liabilities $455,000 $405,000 For the vertical analysis, what is the percentage of current assets as of December 31, 2019? (Round your answer to two decimal places.)

23.36%

The price elasticity of demand for a good is 2.0, and the quantity demanded is 5,000 units. The price increases by 10%. What is the new quantity demanded?

4000

According to David Galenson, individuals do their most creative work during their ________.

40s, 50s, and 60s

A company reports total assets of $910,000 and stockholders' equity of $530,000. Calculate the debt ratio. (Round your answer to two decimal places.)

41.76%

Tuscan Bank is required to reserve $20 out of every $100 deposited, and it has $5,000,000 in deposits. What is the current money multiplier?

5

If Tonya used $10,000 from her savings account, which was paying 5% interest annually, to invest in a coffee shop, the opportunity cost of this investment annually would be

500

A furniture corporation manufactures two models of furniture—Standard and Deluxe. The total estimated manufacturing overhead costs are $64,200. The following estimates are available: Standard Deluxe Direct materials cost per unit $250 $290 Direct labor cost per unit $125 $140 Number of units 240 600 The company uses direct labor costs as the base to allocate manufacturing overhead. Calculate the predetermined overhead rate. (Round your answer to two decimal places.)

56.32%

Which of the following accounts will have an ending balance after the closing process is completed? A) Dividends B) Rent Expense C) Accumulated Depreciation D) Service Revenue

C) Accumulated Depreciation

Pizza, Inc. provides the following data: 2019 2018 Assets Current Assets: Cash and Cash Equivalents $30,000 $25,000 Accounts Receivable, Net 37,000 62,000 Merchandise Inventory 59,000 50,000 Total Current Assets $126,000 137,000 Property, Plant, and Equipment, Net $124,000 120,000 Total Assets $250,000 $257,000 For the year ending December 31, 2019: Net Credit Sales $510,000 Cost of Goods Sold (160,000) Gross Profit $350,000 Calculate the asset turnover ratio for 2019. There are no cash sales. (Round your answer to two decimal places.) A) 4.05 times B) 1.01 times C) 0.64 times *D) 2.01 times 46. Walton, Inc. provides the following data: 2019 2018 Cash $44,000 $25,000 Accounts Receivable, Net 101,000 62,000 Merchandise Inventory 78,000 50,000 Property, Plant, and Equipment, Net 182,000 120,000 Total Assets $405,000 $257,000 Additional information for the year ending December 31, 2019: Net Credit Sales $550,000 Cost of Goods Sold 150,000 Interest Expense 24,000 Net Income 184,000 Calculate the rate of return on total assets for 2019. (Round your answer to two decimal places.)

62.84%

What is the rate of inflation from one year to the next if the consumer price index was 110 in one year and 118 in the next year?

7.3%

Hughes Company manufactures harmonicas which it sells for $31 each. Variable costs for each unit are $18 and total fixed costs are $3925. How many units must be sold to earn income of $5500?

725

A company had a choice between Project X and Project Y. The net present value of Project X is $1,000,000, and the net present value of Project Y is $750,000. The company chose Project X. What is the opportunity cost of that decision?

750,000

Bank is willing to lend a business $1 million at an annual real interest rate of 6%. What is the nominal rate Bank will charge the firm if the rate of inflation is anticipated to be 2%?

8%

Which of the following businesses is most likely to use a process costing system?

a soda manufacturer

Which of the following results could be expected from an open market operation of the Federal Reserve?

A sale of securities would raise interest rates

Wellness, a healthy living magazine, collected $504,000 in subscription revenue on May 31. Each subscriber will receive an issue of the magazine in each of the next 12 months, beginning with the June issue. The company uses the accrual method of accounting. What is the balance in the Unearned Revenue account as of December 31? A) $210,000 B) $294,000 C) $504,000 D) $378,000

A) $210,000

Refer to the following adjusted trial balance after the first year of operations. Cash$1,900 D Accounts Receivable 8,900 D Office Supplies 200 D Equipment 22,300 C Accumulated Depreciation— Equipment $2,000 C Accounts Payable 1,000 C Salaries Payable 850 C Unearned Revenue 400 C Common Stock 3,600 D Dividends 3,000 C Service Revenue 55,150 D Salaries Expense 23,000 D Supplies Expense 2,000 D Depreciation Expense— Equipment 1,700 Total$63,000 What will the balance of the Retained Earnings account be after the closing entries are posted? A) $25,450 B) $28,450 C) $32,050 D) $31,450

A) $25,450

Accounts Receivable has a balance of $32,000, and the Allowance for Bad Debts has a credit balance of $3,000. The allowance method is used. What is the net realizable value of Accounts Receivable before and after a $2,100 account receivable is written off? A) $29,000; $29,000 B) $26,900; $26,900 C) $29,000; $26,900 D) $26,900; $31,100

A) $29,000; $29,000

The following Office Supplies account information is available for Nabors, Inc. Beginning balance $1,100 Office Supplies expensed 7,000 Ending balance 2,000 From the above information, calculate the amount of office supplies purchased. A) $7,900 B) $7,000 C) $1,100 D) $2,000

A) $7,900

Hudson Landscaping Service bought equipment for $9,600 on January 1, 2019. It has an estimated useful life of five years and zero residual value. Hudson uses the straight-line method to calculate depreciation and records depreciation expense in the books at the end of every month. As of June 30, 2019, the book value of this equipment shown on its balance sheet will be ________. A) $8,640 B) $9,600 C) $10,560 D) $9,760

A) $8,640

What does "2/10" mean, with respect to "credit terms of 2/10, n/30"? A) A discount of 2 percent will be allowed if the invoice is paid within 10 days of the invoice date. B) Interest of 2 percent will be charged if the invoice is paid after 10 days from the date on the invoice. C) A discount of 10 percent will be allowed if the invoice is paid within two days of the invoice date. D) Interest of 10 percent will be charged if invoice is paid after two days.

A) A discount of 2 percent will be allowed if the invoice is paid within 10 days of the invoice date.

________ represent the right to receive cash in the future from customers for goods sold or for services performed. A) Accounts Receivable B) Accounts Payable C) Equity D) Expenses

A) Accounts Receivable

Which of the following accounts will be included in a post-closing trial balance? A) Accumulated Depreciation—Building B) Rent Expense C) Interest Expense D) Service Revenue

A) Accumulated Depreciation—Building

Which of the following statements regarding the allowance method of accounting for uncollectible receivables is incorrect? A) Bad debt expense is not estimated. B) The Allowance for Bad Debts is used to hold the pool of "unknown" uncollectible accounts. C) The business does not wait to see which customers will not pay when estimating the allowance for bad debts. D) The allowance method is based on the matching principle.

A) Bad debt expense is not estimated.

A business collects cash from a customer for services that were performed one month earlier. Which of the following accounts is debited? A) Cash B) Accounts Receivable C) Service Revenue D) Accounts Payable

A) Cash

A business makes a cash payment to a supplier on account for office supplies that were purchased earlier. Which of the following accounts is credited? A) Cash B) Accounts Payable C) Office Supplies D) Office Supplies Expense

A) Cash

The accountant for Barnes Auto Repair, Inc. failed to make an adjusting entry to record $5,000 of unpaid salaries for the last two weeks of the year. Which of the following is an effect of this omission? A) The net income will be overstated. B) The total assets will be understated. C) The net income will be understated. D) The total assets will be overstated

A) The net income will be overstated.

Which of the following can be an effect of a transaction that increased an asset of a corporation for the accounting equation to balance? A) There is an equal decrease in another asset. B) There is an equal decrease in equity. C) There is an equal decrease in a liability account. D) Both liabilities and equity decrease.

A) There is an equal decrease in another asset.

Country Homes Corporation just recorded a transaction in its books. If this transaction increased the total liabilities by $10,000, then ________. A) assets must increase, or equity must decrease by $10,000 B) either assets or equity must decrease by $10,000 C) both assets and equity must each decrease by $5,000 D) assets must decrease by $10,000

A) assets must increase, or equity must decrease by $10,000

What type of probability distribution will most likely be used to analyze warranty repair needs on new cars in the following problem?The service manager for a new automobile dealership reviewed dealership records of the past 20 sales of new cars to determine the number of warranty repairs he will be called on to perform in the next 90 days. Corporate reports indicate that the probability any one of their new cars needs a warranty repair in the first 90 days is 0.05. The manager assumes that calls for warranty repair are independent of one another and is interested in predicting the number of warranty repairs he will be called on to perform in the next 90 days for this batch of 20 new cars sold. A) binomial distribution. B) Poisson distribution. C) Hypergeometric distribution. D) None of the above.

A) binomial distribution.

When inventory costs are declining, which of the following inventory costing method will result in the lowest ending merchandise inventory? A) first-in, first-out B) last-in, first-out C) weighted-average D) specific identification

A) first-in, first-out

The allowance method of accounting for uncollectible receivables ________. A) is used to measure bad debts B) violates the matching principle C) records bad debt expense in the period the accounts receivable is written off D) requires the use of a contra liability account.

A) is used to measure bad debts

You are currently holding a call option on a stock with an exercise price of $100. If the current stock price is $90, your net proceeds by exercising this option will be A. $(10) B. $10 C. $0 D. $90

A. $(10)

A vendor offered Wyatt Co. $25,000 in compensation for losses resulting from faulty raw materials. Alternatively, a lawyer offered to represent Wyatt in a lawsuit against the vendor for a $12,000 retainer and 50% of any award over $35,000. Possible court awards with their associated probabilities are as follows: Award, Probability $75,000, 0.6 $0, 0.4 Compared with accepting the vendor's offer, the expected value for Wyatt to litigate the matter to a verdict provides a A. $4,000 loss. B. $8,000 gain. C. $21,000 gain. D. $38,000 gain.

A. $4,000 loss.

Selected information from the accounting records of Bolingbroke Company follows: Net sales: $1,800,000 Cost of goods sold:1,200,000 Inventories at January 1: 336,000 Inventories at December 31: 288,000 Assuming there are 300 working days per year, what is the number of days' sales in average inventories for the year? A. 78 B. 72 C. 52 D. 48

A. 78

Each of the following financial instruments is a derivative except A. A fixed interest, 5-year note payable. B. Interest rate futures. C. An agreement to buy a piece of equipment in 6 months at a price determined today. D. A contract to purchase a commodity in 6 months at a price determined today.

A. A fixed interest, 5-year note payable.

Which of the following corporate characteristics would favor debt financing versus equity financing? A. A high tax rate. B. A high debt-to-equity ratio. C. Low aversion to risk. D. Below average stock issuing costs.

A. A high tax rate

During the current year, Rand Co. purchased $960,000 of inventory. The cost of goods sold for the year was $900,000, and the ending inventory at December 31 was $180,000. What was the inventory turnover for the year? A. 6.4 B. 6.0 C. 7.2 D. 5.0

B. 6.0

An analysis of a company's planned equity financing using the Capital Asset Pricing Model (or Security Market Line) incorporates only the A. Expected market earnings, the risk-free rate, and the beta coefficient. B. Expected market earnings and the price-earnings ratio. C. Risk-free rate, the price-earnings ratio, and the beta coefficient. D. Risk-free rate and the dividend payout ratio.

A. Expected market earnings, the risk-free rate, and the beta coefficient.

A financial institution looking to assess its investment portfolio's exposure to price changes most likely would use which of the following techniques? A. Market value at risk analysis. B. Cash flow at risk analysis. C. Earnings at risk analysis. D. Backtesting analysis.

A. Market value at risk analysis.

Because of the large number of factors that could affect the demand for its new product, interactions among these factors, and the probabilities associated with different values of these factors, the marketing department would like to develop a computerized model for projecting demand for this product. By using a random-number procedure to generate values for the different factors, it will be able to estimate the distribution of demand for this new product. This method of estimating the distribution of demand for the new product is called A. Monte Carlo simulation. B. Linear programming. C. Correlation analysis. D. Differential analysis.

A. Monte Carlo simulation.

All of the following are stages of the business cycle except

Acceleration

Which of the following definitions best describes a business cycle?

Activity that alternates periods of growth and decline in an economy's GDP

If a company's objective were to reach masses of buyers that were geographically dispersed at a low cost per exposure, the company would likely choose which of the following promotion forms?

Advertising

Which of the following correctly describes the accounting for advertising costs?

Advertising costs are period costs and are expensed as incurred

The grapevine within an organization provides which benefit(s)?

All A, B, and C

In microeconomics, the distinguishing characteristic of the long run on the supply side is that

All inputs are variable

If a product's demand is relatively elastic and the price is lowered, the effect will be

An increase in total revenue

Which of the following accounts will be included in a post-closing trial balance? A) Dividends B) Salaries Expense C) Common Stock D) Supplies Expense

C) Common Stock

Fact pattern: Karen Parker wants to establish an environmental testing company that would specialize in evaluating the quality of water found in rivers and streams. However, Parker has discovered that she needs either certification or approval from five separate local and state governmental agencies before she can commence business. Also, the necessary equipment to begin costs several million dollars. Nevertheless, Parker believes that, if she is able to obtain capital resources, she can gain market share from the two major competitors. The market structure Karen Parker is attempting to enter is best described as

An oligopoly

At what point in the industry life cycle should a firm in a monopolistic competitive market consider acquiring other firms?

At no point in the monopolistic competition industry life cycle should the firm be looking to make an acquisition.

Which of the following answer choices is the best definition of attitude?

Attitudes are evaluative statements of what one believes about something or someone

An asset was purchased for $37,000 on January 1, 2019. The asset's estimated useful life was five years, and its residual value was $9000. The straight-line method of depreciation was used. Calculate the gain or loss if the asset is sold for $19,000 on December 31, 2019, the last day of the accounting period. A) $6200 gain B) $12,400 loss C) $12,400 gain D) no gain or no loss

B) $12,400 loss

A merchandiser uses a perpetual inventory system. The beginning Retained Earnings balance of the merchandiser was $110,000. During the year, Sales Revenue amounted to $90,000, Cost of Goods Sold was $40,000, and all other expenses totaled $12,000. The company declared and paid $27,000 as dividends. The ending balance of Retained Earnings would be ________. A) $148,000 B) $121,000 C) $175,000 D) $110,000

B) $121,000

The balances of select accounts of Donovan, Inc. as of December 31, 2018 are given below. D Building$120,000 D Cash 9,000 D Office Supplies 1,000 D Furniture 4,000 D Prepaid Insurance 600 C Accumulated Depreciation—Furniture $2,000 D Land 33,000 C Accumulated Depreciation—Building 4,000 D Accounts Receivable 2,000 What amount of total long-term assets would be shown on the balance sheet at December 31, 2018? A) $120,000 B) $151,000 C) $153,000 D) $157,000

B) $151,000

On January 1, 2018, Jordan, Inc. acquired a machine for $1,100,000. The estimated useful life of the asset is five years. Residual value at the end of five years is estimated to be $61,000. Calculate the depreciation expense per year using the straight-line method. A) $220,000 B) $207,800 C) $268,800 D) $275,000

B) $207,800

Bachman, Inc. plans to develop a shopping center. In the first quarter, the following amounts were spent: Acquisition of land $23,000 Surveys and legal fees 1500 Land clearing 400 Fencing 7000 Install lighting and signage 1860 What amount should be recorded as the cost of the land in the corporation's books? A) $31,900 B) $24,900 C) $26,760 D) $30,400

B) $24,900

Accounts Receivable has a balance of $8,000, and the Allowance for Bad Debts has a credit balance of $450. The allowance method is used. What is the net realizable value of Accounts Receivable after a $160 account receivable is written off? A) $7,390 B) $7,710 C) $7,550 D) $8,000

C) $7,550

A company purchased 130 units for $20 each on January 31. It purchased 190 units for $25 each on February 28. It sold 190 units for $60 each from March 1 through December 31. If the company uses the weighted-average inventory costing method, calculate the amount of Cost of Goods Sold on the income statement for the year ending December 31. (Assume the company uses the perpetual inventory system. Round any intermediate calculations two decimal places, and your final answer to the nearest dollar.) A) $7,350 B) $4,364 C) $2,600 D) $4,750

B) $4,364

The following are the current month's balances for selected accounts of Sandlin Marketing Company. Accounts Payable $9,000 Revenue 8,000 Cash 7,650 Expenses 1,100 Furniture 11,000 Accounts Receivable 12,000 Common Stock 10,250 Notes Payable 4,500 What is the net income for Sandlin Marketing for the current month? A) $8,000 B) $6,900 C) $9,100 D) $15,650

B) $6,900

The following are the duration in minutes of a sample of long-distance phone calls made within the continental United States reported by one long-distance carrier. RelativeTime (in Minutes)/ Frequency 0 but less than 5/0.37 5 but less than 10/0.22 10 but less than 15/0.15 15 but less than 20/0.10 20 but less than 25/0.07 25 but less than 30/0.07 30 or more/0.02 What is the width of each class? A) 1 minute B) 5 minutes c) 2% d) 100%

B) 5 minutes

Mulberry Corporation collected $16,000 from one of its customers, the amount owed from the previous month. How does this affect the accounting equation for Mulberry? A) Assets increase by $16,000; liabilities decrease by $16,000. B) Assets increase by $16,000; assets decrease by $16,000. C) Assets increase by $16,000; liabilities increase by $16,000. D) Assets increase by $16,000; equity increases by $16,000.

B) Assets increase by $16,000; assets decrease by $16,000.

Regarding the Cost of Goods Sold account, which of the following statements is incorrect? A) In a perpetual inventory system, the Cost of Goods Sold account keeps a current balance throughout the period. B) Cost of Goods sold is a contra revenue account. C) Cost of Goods Sold is based on the company's cost, not the retail price. D) Cost of Goods Sold represents the cost of inventory that has been sold to customers.

B) Cost of Goods sold is a contra revenue account.

Property, plant, and equipment are ________. A) presented in order of the category name, with Land being presented last B) also called fixed or plant assets C) either tangible or intangible assets D) easily converted to cash

B) also called fixed or plant assets

For Office Supplies, the category of account and its normal balance is ________. A) liabilities and a debit balance B) assets and a debit balance C) liabilities and a credit balance D) assets and a credit balance

B) assets and a debit balance

If goods are sold on terms FOB shipping point, the ________. A) seller normally pays the transportation costs B) buyer normally pays the transportation costs C) buyer and the seller split the transportation costs D) shipping company bears the transportation cost

B) buyer normally pays the transportation costs

The Allowance for Bad Debts account ________. A) is a liability account B) holds the pool of "unknown" uncollectible accounts C) increases with a debit D) is added to accounts receivable

B) holds the pool of "unknown" uncollectible accounts

When using the allowance method, the write-off of a receivable ________. A) involves a contra-revenue account B) reduces the amount of the Allowance for Bad Debts account C) decreases net income D) affects the net realizable value of accounts receivable

B) reduces the amount of the Allowance for Bad Debts account

The expected value of a depreciable asset at the end of its useful life is called ________. A) book value B) residual value C) depreciation expense D) accrued expense

B) residual value

A selection of raffle tickets from a large bowl is an example of A) simple probability. B) sampling without replacement. C) subjective probability. D) None of the above.

B) sampling without replacement.

A liability created when a business receives cash from customers in advance of providing services or delivering goods is called a(n) ________. A) notes receivable B) unearned revenue C) accrued liability D) service revenue

B) unearned revenue

When testing for independence in a contingency table with 3 rows and 4 columns, there are degrees of freedom. A) 5 B)6 C) 7 D) 12

B)6

Sharif Co. has total debt of $420,000 and equity of $700,000. Sharif is seeking capital to fund an expansion. Sharif is planning to issue an additional $300,000 in common stock and is negotiating with a bank to borrow additional funds. The bank requires a debt-to-equity ratio of .75. What is the maximum additional amount Sharif will be able to borrow? A. $225,000 B. $330,000 C. $525,000 D. $750,000

B. $330,000

A company has cash of $100 million, accounts receivable of $600 million, current assets of $1.2 billion, accounts payable of $400 million, and current liabilities of $900 million. What is its acid-test (quick) ratio? A. 0.11 B. 0.78 C. 1.75 D. 2.11

B. 0.78

If the return on the market portfolio is 10% and the risk-free rate is 5%, what is the effect on a company's required rate of return on its stock of an increase in the beta coefficient from 1.2 to 1.5? A. 3% increase. B. 1.5% increase. C. No change. D. 1.5% decrease.

B. 1.5% increase.

Konstans Corp. is considering purchasing an investment security with the following information: Likelihood, Return on Investment 50%, 2% 40%, 4% 10%, 14% The expected return on this investment is: A. 2% B. 4% C. 25% D. 50%

B. 4%

City Development, Inc., is considering a new investment project that will involve building a large office block in Frankfurt-am-Main. The firm's financial analysis department has estimated that the proposed investment has the following estimated rate of return distributions: Rate of Return, Probability (5%), 30% 10%, 50% 20%, 20% Calculate the expected rate of return. A. 5.5% B. 7.5% C. 10.5% D. 11.7%

B. 7.5%

The main reason that a firm would strive to reduce the number of days sales outstanding is to increase A. Accounts receivable. B. Cash. C. Cost of goods sold. D. Contribution margin.

B. Cash.

Bander Co. is determining how to finance some long-term projects. Bander has decided it prefers the benefits of no fixed charges, no fixed maturity date, and an increase in the credit-worthiness of the company. Which of the following would best meet Bander's financing requirements? A. Bonds. B. Common stock. C. Long-term debt. D. Short-term debt.

B. Common stock.

In decision theory, those uncontrollable future events that can affect the outcome of a decision are A. Payoffs. B. States of nature. C. Probabilities. D. Nodes.

B. States of nature.

The expected monetary value of an act is the A. Sum of the conditional profit (loss) for each event. B. Sum of the conditional profit (loss) for each event times the probability of each event's occurrence. C. Conditional profit (loss) for the best event times the probability of each event's occurrence. D. Revenue minus the costs for the act.

B. Sum of the conditional profit (loss) for each event times the probability of each event's occurrence.

A market analyst has estimated the equity beta of Modern Homes, Inc., to be 1.4. This beta implies that the company's A. Systematic risk is lower than that of the market portfolio. B. Systematic risk is higher than that of the market portfolio. C. Unsystematic risk is higher than that of the market portfolio. D. Total risk is higher than that of the market portfolio.

B. Systematic risk is higher than that of the market portfolio.

Which of the following formulas represent cost of goods sold for a merchandising business?

Beginning Merchandise Inventory + Purchases and Freight In - Ending Merchandise Inventory = Cost of Goods Sold

Is a strategy of using a successful brand name to launch a new or modified product in a new category.

Brand extension

When a company reviews sales, costs, and profit projections for a new product to find out whether these factors satisfy the company's objectives, they are in which of the following new process development stages?

Business analysis

Which of the following would indicate that the economy is in an expansionary phase?

Businesses increase capital investment

A company purchased 90 units for $20 each on January 31. It purchased 180 units for $25 each on February 28. It sold 180 units for $60 each from March 1 through December 31. If the company uses the first-in, first-out inventory costing method, what is the amount of Cost of Goods Sold on the income statement for the year ending December 31? (Assume that the company uses a perpetual inventory system.) A) $1,800 B) $4,500 C) $4,050 D) $6,300

C) $4,050

Which of the following is a measure of how quickly an item can be converted to cash? A) Debt ratio B) Return on assets ratio C) Liquidity D) Accounting cycle

C) Liquidity

Which of the following should be classified as a long-term asset? A) Interest Receivable B) Accounts Receivable C) Notes Receivable, due in 5 years D) Cash Equivalents

C) Notes Receivable, due in 5 years

The matching principle states that ________. A) financial statements can be prepared for specific periods B) a business's activities can be sliced into small time segments C) all expenses should be recorded when they are incurred during the period D) companies should record revenue when it has been earned

C) all expenses should be recorded when they are incurred during the period

Martinville, Inc. earned revenues of $18,000 and incurred expenses of $4,000. The company declared and paid cash dividends of $3,500. What is the balance in the Income Summary account prior to closing net income or loss to the Retained Earnings account? A) debit balance of $14,000 B) debit balance of $10,500 C) credit balance of $14,000 D) credit balance of $18,000

C) credit balance of $14,000

Salaries Payable, Accounts Payable, and Unearned Revenue are examples of ________. A) short-term investments B) fixed assets C) current liabilities D) long-term liabilities

C) current liabilities

On September 1, 2018, Real Estate Professionals, Inc. paid $7,000 in advance for an eight-month rental space covering the period of September 1, 2018 through April 30, 2019. The deferred expense was initially recorded as an asset. The company makes adjusting entries once a year at year-end. The adjusting entry on December 31, 2018 would include a ________. A) debit of $7,000 to Cash B) credit of $7,000 to Prepaid Rent C) debit of $3,500 to Rent Expense D) credit of $3,500 to Rent Expense

C) debit of $3,500 to Rent Expense

The matching principle ________. A) guides accounting for revenues and expenses B) results in the matching of expenses incurred during the period to the cash paid for expenses C) ensures that all expenses are recorded when they are incurred during the period D) results from a natural link between all expenses and revenues

C) ensures that all expenses are recorded when they are incurred during the period

Which of the following inventory costing methods yields the lowest net income during a period of rising inventory costs? A) specific identification B) weighted-average C) last-in, first-out D) first-in, first-out

C) last-in, first-out

The Salaries Payable account is a(n) ________. A) liability account with a normal debit balance B) asset account with a normal debit balance C) liability account with a normal credit balance D) asset account with a normal credit balance

C) liability account with a normal credit balance

Under which of the following categories would bonds held as an investment for more than a year appear? A) current assets B) long-term liabilities C) long-term assets D) current liabilities

C) long-term assets

The accounting principle that ensures all expenses are recorded during the period when they are incurred and offsets those expenses against the revenues of the period is called the ________ principle. A) comparison B) accrual C) matching D) revenue recognition

C) matching

Adjusting entries are needed to correctly measure the ________. A) ending balance in the Cash account B) net income (loss) on the balance sheet C) net income (loss) on the income statement D) beginning balance in the Cash account

C) net income (loss) on the income statement

An account that is not closed at the end of the period is called a(n) ________. A) expense account B) temporary account C) permanent account D) revenue account

C) permanent account

In a perfectly symmetrical distribution a) the range equals the interquartile range. b) the interquartile range equals the arithmetic mean. c) the median equals the arithmetic mean. d) the variance equals the standard deviation.

C) the median equals the arithmetic mean.

If two projects are completely and positively linearly dependent (or positively related), the measure of correlation between them is A. 0 B. +.5 C. +1 D. -1

C. +1

At the end of the current year, B Co. had total assets of $2,500,000, current liabilities of $500,000, and long-term liabilities of $750,000. What is B Co.'s debt-to-equity ratio? A. 0.5 B. 2.0 C. 1.0 D. 5.0

C. 1.0

What is the weighted-average cost of capital for a firm using 65% common equity with a return of 15%, 25% debt with a return of 6%, 10% preferred stock with a return of 10%, and a tax rate of 35%? A. 10.333% B. 11.275% C. 11.725% D. 12.250%

C. 11.725%

An analyst covering Guilderland Mining Co. common stock estimates the following information for next year: Expected return on the market portfolio: 12% Expected return on Treasury securities: 5% Expected beta of Guilderland: 2.2 Using the CAPM, the analyst's estimate of next year's risk premium for Guilderland's stock is closest to A. 7.0% B. 10.4% C. 15.4% D. 21.4%

C. 15.4%

This year, Nelson Industries increased earnings before interest and taxes (EBIT) by 17%. During the same period, earnings per share increased by 42%. The degree of financial leverage that existed during the year is A. 1.70 B. 4.20 C. 2.47 D. 5.90

C. 2.47

The following information was taken from Culver Co.'s financial statements for the current year ending December 31: Current assets: $11,000,000 Noncurrent assets: 14,000,000 Total stockholders' equity: 10,000,000 Total operating expenses: 20,000,000 What was Culver's debt ratio as of December 31? A. 40% B. 50% C. 60% D. 250%

C. 60%

The relationship of the total debt to the total equity of a corporation is a measure of A. Liquidity. B. Profitability. C. Creditor risk. D. Break even.

C. Creditor risk.

Which of the following is most useful when risk is being prioritized? A. Low- and high-probability exposures. B. Low- and high-degree loss exposures. C. Expected value. D. Uncontrollable risks.

C. Expected value.

Which one of the following is not a determinant in valuing a call option? A. Exercise price. B. Expiration date. C. Forward contract price. D. Underlying asset price.

C. Forward contract price.

Serial bonds are attractive to investors because A. All bonds in the issue mature on the same date. B. The yield to maturity is the same for all bonds in the issue. C. Investors can choose the maturity that suits their financial needs. D. The coupon rate on these bonds is adjusted to the maturity date.

C. Investors can choose the maturity that suits their financial needs.

The yield curve shown implies that the A. Credit risk premium of corporate bonds has increased. B. Credit risk premium of municipal bonds has increased. C. Long-term interest rates have a higher annualized yield than short-term rates. D. Short-term interest rates have a higher annualized yield than long-term rates.

C. Long-term interest rates have a higher annualized yield than short-term rates.

Osgood Products has announced that it plans to finance future investments so that the firm will achieve an optimum capital structure. Which one of the following corporate objectives is consistent with this announcement? A. Maximize earnings per share. B. Minimize the cost of debt. C. Maximize the net worth of the firm. D. Minimize the cost of equity.

C. Maximize the net worth of the firm.

A forward contract involves a commitment today to purchase a product A. On a specific future date at a price to be determined some time in the future. B. At some time during the current day at its present price. C. On a specific future date at a price determined today. D. Only when its price increases above its current exercise price.

C. On a specific future date at a price determined today.

Which one of the following statements is correct regarding the effect preferred stock has on a company? A. The firm's after-tax profits are shared equally by common and preferred shareholders. B. Control of the firm is now shared by the common and preferred shareholders, with preferred shareholders having greater control. C. Preferred shareholders' claims take precedence over the claims of common shareholders in the event of liquidation. D. Nonpayment of preferred dividends places the firm in default, as does nonpayment of interest on debt.

C. Preferred shareholders' claims take precedence over the claims of common shareholders in the event of liquidation.

Preferred and common stock differ in that A. Failure to pay dividends on common stock will not force the firm into bankruptcy, while failure to pay dividends on preferred stock will force the firm into bankruptcy. B. Common stock dividends are a fixed amount, while preferred stock dividends are not. C. Preferred stock has a higher priority than common stock with regard to earnings and assets in the event of bankruptcy. D. Preferred stock dividends are deductible as an expense for tax purposes, while common stock dividends are not.

C. Preferred stock has a higher priority than common stock with regard to earnings and assets in the event of bankruptcy.

A widely used approach that managers use to recognize uncertainty about individual items and to obtain an immediate financial estimate of the consequences of possible prediction errors is A. Expected value analysis. B. Learning curve analysis. C. Sensitivity analysis. D. Regression analysis.

C. Sensitivity analysis.

A government is most likely to reduce taxes on investments when

Capital spending is expected to be unusually low

All of the following are alternative marketable securities suitable for short-term investment except A. U.S. Treasury bills. B. Eurodollars. C. Commercial paper. D. Convertible bonds.

D. Convertible bonds.

When compared with firms in perfectly competitive markets, monopolists ordinarily

Charge a higher price and produce a lower rate of output.

Which of the following concepts compares the price of goods in a given year to a base year?

Consumer price index

Mr. Johnson is hired as a consultant to a firm in a perfectly competitive industry. At the current output level, the price is $60, the average variable cost is $50, average total cost is $75, and the marginal cost is $70. In order to maximize profits in the short-run, Mr. Smith will recommend that the firm should

Continue to operate

In the short run, a purely competitive firm operating at a loss will

Continue to operate as long as price exceeds average variable costs.

In a job order costing system, a credit to Finished Goods Inventory will be accompanied by a debit to ________.

Cost of Goods Sold

Each of the following is a pair of substitute resources except

Court bailiffs and judges

If advertising constantly sends out messages about materialism, sex, power, and status, which of the following categories of social criticism most closely matches this problem?

Cultural pollution

Maxwell Tax Planning Service bought communications equipment for $10,200 on January 1, 2019. The equipment has an estimated useful life of five years and zero residual value. Maxwell uses the straight-line method to calculate depreciation and records depreciation expense in the books at the end of each month. As of June 30, 2019, the balance in the Accumulated Depreciation account for this equipment is ________. A) $170 B) $2,040 C) $850 D) $1,020

D) $1,020

After the December 31, 2019 adjusting journal entries have been posted, Sinclair Enterprises has the following account balances (all accounts have normal balances) are: Accounts Receivable $159,000 Allowance for Bad Debts $4,600 Bad Debts Expense $8,200 What is the net realizable value as of December 21, 2019? A) $163,600 B) $150,800 C) $146,200 D) $154,400

D) $154,400

Baldwin, Inc. had the following balances and transactions during 2019:Beginning Merchandise Inventory as of January 1, 2019125 units at $81March 10Sold 50 unitsJune 10Purchased 225 units at $86October 30Sold 175 unitsWhat would be reported as Cost of Goods Sold on the income statement for the year ending December 31, 2019 if the perpetual inventory system and the first-in, first-out inventory costing method are used? A) $10,125 B) $14,675 C) $29,475 D) $18,725

D) $18,725

Which of the following is a current asset that is expected to be converted to cash, sold, or consumed during the next year (or the normal operating cycle, if longer)? A) Land B) Equipment C) Building D) Accounts Receivable

D) Accounts Receivable

A study was conducted to determine whether the use of seat belts in motor vehicles depends on the educational status of the parents. A sample of 792 children treated for injuries sustained from motor vehicle accidents was obtained, and each child was classified according to (1) parents' educational status (College Degree or Non-College Degree) and (2) seat belt usage (worn or not worn) during the accident. The number of children in each category is given in the table below. Non-College Degree College Degree Seat belts not worn 31 148 Seat belts worn 283 330 At the 5% level of significance, there is sufficient evidence to conclude that A) use of seat belts in motor vehicles is related to the educational status of the parents. B) use of seat belts in motor vehicles depends on the educational status of the parents. C) use of seat belts in motor vehicles is associated with the educational status of the parents. D) All of the above.

D) All of the above.

Which of the following sequences states the order in which accounts are listed on a trial balance? A) Equity → Assets → Liabilities B) Liabilities → Assets → Equity C) Assets → Equity → Liabilities D) Assets → Liabilities → Equity

D) Assets → Liabilities → Equity

The probability that house sales will increase in the next 6 months is estimated to be 0.25. The probability that the interest rates on housing loans will go up in the same period is estimated to beThe probability that house sales or interest rates will go up during the next 6 months is estimated to be 0.89. The events increase in house sales and no increase in house sales in the next 6 months are A) independent. B) mutually exclusive C) collectively exhaustive. D) Both (b) and (c)

D) Both (b) and (c)

Which of the following is the most liquid asset?A) Building B) Prepaid Expenses C) Accounts Receivable D) Cash

D) Cash

The entry to record depreciation includes a debit to the ________ account. A) Equipment B) Cash C) Accumulated Depreciation D) Depreciation Expense

D) Depreciation Expense

The Income Summary account has a credit balance of $27,000 after the revenue and expense accounts have been closed. Which of the following is credited to close the Income Summary account? A) Dividends B) Sales Revenue C) Cost of Goods Sold D) Retained Earnings

D) Retained Earnings

Which of the following statements is true of revenues? A) Revenues decrease equity, so a revenue account's normal balance is a credit balance. B) Revenues decrease equity, so a revenue account's normal balance is a debit balance. C) Revenues increase equity, so a revenue account's normal balance is a debit balance. D) Revenues increase equity, so a revenue account's normal balance is a credit balance.

D) Revenues increase equity, so a revenue account's normal balance is a credit balance.

Which of the following is true when the estimate of an asset's useful life is changed? A) The new estimate is ignored until the last year of the asset's life. B) The depreciation expense in the prior years are restated. C) Prior years' financial statements must be restated. D) The asset's remaining depreciable book value will be spread over the asset's remaining life.

D) The asset's remaining depreciable book value will be spread over the asset's remaining life.

A survey claims that 9 out of 10 doctors recommend aspirin for their patients with headaches. To test this claim against the alternative that the actual proportion of doctors who recommend aspirin is less than 0.90, a random sample of 100 doctors was selected. Suppose you reject the null hypothesis. What conclusion can you reach? A) There is not sufficient evidence that the proportion of doctors who recommend aspirin is not less than 0.90. B) There is sufficient evidence that the proportion of doctors who recommend aspirin is not less than 0.90. C) There is not sufficient evidence that the proportion of doctors who recommend aspirin is less than 0.90. D) There is sufficient evidence that the proportion of doctors who recommend aspirin is less than 0.90.

D) There is sufficient evidence that the proportion of doctors who recommend aspirin is less than 0.90.

The Merchandise Inventory account balance is $52,000. A physical count of inventory reveals that the actual inventory balance is $41,000. Which of the following would be included in the adjusting entry? (Assume a perpetual inventory system.) A) a $41,000 credit to Merchandise Inventory B) a $52,000 debit to Cost of Goods Sold C) a $11,000 credit to Cost of Goods Sold D) a $11,000 credit to Merchandise Inventory

D) a $11,000 credit to Merchandise Inventory

An expense that has been incurred but not yet paid is called a(n) ________. A) accrued revenue B) deferred expense C) deferred revenue D) accrued expense

D) accrued expense

A business that accepts payments by credit and debit cards ________. A) is usually unable to attract more customers B) must check each customer's credit rating C) generally receives proceeds from credit and debit card transactions 30-45 days after the sale D) almost always pays a fee to the processor to cover the processing costs

D) almost always pays a fee to the processor to cover the processing costs

Notes receivable ________. A) represent an oral promise to pay a fixed amount of principal plus interest on the maturity date B) are included in a miscellaneous category called other receivables C) are due within 12 months or within the normal operating cycle if the cycle is longer than a year are considered long-term assets D) are supported by a promissory note

D) are supported by a promissory note

Which of the following entries will be necessary to close the Insurance Expense account at the end of the year? A) debit Insurance Expense and credit Income Summary B) debit Insurance Expense and credit Common Stock C) debit Retained Earnings and credit Insurance Expense D) debit Income Summary and credit Insurance Expense

D) debit Income Summary and credit Insurance Expense

The allocation of a plant asset's cost to expense over its useful life is called ________. A) residual value B) book value C) accrued revenue D) depreciation

D) depreciation

Under which of the following inventory costing methods is the ending inventory based on the costs of the most recent purchases? A) specific identification B) weighted-average C) last-in, first-out D) first-in, first-out

D) first-in, first-out

Which of the following inventory costing methods yields the highest net income during a period of rising inventory costs? A) specific identification B) weighted-average C) last-in, first-out D) first-in, first-out

D) first-in, first-out

Which of the following inventory costing methods yields the lowest cost of goods sold during a period of rising inventory costs? A) specific identification B) weighted-average C) last-in, first-out D) first-in, first-out

D) first-in, first-out

Patents, copyrights, and trademarks are examples of ________. A) short-term investments B) fixed assets C) long-term investments D) intangible assets

D) intangible assets

To match expenses against revenues means to ________. A) add expenses incurred during one period to revenues earned during that same period B) subtract expenses incurred during one period from revenues earned during the previous period C) add expenses incurred during one period to revenues earned during the previous period D) subtract expenses incurred during one period from revenues earned during that same period

D) subtract expenses incurred during one period from revenues earned during that same period

Which of the following accounting terms assumes that a business's activities can be divided into small segments and that financial statements can be prepared for specific periods, such as a month, quarter, or year? A) adjusting entry concept B) economic entity concept C) matching principle D) time period concept

D) time period concept

Using the capital asset pricing model (CAPM), the required rate of return for a firm with a beta of 1.5 when the market return is 10% and the risk-free rate is 8% is A. 5% B. 8% C. 10% D. 11%

D. 11%

Dividends are equal to $5, and the current share price is $50. Dividends are expected to grow at 2% forever. According to the dividend growth model, what is the investor's required rate of return? A. 8.2% B. 10.0% C. 12.0% D. 12.2%

D. 12.2%

Using the capital asset pricing model (CAPM), the required rate of return for a firm with a beta of 1.25 when the market return is 14% and the risk-free rate is 6% is A. 6.0% B. 7.5% C. 17.5% D. 16.0%

D. 16.0%

A stock priced at $50 per share is expected to pay $5 in dividends and trade for $60 per share in one year. What is the expected return on this stock? A. 10% B. 20% C. 25% D. 30%

D. 30%

Aaron Co's vendor will be offering discounts next year. Which of the following credit terms offered by the vendor is most beneficial to Aaron? A. 2/10, net 60. B. 3/15, net 30. C. 5/20, net 45. D. 5/20, net 60.

D. 5/20, net 60

Which of the following segments of the economy will be least affected by the business cycle?

Healthcare industry

Many assumptions and factors may be considered to determine the fair value except A. Net realizable value. B. Expected costs. C. Market value. D. Historical cost.

D. Historical cost.

During the year, Mason Company's current assets increased by $120,000, current liabilities decreased by $50,000, and net working capital A. Increased by $70,000. B. Did not change. C. Decreased by $170,000. D. Increased by $170,000.

D. Increased by $170,000.

If Brewer Corporation's bonds are currently yielding 8% in the marketplace, why is the firm's cost of debt lower? A. Market interest rates have increased. B. Additional debt can be issued more cheaply than the original debt. C. There should be no difference; cost of debt is the same as the bonds' market yield. D. Interest is deductible for tax purposes.

D. Interest is deductible for tax purposes.

Management's financial estimates are based on all of the following except: A. Knowledge. B. Experience. C. Expectations. D. Irrelevance.

D. Irrelevance.

If a call option is "out-of-the-money," A. It is worth exercising. B. The value of the underlying asset is more than the exercise price. C. The option no longer exists. D. It is not worth exercising because the value of the underlying asset is less than the exercise price.

D. It is not worth exercising because the value of the underlying asset is less than the exercise price.

Management's financial estimates are based on all of the following except A. Knowledge. B. Experience. C. Assumptions. D. Known outcomes.

D. Known outcomes.

When managing cash and short-term investments, a corporate CFO is primarily concerned with A. Maximizing rate of return. B. Minimizing taxes. C. Investing in Treasury bonds since they have no default risk. D. Liquidity and safety.

D. Liquidity and safety.

From an investor's viewpoint, the least risky type of bond in which to invest is a(n) A. Debenture bond. B. Deep discount bond. C. Income bond. D. Mortgage bond.

D. Mortgage bond.

An organization would usually offer credit terms of 2/10, net 30 when A. The organization can borrow funds at a rate exceeding the annual interest cost. B. The organization can borrow funds at a rate less than the annual interest cost. C. The cost of capital approaches the prime rate. D. Most competitors are offering the same terms, and the organization has a shortage of cash.

D. Most competitors are offering the same terms, and the organization has a shortage of cash.

Which of the following may be used to estimate how inventory warehouse costs are affected by both the number of shipments and the weight of materials handled? A. Economic order quantity analysis. B. Probability analysis. C. Correlation analysis. D. Multiple regression analysis.

D. Multiple regression analysis.

Which of the following statements is (are) correct regarding corporate debt and equity securities?I.Both debt and equity security holders have an ownership interest in the corporation.II.Both debt and equity securities have an obligation to pay income. A. I only. B. II only. C. Both I and II. D. Neither I nor II.

D. Neither I nor II.

The following excerpt was taken from a company's financial statements: " . . . 10% convertible participating . . . $10,000,000." What is most likely being referred to? A. Bonds. B. Common stock. C. Stock options. D. Preferred stock.

D. Preferred stock.

Management's financial estimates are based on all of the following except A. Knowledge. B. Experience. C. Assumptions. D. Prespecifications.

D. Prespecifications.

Through the use of decision models, managers thoroughly analyze many alternatives and decide on the best alternative for the company. Often the actual results achieved from a particular decision are not what was expected when the decision was made. In addition, an alternative that was not selected would have actually been the best decision for the company. The appropriate technique to analyze the alternatives by using expected inputs and altering them before a decision is made is A. Expected value analysis. B. Linear programming. C. Program evaluation review technique (PERT). D. Sensitivity analysis.

D. Sensitivity analysis.

When the U.S. dollar is expected to rise in value against foreign currencies, a U.S. company with foreign currency denominated receivables and payables should A. Slow down collections and speed up payments. B. Slow down collections and slow down payments. C. Speed up collections and speed up payments. D. Speed up collections and slow down payments.

D. Speed up collections and slow down payments.

If a bond sells at a premium, the A. Stated coupon rate must be less than the required market rate. B. Nominal rate must be less than the yield rate. C. Bond purchase price must be lower than the face amount of the bond. D. Stated coupon rate must be more than the required market rate.

D. Stated coupon rate must be more than the required market rate.

According to the capital asset pricing model (CAPM), which of the following statements is true regarding the required rate of return for a security with a beta of 1? A. The required rate of return is lower than the risk-free rate. B. The required rate of return is equal to the risk-free rate. C. The required rate of return is higher than the market return. D. The required rate of return is equal to the market return.

D. The required rate of return is equal to the market return.

A Chinese conglomerate owns a construction subsidiary that is building a port in Mozambique. The firm pays its workers in the Mozambican metical but keeps its books for the project in the South African rand. At the end of the fiscal year, the conglomerate must report consolidated financial statements denominated in the yuan. The exchange rate risk encountered by the conglomerate in the currency conversions leading up to its consolidated financial statements is known as A. Transition exposure. B. Economic exposure. C. Transaction exposure. D. Translation exposure.

D. Translation exposure.

Product demand increases and product supply decreases. Which of the following statements is correct regarding resulting market changes? Price Quantity

Increases Uncertain

In decision making under conditions of uncertainty, expected value refers to the A. Likely outcome of a proposed action. B. Present value of alternative actions. C. Probability of a given outcome from a proposed action. D. Weighted average of probable outcomes of an action.

D. Weighted average of probable outcomes of an action.

Price tends to fall in competitive markets when there is a(n)

Decrease in demand for the product

Which of the following economic terms describes a general decline in prices for goods and services and in the level of interest rates?

Deflation

If the price of apples declines and total revenue received by the firm increases, the

Demand for apples is elastic

A city ordinance that freezes rent prices may cause

Demand for rental space to exceed supply

The phrases "too many dollars chasing too few goods" and "supply shock" are associated with, respectively,

Demand-pull inflation and cost-push inflation

__________factors are the most popular bases for segmenting customer groups.

Demographic

The study of human populations in terms of size, density, location, age, gender, race, occupation, and other statistics is called:

Demography

How does inflation distort reported income?

Depreciation is not reflective of current fixed-asset replacement costs

The advantages of audience selectivity, no ad competition and personalization apply to which type of media?

Direct Mail

The Federal Reserve Board most directly influences a corporation's decision whether or not to issue debt or equity financing when it revises the

Discount rate at which the Federal Reserve Bank lends money to member banks

Which of the following is true of dividends?

Dividends are a distribution of cash, stock, or other property to stockholders.

Variations between business cycles are most likely attributable to which of the following factors?

Duration and intensity

The graph on the right depicts demand that is more ________________ than the graph on the left.

Elastic

Is the general term for a buying and selling process that is supported by electronic means.

Electronic commerce

In order for the Federal Reserve System to increase the money supply, the appropriate policy is to

Engage in open-market purchases of government securities

Is a philosophy holding that a company's marketing should support the best long-run performance of the marketing system.

Enlightened marketing

Fact pattern: Karen Parker wants to establish an environmental testing company that would specialize in evaluating the quality of water found in rivers and streams. However, Parker has discovered that she needs either certification or approval from five separate local and state governmental agencies before she can commence business. Also, the necessary equipment to begin costs several million dollars. Nevertheless, Parker believes that, if she is able to obtain capital resources, she can gain market share from the two major competitors. The large capital outlay necessary for the equipment is an example of a(n)

Entry barrier

Is the practice of adopting policies and developing strategies that both sustain the environment and produce profits for the company.

Environmental sustainability

Any business firm that has the ability to control the price of the product it sells

Faces a downward-sloping demand curve

Price discrimination is accomplished most effectively in markets with which of the following characteristics?

Fairly distinct segments of customers

Which of the following concepts can best be used to understand oligopoly behavior?

Game theory model

A concerted effort to avoid doing business with a particular supplier is known as a

Group boycott

When markets are perfectly competitive, consumers

Have goods and services produced at the lowest cost in the long run.

A utility firm has enjoyed an oligopolistic market due to regulations. Starting next year, these regulations will be repealed. One should expect I. New firms in the market II. Consolidation III. Divestiture

I and II only

The monopoly firm has a patent that is about to expire. A new start-up firm has entered the market with a new method and has applied for patent protection. Which of the strategies below make the most economic sense for the monopoly firm? I. Acquire the start-up firm II. Continue production III. Divestiture

I and II only

The U.S. Bureau of Labor Statistics samples American households each month and publishes an official unemployment rate based on the following formula:Which of the following persons are excluded from the denominator of this calculation? I. A homemaker with a part-time job outside the homeII. A landscaper in the underground economyIII. A laid-off database administrator not actively seeking other employmentIV. A 15-year-old, actively seeking other employment, who was laid off by an ice cream stand owner

II, III, and IV

A firm employs 100 workers and has 2 divisions, each in perfectly competitive markets. Division A produces tape measures and Division B produces saws. How should the firm allocate its workers to maximize efficiency? I. Allocate workers between the divisions so the average cost of producing tape measures equals the average cost of producing saws. II. Allocate workers to the division with the lowest marginal product of labor and divest from the other division. III. Allocate workers so the marginal product of labor is the same in both divisions.

III only

Is screening new-product ideas in order to spot good ideas and drop poor ones as soon as possible.

Idea screening

A natural monopoly is

Identified with a one-firm industry with significant economies of scale and in which unit costs are minimized.

All of the following are true about perfect competition except that

In the long run, an increase in profit will have no effect on the number of firms in the market.

Disposable income is equal to

Income after taxes have been removed

Which of the following methods may the Federal Reserve use to reduce inflationary pressures?

Increase margin requirements

The most effective fiscal policy program to help reduce demand-pull inflation would be to

Increase taxes and decrease government spending

Is the concept under which a company carefully integrates and coordinates its many communications channels to deliver a clear, consistent, and compelling message about the organization and its products.

Integrated marketing communications

Which of the following describes the financing activities section of the statement of cash flows?

It includes cash inflows and outflows related to long-term liabilities and equity.

Which of the following describes the operating activities section of the statement of cash flows?

It reports on activities that create revenue or expenses for the entity's business.

Your friend Leslyn has been driving a Mustang for the past few years and is very vocal about how much she likes her car. Unfortunately, she was recently in an accident and has now purchased a brand new Challenger. Now she talks about how much she likes the Challenger and has started to criticize Mustangs! Which statement would best describe what you should say to Leslyn the next time she talks about cars?

Leslyn, I am sorry about your car Mustang. It was a great car but your Challenger is great too!

If Mark Mars pays Hershey Foods Corporation for the right to use their name on his line of T-shirts, then Mr. Mars is using which type of branding?

Licensed brand

An employer is a monopsonist with respect to hiring labor, but it sells its product in a competitive market. Compared with a firm that must hire from a competitive labor market, the monopsonist will pay a

Lower wage and hire fewer workers

In markets that are imperfectly competitive, such as monopoly and monopolistic competition, firms produce at an output at which

Marginal cost equals marginal revenue

Consists of dividing a market into distinct groups of buyers on the basis of needs, characteristics, or behavior who might require separate products or marketing mixes.

Market segmentation

The process that turns marketing strategies and plans into marketing actions in order to accomplish strategic marketing objectives is called:

Marketing implementation

A major problem arising from the use of fiscal policy to help stimulate an economy is that there

May be an expansionary and, therefore, inflationary bias to such policies

The competitive model of supply and demand predicts that a surplus can arise if there is a

Minimum price above the equilibrium price

A market with many independent firms, low barriers to entry, and product differentiation is best classified as

Monopolistic competition.

A corporation's net income as presented on its income statement is usually

More than its economic profits because opportunity costs are not considered in calculating net income.

The distinguishing characteristic of oligopolistic markets is

Mutual interdependence of firm pricing and output decisions.

When a company enters a new product category for which its current brand names are not appropriate, it will likely follow which of the following brand strategies?

New brands

Each of the following is a limitation of GDP's usefulness as a measure of a nation's prosperity except

No practical means are available to compare real GDP from different time periods

Which of the following is an assumption in a perfectly competitive financial market?

No single trader or traders can have a significant impact on market prices.

During an interview with one team member, you learn that several members of the team have had conflicts regarding the content of a task to which the team was recently assigned. Are these conflicts likely to be reducing the group's productivity?

No, because task-related conflicts usually benefit the performance of a team

Which type of market structure is most apt to demonstrate "price leadership" by a major firm followed by other firms in the industry?

Oligopoly

Economic markets that are characterized by monopolistic competition have all of the following characteristics except

One seller of the product

Has the advantage of being high in selectivity; low cost; immediacy; and interactive capabilities.

Online

________are ads that appear while subscribers are surfing online services or Web sites, including banners, pop-up windows, "tickers," and "roadblocks."

Online ads

Which of the following instruments of monetary policy is the most important means by which the money supply is controlled?

Open market operations

The measurement of the benefit lost by using resources for a given purpose is

Opportunity cost

Economies and diseconomies of scale are important determinants of the

Pattern of costs in the long run

Which of the following options describes the phases of business cycle, in order of occurrence?

Peak, recession, trough, recovery

Which of the following statements is true regarding the degree to which people experience emotions across cultures?

People in China report experiencing fewer positive and negative emotions as compared to people in other cultures

Which of the following promotional budget methods wrongly views sales as the cause of promotion rather than as the result?

Percentage-of-Sales method

If the coefficient of elasticity is zero, then the consumer demand for the product is said to be

Perfectly inelastic

Is the step in the selling process in which the salesperson learns as much as possible about a prospective customer before making a sales call.

Pre approach

All of the following actions are valid tools that the Federal Reserve Bank uses to control the supply of money except

Printing money when the level of M1 appears low

Compared with firms in a perfectly competitive market, a monopolist tends to

Produce substantially less but charge a higher price.

R&D and engineering first produce the product concept into a physical product during which of the following stages of the new product development process?

Product development

The use of price points for reference to different levels of quality for a company's related products is typical of which product-mix pricing strategy?

Product line pricing

_________is setting the price steps between various products in a product line based on cost differences between the products, customer evaluations of different features, and competitors' prices.

Product line pricing

The basic source of improvements in real wage rates and in the standard of living is

Productivity growth

Which of the following strategies would the Federal Reserve most likely pursue under an expansionary policy?

Purchase federal securities and lower the discount rate

The Federal Reserve wishes to conduct expansionary monetary policy. Which of the following policy approaches will be most successful?

Purchase government securities and lower the discount rate

If the price elasticity of demand for a normal good is estimated to be 2.5, a 5% reduction in its price causes

Quantity demanded to rise by 12.5%

If the price elasticity of demand for a normal good is estimated to be 1.5, a 10% reduction in its price would cause

Quantity demanded to rise by 15%

X and Y are substitute products. If the price of product Y increases, the immediate impact on product X is that its

Quantity demanded will increase

A company has a policy of frequently cutting prices to increase sales. Product demand is significantly elastic. What impact would this have on the company's situation?

Quantity increases proportionally more than the price declines.

The consensus of economic forecasts indicates that consumer prices are likely to increase because of increases in aggregate demand. Which of the following outcomes is most likely to occur as prices increase?

Quantity of output increases if there is capacity to produce

What does the consumer price index measure?

Rate of inflation

One of the measures economists and economic policy makers use to gauge a nation's economic growth is to calculate the change in the

Real per capita output

Diana has noticed that many of her coworkers at Bubble, Inc., have been laid off over the past year due to low profits. Also, prices were lowered recently due to economic conditions. Even though Diana is worried about her future at Bubble, she has noticed that employment has risen over the past month and that prices are slowly increasing. Because other companies have had the same experience, what phase of the business cycle is the economy currently in?

Recovery

An economy is at the peak of the business cycle. Which of the following policy packages is the most effective way to dampen the economy and prevent inflation?

Reduce government spending, increase taxes, reduce money supply, and increase interest rates.

According to fiscal policy principles, a tax increase will

Reduce spending and reduce aggregate demand

Which of the following Federal Reserve policies would increase the money supply?

Reduce the discount rate

Entry into monopolistic competition is

Relatively easy, with only a few obstacles.

If a product has a price elasticity of demand of 2.0, the demand is said to be

Relatively elastic

When a 5% fall in the price of athletic shoes causes the quantity demanded to increase by 10%, the demand for athletic shoes is said to be

Relatively elastic

Monopolistic competition is characterized by a

Relatively large group of sellers who produce differentiated products.

The manner in which cartels set and maintain price above the competitive market price is to

Require cartel members to restrict output

The Waymand family typically ate hamburger as a staple in their diet. In the last few years, the family's income has doubled, and they have now replaced hamburger with steak as a staple in their diet. This is an example in which the demand for hamburge

Responds as an inferior good

Falser Co. increases all of its input factors by 100%, resulting in increased output of 90%. Which of the following statements identifies the effect of this change?

Returns to scale decrease

________________have contractual authority to sell a manufacturer's entire output.

Selling agents

If the Federal Reserve raises the discount rate, which of the following effects is likely to occur?

Short-term interest rates will likely increase

An industry that is oligopolistic would be best characterized by

Significant barriers to entry.

Local electric utilities are considered to be natural monopolies because, for these firms,

Significant economies of scale are present

Economic growth can be depicted as all of the following except:

Simultaneous inward shifts in both the aggregate supply and aggregate demand curves.

Which of the following statements is true regarding the sources of moods and emotions?

Sleep quality affects mood

In terms of execution styles, a family seated at the dinner table enjoying the advertised product would be an example of which of the following types of advertising?

Slice of life

When companies make marketing decisions by considering consumers' wants and the long-run interests of the company, consumer, and the general population, they are practicing which of the following principles?

Societal marketing

Which of the following is not a form of non-price competition typical under monopolistic competition?

Special discounts

Which of the following categories best describes auto workers whose jobs have been replaced by computer-driven robots and are actively seeking employment in new industries?

Structural unemployment

The rate of unemployment caused by changes in the composition of employment opportunities over time is referred to as the

Structural unemployment rate

Fact pattern: Rock Salt, Inc., has collected the following information regarding the current market for rock salt: Salt Salt Supplied Demanded Price (pounds 2000 44 8000 2500 42 7000 3000 40 6000 (etc etc) What would occur if Rock Salt were subject to a legal price floor set at $42?

Surplus of 4500 pounds

3M runs a Pollution Prevention Pays program that has led to a substantial reduction in pollution and costs. This would be an example of responding to which of the following?

The "green movement"

An increase in the federal debt may create inflationary pressures for which of the following reasons?

The economy's money supply may increase

Which of the following statements is correct regarding the variety and price of products produced under monopolistic competition as compared to production under perfect competition?

The monopolistically competitive industry produces a greater variety of products at a higher cost per unit.

Jackson Co. is considering a project that will use 2,000 square feet of storage space at one of its facilities to store used equipment. What will determine Jackson's opportunity cost?

The value of the next best use of the space

When an international seller sells a plant, equipment, or technology to another country and agrees to take payment in the resulting products, it is called:

buy-back

If the Federal Reserve Banks sell $20 million in government securities to commercial banks and the required reserve ratio is 25%, the effect will be

To reduce the potential money supply by $80 million

In national income terms, aggregate demand is

Total expenditure on consumer goods and investment, including government and foreign expenditure, during a given period

Suppose that a stairway manufacturer's price elasticity of demand was relatively inelastic. If this manufacturer decided to increase the price of its stairways, what should have been the result?

Total revenues increased

Traditionally, companies have defined their businesses in product terms or in technological terms. However, mission statements should be all of the following EXCEPT :

a statement of religion

The goal of the marketing logistics system should be to provide:

a targeted level of customer service at the least cost

Which of the following is true of teams?

a team works over some time period to accomplish common goals related to some task-oriented purpose

Companies that manufacture identical items through a series of uniform production steps use ________ to determine the cost per unit produced.

a process costing system

Filtering is a barrier to effective communication. Filtering takes place when ________.

a sender purposely manipulates information so the receiver will see it more favorably

According to a survey of American households, the probability that the residents own 2 cars if annual household income is over $50,000 is 80%. Of the households surveyed, 60% had incomes over $50,000 and 70% had 2 cars. The probability that the residents of a household do not own 2 cars and have an income over $50,000 a year is: a) 0.12 b) 0.18 c) 0.22 d) 0.48

a) 0.12

Parents complain that children read too few storybooks and watch too much television nowadays. A survey of 1,000 children reveals the following information on average time spent watching TV and average time spent reading storybooks Average time spent reading story books Average time spent watching TV Less than 1 hour Between 1 and 2 hours More than 2 hours Less than 2 hours 90 85 130 More than 2 hours 655 32 8 If the null hypothesis of no connection between time spent watching TV and time spent reading story books is true, how many children watching less than 2 hours of TV and reading more than 2 hours of story books on average can we expect? a) 42.09 b) 155.25 c) 262.92 d) 987.75

a) 42.09

Which of the following statements about the median is not true? a) It is more affected by extreme values than the arithmetic mean. b) It is a measure of central tendency. c)It is equal to Q2. d) It is equal to the mode in bell-shaped "normal" distributions.

a) It is more affected by extreme values than the arithmetic mean.

Which of the following would be an appropriate alternative hypothesis? a) The population proportion is less than 0.65. b) The sample proportion is less than 0.65. c) The population proportion is not less than 0.65. d) The sample proportion is not less than 0.65.

a) The population proportion is less than 0.65.

An entrepreneur is considering the purchase of a coin-operated laundry. The current owner claims that over the past 5 years, the mean daily revenue was $675 with a population standard deviation of $75. A sample of 30 days reveals a daily mean revenue of $625. If you were to test the null hypothesis that the daily mean revenue was $675, which test would you use? a) Z-test of a population mean b) Z-test of a population proportion c) t-test of population mean d) t-test of a population proportion

a) Z-test of a population mean

A completely randomized design a) has only one factor with several treatment groups. b) can have more than one factor, each with several treatment groups. c) has one factor and one block. d) has one factor and one block and multiple values.

a) has only one factor with several treatment groups.

If event A and event B cannot occur at the same time, then events A and B are said to be a) mutually exclusive. b) independent. c) collectively exhaustive. d) None of the above.

a) mutually exclusive.

In testing a hypothesis using the 2 test, the theoretical frequencies are based on the a) null hypothesis. b) alternative hypothesis. c) normal distribution. d) None of the above.

a) null hypothesis.

If the expected value of a sample statistic is equal to the parameter it is estimating, then we call that sample statistic a) unbiased. b) minimum variance. c) biased. d) random.

a) unbiased.

A Type I error is committed when a) you reject a null hypothesis that is true. b) you don't reject a null hypothesis that is true. c) you reject a null hypothesis that is false. d) you don't reject a null hypothesis that is false.

a) you reject a null hypothesis that is true.

The manager of the customer service division of a major consumer electronics company is interested in determining whether the customers who have purchased a Blu-ray player made by the company over the past 12 months are satisfied with their products. The population of interest is a)all the customers who have bought a Blu-ray player made by the company over the past 12 months. b)all the customers who have bought a Blu-ray player made by the company and brought it in for repair over the past 12 months. c)all the customers who have used a Blu-ray player over the past 12 months. d)all the customers who have ever bought a Blu-ray player made by the company.

a)all the customers who have bought a Blu-ray player made by the company over the past 12 months.

When a stockholder contributes land to a corporation in exchange for stock, ________.

assets and stockholders' equity are increased

If Honda uses its company name to cover such different products as its automobiles, lawn mowers, and motorcycles, it is practicing which of the following strategies?

brand extension strategy

________ is an individual's current capacity to perform the various tasks in a job.

ability

The activities that are included in the operating activities section of the statement of cash flows are ________.

activities that create revenue or expenses

Ben is prone to experiencing emotions in a much stronger manner than most other people. Events that don't provoke any significant emotional response in the average person often send him into fits of happiness, anger, or depression. Ben has a high level of ________.

affect intensity

Which of the following is the term used for the strength with which individuals experience emotion?

affect intensity

Despite misperceptions, the majority of studies have shown virtually no relationship between ________.

age and job performance

The type of trade-promotion discount in which manufacturers agree to reduce the price to the retailer in exchange for the retailer's agreement to feature the manufacturer's products in some way is called a(n):

allowance

Which of the following will lower the breakeven point?

an increase in the sales price per unit

Mrs. Jonas believes strongly that it is important that worker's rights be respected, and that one of the more important ways of doing this is to ensure that all workers be properly documented. She is supervising a contracting company that is building a new warehouse for her company. While doing this she discovers that many of the workers employed by the contractor are undocumented aliens working for well below minimum wage. In this situation Mrs. Jonas has a(n) ________ that is in conflict with a(n) ________.

attitude, behavior

Leon Festinger argued that ________ follow(s) ________.

attitudes, behavior

There is a strong link between employee ________ and ________.

attitudes; personality

Which of the following conflict-handling intentions is unassertive and uncooperative?

avoiding

Major league baseball salaries averaged $3.26 million with a standard deviation of $1.2 million in a certain year in the past. Suppose a sample of 100 major league players was taken. What was the standard error for the sample mean salary? a) $0.012 million b) $0.12 million c) $12 million d) $1,200.0 million

b) $0.12 million

If we know that the length of time it takes a college student to find a parking spot in the library parking lot follows a normal distribution with a mean of 3.5 minutes and a standard deviation of 1 minute, find the probability that a randomly selected college student will find a parking spot in the library parking lot in less than 3 minutes. a) 0.3551 b) 0.3085 c) 0.2674 d) 0.1915

b) 0.3085

The employees of a company were surveyed on questions regarding their educational background (college degree or no college degree) and marital status (single or married). Of the 600 employees, 400 had college degrees, 100 were single, and 60 were single college graduates. The probability that an employee of the company is married and has a college degree is: a) 0.0667 b) 0.567 c) 0.667 d) 0.833

b) 0.567

If we are testing for the difference between the means of 2 independent populations presuming equal variances with samples of n1 = 20 and n2 = 20, the number of degrees of freedom is equal to a) 39. b) 38. c) 19. d) 18.

b) 38.

The owner of a fish market determined that the mean weight for a catfish is 3.2 pounds with a standard deviation of 0.8 pound. A citation catfish should be one of the top 2% in weight. Assuming the weights of catfish are normally distributed, at what weight (in pounds) should the citation designation be established? a) 1.56 pounds b) 4.84 pounds c) 5.20 pounds d) 7.36 pounds

b) 4.84 pounds

How many tissues should the Kimberly Clark Corporation package of Kleenex contain? Researchers determined that 60 tissues is the mean number of tissues used during a cold. Suppose a random sample of 100 Kleenex users yielded the following data on the number of tissues used during a cold: X = 52, S = 22. Give the null and alternative hypotheses to determine if the number of tissues used during a cold is less than 60. a)H0 : 60 and H1 : 60. b) H0 : 60 and H1 : 60. c)H0 : X 60 and H1 : X 60. d) H0 : X 52 and H1 : X 52.

b) H0 : 60 and H1 : 60.

The Wall Street Journal recently published an article indicating differences in perception of sexual harassment on the job between men and women. The article claimed that women perceived the problem to be much more prevalent than did men. One question asked of both men and women was: c"Do you think sexual harassment is a major problem in the American workplace?" 24% of the men compared to 62% of the women responded "Yes." Assuming W designates women's responses and M designates men's, what hypothesis should The Wall Street Journal test in order to show that its claim is true? a) H0: W M 0 versus H1: W M < 0 b) H0: W M 0 versus H1: W M > 0 c) H0: W M = 0 versus H1: W M 0 d) H0: W M 0 versus H1: W M = 0

b) H0: W M 0 versus H1: W M > 0

Given below are the rating and performance scores of 15 laptop computers. Performance Score:115, 191, 153, 194, 236, 184, 184, 216 Overall Rating: 74, 78, 79, 80, 84, 76, 77, 92 Performance Score: 185, 183, 189, 202, 192, 141, 187 Overall Rating: 83, 78, 77, 78, 78, 73, 77 How will you classify the linear relationship between the performance scores and the rating? a) Weak b) Moderate c) Strong d) No relationship

b) Moderate

Which of the arithmetic mean, median, mode, and geometric mean are resistant measures of central tendency? a) The arithmetic mean and median only. b) The median and mode only. c) The mode and geometric mean only. d) The arithmetic mean and mode only.

b) The median and mode only.

Given below are the rating and performance scores of 15 laptop computers. Performance Score:115, 191, 153, 194, 236, 184, 184, 216 Overall Rating: 74, 78, 79, 80, 84, 76, 77, 92 Performance Score: 185, 183, 189, 202, 192, 141, 187 Overall Rating: 83, 78, 77, 78, 78, 73, 77 You will expect a decrease in the performance score of one laptop computer to be associated with a) an increase in its rating b) a decrease in its rating c) no predictable change in its rating d) no predictable change in the performance score of another laptop computer

b) a decrease in its rating

The standard error of the population proportion will become larger a) as population proportion approaches 0. b) as population proportion approaches 0.50. c) as population proportion approaches 1.00. d) as the sample size increases.

b) as population proportion approaches 0.50.

The standard error of the mean for a sample of 100 is 30. In order to cut the standard error of the mean to 15, we would a) increase the sample size to 200. b) increase the sample size to 400. c) decrease the sample size to 50. d) decrease the sample to 25.

b) increase the sample size to 400.

If the outcome of event A is not affected by event B, then events A and B are said to be a) mutually exclusive. b) independent. c) collectively exhaustive. d) None of the above.

b) independent.

Sampling distributions describe the distribution of a) parameters. b) statistics. c) both parameters and statistics. d) neither parameters nor statistics.

b) statistics.

In a right-skewed distribution a) the median equals the arithmetic mean. b) the median is less than the arithmetic mean. c) the median is greater than the arithmetic mean. d) none of the above.

b) the median is less than the arithmetic mean.

An organizational culture most likely to shape high ethical standards among its members is one that ________.

balances the rights of multiple stakeholders

The terms negotiation and ________ are used interchangeably.

bargaining

One common misuse of marketing research findings in contemporary business is the tendency for marketing research to:

become a vehicle for pitching the sponsor's products

The predetermined overhead rate is calculated ________.

before the accounting period begins

If a consumer describes a car as being the "most economical car on the market," then this descriptor is a:

belief

One of the major disadvantages of oral communication is that ________.

both A and B

Managers in a developing country would see which of the following as ethical responsibility?

both B and C

A(n)________ is a name, term, sign, symbol, or design, or a combination of these that identifies the maker or seller of a product or service.

brand

Retailers are always interested in determining why a customer selected their store to make a purchase. A sporting goods retailer conducted a customer survey to determine why its customers shopped at the store. The results are shown in the bar chart below. What proportion of the customers responded that they shopped at the store because of the merchandise or the convenience? (Graph on test bank) a) 35% b) 50% c) 65% d) 85%

c) 65%

You have collected data on the monthly seasonally adjusted civilian unemployment rate for the United States over a 10-year period. Which of the following is the best for presenting the data? a) A contingency table. b) A stem-and-leaf display c) A time-series plot. d) A side-by-side bar chart.

c) A time-series plot.

If we wish to determine whether there is evidence that the proportion of items of interest is the same in group 1 as in group 2, the appropriate test to use is a) the Z test. b) the 2 test. c) Both a) and b). d) Neither of a) nor b).

c) Both

Which measure of central tendency can be used for both numerical and categorical variables? a) Arithmetic mean. b) Median. c) Mode. d) Geometric mean.

c) Mode.

Which of the following is sensitive to extreme values? a) The median. b) The interquartile range. c) The arithmetic mean. d) The 1st quartile.

c) The arithmetic mean.

Which of the following would be an appropriate alternative hypothesis? a) The mean of a population is equal to 55. b) The mean of a sample is equal to 55. c) The mean of a population is greater than 55. d) The mean of a sample is greater than 55.

c) The mean of a population is greater than 55.

Which of the following would be an appropriate null hypothesis? a) The population proportion is less than 0.65. b) The sample proportion is less than 0.65. c) The population proportion is not less than 0.65. d) The sample proportion is no less than 0.65.

c) The population proportion is not less than 0.65.

Given below are the rating and performance scores of 15 laptop computers. Performance Score:115, 191, 153, 194, 236, 184, 184, 216 Overall Rating: 74, 78, 79, 80, 84, 76, 77, 92 Performance Score: 185, 183, 189, 202, 192, 141, 187 Overall Rating: 83, 78, 77, 78, 78, 73, 77 For a laptop computer that has a high rating, you will expect its performance score to a) be about the same as its rating b) be low c) be high d) have no relationship with its rating

c) be high

If either event A or event B must occur, then events A and B are said to be a) mutually exclusive. b) independent. c) collectively exhaustive. d) None of the above.

c) collectively exhaustive.

The Central Limit Theorem is important in statistics because a) for a large n, it says the population is approximately normal. b) for any population, it says the sampling distribution of the sample mean is approximately normal, regardless of the sample size. c) for a large n, it says the sampling distribution of the sample mean is approximately normal, regardless of the shape of the population. d) for any sized sample, it says the sampling distribution of the sample mean is approximately normal.

c) for a large n, it says the sampling distribution of the sample mean is approximately normal, regardless of the shape of the population.

Managerial accounting includes the planning function. Which of the following items would be part of the planning function of a business's managerial accounting?

choosing goals and deciding how to achieve them

The belief that "violence is wrong" is an evaluative statement. Such an opinion constitutes the ________ component of an attitude.

cognitive

Which of the following best describes horizontal analysis?

comparing financial statement line items from year to year for the same company

Goal-setting theory and self-efficacy theory do not ________.

compete with one another

More and more salespeople are being evaluated and compensated based on different measures than in the past. All of the following are illustrations of those measures EXCEPT :

competitive predatory pricing performance

Which of the following conflict-handling intentions involves accepting a solution that provides incomplete satisfaction of both parties' concerns?

compromising

The practice of going after a large share of a smaller market or subsets of a few markets is called:

concentrated marketing

People scoring high on ________ are valuable in teams because they're good at backing up fellow team members and at sensing when that support is truly needed.

conscientiousness

Marylyn is a very driven person who seeks to push ideas forward to keep people on their toes; however, she also has a problem with stepping on peoples toes and being overly critical of others. Marylyn probably has high ________ and low ________.

conscientiousness; emotional stability

The employees of a company were surveyed on questions regarding their educational background (college degree or no college degree) and marital status (single or married). Of the 600 employees, 400 had college degrees, 100 were single, and 60 were single college graduates. The probability that an employee of the company is single or has a college degree is: a) 0.10 b) 0.25 c) 0.667 d) 0.733

d) 0.733

If we know that the length of time it takes a college student to find a parking spot in the library parking lot follows a normal distribution with a mean of 3.5 minutes and a standard deviation of 1 minute, find the probability that a randomly selected college student will take between 2 and 4.5 minutes to find a parking spot in the library parking lot. a) 0.0919 b) 0.2255 c) 0.4938 d) 0.7745

d) 0.7745

The following are the duration in minutes of a sample of long-distance phone calls made within the continental United States reported by one long-distance carrier. RelativeTime (in Minutes)/ Frequency 0 but less than 5/0.37 5 but less than 10/0.22 10 but less than 15/0.15 15 but less than 20/0.10 20 but less than 25/0.07 25 but less than 30/0.07 30 or more/0.02 Referring to Scenario 2-5, if 1,000 calls were randomly sampled, how many calls lasted under 10 minutes? a) 220 b) 370 c) 410 d) 590

d) 590

The standard error of the mean a) is never larger than the standard deviation of the population. b) decreases as the sample size increases. c) measures the variability of the mean from sample to sample. d) All of the above.

d) All of the above.

In a perfectly symmetrical bell-shaped "normal" distribution a) the arithmetic mean equals the median. b) the median equals the mode. c)the arithmetic mean equals the mode. d) All the above.

d) All the above.

Which of the following statistics is not a measure of central tendency? a) Arithmetic mean. b) Median. c) Mode. d) Q3

d) Q3

Which of the following statements is not true about the level of significance in a hypothesis test? a) The larger the level of significance, the more likely you are to reject the null hypothesis. b) The level of significance is the maximum risk we are willing to accept in making a Type I error. c) The significance level is also called the level. d) The significance level is another name for Type II error.

d) The significance level is another name for Type II error.

Which of the following items is a measure of a company's ability to collect receivables?

days' sales in receivables

The Golden Company issues $539,000 of 7%, 10-year bonds at 104 on March 31, 2019. The bonds pay interest on March 31 and September 30. Assume that the company uses the straight-line method for amortization. The journal entry to record the issuance includes a ________. A

debit to Cash for $560,560

A bureaucracy is characterized by all of the following except ________.

decentralized decision making

On the ________, cash dividends become a liability of a corporation.

declaration date

Technological advances, shifts in consumer tastes, and increased competition, all of which reduce demand for a product are typical of which stage in the PLC?

decline stage

Alberto is working with a group of fifteen people to coordinate the merger of two corporations. Everyone in the group is highly qualified, offers relevant information, and has high norms. Still, the group seems to be slow at outlining a definitive plan for the merger. With the information provided, what would be the fastest and best way for Alberto to increase cohesiveness and productivity?

decrease the size of the group

When the total fixed costs decrease, the breakeven point ________.

decreases

Treasury stock ________.

decreases the number of shares outstanding

Which of the following is a product cost?

depreciation on production equipment

Which of the following is the major drawback of job sharing from management's perspective?

difficulty in finding compatible partners

Sellers that handle their own exports are engaged in:

direct exporting

The costs most easily traced to each product manufactured are ________.

direct materials and direct labor

Which of the following is a variable cost?

direct materials cost

In evaluating messages for advertising, telling how the product is better than the competing brands aims at making the ad:

distinctive

With reference to the attribution theory, which of the following terms indicates the extent to which an individual displays different behaviors in different situations?

distinctiveness

A set of interdependent organizations involved in the process of making a product or service available for use or consumption by the consumer or business user is called a(n):

distribution channel

If a company (considering its options on the product/market expansion grid) chooses to move into different unrelated fields (from what it has ever done before) with new products as a means to stimulate growth, the company would be following which of the following general strategies?

diversification

Which of the following statements is true regarding conflict?

diversity of goals among groups is a major source of conflict

_______ is an emotion that falls into the category of high positive affect.

elation

Kathryn expresses her anger against her supervisor for denying her a well-deserved promotion. Which of the following terms best describes the intense feelings that she directs at him?

emotions

Emotional intelligence (EI) is critical to effective leadership because one of its core components is ________.

empathy

An individual's involvement with, satisfaction with, and enthusiasm for the work he/she performs is known as ________.

employee engagement

Which of the following is an example of an intrinsic reward?

employee recognition

The University of Michigan studies define a(n) ________ leader as one who takes a personal interest in the needs of his/her subordinates.

employee-oriented

To create a more ethical culture, management should do all of the following except ________.

encourage unbridled competition

Which of the following is an effective means of countering social loafing?

ensure that individual contributions to the group's outcome are identified

The most innovative companies are often characterized by all of the following except ________.

entrenched cultures

One of the most promising developments in multivariable segmentation is called where a host of demographic and socioeconomic factors are used.

geodemographic segmentation

The Work-in-Process Inventory account includes the ________.

goods that are partially completed

As organizational behaviorists, we organize characteristics by overall traits describing the ________ and ________ of a person's personality.

growth; development

It was Marisol's first day at work. At first she was very nervous, but when she was introduced to her cubicle neighbor, Hanna, she was reassured by Hanna's soothing smile. Marisol thought that a person with such a beautiful smile could not be bad, and that she would enjoy having her in such close proximity. Which of the following concepts best describes this example?

halo effect

According to the traditional view of conflict, conflict is ________.

harmful

All of the following are criticisms leveled against marketing by critics EXCEPT :

harming consumers through too many product choices

Which of the following statements is true regarding Maslow's hierarchy of needs theory?

having a substantially satisfied need no longer motivates

A ________ allows management to make the most efficient use of its employees' skills and even successfully improve them through repetition.

high degree of work specialization

A "three-day cooling off period" in which buyers can cancel a contract after re-thinking it is to protect the consumer from:

high pressure selling

A company's compensation plan should reflect its overall marketing strategy. For example, if the overall strategy is to grow rapidly and gain market share, the compensation plan should reward:

high sales performance and encourage capturing new accounts

If you were using the Fiedler contingency model of leadership to establish a scenario in your company which gives managers maximum control, which of the following combinations of situational dimensions would you seek to achieve?

high task structure, good leader-member relations, and strong position power

Your trainees are given a case study concerning a local manufacturing firm called Acme Products. In assessing Acme's organizational structure, your trainees notice that all of the company's decisions are made by top management, with little or no input from lower-level personnel. The trainees most likely identify Acme as a(n) ________ organization.

highly centralized

The selection process helps sustain the organization's culture by ________.

hiring candidates who fit well within the organization

David is of the opinion that people who drive SUVs are dangerous drivers. He often thinks that people driving SUVs are driving rashly, even when other observers can see nothing wrong with the behavior of the SUV drivers. What factor is affecting his perception in this case?

his expectations

When Coca-Cola and Nestle formed a joint venture to market a ready-to-drink coffee and tea worldwide, the type of marketing system that was formed would best be described as being a(n):

horizontal marketing system

Organizations following a(n) ________ strategy try to both minimize risk and maximize opportunity for profit, moving into new products or new markets only after innovators have proven their viability.

imitation

The argument in favor of minimum wage laws is that they

improve the economic status of some workers

The fixed costs per unit will ________.

increase as production decreases

MacMan, Inc. reported the following data: 2019 2018 Amount Percentage Revenues $6370 $4940 $1430 28.95% Cost of goods sold 3450 2200 1250 56.82% Gross profit 2920 2740 180 6.57% Operating expenses: Sales and marketing expense 710 630 80 12.7% General and administrative expenses 410 425 -15 -3.53% Research and development expense 480 490 -10 -2.04% Other expense 440 710 (270) (38.03)% Total operating expenses 2040 2255 (215) (9.53)% Income before income tax 880 485 395 81.44% Income tax expense 260 240 $20 8.33% Net income (loss) $620 $245 $375 153.06% The horizontal analysis shows that cost of goods sold has ________. (Round your answer to two decimal places.)

increased by 56.82%

When the sales price per unit decreases, the breakeven point ________.

increases

The activity-based costing system improves the allocation of ________.

indirect manufacturing costs

________ is the ability to identify a logical sequence in a problem and then solve the problem.

inductive reasoning

he Ohio State Studies narrowed the independent dimensions of leader behavior to two dimensions that substantially accounted for most of the leadership behavior described by employees: consideration and ________.

initiating structure

A(n) ________ organization is an organization that takes on a life of its own, apart from its founders or members and is valued for itself and not for the goods or services it produces.

institutionalized

Motivation can be defined by three key elements. ________ is one of these three key elements and it is the element most of us focus on when we talk about motivation.

intensity

A(n) _________ are computerized collections of information obtained from data sources within the company.

internal databases

The retained earnings of a corporation is ________.

internally generated equity that is earned by profitable operations that is not distributed to stockholders

The stage is the product life cycle that focuses on expanding market and creating product awareness and trial is the:

introduction stage

The profit margin ratio ________.

is often compared to the industry average

For a manager, it is worth understanding the grapevine in the organization because ________.

it helps tap into employee anxieties

The degree to which a person identifies with his or her job, actively participates in it, and considers his or her performance as being important to self-worth is ________.

job involvement

What refers to a positive feeling about a job, resulting from an evaluation of its characteristics?

job satisfaction

Thad, Jamarcus, and Willy have been working for Davidson International each for three years. While the trio started together as analysts and are all still on the same team, Jamarcus has recently been made a team lead while Willy and Thad are still in their respective positions although Willy did receive a small raise after his last performance evaluation. Of the five major job attitudes, Jamarcus probably has the highest level of ________, while Willy probably has the highest level of ________.

job satisfaction; organizational commitment

Joining with foreign companies to produce or market products and services is called:

joint venturing

Research suggests which of the following relationships exists between the weather and mood?

limited or little effect

Using a successful brand name to introduce additional items in a given product category under the same brand name (such as new flavors, forms, colors, added ingredients, or package sizes) is called a(n):

line extension

A company faces several major decisions in international marketing. The first of these decisions is often:

looking at the global marketing environment

Teams that consist of team members that score ________ are more likely to perform poorly.

low on agreeableness

According to the attribution theory, if a behavior scores ________, we tend to attribute it to external causes.

low on consistency

To address the problem of a recession, the Federal Reserve Bank most likely would take which of the following actions?

lower the discount rate it charges to banks for loans

All of the following are ways that marketing plays a key role in the company's strategic planning EXCEPT :

marketing is the only discipline that can provide a formal structure for the planning effort.

It is a fact that there are 24 million left-handed people in the United States, however, most marketers do not attempt to appeal to or design products for this group because there is little in the way of census data about this group. Therefore, this group fails in one of the requirements for effective segmentation. Which of the following is most likely to apply in this case?

measurable

The "in" suppliers are most likely to get nervous and feel pressure to put their best foot forward in which of the following types of buying situations?

modified rebuy

Which of the following terms best describes feelings that tend to be less intense than emotions?

moods

A _________is a need that is sufficiently pressing to direct the person to seek satisfaction.

motive

Contribution margin ratio is the ratio of contribution margin to ________.

net sales revenue

A company is practicing if it focuses on subsegments with distinctive traits that may seek a special combination of benefits.

niche marketing

The velocity of money is generally measured as a ratio of the

nominal gross domestic product to the money supply

Which of the following statements regarding leadership is true?

nonsanctioned leadership is as important as formal influence

If a government uses barriers to foreign products such as biases against a foreign company's bids, or product standards that go against a foreign company's product features, the government is using:

nontariff trade barriers

Which of the following is the most appropriate cost driver for allocating the cost of warranty services?

number of service calls

The orange juice manufacturers know that orange juice is most often consumed in the mornings. However, they would like to change this and make the drink acceptable during other time periods during the day. Which form of segmentation would they need to work with and establish strategy reflective of their desires?

occasion segmentation

Teams that are composed of people who score high on ________ are more creative and innovative.

openness to experience

Holly is a highly motivated professional who likes to take on new tasks and makes certain that everything she does is done to perfection. In which two of the Big Five personality traits would Holly most likely score high?

openness to experience and emotional stability

Which of the following is the typical order of the sections on a statement of cash flows?

operating, investing, financing

Which of the following statements is true regarding perception?

our perception of reality can be different from the objective reality

According to the Myers-Briggs Type Indicator (MBTI) classification, people belonging to the "________" type are flexible and spontaneous.

perceiving

Robbie and Brent are both coaches for a city youth baseball league which has recently experienced a five game losing streak. Robbie is concerned that the team is not practicing enough while Brent thinks that it is just a slump. The discrepancy within their thoughts is explained by ________.

perceptual issue

According to the expectancy theory, which of the following relationships indicates the degree to which the individual believes that a particular level of output will lead to the attainment of a desired outcome?

performance-reward

48. When Michael Jordan and Tiger Woods use marketing to promote their careers and improve their impact and incomes, they are using:

person marketing

n the context of Fiedler's model, the situational dimension termed ________ relates to the degree of influence a leader has over power variables such as hiring, firing, discipline, promotions, and salary increases.

position power

Atlanta Company sold equipment for cash. The income statement shows a gain on the sale of $1020. The net book value of the asset was $3710. Which of the following statements describes the cash effect of the transaction?

positive cash flow of $4730 from investing activities

Job candidates who prefer ________ are likely to seek out and take employment in mechanistic structures, and those who want ________ are more likely to end up in an organic structure.

predictability; autonomy

One issue that does seem to differ between men and women, especially when the employee has preschool-age children, is ________. A) preference for work schedules B) willingness to conform C) willingness to learn new skills D) the ambition to excel E) greater employee participation

preference for work schedules

A manufacturer has four sponsorship options. A is a brand created and owned by a reseller of a product or service.

private brand

Which of the following is not a characteristic of organizational culture?

process orientation

Anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need is called a(n):

product

If Toyota describes one of its cars of the future as being "a moderately priced subcompact designed as a second family car to be used around town; the car is ideal for running errands and visiting friends," then the company has just stated a potential new product in terms of a(n):

product concept

A company is in the stage of the new product development process when the company develops the product concept into a physical product in order to assure that the product idea can be turned into a workable product.

product development

A _______________is the way consumers perceive an actual or potential product.

product image

The ______________holds that consumers will favor products that are available and highly affordable (therefore, work on improving production and distribution efficiency).

production concept

All of the following are methods by which a company can divide up its sales responsibilities EXCEPT:

psychographic trait sales force structure

Employees' beliefs in the degree to which they influence their work environment, their competence, the meaningfulness of their job, and their perceived autonomy is termed as ________.

psychological empowerment

A is a promotion strategy that calls for using the sales force and trade promotion to move the product through channels.

push strategy

A price reduction to buyers who buy in large volumes is called a(n):

quantity discount

When an importing country sets limits on the amount of goods it will accept in certain product categories it is called a(n):

quota

Research has shown that there is a link between our emotions and our ability to be ________.

rational

At its core, reinforcement theory contends that ________ condition(s) ________.

reinforcement; behavior

When the total fixed costs increase, the contribution margin per unit ________.

remains the same

If your company were to make a product such as a suit of clothes and sold that product to a retailer, your company would have sold to the market.

reseller

According to the two-factor theory, ________ is a motivating factor.

responsibility

Jill is an excellent technical writer. She has never missed a deadline and all her projects are of superior quality. She now wants to telecommute two days a week, so that she can spend more time with her family. She feels that she has proven her reliability. However, her boss is unable to comply with her request and gives her a substantial raise instead. Jill's disappointment demonstrates a breakdown in the ________ relationship.

rewards-personal goals

Zach is devout and very active in his church. He is also a very dedicated employee. His manager offers him a promotion but the new role will require him to work Sundays. Zach would like the promotion, but realizes that it would force him to miss some church activities. In such a situation, Zach is most likely to experience ________.

role conflict

Which of the following would be considered a period cost for a manufacturing company?

sales salaries

When a marketing research organization chooses a segment of the population that represents the population as a whole, they have chosen a

sample

If we consider Maslow's hierarchy of needs in the context of Japan, Greece, and Mexico, where uncertainty-avoidance characteristics are strong, then ________ needs would be on top of the hierarchy.

security

The main difference between the ideas of self-efficacy and self-esteem is ________.

self-efficacy refers specifically to tasks

The typical method of retail operation used by supermarkets and catalog showrooms is called:

self-service retailing

According to the Myers-Briggs Type Indicator (MBTI) classification, people belonging to the "________" type are practical and prefer routine and order.

sensing

A is any activity or benefit offered for sale that is essentially intangible and does not result in the ownership of anything.

service

Successful service companies focus their attention on both their customers and their employees. They understand which links service firm profits with employee and customer satisfaction.

service-profit chains

Individuals high in self-monitoring ________.

show considerable adaptability in adjusting their behavior to external situational factors

One of the most common problems with using internal database information is that:

since it was probably collected for some other purpose, it may be incomplete or wrong

Contingency theories focus on the ________ that impact leadership success.

situational variables

Which of the following terms indicates the tendency of individuals to spend less effort when working collectively?

social loafing

Consumer goods with unique characteristics or brand identification often requiring a special purchase effort are called:

specialty products

A(n) is a retail store that carries a narrow product line with a deep assortment within that line.

specialty store

Which of the following will most likely be considered an indirect material cost for a bakery?

spices

Nunya is a computer software company that employs highly intelligent, but somewhat unusual people. Every Friday, free lollipops, toys, or other treats are given out to encourage employees to remember how creative they were when they were children. All the new members of the organization are told about the founders who were three young people who "got lucky" and sold a video game that they invented. The employees are allowed to dress informally and can set their own working hours. Informing employees about the founders is an example of which technique for transmitting culture?

stories

Which of the following is not one of the characteristics of a spiritual organization?

strong religious foundation

Unemployment that is caused by a mismatch between the composition of the labor force (in terms of skills, occupation, industries, or geographic location) and the makeup of the demand for labor is called

structural unemployment

In terms of special product life cycles, a _______is a basic and distinctive mode of expression.

style

Participative management is a method of management where ________.

subordinates share a significant degree of decision-making power with their immediate superiors

Anya is a graphic designer in a firm specializing in making logos for their clients. Last week, she got client specifications on how to make a new logo. She was able to create a prototype, and having got it initially reviewed by her immediate supervisor, she made changes until the client was satisfied with her final product. Based on this description, it's safe to say that Anya's job is high in ________ and ________.

task identity; feedback

Individuals with a positive ________ identity but without a positive ________ identity can become fixed to their teams and unwilling to coordinate with other teams within the organization.

team; organizational

According to the text, the most dramatic of the environments that affect marketing and appears to be now shaping our world is the________________ environment.

technological

If the field sales force has been supplied with new leads (via the telephone) that have been qualified, they have probably been assisted by:

telemarketers

Preferred stock is stock ________.

that gives its owners certain advantages over common stockholders

The Internet evolved from a network created by during the 1960s.

the Defense Department

Leadership is best defined as ________.

the ability to influence a group toward the achievement of a vision or set of goals

The emotional or feeling component of a person's attitude is called ________.

the affective component

Janice is spending the summer working as an intern writing copy for a local firm. Today Janice's senior editor sent back some of Janice's work covered in red ink corrections. Up until now, all of Janice's work had been corrected in green or blue ink. Janice is upset and worried that her senior editor doesn't like her.Which component of an attitude is not represented in the previous scenario?

the behavioral component

Which of the following statements is true if the variable cost per unit increases while the sales price per unit and total fixed costs remain constant?

the breakeven point increases

Which of the following sections from the statement of cash flows includes the cash paid for the purchase of Treasury Stock?

the financing activities section

Which of the following sections of the statement of cash flows includes the issuance of stock and the payment of cash dividends?

the financing activities section

Jennifer has already presented two excellent reports. The third report she has just presented is clearly not as good as the first two reports, yet she is given the same high grade as before. What shortcut has the teacher used in this case?

the halo effect

nformation overload occurs when ________.

the information we have to work with exceeds our processing capacity

Which of the following sections of the statement of cash flows include purchases and sales of long-term assets?

the investing activities section

All of the following factors can affect the attractiveness of a market segment EXCEPT :

the likelihood of government monitoring

All of the following are thought to be sources of new product ideas EXCEPT:

the local library

Which of the following sections of the statement of cash flows include activities that create revenue and expenses of the business?

the operating activities section

According to Engel's law, as income rises:

the percentage spent on other categories increases

Emotional sharing is very prominent in the workplace and a way for many individuals to meet their social needs. Why is this?

the workplace is the primary source of social interaction for most people

Which of the following statements is not true regarding values?

there is no substantial variability in values across cultures

Evidence suggests that people tend to default to cooperative strategies in interpersonal interactions unless there is a clear signal that ________.

they are faced with a competitive person

The primary reason that many companies work to become the "low-cost producers" in their industry is because:

they can set lower prices that result in greater sales and profits

Why are agreeable people usually less successful in their careers?

they don't negotiate well

Which of the following statements is true about people with positive core self-evaluations?

they set ambitious goals

The key to a successful bonus plan is that the reward needs to be ________.

tied to a recent performance

Which of the following is not a physical manifestation of being a good listener?

touching the speaker

Leaders who clarify role and task requirements to accomplish established goals exhibit a(n) ________ style of leadership.

transactional

________ leaders inspire followers to transcend their self-interests for the good of the organization and can have an extraordinary effect on their followers.

transformational

All of the following are consequences of a relationship of trust between supervisors and employees, except that ________.

trust discourages taking risks

According to the Hofstede's framework, ________ indicates the degree to which people in a country prefer structured to unstructured situations.

uncertainty avoidance

The Wheeler-Lea Act gives the Federal Trade Commission the power to regulate:

unfair and deceptive acts or practices

The purpose of strategic planning is to find ways in which the company can best:

use its strengths to take advantage of attractive opportunities in the environment

Conflicts between different levels of the same channel of distribution are referred to as:

vertical conflicts

When producers, wholesalers, and retailers act as a unified system, they comprise a:

vertical marketing system

Which of the following would be considered a direct labor cost for a manufacturing company?

wages of the assembly line staff