CofI Intro to Bus Mid Term

Which of the following factors is likely to create a language barrier to communication?

The use of slang

In the context of the history of American business, which of the following statements is true of the industrial revolution?

There was a loss of personal pride in the production process.

Which of the following statements is true about current assets?

They are resources that a firm expects to use up within a year.

Which of the following statements is true of communication barriers?

They can arise in a number of different forms

Which of the following statements is true of people with an external locus of control?

They feel like victims of the actions of others.

Which of the following is a characteristic of entrepreneurs?

They risk their time, money, and other resources to start and manage their business.

Which of the following is a characteristic of successful entrepreneurs?

Tolerance of uncertainty

Capital, one of the factors of production, includes machines, tools, buildings, information, and technology.

True

The central banking system of the United States is the Federal Reserve.

True

Value is the relationship between the price of a good or a service and the benefits that it offers its customers.

True

When business drives up the standard of living for people worldwide, it contributes to a higher quality of life.

True

In the context of financial accounting, the external stakeholders of a firm__________.

are seldom interested in analyzing detailed accounting information about the individual departments within the firm

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

assets

Through the establishment of a set of generally accepted accounting principles (GAAP), the Financial Accounting Standards Board (FASB) aims to ensure that financial statements are__________.

comparable

A _____ is a form of business ownership in which the business is considered a legal entity that is separate and distinct from its owners.

corporation

High taxation, excess regulation, and limited choices in a business environment are likely to result in a(n) _______.

decrease in entrepreneurial activities

The primary reason people choose to become entrepreneurs is to ________.

earn more money

In the context of the legal and ethical dimensions of business conduct, embezzling money is:

illegal and unethical.

In the context of the legal and ethical dimensions of business conduct, providing rock-bottom prices only to distributors in underserved areas is _____.

illegal but ethical

Yaritza, an associate marketing manager in a media company, wants to actively contribute to the growth of the company by suggesting some changes in its administrative policies. However, she does not get the opportunity to do so because of a distance in the company between superiors and lower-level employees. In the given scenario, Yaritza faces a(n) _____ to communication.

organizational barrier

In the context of the history of American business, during the _______, jobs became more specialized, increasing productivity and lowering costs and prices.

production era

Jael works for an accounting firm that performs external audits, provides consulting services, and does the tax preparation for other businesses and individuals. Given this information, Jael is most likely a _____.

public accountant

Nadda believes the following: "It is wrong to lie; however, it is okay to call in sick when I have personal errands to take care of and I don't want to use any of my limited vacation days." In this scenario, Nadda is an employee who views ethics as ____.

relative

The assets of Caelum Co., a glass and silver company, amount to $500 million, and its liabilities add up to $170 million. Based on the accounting equation, Caelum Co. owners' equity is equal to _____.

$330 million

The owners' equity of Cradle Corp., an event marketing company, adds up to $27 million, and its liabilities add up to $16 million. Based on the accounting equation, the assets of Cradle Corp. are worth _____.

$43 million

Truitt, the CEO of a marketing company, wants to invest in a new technology that could provide the company with a huge profit if it is successful. However, the board of directors is doubtful about the success of this technology and refuses to support Truitt's proposal. Which of the following communication barriers does Truitt face in the given scenario?

A perceptual barrier

Which of the following statements is true of ethics?

Actions that are completely legal can still be unethical.

In the context of entrepreneurs, which of the following statements is a difference between an internal locus of control and an external locus of control?

An internal locus of control involves personal responsibility, whereas an external locus of control does not.

Which of the following can be considered a business?

Divas, an online store that offers discounted prices on designer shoes

Hakim has an innovative idea for a better bathroom sink design. Hence, he starts a business to implement this idea that he believes will succeed. He is also aware of the risks involved in starting the business. However, Hakim puts in only four hours a day into building his business. Some days, he finds it difficult to put in any time at all. Which of the following entrepreneurial characteristics does Hakim lack?

Energy

During the production era, managers focused mostly on customer satisfaction and not on production efficiency.

False

In the United States, nonprofits employ about one in 100 workers, accounting for less paid workers than the entire construction industry and less than the finance, insurance, and real estate sectors combined.

False

In the context of the history of American business, the Industrial Revolution era encouraged workers to take individual ownership and personal pride in the production process.

False

People can create natural resources by growing and harvesting agricultural products.

False

Lambert quits his nine-to-five job at a multinational company and starts his own real estate company. In his new company, he does not practice a nine-to-five work schedule. Instead, he organizes meetings with clients by making appointments that favor his schedule. Which of the following advantages of entrepreneurship is highlighted in the given scenario?

Flexibility

Which of the following would most likely be a question asked by the stockholders of a firm?

Has the management generated a strong enough return on their investment?

In the accounting equation, assets are equal to__________.

In the accounting equation, assets are equal to__________.

In the context of the history of American business, which of the following occurred during the entrepreneurship era?

Industrial titans created enormous wealth that raised the overall standard of living across the country.

Which of the following statements is true of a limited liability company (LLC)?

It is a relatively new form of business ownership in the United States.

Which of the following statements is true about accumulated depreciation?

It is the decrease in the value of assets such as machinery, equipment, and property over time.

Which of the following statements is true of profit in a business?

It is the financial reward that comes from starting and running a business.

Which of the following features of a sole proprietorship proves that it is a risky endeavor?

Its unlimited liability

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

Lack of permanence

In the context of the factors of production, which of the following is a natural resource?

Land

The strategy and the sales department of a company are required to collaborate on a project. However, the two teams face significant challenges while trying to communicate with each other because of the use of terminology specific to each department. In the given scenario, which of the following communication barriers do the teams face?

Language Barriers

In the context of financial statements, which of the following statements is true of large corporations?

Large corporations with publicly traded stock must provide an annual report containing financial statements to all stockholders.

What occurs when a business brings in less money than it needs to cover expenses?

Loss

Which of the following is an example of a nonprofit organization?

Nage, a community museum that is funded by a trust and is free for public use

What is the term for any interference that causes the message you send to be different from the message your audience understands?

Noise

According to research from the Ethics Resource Center (ERC), which variable has more influence than any other variable on the ethical conduct of individual employees?

Organizational culture

In the context of business ownership options, which of the following is a voluntary agreement under which two or more people act as co-owners of a business for profit?

Partnership

Which of the following statements is true about nonverbal communication?

People communicate through a wide range of facial expressions.

In which of the following ways do public accountants differ from management accountants? Incorrect answer:

Public accountants rely on data provided by top managers, whereas management accounts rely on data provided by middle and supervisory managers.

Pixie owns a restaurant themed on American pop culture from the early 2000s. While setting up the restaurant, Pixie took care of everything herself, from interior decoration to food and music. She even got the permit for the restaurant herself. Which entrepreneurial characteristic is highlighted in the given scenario?

Self-reliance

In the context of the history of American business, which of the following statements is true of the production era?

The assembly line became standard across major manufacturing industries.

Which of the following statements is true about organizational barriers to communication?

The develop because of poor ergonomics at the workplace

Paley develops a line of kitchen utensils that can be charged by a solar panel and can run efficiently for up to three hours. His friends point out that it will be difficult to get kitchen utensil manufacturers to adopt this new technology and that it could take a long time for people to start relying on it. However, Paley is convinced that he can make his idea popular and successful. He plans to start a new company called Energy Chef Inc. that will promote and sell his kitchen utensils to the public. In this scenario, which of the following entrepreneurial characteristics is Paley demonstrating?

Vision

A sole proprietorship is a form of business ownership in which__________.

a single owner actively manages the company

Daley Incorporation, a social media company, is deciding whether to acquire Choice Inc., a start-up company that operates within the same industry. To better assess its decision, the management of Daley Incorporation needs to find out the value of Choice Inc.'s total assets. The management has information regarding Choice Inc.'s liabilities and stockholders' equity. In this scenario, the management should most likely use the _____ to get the required information.

accounting equation

Bancroft is the owner of a restaurant that has several franchises. One of the franchisees owes Bancroft a sum of $21,000 for the goods that the franchisee previously bought from Bancroft on credit. In this scenario, the money owed to Bancroft is known as ___.

accounts receivable

Abeytu is a venture capitalist who invests in start-ups and small businesses. She is interested in investing in a fashion start-up company that has been in business for a year. Before making a decision, Abeytu does some research on the value of the company's assets and liabilities. In this scenario, Abeytu is most likely analyzing the company's___________.

balance sheet

Bansi Breken is a financial institution that provides loans to businesses. It rejects an iron ore company's request for a loan after it reviews the value of the company's assets, liabilities, and owners' equity and finds them to be unsatisfactory. In this scenario, Bansi Breken most likely analyzed the company's _____ to assess its financial condition.

balance sheet

As globalization gains speed, intercultural communication will ________.

become increasingly pivotal to long-term business success

In the context of the history of American business, the _______ emerged in the second half of the 1800s, building on the foundation of the industrial revolution.

entrepreneurship era

The management of an oil company decides to set up a new plant in along the coast. However, this would create harmful effects on the ocean and the animals living near the coastline. On the other hand, the company would incur higher costs if it sets up the plant in another area. The management thus finds itself in a situation where both actions would have a negative consequence. This scenario exemplifies a(n) _____.

ethical dilemma

A _____ refers to a partnership in which all partners can take an active role in managing the business and have unlimited liability for any claims against the firm.

general partnership

Dalya and Valentino collaborate to open a bakery. They come to an arrangement wherein Dalya manages the cafe from Sunday to Tuesday, Valentino manages it from Wednesday to Friday, and both jointly manage it on Saturday. Both Dalya and Valentino share the profits of the business equally while facing a personal liability for any debts or losses that the cafe may incur. In this scenario, Dalya and Valentino most likely _____.

have a general partnership

While performing a financial analysis for his organization, Morris discovers that there has been mismanagement of employee funds over the past three months. He immediately reports this to his supervisors. In this scenario, Morris is most likely a(n) _____.

internal auditor

Unlike a sole proprietorship, a corporation ________

is considered to be a legal entity that is separate and distinct from its owners

In the context of the legal and ethical dimensions of business conduct, rewarding integrity is an example of _____.

legal and ethical behavior

CoffeeCo, a coffee brewing company, is owned by foreign investors and local businessmen. Its earnings are equally divided among its members. It does not face the problem of double taxation as taxes are only levied on the personal income of the members. The owners of CoffeeCo do not have personal liability for any debts incurred by the company. In the given scenario, CoffeeCo is an example of a _____.

limited liability corporation

Technological tools such as the internet and email have________.

made it easy for small business owners to manage their firms on the go

_____ provide analysis and prepare reports and financial statements for their organization.

management accountants

Maame is a middle-aged professional who lost her job ten months ago when her former employer downsized. She has been actively looking for work ever since, but she has not been able to find a job that utilizes her abilities or offers an income similar to her previous position. She is beginning to realize that the only way for her to survive her current situation is to start her own business. In this scenario, Maame will most likely become a(n) _____.

necessity entrepreneur

To preserve independence and impartiality, members of the Financial Accounting Standards Board (FASB) are required to__________.

sever all ties with any firms or institutions they served prior to joining the board

The obligation of a business to contribute to society is referred to as _____.

social responsibility

The three kinds of basic financial statements that are prepared in financial accounting are__________.

the balance sheet, income statement, and statement of cash flows

Ethics does not refer to ________.

the obligation of a business to contribute to society

Ethical norms that apply to all people across a broad spectrum are also known as _____.

universal ethical standards