Finance Exam Master Quizlet

Which of the following visual aids is often used to clearly illustrate company's sales by region:

Geographical map

An example of an internal financial risk is

Improper budgeting practices

Choosing to buy an item at the check-out counter is often an example of

Impulsive spending

JavaScript, BETA, AppleScript, and Ubercode are examples of computer

Programming languages

In most cases, the person who initially listens to customer complaints is the

Salesperson

A characteristic of managerial accounting is that it focuses on

Capturing the business's day-to-day financial activities

Businesses benefit when employees handle customer inquiries in an effective manner because

Customers' confidence in the business increases

According to the classical theory of unemployment, the best solution for unemployment is to

Cut wages

When Matthew receives a check four times a year for income he has earned on his stock investments, he is receiving

Dividends

When preparing a statement of equity, what does a business deduct from its total net income to obtain its retained earnings?

Dividends paid

An economic trend that typically precedes an upturn in commodity prices is the __________ for at least a year.

Dollar increasing in value

Three types of communication usually found in a business with a formal communication network are

Downward, upward, and lateral

The purpose of using the locking function for a database is to

Ensure that only one person can edit data fields

Which of the following demonstrates the correct method to ensure that all words in a phrase are included in a web search:

"Confidence in itself is the secret of success."

Some job application forms ask why the applicant left a previous job. Which of the following would be an acceptable answer to this question:

"I was seeking a more responsible job."

To complete a report about commercial loans, Lola needs to review a specific online article called, "The Truth About Commercial Interest Rate Increases." Which of the following search entries will provide Lola with the most accurate results:

"the truth about commercial interest rate increases"

A business's balance sheet lists $3,800 in cash, $15,125 in accounts payable, $2,775 in taxes, $10,350 in machinery and equipment, and $6,280 in salaries. Calculate the business's total liabilities.

$24,180

Amelia places $250 in a savings account that pays 6.25% interest compounded annually. Calculate the value of her savings account in two years.

$282.23

Calculate a business's total cash receipts for one month if it had cash sales of $6,500, credit sales of $2,450, cost of goods sold of $2,725, and total expenses of $1,980.

$6,500

You want to have $8,000 in three years to purchase a car. You can earn 4% compound interest on your investment. How much should you invest today?

$7,111.75

According to today's stock quotation table, the current price of Macy's stock is $18.99 per share. Last year, the company paid investors a dividend of $0.20 per share. What is the current yield on Macy's stock?

1.05%

Using the information in the following project plan schedule, calculate the number of hours a business is allocating to complete Tasks 2 and 4 during the third week:

30

Alexander's savings account earns 1.50% in interest. Using the Rule of 72, how many years would it take for Alexander's savings to double?

48 years

Determine the mode for a customer-survey question using the following statistical information: 7, 5, 3, 7, 7, 9, 5, 7, 9, 9

7

A mutual fund's total liabilities are $5,600,000, and its assets total $7,950,000. There are currently 31,000,000 shares outstanding. What is the net asset value of the fund?

7.58%

An accounts payable analyst is using technology to collect and isolate customer records from the disbursing system. The tool can retrieve and organize a massive number of customer records in just a short time. What type of technology is the analyst using?

A CRM database

Which of the following statements contains the most relevant information to include in a business report about the specific market share of computer manufacturers during a particular time frame:

A In 2009, Hewett Packard held 29.1 percent of the market share, followed by Dell, which held 21.9 percent

Which of the following is a trend that financial information can be used to identify:

A bakery's artisan breads are growing in popularity.

How does analysis of standard costs differ from analysis of a budget?

A budget analysis provides an overview, while standard cost analysis shows the details of variances

Monique, an office manager, used to organize hard copies of important documents in filing cabinets that took up an entire room. Now, she stores documents on her office computer, where they're easy to access and organize. Monique now uses

A database

Supervised by the Federal Reserve Board, The DAB Company provides investment advisory services, insurance underwriting, securities underwriting, and merchant banking services. What does the DAB Company exemplify?

A financial holding company

Which of the following mutual funds is most likely to be tax inefficient:

A fund with a high portfolio turnover rate

The managerial accounting system emphasizes

A future orientation

An economy with a high unemployment level tends to have

A lower rate of inflation

Which of the following has contributed to financial globalization:

A movement from fixed exchange rates to floating exchange rates

Which of the following would be out of place in a follow-up letter after a job interview:

A question about salary or benefits

Which of the following professional relationships is most likely to be successful:

A real estate agent and an insurance broker refer clients to each other

Which of the following professional relationships is most likely to be successful:

A real estate agent and an insurance broker refer clients to each other.

After a presentation about safety, robbery, and theft issues in the community's business district, Jeff asked the speaker, "Did you say that the crime rate in the area decreased by 10 percent or 15 percent last year?" What type of question did Jeff ask?

A relevant question to clarify information that the speaker had provided

Which of the following people would make the best entrepreneur:

A risk-taker who has a strong work ethic

Which of the following groups is most likely to enforce public corporations' compliance with financial reporting standards:

A securities regulatory commission

Which of the following software applications would be best for a small business owner to use to develop his/her annual budget:

A spreadsheet application

Which of the following potential compliance issues would temporal reasoning detect:

A travel-expense account has a credit balance at the end of an accounting period rather than a debit balance.

When a nation can produce a product for less than other nations, it is said to have a(n)

Absolute advantage

Alexei determines who in his company is permitted to read data within the financial-information management system. Alexei has assumed responsibility for the __________ stewardship of the company's financial information.

Access

Which of the following statements about accounting and finance is true:

Accounting focuses on the past, while finance focuses on the future

Which of the following statements regarding accounting and finance is correct:

Accounting focuses on the past, while finance focuses on the future

Which of the following statements regarding accounting and finance is correct:

Accounting focuses on the past, while finance focuses on the future.

The Sarbanes-Oxley Act of 2002 is legislation that was passed in response to recent

Accounting scandals

What accounting method involves journalizing income and expenditures at the time they occur even if no money changes hands at that time?

Accrual

When providing services to clients, financial professionals have the responsibility to supply

Accurate information

Financial managers who are legally responsible for their clients' investments must demonstrate fiduciary responsibility, which involves

Acting in the best interests of their clients

Which of the following would afford finance professionals the best opportunity to build long-lasting relationships with other finance professionals:

Actively participating in a local professional association for the finance industry

What does the Occupational Safety and Health Administration (OSHA) require all companies to have available for use?

Adequate first-aid supplies

What type of law is intended to enforce the rules and regulations of governmental agencies:

Administrative

Businesses should keep promises to customers in both personal interactions with employees and

Advertising

If a small-business owner wants to identify the customers who owe money to the business, what type of report should s/he review?

Aging-accounts

What is an important aspect of a customer-centric business?

Aligning business activities with customer needs

What is the advantage to groups that use consensus building to make decisions?

All decision makers have equal power

Which of the following statements about economic resources is true:

All economic resources are limited

Which of the following is an example of an employee who is meeting his/her employer's expectations:

Allison focuses on her work tasks so she can meet her deadlines

A company purchases an expensive new software system and divides the cost of it between the two departments that will use the system. This is an example of cost

Allocation

Which of the following is an example of horizontal communication in the workplace:

An employee sends an e-mail to a coworker about a short-term project

Which of the following is an example of unethical behavior in the workplace that involves confidential information:

An employee tells a coworker how much the sales manager earned in bonuses last year

When preparing her tax return, Lynnette listed the interest that she paid on her student loan as

An itemized deduction

Amy says, "I think the primary reason that last year's sales were higher than this year's sales is because Jansen Electronics has taken a portion of our market share." This is an example of

An opinion

Which of the following is an example of a businessperson exhibiting unethical behavior in relation to a business's financial information:

An unauthorized employee reviews a client's financial information

An automotive parts supplier must decide whether to extend a credit line to a new business customer. Before approving or denying credit for the new customer, what should the supplier do?

Analyze the customer's credit application, credit report, bank information, and financial statements

Most businesses maintain records about what customers are buying and how much they are spending in order to

Analyze the information

Margaret Holden is a wealthy woman who has financially supported other individuals' business ideas and ventures. Now, Margaret is very interested in providing Marcus Williams with the financial support that he needs to start his new business. Margaret is a(n) ____________ , and Marcus is a(n) ____________.

Angel investor, entrepreneur

Which of the following scenarios best illustrates a finance professional's commitment to customer service:

Ann strives to solve customer problems promptly and accurately.

Luke is writing a complex report that will be submitted to the company's board of directors. He has collected relevant information that he would like to provide to the audience—information that is not necessary to include in the body of the report. In what section of the report should Luke include this supplemental information?

Appendix

A business owner is concerned that some of his employees may be using their company credit cards to make personal purchases. Which data mining technique should the owner use to review the employees' credit card transactions each month to identify questionable transactions?

Artificial neural networks

A business owner is concerned that some of his employees may be using their company credit cards to make personal purchases. Which data-mining technique should the owner use to review the employees' credit card transactions each month to identify questionable transactions?

Artificial neural networks

Theresa's supervisor gives her written directions for an assignment. Theresa carefully completes the task as the directions specify. As she finishes the last step, she realizes that her work in step two may not be exactly right. What should she do?

Ask her supervisor to clarify the directions

Anna, a new employee with Turbo Electronics, must write a letter to a customer. Because Anna does not know which letter format to use, she should

Ask her supervisor which letter format the company uses

Samantha has been chosen by her boss to participate in a group discussion on a topic she knows very little about. Her lack of knowledge in the subject makes her feel like she has little to contribute to the group. Which of the following should she do to become a valuable participant:

Ask questions to clarify other participants' comments

An individual calls your company and asks to speak with your coworker, Rhonda Hoffman. What should you do if Rhonda is not available to take the call?

Ask the caller if s/he would like to leave a message

Kendra 's financial goal is to build wealth over time by making diversified investments. Which of the following financial services providers is most likely to help Kendra achieve her goal:

Asset-management firm

Which of the following equations should employees know when they are verifying the accuracy of a business's balance sheet:

Assets = Liabilities + Owner's Equity

To be most effective, continuous-inspection compliance technology should have access to transactional information

At its source

The New York Stock Exchange is a(n) __________ market.

Auction

Which of the following can be used to trace a financial transaction from beginning to end to ensure that the data are accurate and have not been altered:

Audit trail

Which of the following can be used to identify the unethical manipulation of records in a financial-information management system:

Audit trails

Which of the following topics is most likely to be included on a certification exam for accounting professionals:

Auditing and assurance

What type of risk-management technology can track individual traders' risk limits and notify management immediately if any trader exceeds her/his pre-set limit?

Automated oversight

Claire is responsible for maintaining an inventory of routine office supplies for a small business. To determine the optimal level of inventory of each item to keep on hand, Claire should consider the

Average product usage amount per month

Businesses often maintain records about vendors' pricing, delivery terms, and credit policies and use the information in the records to

Award purchasing contracts

What type of financial statement includes an accounting of the shareholders' equity for a company?

Balance sheet

Which of the following is an example of legal tender issued by the federal government:

Bank notes

Which of the following is a computer application that increases the efficiency of the accounts-receivable function:

Batch invoicing

What should help businesspeople adapt their communication styles to appeal to clients from other cultures?

Being patient, flexible and empathetic

Franco's manager asked him to develop a report that compares their company's fourth-quarter performance with others in its industry. Which financial-analysis software feature should Franco use to generate information for his report?

Benchmarking

Samantha agrees to buy a bicycle from Tony for $225. This is an example of a(n)

Bilateral contract

Which of the following statements regarding debt and equity markets is correct:

Bonds, which are debt instruments, are typically less risky investments than stocks

What is a common activity that takes place during the "determining possible solutions" stage of the problem-solving process?

Brainstorming ideas

When filing a tort against a business, the plaintiff must establish that the defendant

Breached the duty of care

Kyrie is licensed to buy and sell securities and offer financial advice to clients. She is most likely to find employment with a(n)

Brokerage house

Adian is conducting online research for a marketing project at work. What web-based tool will help Adian save and organize the websites that contain the relevant information he needs for his final report?

Browser bookmarking applications

Which of the following job duties belong to a person who works in corporate finance:

Budgeting, financial planning, and implementing capital structure

What is one of the benefits to a business of reinforcing service orientation through communication?

Builds positive relationships with customers

The primary purpose for record keeping is to provide information about what is happening with the

Business

Consumer spending tends to decrease when

Business activities slow

Which of the following is most likely to have a negative effect on financial markets:

Business expansion slows quickly

What is the main form of written communication between companies?

Business letters

Which of the following would most benefit from a customer-service mindset that helps to reduce complaints and increase profits:

Businesses

Consumer spending is most likely to increase when

Businesses expand and hire additional staff

How does self-control help you to think clearly?

By helping you to be objective

An effective technique to use to clarify information when giving verbal directions involves

C Demonstrating a procedure

Customer Relationship Management (CRM) data are sometimes called "perishable" data because the data

Can become inaccurate over time

What is the first step Cameron should take to protect himself from identity theft after he loses his wallet?

Cancel all of his credit and debit cards

A financial-information management system can help a financial manager to make which of the following types of decisions:

Capital budgeting

Six months ago, Xander bought 500 shares of stock at $25 per share. Today, he sold all 500 shares for $48 per share. What type of tax is Xander obligated to pay as a result of this financial transaction?

Capital gains tax

Which of the following is commonly used to reduce an investor's capital gains tax burden:

Capital losses

Lower premiums and the ability to control the claims process are advantages of

Captive insurance companies

Ginny set up two related tables in a database so that when an entry in the primary table is modified, the database application automatically updates all matching entries in the related table. What type of relationship did Ginny create?

Cascading upward

A small business records transactions when it receives or spends money. What type of accounting system is the business using?

Cash

What financial analysis application does a business use to evaluate changes in its cash position from month to month?

Cash flow

More consistent and up-to-date data, faster response to queries, and economies of scale are all benefits of using a(n)

Central data repository

Tosha prepares monthly financial reports for her company's senior executives, helps create company budgets, reviews the company's tax returns, and analyzes the company's finances. Tosha is most likely to be a

Certified Management Accountant (CMA)

A loan officer who has special knowledge in real-estate loans is most likely to have a __________ professional certification.

Certified Mortgage Banker (CMB)

Marcus wants to invest a portion of his money in long-term securities to finance his son's college education and his own retirement. To help him make the best investment decisions, Marcus should obtain the services of a

Certified financial planner

Which of the following is a tax-deductible gift:

Charitable donation

A business's philanthropic responsibility involves its contributions to

Charity

A primary aspect of Bridget's job is to evaluate her company's internal financial information and the external factors that affect the company's financial well-being. Bridget synthesizes her findings and makes financial recommendations to the company's officers. Which of the following certifications is Bridget most likely to have:

Chartered Financial Analyst (CFA)

Annette works for an insurance company. Her primary responsibilities involve establishing premium rates and designing insurance policies to cover risk. Annette is most likely to have certification as a

Chartered Life Underwriter (CLU)

One advantage to businesses of using electronic funds transfer technology to collect accounts receivable is that it eliminates

Check processing

Which employee reports directly to a corporation's board of directors?

Chief executive officer

Austin has discovered that he has the ability and aptitude for communications and public relations. Since he enjoys talking in front of people and is very at ease when doing so, he has decided that he wants to go into public speaking. Austin has demonstrated

Choosing an appropriate career

Which of the following is an activity conducted by the finance function of business:

Choosing appropriate investments

Which of the following is a likely consequence of reporting inaccurate financial data to lenders and investors:

Civil and/or criminal penalties

Accountants are legally required to follow established guidelines when preparing financial documents to ensure that the information presented is

Clear and consistent

Which of the following are characteristics of a well-written executive summary:

Clear, concise, and error free

Which of the following components of a securities table indicates the last price paid when trading ended for the day:

Close

To house its digital business records, EFG Corporation uses a remote database that employees can access anytime through the Internet. EFG Corporation is using ___________ to store its business records.

Cloud computing

To reduce risks associated with unethical business activities, a company should clearly communicate its

Code of conduct to all employees

A man comes to pick up his order at the office where Courtney works. When she tells him his order hasn't arrived yet, he seems a little upset. She asks for his order number again so she can double-check it and find out where it is. Which step of the seven-step problem-solving method does this situation illustrate?

Collect information

Which of the following is the first step in a business's accounting cycle:

Collecting the source documents

Which of the following is an example of persuasive messages that businesses write:

Collection letter

An organization with a quality culture would have executive-level managers who are

Committed and involved and take responsibility for quality

What is an important activity that businesses should include in project planning to improve the chances of the project being successful?

Communication

Which of the following reasoning processes does a virtual auditor use to identify financial system transactions that are very similar to each other but are not exactly alike:

Comparative reasoning

Which of the following is a tool that enables financial managers to identify changes or trends in production costs by reviewing the same types of data from different periods of time:

Comparative statement

If you were using a computer spreadsheet to track your small-business's budget, which of the following should you categorize as investment income:

Dividends

Which of the following elements of a business is not structured by organizational design:

Competitors

Beverly, the new office manager, just completed a review of the last two years of accounts receivable data. In doing so, she discovered that there are erroneous duplicate entries totaling $25,628 in the system. Unfortunately, due to these duplicate entries, collection letters were sent to many customers who had already paid in full—customers who are angry with the company for sending them the letters. What should Beverly do to try to save these customer relationships and ensure that these customers are not bothered in the future?

Complete a data cleansing of the erroneous entries

Making sure a company follows laws and regulations describes the HR management activity of

Compliance

You want to be a millionaire by the time you retire. To reach that goal, you put $2,000 per year in an IRA, starting at age 21. You will earn nine percent interest annually. As a result, you will have $1,156,517 at age 65. This scenario illustrates the power of

Compound interest

Cheryl invested $6,000 in the stock market. During year one, her $6,000 grew to $6,600. The year after that, her $6,600 turned into $7,260. Cheryl's monetary gains are the result of

Compounding

Before beginning negotiations with others, what should you be prepared to do?

Compromise on some points

What do most businesses use to store information for future use?

Computer systems

Which of the following forms of technology is most useful in operations:

Computer-aided design

Whatever action must be taken in handling a customer complaint, the salesperson should respond in a(n) __________ manner.

Concerned

Before recommending specific products or services to clients, what should a finance professional do?

Conduct a needs analysis

CopyIt Printing Company employs several delivery drivers. Last year, the local police cited two of the company's new drivers for causing accidents that resulted in passenger injuries and vehicular damage. The printing company later discovered that the drivers were cited for numerous traffic violations while employed for other companies. To avoid hiring unsafe drivers in the future, the company should

Conduct background checks on job applicants

To keep up with social, political, economic, and regulatory changes that affect their business activities, companies should

Conduct environmental scans

For privacy and security purposes, businesses should use encryption techniques and firewalls to protect customers when they

Conduct online financial transactions

Which of the following is a responsibility of a managerial accountant:

Conducting a cost analysis and explaining the findings to management

An advantage to businesses that use master data management applications is the ___________ of the data.

Consistency

The accounting treatment of capital expenditures should be __________ over multiple reporting periods.

Consistent

What is the most important aspect of a company's brand promise?

Consistent follow-through

What is a common course of action for small banking institutions interested in competing globally and improving their efficiencies, viability, and profitability?

Consolidating with larger banks

The process or activity of using goods is called

Consumption

Many computer software programs help businesses determine their levels of business risk, which is helpful when they develop

Contingency plans

Business A's failure to keep an agreement to supply Business B with a certain good or service is an example of a situation that is covered by __________ law.

Contract

Which of the following statements best describes the taxation of Roth IRAs:

Contributions are taxed, but withdrawals during retirement are not

The essence of time management is to

Control events in order to accomplish priorities

Purchasing is important to international businesses because

Controlling costs increases competitiveness

Trevor is a small business owner who usually purchases his janitorial supplies from the store that is located across the street from his office. In this situation, Trevor's buying behavior is most likely based on

Convenience

A retail bank and an insurance company, which recently merged together, are moving from two legacy accounting systems to one enterprise planning system for the new, larger organization. This is an example of __________ in the finance industry.

Convergence

Ethan has health insurance through his employer. Each time Ethan needs medical attention, he must write a check in the amount of $25.00 to the doctor's office to cover his out-of-pocket expense. This out-of-pocket expense is Ethan's

Copayment

If Hannah wants to invest in the capital markets, what types of securities should she purchase?

Corporate bonds and preferred stock

Diana prepares bills and invoices for her company. Her career is in the area of

Corporate finance

After finding several inconsistencies with its financial data, the MSV Company hired a compliance officer to monitor its financial processes and to ensure that the company is complying with regulations. What type of internal control has the business implemented?

Corrective

What type of accounting involves preparing and reporting financial data to internal users who use the data to plan, direct, and control business operations?

Cost

One of the major functions of business maintenance is to

Create a favorable impression

Rule-induction data mining techniques are commonly used to

Create a set of if-then permutations that can be used to predict future behavior

Stan is a small business owner who is always looking for ways to increase his company's ability to do the job right the first time. He listens to his staff members' suggestions and implements many of their ideas for improvement. What is Stan doing?

Creating a quality culture

Identify the type of appeal used in the following persuasive message: "This new book is written by Dr. Juliet Browne, who holds a doctorate from the Harvard School of Medicine and is the Chair of the World Health Organization."

Credibility

Managers are more likely to be able to persuade employees to follow new procedures if the managers have

Credibility

Lynnette works at Main Street Bank. Her primary job responsibility is to determine if the bank should lend funds to the bank's customers. Lynnette is working as a(n)

Credit analyst

Henry is a professional banker. Only certain people—"members"—may save at or borrow money from his deposit-taking financial institution. Henry is most likely to work for a(n)

Credit union

Henry is a professional banker. Only certain people—"members"—may save at or borrow money from his deposit-taking financial institution. Henry most likely works for a(n)

Credit union

Which of the following are examples of deposit-taking financial institutions:

Credit unions, savings and loan associations, and commercial banks

While researching information for a business report, Tara reads the following statement in an online newspaper article: "Although unemployment has dropped slightly over the past few months, many politicians have indicated that they believe the government has done enough to get our country out of this recession." This is an example of information that contains

Criticism

Barry's family is originally from Ireland. Their customs, habits, and traditions are known as their

Culture

On a balance sheet, a business categorizes its inventory and accounts receivable as

Current assets

What customer-relationship-management analytic would be most suitable for sorting clients based on how likely they are to repurchase a particular product?

Customer segmentation

Insecure people are often afraid to become assertive because they think they will

Damage their relationships

Every morning, as soon as Lukas gets to the office, he logs onto his computer and uses a data-mining application on his computer home screen to quickly review the company's financial performance. The financial data are typically displayed in charts and tables. Lukas is using a(n)

Dashboard

Kaleb is removing duplicate records from his company's customer-relationship-management system. Kaleb is conducting

Data cleansing

A business wants to determine which customers are most likely to buy $100,000 in products from them in the next year, so it uses its computer system to search for customers who meet a set of criteria related to sales. What process is the business using to obtain the desired financial information?

Data mining

Jonas is a data scientist at a research firm. Part of his responsibilities include looking through his firm's databases and eliminating redundant data. Jonas is performing

Data normalization

Yvonne is running a query to create, delete, or modify other database objects. What type of query is Yvonne running?

Data-definition

An upscale department store tracks customer purchases made with store credit cards and then tailors promotional messages and merchandise offers to specific clients based on their purchases. What software allows the retailer to manage this strategy?

Database

What application enables a business to identify when a record was added to a database?

Date/Time stamp

During a negotiation, Dexter said, "Debra, our companies need to reach agreement on the contract terms by next Tuesday, or we will need to find another supplier. Our project is already three weeks behind." What negotiation tactic is Dexter using?

Deadline driven

Tara knows that for her small business to grow, she must increase her cash flow. She's unsure, though, whether she should take out a loan or a line of credit. Which of the following budgeting software tools could Tara use to assess the potential impact of each source of funding on her business:

Debt modeling

Before approving a loan application, a bank is likely to analyze the applicant's

Debt ratio

The emphases in accounting are on documenting and reporting financial data, while the emphasis in finance is on

Decision making

Which of the following risks might result from ethical misconduct:

Decreased company value

Which of the following contains the steps used to perform data mining in the proper order:

Define the objectives; gather data; choose the data-mining technique; create models; interpret the data; use the data as specified in the objectives.

Which of the following is an example of how a business or industry has a unique relationship with its environment:

Demand for skilled nursing care rises as the population ages

Employees who always keep their commitments to customers are building positive relationships with those customers by being

Dependable

What do some investors use to hedge the risk of investing in the foreign exchange market?

Derivatives

Which of the following securities is commonly used to help reduce the impact of significant fluctuations in exchange rates and commodities:

Derivatives

Which of the following is not a factor contributing to financial convergence and consolidation:

Desire for illiquid assets

What must a business do before deciding which data-mining technique to use?

Determine the research question

The first task in the HR management activity of staffing is

Determining need

The first step in maintaining an inventory of supplies for the business is to

Develop a list of supplies that the business needs

The Davis Company requires customers to provide their banking information each time they pay by phone to eliminate the financial and legal risks associated with storing banking information. However, customers strongly desire the ability to quickly pay by phone and often do not have their banking information available. The current situation is causing late and missed payments, resulting in lost revenue for the company. Dissatisfied customers experiencing late fees, who often rant about the company's poor service online, are creating a poor brand image for the company. Which of the following actions should the company take to best manage its legal, financial, IT, and brand risks:

Develop a way to encrypt and store customers' bank information in the company database for future use

Anna, the Bank Plus customer relationship manager, recently developed and implemented a new customer relationship strategy across the organization. The strategy emphasizes better understanding of customer needs. Anna also developed a recognition program to reward employees for delivering quality customer service. Which of the following is most likely to be Anna's primary goal in implementing the new strategy:

Developing stronger long-term customer relationships

Which of the following is an example of a business involved in offshoring activities:

DigiTech moves its production facility from Los Angeles, California to Jaipur, India to cut costs

Colleen, a mid-level manager, has the kind of personality and communication skills that can motivate others to work toward the company's goals. Colleen can make the best use of these skills in which management function?

Directing

What is a primary responsibility of a company's controller?

Directing the preparation of financial reports

What is the advantage to a business that installs external surveillance cameras in prominent locations around its property?

Discourages attempted burglaries

While conducting a staff meeting, the speaker noticed that Colin was texting on his smartphone. Colin's nonverbal behavior indicates that he was

Distracted

The section of the SEC website that houses companies' filings is called

EDGAR

Which of the following are among the most important resources to access prior to purchasing stock in a company:

EDGAR and the company's website

Items that are used to produce goods and services are

Economic resources

You have a big paper due for your marketing class, and you're almost finished! All you have left to do is check your grammar, punctuation, and spelling. Which step of the writing process do you have left to complete?

Editing

To accommodate recent regulation changes, a brokerage firm must implement new financial reporting activities. What positive action can the firm take to help its employees adapt to the change?

Educate and train the employees about the regulatory changes

Which of the following is a financial want rather than a financial need:

Education

Connor thinks that he may be interested in pursuing a career as an insurance underwriter. He accessed a government website, which provided him with information about an insurance underwriter's educational requirements, typical job responsibilities, salary ranges, and

Employment outlook

A business can protect its confidential computer information from unauthorized users by

Encrypting computer files

To secure confidential financial data that are transmitted through the Internet, businesses often use

Encryption techniques

Which of the following are common categories of commodities:

Energy, metals, and grains

A business might conduct a compliance audit to

Ensure that it is following government regulations

One way that individuals exhibit self-confidence is by being

Enthusiastic

Which of the following factors affecting the business environment is represented by the business's location:

Environmental

To have successful collaborative partnerships in the workplace, it is important for employees to

Establish trust

Employees who are involved in production scheduling are responsible for

Estimating how long each step in production will take

Why are there no specific rules for workers to follow in treating others fairly?

Every workplace is different

"Big Q" focuses on

Exceeding customer expectations

Because Caroline does not have enough time to read an entire 400-page business report, what section of the report should she review to obtain an overview of the most important content?

Executive summary

Lucille has created a six-page synopsis to include as a section in the beginning of her 224-page report. What should Lucille call this section when she creates the report's table of contents?

Executive summary

Lily Marshall, a human resources manager with Spartan Industries, recently met with employee Barry Endicott. Barry accepted a position with another company and will begin his new job next week. During the meeting, Lily asked Barry what he liked and disliked about his job with Spartan and what the company can do to make working conditions better. What human-resources activity was Lily performing?

Exit interview

One way a leader can encourage others to work toward a shared vision is by

Explaining how they will benefit

Determine if the following statement is true or false: Employers are more concerned with their employees' job skills than with the employees' personal appearance.

False, an employee's appearance can influence the customers' perceptions about the company.

Is the following statement about trade associations and professional organizations true or false: Once a law has been enacted, organizations/associations are unable to affect the way that law will be enforced.

False, organizations/associations often can change unfavorable regulations to more favorable ones

Melanie has convinced her supervisor that the department should implement a new computer program to increase efficiency. Unfortunately, not everyone in the department is on board with the change, including Rita. Rita thinks that she will not be able to learn the program quickly and will make a lot of mistakes. Rita's resistance to Melanie's proposed change is based on

Fear

Chris asks his coworker, Ali, for help on his project. She agrees to help him, but she is frowning, crossing her arms, and avoiding eye contact. Ali most likely

Feels uncomfortable or unhappy with the idea of helping Chris

Lucy authorized her accountant, attorney, and life-insurance agent to care for her assets and make decisions regarding her money and property. Her accountant, attorney, and life-insurance agent are her

Fiduciaries

Which of the following statements regarding convergence and consolidation in the finance industry is true:

Financial companies often enjoy higher earnings as a result of convergence and consolidation

An increase in free-flowing capital is a benefit of

Financial globalization

Which of the following is an example of a subsidy:

Financial grant

Eric sends staff members an e-mail stating that their department's performance during the third quarter exceeded the company's goals, so each of them will receive a $200 bonus. What technique is Eric using to motivate staff members to continue the good work?

Financial incentive

Which of the following statements regarding financial institutions is true:

Financial institutions facilitate the flow of money in the economy

Which of the following is a risk associated with management's failure to follow business regulations:

Financial losses in relation to lawsuits

Businesses often use computer spreadsheet software for "what if" financial planning by plugging different numerical data into formulas, which provide possible

Financial outcomes

Which of the following financial tools is often used to identify trends:

Financial ratios

Which of the following is often used to identify trends and patterns over time for a company:

Financial ratios

Lawrence's manager asked him to prepare a visual representation of key performance indicators, including cash flow, liquidity, profitability, and liability. Lawrence should use his company's analytic software to create a(n)

Financial scorecard

Which part of a company's annual report is most valuable for potential investors to examine?

Financial statements

At work, Bob is assigned to be on a team of five people that will create a new product. Which action can Bob take to participate in the team in a useful way?

Find out what other people in the group know about the product

What does determining the target market's buying behavior involve?

Finding out what the market will purchase

Claire receives a lot of e-mail messages every day. One client has sent her a message requesting some information that won't be available to Claire until next week. What can Claire do to remind herself to send the client the information when it is available?

Flag the message for follow-up

To be reimbursed for business expenses, Luke must obtain and complete an expense-reimbursement form, attach the original transaction receipts to the completed form, and submit the documentation to his manager for approval. What is Luke doing?

Following company procedures

Financial information management is responsible for collecting, maintaining, and reporting data about financial transactions. Business managers often use these data to

Forecast financial inflows and outflows

Financial-information management is responsible for collecting, maintaining, and reporting data about financial transactions. Business managers often use these data to

Forecast financial inflows and outflows

The largest, most liquid financial market in the world is the __________ market.

Foreign exchange

What type of financial firm offers multiple types of financial products using one pool of capital?

Fully integrated financial services provider

Which of the following is a tool that is specifically designed to schedule and track their projects:

Gantt chart

Jon decided to promote Bill instead of Maggie to regional manager because he thinks that women aren't assertive enough in business situations. Jon is stereotyping on the basis of

Gender

One of the ways that empathy benefits a business's employees directly is by helping them to

Get along with their coworkers

Which of the following is a long-term goal:

Getting a job at a publishing company

Which of the following is a technique for effectively beginning an employment interview:

Give name clearly

Which of the following is a business trend that affects all countries:

Globalization

Debt markets buy and sell ___________, and equity markets buy and sell _________.

Government bonds, corporate stock

What is a type of informal communication that coworkers often use to communicate with each other?

Grapevine

A country that has a socialistic command economic system is

Great Britain

According to most analysts, the three economic indicators that stock market investors and traders should pay the closest attention to are

Gross Domestic Product, unemployment, and inflation

Susan wants to obtain a loan to purchase business equipment. She calls different banks to obtain information about the interest rates and the types of loans available, so she can determine which bank is the best option. Susan is analyzing the financial information that she is collecting to

Guide her decision making

What is a primary responsibility of an investment bank?

Help firms raise funds by issuing securities

Group orientation sessions for new employees are very important because they

Help to motivate employees

Financial globalization tends to cause an increase in

Herd behavior among investors

Which of the following is an example of a conflict that causes personal motivation or drive:

High school students compete to sell the most candy in a school fundraiser

The French-Canadian culture relies heavily on nonverbal communication to get messages across. This means it is a(n)

High-context culture

When a business has too much inventory on hand for an extended period of time, what type of business cost increases?

Holding

Employees who never discuss confidential or personal business information with other employees are demonstrating their

Honesty and integrity

Stefania hopes to identify some meaningful trends by reviewing and comparing data on her small business's financial statements for the last five years. Stefania is planning to conduct __________ analysis.

Horizontal

The key factors involved in compounding growth are the amount of money you invest, how much your investment grows each year, and

How long your money is invested

Which of the following is a limitation that businesses face with their internal risk-control activities:

Human judgment

Melanie dressed for her job interview at a local bank in a pair of old, comfortable jeans, a sweatshirt, and well-worn Nikes. Which of the following messages is Melanie sending to the interviewer through her choice of clothes:

I consider my own comfort my first priority

In order to manage your time effectively, all of the things that you want to accomplish should first be

Identified

Which of the following is the first step in the coaching process:

Identify the problem

Which of the following is NOT a benefit of a post-implementation review?

Identifying cost-savings opportunities for the current project

State Street Bank sends text messages to its customers when $100 or more are withdrawn from their bank accounts. The bank sends these notifications to reduce the risks associated with

Identity theft

Mary is accused of understating the tax due on her federal tax returns for the last five years. The understatement has nothing to do with a tax shelter. Mary is very concerned that she will be fined or sent to jail if she is convicted of understating her tax. Which of the following statements regarding Mary's situation is true?

If a Certified Public Accountant prepared Mary's return, she can probably avoid government penalties for the understatement of tax

Which of the following statements regarding financial institutions is true:

If the flow of money into a financial institution slows down, there is less money available for the institution to lend or invest.

Which of the following is a legitimate response for an employee to provide to a customer regarding an inquiry about product pricing:

If you can wait a moment, I'll check for the price in the computer

One way to build professional relationships in the finance industry is to

Implement a referral system

What type of tax are businesses required to pay on the profits they earn?

Income

Which financial statement should an investor use to quickly determine a company's "bottom line"?

Income statement

Which of the following are factors that affect a business's decision to offer credit to a customer:

Income, debt ratio, and credit rating

If each citizen in the United States increased the amount s/he spent on U.S. consumer goods, the gross domestic product (GDP) would probably

Increase

What do bond yields typically do during an economic expansion?

Increase

Which of the following is a drawback of convergence and consolidation in the finance industry:

Increased customer risk

What is a benefit of managing budgeting data efficiently through budgeting applications?

Increases management's confidence in budgets

Axis Manufacturing produces high-quality locomotive engines. Traditionally, the company has produced its own parts for its engines, but now it is considering purchasing parts from a specialized dealer. To determine how this change will influence company costs and revenues, Axis Manufacturing should conduct a(n) __________ analysis.

Incremental

Which of the following is a positive characteristic for the members of a corporation's board of directors to possess:

Independent thinking

Which of the following characteristics tends to have a close relationship with initiative:

Industriousness

Exactly one year ago, Kim's dad gave her a $10 bill. Kim saved the money "for a rainy day." Now, her $10 bill has less buying power than it did a year ago. What caused the decline in the value of Kim's money?

Inflation

Mr. Edwards saved some confidential customer information from his employer's computer network onto a flash drive so that he could work on a project from a different location. Without realizing it, Mr. Edwards dropped the flash drive in a parking lot on his way to a meeting. This situation is an example of a risk related to

Information security

The human-resources manager sends an e-mail to all employees stating that they will need to park on the street on Tuesday because the maintenance department will be repairing the company's parking lot. This is an example of a(n)

Informational message

John is generally a good worker, except that he lacks the ability to see what needs to be done without being told. What personal trait is John lacking?

Initiative

Jack is a senior executive at the Farkle Corporation. He recently told his sister that Farkle is getting ready to declare bankruptcy. However, Farkle doesn't plan to announce this news to its general shareholders until next week. If Jack's sister sells her shares of Farkle before the public learns about the bankruptcy, Jack and his sister could be prosecuted for

Insider trading

Leslie is good friends with Paul, who oversees the Bex Company's central data depository for financial information. Paul recently told Leslie that based on confidential financial data that he saw at work, Bex's profits have dropped by a third this year. Paul also told Leslie that she should sell her shares of Bex stock before the market finds out about the company's financial difficulties, which will surely make Bex's stock price plummet. This situation is an example of

Insider trading

When Thomas bought his car from the Reinhart Auto Dealership, he gave the dealership a $4,000 down payment. Thomas will make a monthly payment of $365 to the dealership until he has paid off the loan. Thomas bought his car by using ___________ credit.

Installment

Which of the following is most likely to reduce risk:

Insurance

While filing a homeowner's insurance claim, Mrs. Ramirez was accidentally disconnected from the call center representative who was helping her. When Mrs. Ramirez called back, she didn't know whom to ask for because she couldn't remember the name of the representative who had been assisting her. What type of Customer Relationship Management (CRM) data would be most helpful in identifying the representative?

Interaction data

A debtor-creditor relationship exists when

Interest is charged

Ingrid must analyze various aspects of the completed project by comparing the results with the objectives. What process is Ingrid likely to use to obtain all of the information for analysis?

Internal audit

To evaluate the effectiveness of their compliance programs, many businesses conduct

Internal audits

Which of the following statements regarding internal control systems is true:

Internal controls are a component of enterprise risk management

To control online transactional risks, a business should consider outsourcing its technology needs when it lacks

Internal expertise

Which of the following is available to all people around the world who have access to a computer that has connectivity:

Internet

Which of the following statements regarding international trade is true:

Internet-based companies can easily become involved in international trade

What type of information should a company's marketing department review to make sure that enough products are available to meet customer demand for an upcoming sales promotion?

Inventory

Which of the following is an internal factor that has an effect on business cycles:

Inventory levels

In addition to ensuring that the company is adhering to all rules and regulations affecting business operations, what else is a chief compliance officer often responsible for doing?

Investigating possible conflicts of interest within the company

When you use money to make money, you are

Investing

Which type of investment institution helps firms to raise funds by issuing securities?

Investment bank

If you wanted to pursue a career that specializes in helping corporations and governments issue securities, you would work in

Investment banking. Investment banks trade securities, help businesses and governments issue securities, and handle the financial side of mergers and acquisitions

Before deciding whether to purchase any Upside Corporation stock, Anna wants to study the company's financials. What part of Upside's web site is likely to contain the company's most recent annual report?

Investor Relations

After a job interview, an applicant should prepare a follow-up letter that

Is short and typed

Tyrone is writing a research paper for his business class. What question should Tyrone ask as he looks for valid sources?

Is the information in this source up to date?

How do finance companies commonly raise capital?

Issuing notes, bonds, and other obligations

Why might group members prefer to use an informal method of consensus building?

It allows for face-to-face interaction

Which of the following statements is true about determining your personal vision for the future:

It depends more on emotion than logic

Why is the choice of a risk measure for internal and external risk of great practical importance?

It determines the minimum reserve requirements in financial trading

Which of the following is a benefit of corporate governance:

It encourages transparency

Which of the following describes the matrix organizational structure:

It is a combination of two other organizational structures

Which of the following is a true statement about breaking the law:

It may have different consequences than breaching ethics

Which of the following statements is true of quality control:

It must be measured in some way to be effective

Maureen becomes angry and defensive whenever her supervisor asks Maureen to correct mistakes. Maureen's attitude is not a good response to criticism because

It prevents Maureen from hearing the criticism clearly

A country is experiencing civil unrest. What is likely to happen to the value of its currency?

It will decrease

Which of the following is most likely to have a negative effect on business's customer-satisfaction levels:

Items are frequently backordered

Which of the following is an example of violating a coworker's privacy in the workplace:

Joe needed a pen, so he opened Ali's desk drawer to look for one while she was away.

Jonathan, an insurance agent, explains both the pros and cons of his products to all of his customers to help them decide which policies to purchase. Hank, also an insurance agent, explains to his customers why they should purchase his products, but he doesn't talk about anything negative before making a sale. Based on this information, which agent is more likely to retain and grow his client base?

Jonathan, because his customers feel that they can trust him

Jonathan, an insurance agent, explains both the pros and cons of his products to all of his customers to help them decide which policies to purchase. Hank, also an insurance agent, explains to his customers why they should purchase his products, but he doesn't talk about anything negative before making a sale. Based on this information, which agent is more likely to retain and grow his client base?

Jonathan, because his customers feel that they can trust him.

Xavier is inputting several data to his budgeting software application, including the predicted cost of vehicle maintenance and the predicted revenue from a particular asset. Xavier is entering __________ into the budgeting software.

Key assumptions

Which of the following is NOT essential to having a successful career?

Knowing the right people that will get you your first job

What is the most common reason for a client to leave or fire his/her financial advisor?

Lack of communication

A manufacturer has more workers on hand to perform production activities than it does production equipment. What economic principle does this exemplify?

Law of diminishing returns

Which of the following is an example of an employee respecting the privacy of a coworker:

Leaving the room when a salesperson takes a telephone call

Certificates of deposit and municipal bonds are types of

Lending investments

The general economic growth of a country is supported by its

Level of productivity

If Fiona has a fatal accident or gets a terminal disease, she wants to make sure that her children's financial needs are met until they finish college. What type of insurance should Fiona purchase?

Life

Emily and Becca are team members at work. Emily is married, lives on a farm, and likes sewing and doing puzzles. Becca is single, lives in the city, and enjoys snow skiing and running in marathons. The coworkers' differences are based on

Lifestyles

After identifying a potential compliance issue, a virtual auditor should

Link all related questionable transactions for further investigation

A creditor carefully examines a business's financial information to determine whether the business has sufficient money to meet its short-term obligations when they come due. In this situation, the creditor is concerned about the business's

Liquidity

The Buford Company's ability to pay its short-term debts has improved steadily over the past three years. What financial ratio helped the company identify this trend?

Liquidity

When sharing ideas, consensus-building group members should

Listen actively to other group members

Coaching is mostly about

Listening

Which of the following is a component of verbal communication between individuals:

Listening

A bank carefully analyzes a customer's current level of debt before it approves a(n)

Loan application

Hank would like to meet regularly in person with other financial planners in his geographic area to discuss trends and issues impacting their profession. Which of the following professional organizations would best meet Hank's needs:

Local Society of Financial Planning Professionals

Warehousing and shipping methods are operations considerations related to

Logistics

Assessing your personal strengths and weaknesses in an objective way involves

Looking for behavior patterns that occur regularly over time

A company installs automatic sprinklers in all of its facilities. Which of the following techniques is the company using to combat the internal threat of fire:

Loss reduction

A potential investor can assess a stock's volatility by comparing the highest paid price in the past 52 weeks with the

Lowest paid price in 52 weeks

Many businesspeople are required to take continuing education classes to

Maintain their professional certifications

Effective financial-information management involves implementing processes that help companies

Make appropriate business decisions

One reason why public corporations are required to provide accurate financial reports is because existing and potential shareholders use them to

Make investment decisions

While reviewing a financial report, an electronics-store manager noticed that the store tends to sell more laptop computers and notebooks during December, January, June, and August than other times of the year. This information can help the store

Make reliable sales forecasts

Carson is a staff accountant, and he needs to look at last year's tax return. However, he can't find it anywhere. Which information management guideline is not being followed in this situation?

Make sure that information is retrievable

Which of the following actions should a business take to help prevent robberies:

Make sure the facility is well-lit

Deposit-taking institutions are commonly responsible for

Making payments on behalf of savers to creditors

Which of the following individuals is an internal user of a business's financial data:

Manager

Gathering and communicating financial information that businesses can use to plan the business's operations is the focus of __________ accounting.

Managerial

What field of accounting involves developing very detailed, specialized internal reports for managers as frequently as necessary?

Managerial

What type of accounting system is used for internal decision making, is not governed by generally accepted accounting principles, and emphasizes the future?

Managerial

In addition to collecting, maintaining, and reporting data about financial transactions, financial-information management is also responsible for analyzing and reporting

Market and competitive indicators

Determining what consumers want in order to promote and sell those goods and services is a function of the business activity of

Marketing

Which of the following items might show up on a daily "to-do" list:

Marketing department meeting at 1:30

Who should be take continuing education classes to keep up with changes in tax regulations?

Martha Winters, Certified Public Accountant

The nature of an agent's work and the level of an agent's control are factors that determine if a __________ relationship exists.

Master-servant

One reason businesses usually are unable to enter into legally binding contracts with minors is because those under the legal age

May not understand the consequences of their actions

Investors and financial analysts are most likely to study a publicly-traded company's financial statements to

Measure the firm's competitiveness and performance

Which of the following is a common cause of disparate data structures within many large corporations' financial-information management systems?

Mergers and acquisitions

All of your friends are coming over for dinner tonight. Instead of asking what they'd like to eat, you decide to order pizza. What style of decision making are you using?

Minimum

Which of the following are types of lending investments:

Money market accounts, certificates of deposit, and bonds

To remain competitive and reduce the risk of failure, a business should

Monitor emerging trends

What can businesses do to reduce risks associated with noncompliance?

Monitor regulations

Which of the following statements regarding the security of most financial institutions' data is true:

More data attacks come from inside the organizations than outside them

Good governance is most likely to make a company's investment decisions

More ethical

Which of the following statements regarding business budgeting software is true:

Most budgeting software can be used to measure the impact of different actions on the budget.

It is important for companies to practice enterprise risk management (ERM) because

Most risks are predictable and manageable

A severe storm blows down trees that fall on a business and collapse the roof and break windows. This type of damage results from ___________ risks.

Natural

Geraldo, who is considering whether or not to invest in Coffee Dreams, Inc., is studying information about the company on a stock table. One piece of data that he is interested in reviewing is the difference between the stock's closing price and the previous day's closing price. Geraldo should review the

Net change

While Chase was reviewing his stock performance, he saw that his commodities investment dropped .002 points from Monday's close to Tuesday's close. This drop is called the

Net change

Jan is sending her résumé to QRS Industries because her friend told her that the company plans to hire several new salespeople during the next few months. This is an example of

Networking

To build professional relationships, Brynn serves on several trade association committees, co-authors articles with other finance professionals to publish in the local newspaper, and treats business contacts to dinner or golf. These activities are forms of

Networking

Which of the following is usually the most effective way of developing career opportunities:

Networking

Which of the following provides an opportunity for building professional, finance-oriented relationships:

Networking

An amount of money borrowed by an individual or a business simply by signing a promissory note is obtaining a(n)

Unsecured loan

Tracy's friend David works for TPS Industries. When Tracy saw a job on the company's web site that interested her, she contacted David to find out if he knew anything about the job. David told Tracy that he previously worked with the hiring manager on several projects and would put in a good word for her. In this situation, Tracy acted on an employment opportunity by

Networking with others

When preparing a statement of changes in an owner's equity document, which of the following are specifically represented on the statement:

New investments by the owner

Which of the following is a formatting characteristic of a full-block business letter:

No paragraph indents

Brandon is developing a financial plan, and one of his goals is to save enough money to buy a new car in two years. Has Brandon set a SMART goal?

No, his goal is not specific or measurable

Brandon is developing a financial plan, and one of his goals is to save enough money to buy a new car in two years. Has Brandon set a SMART goal?

No, his goal is not specific or measurable. A financial goal is a short- or long-term objective that is measured in terms of money

Which of the following is the most common flaw in financial-information management:

Non-financial managers have difficulty accessing needed financial data.

If an accounting firm deliberately conceals information about a client's financial status, the government may charge the business with

Obstruction of justice

Incorrect information on an individual's credit report may hinder his/her ability to

Obtain a bank loan

What does Pedro need to do before he includes someone else's journal article about portfolio diversification in the e-newsletter that he sends to his clients?

Obtain written permission from the copyright owner

Which of the following is an example of a voluntary debtor-creditor relationship:

Obtaining a loan from a bank

Businesses consider a customer's income when determining whether to

Offer credit

To lower costs, SuperCard International has moved its customer-service function from Vancouver to Delhi, India. What business practice is the company engaging in?

Offshoring

A human-resources manager is working with the company's payroll-processing service to have a new employee's paycheck directly deposited into the employee's checking account. What human-resources activity is the manager carrying out?

Onboarding

When you want to select a new vendor for your business, it's best to

Use a formal selection process

A primary advantage to consumers of convergence and consolidation in the finance industry is

One-stop shopping

Rosemary is making a sales presentation to a group of potential customers. What communication style is the most appropriate for Rosemary to use with this audience?

Persuasive

Investment firms must accurately report their financial position because

Others rely on the information when making credit and/or investment decisions

What data mining application is used to identify anomalies in a data set?

Outlier detection

Stockholders monitor a business's income statement because they are the business's

Owners

Raul's manager asked him to prepare a database query that would allow him to view lists of invoices generated in specific time periods. At the moment, the manager only needs two lists: one that lists all invoices generated in the last 30 days and another that lists all invoices generated in the last 60 days. The manager will probably ask Raul to mine for similar data in the future—just for different time periods. What type of query could Raul use to mine for this information without having to prepare a new query every time?

Parameter query

Jack says to Wendi, "If I understand you correctly, you are saying that you want to change the format of the inventory report so it will be easier for the managers to analyze." What communication technique is Jack using to clarify Wendi's suggestion?

Paraphrasing

To build a relationship with others working in the same field, a financial planner should consider

Participating in an appropriate professional organization

Why has online technology's use increased in financial-information management?

Passage of laws that recognize electronic documents as legally binding

Qualified employees who behave unethically on the job may harm themselves by being

Passed over for promotions

Miguel always enjoyed designing and building bookshelves, tables, and storage cabinets for his family and friends in his spare time. Through word-of-mouth, others started to ask Miguel to build items for them. Requests for his services became so great that he decided to open his own woodworking business. Miguel decided to start his own business because of his

Passion for a hobby

Which of the following is a method that businesses use to reduce the risk of unauthorized access to confidential computer data:

Passwords

Which of the following sources of financial data might a manager use to analyze expense variances:

Payroll reports

It is important for employees to apply written directions in the order they are presented to

Perform tasks properly

When determining if a personal vision is realistic, a person must determine if the vision will have

Permanent results

Because Maggie's primary goal is to get ahead in the company, she often uses questionable tactics to get a sale, which sometimes involves misleading her customers. Maggie's behavior is a risk to her employer because Maggie places more importance on __________ than she does on __________.

Personal gains, business ethics

Jeremy is basically healthy, but he works with another employee who suffers from various chronic illnesses. Jeremy and his coworker differ in what way?

Physical condition

Alma is preparing a presentation about her department's budget to make to the company president. She wants to use a visual representation of the budget that shows parts in relation to the whole. Alma should consider using a

Pie chart

Strategic management is demonstrated in which of the following phrases:

Planning and organizing for the future

Negative feedback makes many individuals uncomfortable because it

Points out their shortcomings

A firm's environmental scan reveals that a country is on the brink of civil war, which would affect the firm's ability to do business in the country. This is an example of a(n) __________ consideration.

Political

Which of the following is often cited as the most significant stumbling block in achieving compliance goals within large financial organizations:

Poor data quality

What do environmental distractions to active listening include?

Poor lighting and noise

Which of the following is a common challenge for project managers:

Poorly defined goals

Which of the following is a characteristic of a society that has a low tolerance of uncertainty:

Prefers rules and structure

The most common headings on a stock table include the 52-week high and low, the stock symbol, the estimated dividend per share, the yield percentage/rate of return, the volume/sales for the day, the closing price for the day, the net change and the

Price-earnings ratio

What type of economic indicator are nominal interest rates?

Procyclic and coincident

Reggie recently learned that four consumers have injured themselves while using the 2X400 Chop It Right blender, a kitchen appliance that his company sells. As a result, he is urging company management to discontinue sales of the 2X400 Chop It Right. Reggie is attempting to limit the company's __________ -liability exposure.

Product

Statistical data revealed that Zane Industries sold 32% more of the Model EQ2 desktop photocopier last year after it made changes to increase the photocopier's speed and refine its print quality. In this situation, the statistical findings helped the company determine that

Product improvements helped boost sales

What does an income statement show about a company over a period of time?

Profitability

If a trend indicates that a business is making more money, the business is most likely to have identified the trend by comparing its __________ from previous time periods.

Profitability ratios

Parker, Lily, Paula, and David are members of different departments who are working together from March to December to develop an intranet application that affects all of their departments. This is an example of a(n)

Project team

When the U.S. federal government owes money to a contracted employee or business, the government must pay the employee or business according to the

Prompt Payment Act

One way to show respect for foreign clients' cultural and social differences is to

Pronounce their names correctly

The reason why an employee should report an employer's noncompliance with safety regulations is to

Protect the well-being of the business's employees and customers

In which of the following ways can employees contribute to the achievement of governance objectives:

Provide feedback to improve objectives

Which of the following is a benefit of financial-information management software:

Provides users with faster, better access to data from multiple sources

When Mr. Schwarz's order did not arrive at the expected time, he called Karl, the salesperson with whom he had placed his order. Karl apologized for the delay and told Mr. Schwarz that he would check into the issue. After Karl talked with the transportation company, he immediately called Mr. Schwarz to let him know where the order was and when to expect delivery. Mr. Schwarz thanked Karl for getting back with him so quickly. In this situation, Karl reinforced the company's image by

Providing efficient follow-up

How can a business build its customers' trust and communicate its commitment to ethical practices?

Publish its confidentiality statement

Chris purchased 500 shares of microcap HRR stock. Then, he posted false information about HRR on several investment web sites to "hype up" the stock. After driving up the price of HRR stock, Chris quickly sold all of his stock in the company and earned a large profit. The price of the stock then fell, leaving HRR investors with worthless stock. What type of investment scam did Chris commit?

Pump and dump

Chris purchased 500 shares of microcap HRR stock. Then, he posted false information about HRR on several investment websites to hype up the stock. After driving up the price of HRR stock, Chris quickly sold all of his stock in the company and earned a large profit. The price of the stock then fell, leaving HRR investors with worthless stock. What type of investment scam did Chris commit?

Pump and dump

Walt purchased stock based on false information from an online message board. The scammers who posted the information had purchased the stock and hyped it up on the Internet to encourage unsuspecting investors to buy it and drive up its price. After the price went up, the scammers sold off their stock. The price of the stock then fell, leaving Walt with worthless stock. Walt was the victim of

Pump and dump

What type of variance analysis involves determining the difference between the standard costs and the actual costs of raw materials used for production?

Purchase price

When a business has been running successfully for several years, what would be a probable next financial step?

Purchasing a second location

Businesses may review invoices to evaluate their customers'

Purchasing habits

What usually decreases as the rate of inflation increases?

Purchasing power

The two basic types of business risk are

Pure and speculative

Employees from different departments participate in a group to solve problems related to the company's production processes. This is an example of a

Quality circle

Joan achieved her goal of being a junior partner in five years. This achievement has made Joan feel good about herself, so she has set a new goal to be a senior partner in 10 years. Joan has received which of the following benefits of goal setting:

Raises your level of self-esteem

Which of the following jobs involves determining the value of property:

Real estate appraiser

Before you can adapt your communication style to relate to businesspeople from other countries, you must first

Realize that cultural differences exist

Financial planning can be described as a way to

Realize what it takes to get the things you really want

The FGH Company has received several warnings from a government agency to fix unsafe electrical wiring throughout the company's facility. According to common law, the company has breached its duty of

Reasonable care

A strong professional relationship is usually a(n) __________ relationship.

Reciprocal

Noreen, a human resources manager, wants to find applicants for several job openings at her company. She attends job fairs, places ads online, and partners with an outside employment agency. This aspect of staffing is known as

Recruitment

Which of the following is an example of a change in the relative price ratio when the original price of red apples is $0.60 per pound and the original price of green apples is $0.80 per pound:

Red apples @ $0.90 per pound; green apples @ $0.80 per pound

An advantage to businesses of using quality control methods is that these methods often

Reduce costs

The primary reason that firms must take steps to control their levels of business risk is to

Reduce the chance of financial losses

By investing their funds in several different countries, investors

Reduce their exposure to business cycle risks

How does forming a captive insurance company typically impact a corporation's federal tax liability?

Reduces tax due on the captive's premiums

What exists when a market is legally controlled by one supplier and there are no substitute goods/services readily available?

Regulated monopoly

When the government requires businesses to pay their employees a minimum hourly wage for the tasks they perform, it is

Regulating workplace conditions

Compliance in the finance industry involves financial institutions operating within

Regulatory guidelines

Why is it important for speakers to rehearse an oral presentation?

Rehearsing helps the speaker improve the delivery of the message

Usually during an economic recession, the prices of goods and services will rise very high while the value of money decreases. At the same time, many workers receive an increase in their nominal wages. These workers will be willing to pay the rising prices because their wages are rising by the same amount. This is a good example of the effects of _________ prices.

Relative

If a company is managing its information effectively, the data should be accurate and

Relevant

Lara arrived at work on Tuesday to cover Martin's shift, just as she had promised she would. In terms of ethical work habits, Lara demonstrated that she is

Reliable

How can you show that you're actively listening in a negotiation?

Repeat or summarize the other person's statements

In general, a governance, risk, and compliance (GRC) software system identifies and measures risk; monitors the risk-management system; routinely checks adherence to company-wide policies; and ensures compliance with

Reporting requirements

A primary difference between accounting and finance is that the accounting function focuses on __________, and the finance function focuses on __________.

Reporting transactions, financial planning

What is one factor that determines a manager's credibility with employees?

Reputation

In which of the following situations would a business use a spreadsheet software program to estimate the effect of change on its financial situation:

Sales are expected to increase by 5%

Which of the following would a business classify as a current liability on its balance sheet:

Sales-tax payable

ChemTech International plans to build a new research facility, which is to be completed in two years. As an employee with ChemTech, your supervisor has requested that you produce a detailed document to send to potential vendors and contractors that outlines how they should submit bids to perform work for the new facility. The document is to contain instructions about the type of information the potential vendors should provide in their bids and the format in which the information should be presented. What type of document are you preparing?

Request for proposal

ChemTech International plans to build a new research facility, which is to be completed in two years. As an employee with ChemTech, your supervisor has requested that you produce a detailed document to send to potential vendors and contractors that outlines how they should submit bids to perform work for the new facility. The document is to contain instructions about the type of information the potential vendors should provide in their bids, and the format in which the information should be presented. What type of document are you preparing?

Request for proposal

Sara doesn't take responsibility for her decisions and actions, and she often feels bitter because she thinks others have treated her unfairly. She is experiencing

Resentment

Which of the following factors are most likely to build a quality work culture:

Respect and honesty

Keeping the end goal in mind refers to which standard of excellence that achievement-oriented people set?

Results

An example of a trade organization is the

Retail Merchants Association

Which of the following budgeting software applications tracks a business's cash, interest, and dividends:

Revenue recognition

A credit plan that allows customers to make purchases that are within their credit limit and pay all or part of the balance due each month is referred to as a(n) __________ credit plan.

Revolving

Which of the following is an example of the impact of technology on the financial-services industry:

Rising concern about fraud and identity theft

It is important for a business to evaluate the financial condition of a potential vendor during the vendor selection process to assess the

Risk levels of doing business with the vendor

Siobhan is utilizing risk-management technology to quantify the potential losses that her company would incur if a tornado destroyed its largest manufacturing plant. What technique is Siobhan using to forecast the likely losses?

Risk modeling

Certain health and safety regulations require many types of businesses to

Routinely inspect equipment

When developing a web page, it is best to

Use short blocks of text

An overall purpose of establishing goals is to increase your chances of

Satisfying your wants

Because she is running out of space, Carrie wants to transition her home business to a paperless office. Given her situation, she should use a budgeting software program with __________ capabilities.

Scanning

Lana wants to include a two-dimensional graphic that shows the groupings and patterns of multiple variables in her business report. Which of the following graphic aids would best illustrate the data:

Scatter chart

What project-planning tool helps businesses to effectively plan and use time?

Schedules

Which of the following is a production activity:

Scheduling

Using appropriate software to protect confidential data that are stored on a company's computer systems is an important part of managing

Security risks

To allow your ideas to flow freely when trying to be creative, you should avoid being

Self-critical

Recognizing your strengths and weaknesses helps you to accept yourself, which is one of the foundations of

Self-esteem

What is the primary function of the Random Access Memory (RAM) component of a computer?

Serves as a temporary holding area for files and programs

During a staff meeting, Lindsay started to ask Tom a question while he was presenting his report. What did Lindsay do wrong?

She interrupted the speaker

George has decided to purchase a dishwasher. He is checking the newspaper ads for the best place to get quality goods and services at a reasonable price. What type of product is the dishwasher?

Shopping

A characteristic of a simple written report is that it usually is

Short

Which of the following is a factor that often enables certain countries to trade successfully with each other:

Similar business subcultures

When providing product information to clients, finance professionals should use

Simple explanations

Which of the following quality management approaches is often used in the finance industry to sustain regulatory compliance:

Six Sigma

Which of the following quality-management methodologies is often used in the finance industry to sustain regulatory compliance:

Six Sigma

Which type of business is known for often being the most innovative?

Small businesses

The advantage to businesses that use mobile-application technology is that their salespeople can obtain and send customer information from their

Smartphones

In which of the following types of business ownership does the owner bear the entire risk of loss:

Sole proprietorship

Which of the following statements is true about professional writing standards and manuals:

Some employers use a different style manual than the one that the experts suggest.

Successful communication depends upon the

Speaker and the listener

When developing a request for quotation (RFQ) for prospective vendors, a business should always include

Specifications and deadlines

Businesses use budgets to estimate how they will

Spend their money

Which of the following software applications is commonly used when conducting financial analysis:

Spreadsheet

Corporate governance is primarily concerned with __________ desires.

Stakeholders'

What do managers often use to evaluate project results?

Standards

What do many businesses develop to encourage ethical behavior in finance?

Standards

By protecting financial information from tampering, loss, and unauthorized use, a financial-information management professional acts as a(n) __________ of that financial information.

Steward

Pamela was dismissed from her job as a financial database administrator because she shared her username and password with a coworker so that he could access a customer database that is typically off-limits to him. Pamela failed to fulfill her responsibilities as a data

Steward

After passing the General Securities Registered Representative Examination or the Canadian Securities Course exam, a businessperson obtains licensure or certification that allows him/her to work as a(n)

Stockbroker

Todd created a graphic organizer to illustrate his business's quality-control processes. He used a combination of pictures, graphs, and simple statements to sequentially present the information. What did Todd develop?

Storyboard

What type of control is typically used to help company executives understand the impact of external risks on the organization and its long-range plans?

Strategic

Shelley's business uses financial analysis software to align its operational and long-term plans, as well as develop key performance indicators to monitor the organization's overall performance. The business is using its financial analysis software to support which of the following business activities:

Strategic management and scorecards

Randall is working extra hours this week at his after-school job, and now he's not sure if he'll have enough time to study for his finals. He's starting to feel a lot of pressure and tension, also known as

Stress

What technological application do financial businesses use to evaluate how investment portfolios may react to changing conditions in the markets?

Stress testing

The reason to write a letter of application to submit with your résumé is to

Summarize why you are a good candidate for the job

A new employee left JRB Manufacturing two weeks after s/he completed the company's training program. The expense of training the new employee is a(n) __________ for the company.

Sunk cost

Jacob will not sell the oak desk that he made for anything less than $235. This is an example of the ___________ price.

Supply

What do you need to identify if there are complicated jobs that members of the group are unable to perform?

Support services

Before DiAnn presents her new idea to her boss, she searches the Internet and jots down two statistics that reinforce the idea. This is an example of

Supporting ideas with evidence

To better meet compliance requirements, Money Plus Bank needs to improve its processes for calculating and reporting risk-weighted assets. Which of the following is the best course of action for Money Plus Bank to take to improve these processes:

Switch from manual to automated calculation and reporting methods

What virtual-auditor reasoning technique is most likely to detect segregation of duties violations?

Symbolic

Which compliance reasoning process detects unbalanced journal entries?

Symbolic reasoning

Members of the air-traffic controllers' union stopped working to support the pilots' union that recently went on strike. This is an example of a

Sympathetic strike

Seeing the big picture instead of smaller, individual parts is an organizational learning concept known as

Systems thinking

When helping a slow/methodical type of customer, salespeople should

Take care not to overwhelm the customer

When making a plan for improvement, the coachee's job is to

Take personal responsibility for making the changes

Last year, Mr. McKinney gave a portion of his wages to a local charity and was not required to pay taxes on the amount of his donation. This is an example of a(n)

Tax deduction

Which of the following is an uninsurable external risk to businesses:

Tax increases

Retirement accounts and real estate are examples of

Tax shelters

Successful project management depends on the use of appropriate

Technology

Which of the following is an example of a semi-variable business cost:

Telephone service

With the use of a presentation software program, Martin selects a standardized group of slides and enters the appropriate text and graphics in each slide. What is he using to design his presentation?

Templates

Colleen will vote next week on the new contract that her union has negotiated with management. Union and management are in the __________ stage of the collective-bargaining process.

Tentative agreement

How do ethics relate to risk management?

The best form of risk management is adherence to business ethics

Who typically reviews and approves the guidelines for running a corporation, which are also known as corporate governance policies?

The board of directors

What is the relationship between shareholders and the board of directors?

The board of directors represents the shareholders

Under which of the following circumstances is a co-signer held legally responsible for paying the balance owed on a bank loan:

The borrower defaults on the loan

Which of the following establishes the guidelines for the way that a publicly owned company reports its financial position:

The federal government

Jake is researching career trends in the field of accounting. Which of the following sources is most likely to contain the most current, credible information:

The federal government's labor and workforce web site

Which of the following statements is true about accounting systems:

The managerial accounting system is useful for planning and internal decision making

The foundation of the principle of least authority is that computer data are more secure when access to specific types of data are only available to

The people who need it

Analyze the information in the securities table about Home Depot. Based on the information provided, which of the following statements about Home Depot is most likely to be accurate:

The previous day's closing price was $34.39, $0.62 less than the last price for today.

Which of the following has accelerated the globalization of financial markets:

The reduction of government regulations

Which of the following is not a key factor involved with compounding growth:

The risk of the stock market

Businesses usually invest in

Themselves

An important aspect of a quality culture in the workplace is the belief that

There are ways to improve

Which of the following statements is true of workplace accidents:

There are ways to reduce accident risk

Business customers differ from final consumers in that

There is a greater emphasis on personal selling in business-to-business marketing

Which of the following is most likely to happen to employees who are discourteous to the business's customers:

They may be fired

A small restaurant wants to expand, but first it needs to raise funds. John wants to raise capital through debt financing, but his partner, Damien, isn't sure that's a good idea. What is one downside of debt financing that Damien could cite to prove his point to John?

They will have to pay interest on the borrowed amount

An accounts-receivable employee monitors delinquent accounts by placing them into three folders—30 days past due, 60 days past due, and 90 days past due. How has the employee organized the information?

Time

Justine's rich uncle wants to give her $5,000 towards the purchase of a car. But since Justine doesn't plan to buy the car for at least another year, her uncle told her that she can have the money now, or he can wait and give her the money when she actually buys the car. Justine chooses to take the money now and deposit it in her savings account. After all, her deposit will yield 6% interest compounded annually. A year from now, her $5,000 will be worth $5,300. What financial concept does this scenario illustrate?

Time-value of money

In relation to recording business transactions, a primary difference between the cost and accrual accounting systems is

Timing

Why is it important for a business to keep its selling area neat and clean?

To attract customers

Why is it important for individuals to periodically validate their credit histories?

To avoid being denied credit

What is the purpose of developing and using graphics in business reports?

To communicate information

Why would a bank examine a business's balance sheet?

To determine whether the company qualifies for additional credit

Why should managers know how to do the work of the workers they supervise?

To have realistic expectations for workers

What is the primary purpose of data-cleansing processes?

To maintain a useful customer database

Why it is important for businesses to keep accurate accounts-receivable information?

To monitor aging accounts

Why does Dan order extra copy paper, post-it notes, and printer ink cartridges for the department, when he places an order for office supplies?

To prevent stockouts

When Cynthia, a credit analyst with Houghton Software, heard rumors of a company layoff, she asked her manager Todd if the rumors were true and if her job was in jeopardy. Although Todd knew that some lay-offs were coming, he told Cynthia not to worry about things. The following week, Cynthia's job was eliminated. In this situation, ethical issues regarding company information occurred because

Todd misled Cynthia

Which of the following demonstrates a good security practice:

Tom checks the amount and date on all personal checks

To make sure he develops a realistic personal budget, Marcel should always

Track and record his expenses

Melissa writes checks to pay for her rent, utilities, and groceries, and she keeps a record of all these transactions in her check register. Keeping an accurate check register helps Melissa

Track the amount of money she has spent

What condition exists if a nation imports more goods and services than it exports?

Trade deficit

Which of the following is a type of intangible business property that is protected by law:

Trademark

One way a company can reinforce its image is by

Training its employees

Which of the following is a way to demonstrate empathy:

Use tact when speaking

When Armand is comparing his checkbook balance with his bank statement, he must make sure that he has subtracted the __________ from his checkbook.

Transaction fees

As financial intermediaries, what is all financial institutions' primary responsibility?

Transferring money from those who have it to those who need it

What type of letter should a business include when sending copies of a contract to a vendor?

Transmittal

When Alana prepares a report so that all of the financial data is clearly disclosed, she is ensuring that the information is

Transparent

Which of the following finance professionals typically oversees a company's cash management, capital raising, and investment activities:

Treasurer

Thad is investing in a money market, which buys and sells products such as

Treasury bills

What should you do when you become annoyed with coworkers or customers?

Treat them the way you want them to treat you

Determine if the following statement is true or false: Groupware software applications often stimulate workplace creativity

True

An important aspect of ethical behavior by financial services providers is ensuring that their clients

Understand the potential risks and rewards of different financial products

An important aspect of ethical behavior by financial-services providers is ensuring that their clients

Understand the potential risks and rewards of different financial products

Which of the following is an ethical hazard in risk management:

Understanding loss experience and exposure to an insurance underwriter

Bobbi, who works for an insurance company, is responsible for calculating the risk of loss, establishing premium rates, and designing insurance policies to cover risk. Bobbi works as a(n)

Underwriter

What type of insurance do you need to purchase if you want to ensure that your beneficiaries receive an inheritance?

Universal life insurance

The primary purpose of the accounting function is to prepare and present relevant financial information, while the primary purpose of the finance function is to

Use the information to make financial decisions

When giving verbal directions to employees about how to complete a task, it is often helpful to

Use visuals

The stock table column that tells you how many shares were traded that day is labeled

VOL

In order to benefit from criticism, you must take an objective look at it and decide how much of it is

Valid and based on fact

Which of the following is a well-regarded source of information about stocks:

Value Line

Jack is studying the difference between the labor cost that his business budgeted for last quarter and the actual amount that the business spent on labor during those three months. What type of analysis is Jack conducting?

Variance

How long are businesses required to keep their records?

Varies greatly

Writing a letter to your grandmother is an example of

Verbal communication

Independent auditors review the accuracy of a public corporation's financial statements to

Verify compliance

Ethan is developing common-size financial statements so that he can compare financial performance across several different companies. Ethan is conducting __________ analysis.

Vertical

What technology is the most effective way to interview a job applicant who is located 1,500 miles away from the company's corporate office?

Videoconferencing

A contract is unenforceable if it

Violates a statute

The most efficient way to obtain the current interest rates on certificates of deposit purchased through Main Street Community Bank is to

Visit the bank's web site

Ryan is a college student who is interested in becoming a teacher. Every Tuesday afternoon, he spends his free time tutoring second-grade students in reading and math at a local elementary school. What technique is Ryan using to obtain work experience?

Volunteering

Lean operations focus on increasing efficiency by reducing __________, while Six Sigma focuses on continuously improving __________ throughout the business.

Waste, quality

Stella has just finished designing the web page for her new business. Next, she needs to select a ___________ and register the web site's ____________.

Web host, domain name

Job seekers can often find out about local employment opportunities by accessing a business's

Website

Which of the following questions should the user of financial analysis applications be able to answer:

What is the change in the company's liquidity?

Which of the following questions would be the least difficult to answer using data mining techniques:

What makes some customers a better credit risk than others?

In a market economy what consumers want and need helps to answer the basic economic question of

What products will be produced

Which of the following are examples of agricultural products that are traded on commodity market exchanges:

Wheat, livestock, and corn

Under what circumstances would stock prices increase?

When consumer spending increases

Under which of the following circumstances is it appropriate for applicants to prepare interview follow-up letters:

When they are no longer interested in the job

To manage potential risks resulting from unethical conduct, many companies build internal infrastructures that promote and enforce ethical practices. This internal infrastructure is likely to include appropriate audit procedures, a code of conduct, and a __________ policy.

Whistleblower

To expand into foreign markets, an American business owner acquires a small manufacturing plant in Thailand. Which of the following entry modes is the business owner using to expand the company internationally?

Wholly owned subsidiary

Which of the following is an example of an unethical activity that relates to risk management:

Withholding information from insurance underwriters

Which of the following is most likely to be an unethical risk management activity:

Withholding pertinent information from insurance underwriters

Which of the following statements is true of a positive attitude:

You can achieve one, but it requires work

Which of the following is a benefit to you as an individual of setting high personal standards for honesty and fairness:

You will have increased self-respect

Which of the following statements is true about self-esteem:

Your level of self-esteem depends on your ability to accept yourself as you are.

A financial-information management system is often responsible for

assisting in the preparation of financial statements.

An important reason why employees should follow instructions when using heavy machinery is to

avoid serious injury.

To endorse a check, the payee must sign his/her name on the

back of the check.

Financial globalization helps investors to reduce their exposure to

business cycle risks.

Corporate stocks, long-term government securities, state and local government bonds, and bank commercial loans are traded on the __________ market.

capital

Customer Relationship Management (CRM) data are sometimes called "perishable" data because the data

can become inaccurate over time.

More consistent and up-to-date data, faster response to queries, and economies of scale are benefits of using a(n) __________ to store financial data.

central data repository

Zach invested $300 in the stock market. With the stock market's average yearly gain of 10 percent, his original $300 grew to $330 after one year. In two years' time, his $300 became $363. The year after that, his original investment had become $399. Zach's investment grew as a result of

compounding.

A company sent a promotional mailing to 20,000 customers who are stored in the company's database. 3,241 pieces were returned to the business because the customers were no longer located at the address listed on the envelopes, costing the company over $1,100 in postage expenses. The company could have avoided these unnecessary expenses by

continuously updating their customers' contact information.

Loss prevention, loss avoidance, and loss reduction are risk- __________ techniques.

control

A financial-services company allocates a certain portion of its earnings to a college scholarship fund for business students. This is a positive company action that demonstrates

corporate responsibility.

Before you can collect information about a problem, you must first

define the problem.

Helena's manager asked her to put together a report containing a number of different financial ratios, including the company's current ratio and rate of return on equity. To create the report, Helena should use __________ software.

financial analysis

The IHF Company is experiencing a temporary cash shortage and doesn't have enough cash available to cover its payroll for this pay period. Since the company expects to receive a large payment from a customer in the next four weeks, though, management has decided to obtain a short-term loan to pay company employees. By analyzing financial data, company management was able to identify

financial risks and deficiencies.

Risk managers often use computerized catastrophe modeling to estimate the losses that their company could suffer as a result of

hurricanes, earthquakes, and terrorist attacks.

Frank is an officer of the MUD corporation who recently sold his shares of MUD stock based on confidential company information. Frank is guilty of illegal

insider trading.

Auto mechanics and attorneys are likely to use a __________ cost accounting system.

job order

A Chilean businessperson wants to greet a British client in English. Instead of saying, "Good afternoon Ms. Winchester. It is a pleasure to meet you," the Chilean says, "Hello, Mr. Winchester. I'm happy to see your feet." This is an example of a cultural issue related to

language translation.

Stock market returns are a(n) ___________ economic indicator.

leading

Risk retention groups are typically only allowed to offer __________ insurance coverage.

liability

The Sarta Company's risk management information system (RMIS) contains a master list of all claims; data detailing the status of individual claims; and information regarding exposure bases such as payroll, number of employees, number of company vehicles, etc. These data are likely to be housed within the __________ section of the RMIS database.

liability

Vanessa, who is opening a new fitness center, is concerned about the risks that she, her employees, and her customers could encounter while at her facility. As a result, Vanessa has developed a list of guidelines for her staff to follow: gather a medical history from each customer, provide every customer with instructions for using the exercise equipment, and maintain CPR certification. By instituting these policies, Vanessa hopes to avoid __________ lawsuits.

negligence

Jane can determine her credit rating b

obtaining a report from a credit bureau.

Managers often use financial data and reports to determine a business's profitability, competitiveness, and

operational inefficiencies.

Although Terri, Adele, and Jeff work in different departments, they all use the same computer program— one that is outdated and inefficient. During their breaks and lunch hours, they have been discussing ways in which they can convince management to upgrade the system. Terri, Adele, and Jeff have formed a

political coalition.

To develop a professional looking résumé, the writer should

proofread the document for spelling errors.

A basic principle of procedural due process involves __________ before taking action.

providing notice

Kramer Bank uses sophisticated computer software to analyze its commercial customers' financial information. The software reviews each customer's data and identifies additional business opportunities that the bank should pursue with the customer. The bank should share information about these other opportunities with personnel who specialize in

relationship management and sales.

To enable capital to flow more freely across their national borders, many countries around the world have

removed limits on foreigners' access to domestic financial markets.

Chartered Financial Analysts (CFAs) possess extensive knowledge of

securities and investments.

One factor that may cause a nation to experience demand-pull inflation is a

shortage of supply.

By protecting financial information from tampering, loss, and unauthorized use, a financial-information management professional acts as a(n) __________ of that financial information.

steward

Every pay period, Amanda places $100 from her paycheck into a savings account that earns 4.5 percent interest. In this situation, money functions as a

store of value.

Bonnie is responsible for determining whether her firm should extend credit to a potential business customer. The customer's trade reference information should include

the current balance that the customer owes to each of its existing suppliers.

A small-business owner set up his budgeting software so that it connects directly to his business's bank accounts and loans. That way, he doesn't have to record each business expense individually. Instead, he just has to compare his receipts to the numbers that the software downloads from the bank. This budgeting-application feature is commonly known as automatic

tracking.

Because a business did not maintain the facility's air-circulation systems, its employees were exposed to dangerous chemicals. The government is likely to fine the business for

violating health regulations.

Jill needs to find several records with similar, but not identical, information in her company database. To do so, Jill should use a(n) __________ query.

wildcard in her

A primary difference between groups and teams is that team members _________, while group members __________.

work collaboratively, work separately