Into to Bus: Exam 2

Jenny's sporting goods company has the following in its 2017 financial statements: Revenue: $50,000 Net Earnings: $5,000 Assets: Curr Assets $5,000 Non-Curr Assets: $20,000 Total Assets $25,000 Liabilities: Curr Liabilities $3,000 Long Term Liabilities $9,000 Total Liabilities $12,000 Shareholders' Equity: Common Stocks $2,000 Retained Earnings $11,000 Total Shareholders' Equity $13,000 Total Liabilities and Equity $25,000 What is the Net Profit Margin for the company?

Net Profit Margin =Net Earnings/Revenue =5,000/50,000 =0.10=10%

On a statement of cash flows for a provider of math tutoring services, the cash flows from financing activities would include:

the money borrowed to purchase the furniture in the tutorial area

Financial managers constantly strive for a balance between:

the potential for profit and the potential for loss

In manufacturing, all money directly related to production including raw materials and labor:

cost of goods sold

Which of the following is the BEST example of a current asset for a university bookstore?

credit card charges by book buyers

To calculate a firm's current ratio, you divide its current assets divided by its _____.

current liabilities

Jenny's sporting goods company has the following in its 2017 financial statements: Revenue: $50,000 Net Earnings: $5,000 Assets: Curr Assets $5,000 Non-Curr Assets: $20,000 Total Assets $25,000 Liabilities: Curr Liabilities $3,000 Long Term Liabilities $9,000 Total Liabilities $12,000 Shareholders' Equity: Common Stocks $2,000 Retained Earnings $11,000 Total Shareholders' Equity $13,000 Total Liabilities and Equity $25,000 What is the current ratio of Jenny's company in 2017?

current ratio = curr assets / curr liabilities = $5,000 / $3,000 = 1.67

What type of expense would be shown on an income statement when the owner of a clothing store promoted an upcoming fashion show by purchasing advertising time on a local radio station?

operating

Which of the following statements about human rights is true?

Everyone should have the rights to life and freedom

_____ is the process of hiring, developing, motivating, and evaluating people in order to achieve organizational goals.

Human resource management

_____ is the vertical expansion of an employee's job.

Job enrichment

What is the money that a company earns after paying all of its business expenses?

Net profit before taxes

_____ provides new employees with information about company policies, salary and benefits, and parking. It also includes work rules and performance expectations.

Orientation

To take a job as a CEO in a company, what business insurance the person should have to protect oneself from lawsuits from shareholders?

Professional liability insurance

What is another word for revenues?

Sales

Which of the following statements about utilitarianism is true?

Utilitarianism produces winners and losers

_____ invest in new businesses in return for part of the ownership.

Venture capitalists

A falling box injured Jenny while she was helping to unload a truckload of dog foods for her employer, a pet store operator. She is receiving pay for lost work time due to work-related injuries. _____ paid her for her lost work time.

Worker's compensation

Commercial paper is:

a type of IOU

In the 21st century, we define justice as:

an equitable distribution of the burdens and rewards that society has to offer

Funds invested in long-term assets, such as land, buildings, machinery, and equipment, are called:

capital expenditures

Managing the money that comes in and goes out of a business means managing ____.

cash flow

According to Theory X, workers _____ their work.

dislike every facet of

The first type of training and development a new employee will be exposed to is:

employee orientation

The Occupational Safety and Health Act requires:

employers to provide a safe and healthful workplace

Which of the following is an example of an intangible asset for a manufacturer of padlocks?

a patent on titanium lock mechanism

A _____ is a formal document that describes in detail the goal, the idea for a new business, and how it will be carried out.

business plan

According to the goal-setting theory,:

- specific goals lead to higher levels of performance than do more generalized goals - feedback on progress toward goal enhances performance - an individual's intention to work toward a goal is a primary source of motivation therefore all answers above are correct

Joe's Bakery has current liabilities of $15,000, total liabilities of $40,000, current assets of $20,000, total assets of $60,000. The business earned $50,000 after tax in 2021. What is the debt to equity ratio?

2

What below is not an insurance for your business you can purchase?

401K

What is the tax treatment for debt financing?

Can deduct interest payments as costs of doing business

What is the management influence for equity financing?

Common stockholders have voting rights

_____ refers to the core values and beliefs that support the mission and the business model of the firm and guide employee behavior.

Corporate culture

_____ is the practice of charitable giving by corporations; includes contributing cash, donating equipment and products, and supporting the volunteers' efforts of company employees.

Corporate philanthropy

_____ ratios measure the degree and effect of the firm's use of borrowed funds to finance its operations.

Debt

Jenny's sporting goods company has the following in its 2017 financial statements: Revenue: $50,000 Net Earnings: $5,000 Assets: Curr Assets $5,000 Non-Curr Assets $20,000 Total Assets $25,000 Liabilities: Curr Liabilities $3,000 Long Term Liabilities $9,000 Total Liabilities $12,000 Shareholders' Equity: Common Stocks $2,000 Retained Earnings $11,000 Total Shareholders' Equity $13,000 Total Liabilities and Equity $25,000 What is the debt to equity ratio?

Debt to Equity Ratio = Total Liabilities/ Total Shareholder's Equity = 12,000/13,000 = .92

Theories X and Y management styles are the result of studies by:

Douglas McGregor

James works as a graphic designer. He arrives at work at 7 a.m. and goes home at 3 p.m. One of Nielsen's co-workers who performs the same job as he does arrives at work at 10 a.m. and goes home at 6 p.m. Yet another co-worker arrives at 9 a.m. and leaves work at 5 p.m. From this brief description, you should realize that James' employer uses:

flextime: An arrangement that allows employees to set their own working hours within agreed limits; normally must include certain periods (core time) when they must be at work.

The difference between your sales and your cost of goods sold is known as your _____.

gross profit or gross margin

Which of the following is NOT a reason why small business thrives in the United States?

guaranteed profits

The Small Business Administration (SBA):

helps people start and manage small businesses

The equity theory is concerned with:

how fairly a worker is treated compared to coworkers

According to Herzberg, _____ factors must be present to prevent work dissatisfaction, but these factors cannot serve as a source of satisfaction or motivation.

hygiene

One of the documents that help human resource planners find the right person for a specific job is a list of tasks and responsibilities required of the job. This document is known as a:

job description

In employee selection, the initial screening consists of two stages. They are the:

employment application form and the preliminary interview

The first step in performance planning and appraisal is to:

establish performance standards

The idea that employees are motivated by their estimates for chances for reward, is called the _____ theory.

expectancy

Working in the field of _____ accounting, Joe furnishes information to individuals and groups both inside and outside his organization to help them assess the firm's financial performance.

financial

Which of the following terms equals the total profits of a company minus all dividends (distributions of profits) to stockholders?

retained earnings

A manufacturing company in which industrial engineers have maximized efficiency by determining the best way to perform every task from tightening a bolt to operating a forklift would be illustrative of:

scientific management

Liquidity ratios measure:

short-term financial stability

Three important forms of long-term (capital) expenditures are:

term loans, mortgage loans, and bonds

A secured Internet service provider would be very likely to attract the attention of _____ because it is in a high-tech industry with lots of opportunity for rapid growth.

venture capitalists

Which of the following is an example of an ethical business activity?

The employee reported to his supervisors that a co-worker had misappropriated company funds.

A(n) _____ is a yearly document that describes a firm's financial status and usually discusses a firm's financial activities during the past year and its prospects for the future.

annual report

The ratios that are of special interest to the firm's creditors and measure the firm's ability to pay short-term debts as they come due are called _____ ratios.

liquidity

Jason's tutoring service has a debt-to-equity ratio of 120%. This means the business has:

more debt than equity

An article on the health care industry revealed several assumptions that health care administrators have adopted during the last decade. The administrators assume their (1) employees have several interests other than work and will work only if necessary. (2) employees will accept additional responsibilities only if they receive rewards, and (3) employees exhibit little loyalty and will leave employment for reasons that are in their short-term interest. These assumptions lead support to the _____ approach to management.

the Theory X style of management

Which of the following statements about the employee selection process is true?

During the initial job screening, the applicant usually completes an application form and has a brief interview

_____ financing is a form of financing consisting of funds raised through the sale of stock in a business.

Equity