Intro to Business - Final Exam

Suppose if Company X sells less than 500 water bottles every month, they will incur a loss due to the current selling price of $10/bottle. Assuming the company can only sell 250 bottles, how much should the company charge per bottle to break-even?

$20

In which year was the Federal Reserve System created in the United States?

1913

Which of the following is NOT a characteristic of accounting?

Accounting is an end in itself

Which of the following statement about financial planning is true?

All of these answers

As member-owned institutions, credit unions focus on providing which of the following services?

All of these answers.

Which of the following best describes the role of the FDIC in the United States financial system?

All of these answers.

Which of the following is the most risky way to lend money to a company in terms of probability of repayment?

Common Stock

Using psychological pricing, a company might charge $400 for a designer item because it:

Creates more demand

Which of the following is NOT an effective strategy to resolving worker conflict?

Favoring one employee

The stage during which the product is accepted by consumers is called:

Growth

From the research conducted on innovation, which of the following is the most popular driver of innovation?

Improved quality

What would a copyright be considered on a balance sheet?

Intangible asset

Which of the following is NOT true about revenue?

It is excluded from the income statement

A commercial bank is a type of financial institution and intermediary that engages in which of the following activities?

Merchant banking and private equity financing

Suppose a company is having problems with a high turnover rate of their highly skilled employees. One remedy for this would be to:

Pay above-market wages

A systematic and periodic process that assesses an individual employee's job performance and productivity is known as:

Performance appraisal

The main focus of business analysis is:

Profit

The "P" in Irving Fisher's equation of exchange represents which of the following?

The average price of all the goods and services sold during the year

Process-based forecasting is focused on which of the following?

The flow of several work activities

The main purpose of managerial accounting is:

To be used within an organization

A savings and loan association is a financial institution that specializes in

accepting savings deposits, and making mortgage and other loans.

Before giving credit, prospective lenders and investors will assess individuals based on the value of assets the debtor currently holds. This is referred to as

capital.

The Fed is able to change the composition of its assets quickly because the Fed's open market account is

composed mostly of U.S. Treasury securities with remaining maturities of one year or less.

Some economists argue that open market operations are ineffective due to the central bank's inability to

predict how much money should be in circulation, given current employment rates and inflation rates.

To ensure bank interest rates are competitive and that fees and features are appropriate for how customers use each account, individuals should

review existing bank accounts and shop around for the best deals.

Creditors will typically declare a credit card account a charge-off after a period of

six months without payment.

What institution is empowered to exercise monetary policy in the U.S.?

the Federal Reserve

When a company allows workers to leave voluntarily without replacing them, it is called:

Attrition

Which of the following is NOT a typical perk offered by a company?

Free education for children