BA 162 Final
- Selling Expenses - General and administrative expenses - Interest expenses - Research and development expense
- Advertising and sales salaries - The costs of owning and maintaining the general office - The direct costs of borrowing money - Includes the costs for people, equipment, and information used to design and build prototypes and samples
Which of the following are typical descriptions of the task of purchasing in a business? - Inventorying purchased goods - Buying desired quality products in the right quantities - Qualifying clients for credit for purchases - Buying quality products at the lowest possible cost
- Buying desired quality products in the right quantities - Buying quality products at the lowest possible cost
What are the two important areas involved in planning the operational processes for an organization?
- Capacity planning - Facilities planning
Select the two statement(s) that are true about commercial certificates of deposit (CDs). - Commercial CDs are U.S. government debt obligations. - Commercial CDs may be traded prior to maturity. - Commercial CDs are written promises from one company to another to pay a specific amount of money. - Commercial CDs are issued by commercial banks and brokerage companies in minimum amounts of $100,000.
- Commercial CDs may be traded prior to maturity. - Commercial CDs are issued by commercial banks and brokerage companies in minimum amounts of $100,000.
Fill in the blank: When carbon dioxide collects in the earth's atmosphere, it traps the sun's heat and prevents the earth's surface from cooling. This is referred to as _______ _______
- Global - Warming
According to your text, ethical decisions in organizations are influenced by which three key factors? - Individual moral standards and values - The influence of managers and co-workers - The severity of consequences for unethical behavior - The opportunity to engage in misconduct
- Individual moral standards and values - The influence of managers and co-workers - The opportunity to engage in misconduct
In equity theory, a worker's contribution to the organization is referred to as his or her ______, while rewards offered by the organization are referred to as ______.
- Inputs - Outputs
Select from the following the items that are considered inputs to the transformation process. - Schedules - Labor - Materials - Energy - Goods
- Labor - Materials - Energy
In his classical theory of motivation, Frederick Taylor proposed two things that he thought would improve worker productivity. What were they?
- Linking pay to output - Job specialization
The _______ _______ integrates firms such as raw material suppliers, manufacturers, and retailers to serve customers and generate a competitive advantage.
- Supply - Chain
In 2008, the United States experienced a financial crisis. What three things took place to prevent the crisis from turning into a depression? - Congress passed the Sarbanes-Oxley Act. - The federal government bailed out many small, "mom-and-pop" shops. - The federal government bailed out some of the largest banks. - Congress passed the Dodd-Frank Act. - The Federal Reserve Board was allowed to implement legislation regarding banks.
- The federal government bailed out some of the largest banks. - Congress passed the Dodd-Frank Act. - The Federal Reserve Board was allowed to implement legislation regarding banks.
What are the three characteristics of credit unions? - They are also called "thrifts." - They are considered financial institutions. - They are owned by state governments. - Members are allowed to share in the credit union's profits. - Members are allowed to vote for directors.
- They are considered financial institutions. - Members are allowed to share in the credit union's profits. - Members are allowed to vote for directors.
Which two statements are true about commercial banks? - They are owned and controlled by depositors. - They are the oldest of all financial institutions. - They are often called "thrifts." - They are the largest of all financial institutions.
- They are the oldest of all financial institutions. - They are the largest of all financial institutions.
Which two statements are true of trade credit? - Trade credit is a long-term loan option popular with smaller companies. - Trade credit is long-term borrowing from owners' equity. - Trade credit is the most widely used source of short-term funds. - Trade credit frequently involves discounts to organizations that pay their bills early.
- Trade credit is the most widely used source of short-term funds. - Trade credit frequently involves discounts to organizations that pay their bills early.
- Potential investors - Banks and lenders - Labor unions
- Use financial statements to determine whether returns from a given firm are likely to compare favorably with other similar companies - Use financial statements to determine a company's ability to meet current and future debt obligations if a loan or credit is granted - Use financial statements to establish reasonable expectations for salary and other benefit requests
Job enrichment incorporates which three motivational factors into the design of the job? - advancement - achievement - recognition - equity - job sharing
- advancement - achievement - recognition
Advantages of buying an existing business include which of the following? - built-in network of customers, suppliers, and distributors - reduces some of the guesswork inherent in starting a new business from ground up - entrepreneur takes on any problems the business already has - a guarantee of steady profits from the start of ownership
- built-in network of customers, suppliers, and distributors - reduces some of the guesswork inherent in starting a new business from ground up
Select the four tools that the Federal Reserve uses to manage the economy. - credit controls - legislation - federal budget - reserve requirements - open market operations - discount rate
- credit controls - reserve requirements - open market operations - discount rate
Which functions are most typical of a wholesaler? - selling to end consumers - distributing - promoting - planning and negotiating for supplies - manufacturing
- distributing - promoting - planning and negotiating for supplies
Select from the following the four stages of social responsibility. - ethics - cultural - philanthropy - legal compliance - financial - environmental
- ethics - philanthropy - legal compliance - financial
Select the two main types of partnerships. - subsidiary - complex - general - limited - corporate
- general - limited
Select from the following the resulting outputs in the transformation process. - capital - labor - goods - ideas - time - services
- goods - ideas - services
What are the three advantages of franchising? - greater chance for success - centralized buying power - brand-name appeal - profit-sharing - restrictions on purchasing
- greater chance for success - centralized buying power - brand-name appeal
What three items are long-term (fixed) assets? - heavy machinery - inventory - automobiles - accounts receivable - cash - production facilities
- heavy machinery - automobiles - production facilities
Select the three organizational outcomes of high morale? - high returns to stakeholders - high levels of productivity - high rates of absenteeism - high employee turnover - high employee loyalty
- high returns to stakeholders - high levels of productivity - high employee loyalty
According to Herzberg, hygiene factors at work would include ______. - opportunities for advancement - job security - good working conditions - the work itself
- job security - good working conditions
What are common, primary reasons that small businesses fail? - managerial inexperience - inability to cope with growth - conducting market research - undercapitalization
- managerial inexperience - inability to cope with growth - undercapitalization
Research and development expenses include the costs of which of the following? - marketing personnel - engineering personnel - advertising costs - scientific personnel - equipment used to design - prototypes - interest payments
- marketing personnel - engineering personnel - scientific personnel - equipment used to design prototypes
Which four institutions are considered nonbank financial institutions? - pension funds - credit unions - insurance companies - brokerage firms - savings and loan associations - finance companies
- pension funds - insurance companies - brokerage firms - finance companies
Services are characterized by which of the following? - perishability - viability - inseparability - customization - intangibility - quantifiable
- perishability - inseparability - customization - intangibility
External statements that managers in an organization may prepare are used for which of the following? - reporting results to stockholders - filing income taxes - preparing the annual report - planning the direction of the company - obtaining credit from lenders
- reporting results to stockholders - filing income taxes - preparing the annual report - obtaining credit from lenders
What are the three common expense accounts shown on an income statement? - research, development, and engineering expenses - inventory and returned goods expenses - interest expenses - selling, general, and administrative expenses
- research, development, and engineering expenses - interest expenses - selling, general, and administrative expenses
Women own more than 9 million businesses in the United States. They have had great success in a few focused areas which include which of the following? - retail - education - communication - professional services - manufacturing - administrative services
- retail - communication - professional services - administrative services
Select the three items that describe a certificate of deposit. - also known as demand deposit - substantial penalty for premature withdrawal - covers periods such as six months, one year, or seven years - type of savings account - fluctuating interest rate
- substantial penalty for premature withdrawal - covers periods such as six months, one year, or seven years - type of savings account
The relationship between expectancy theory and employee motivation lies in the individual worker's belief that ______. - the reward for achieving a goal will be worth the effort - he or she is capable of achieving the goal - all employees are treated the same employee attitudes do not affect motivation - achieving a goal will be rewarded
- the reward for achieving a goal will be worth the effort - he or she is capable of achieving the goal - achieving a goal will be rewarded
Which three items are considered equity financing? - the savings account of the owner - a Small Business Administration loan - financial support from a bank in the form of a loan - the accumulated value in a life-insurance policy - a personal laptop
- the savings account of the owner - the accumulated value in a life-insurance policy - a personal laptop
What three items are forms of "near" money? - loyalty reward points - traveler's checks - cashier's checks - certificates of deposit - money orders
- traveler's checks - cashier's checks - money orders
According to equity theory, in order to restore equity or fairness of a work situation a worker may ______. - try to have the inputs of coworkers increased - try to increase his or her own inputs - try to increase the outputs of coworkers - try to increase his or her own outputs
- try to have the inputs of coworkers increased - try to increase his or her own outputs
Select from the following the typical actions of consumerism. - writing letters to companies - making public service announcements - boycotting companies - lobbying government agencies - stopping customers from entering a store using physical force
- writing letters to companies - making public service announcements - boycotting companies - lobbying government agencies
All of the following are typically true of acquiring an existing business except ______ - you will most likely acquire the existing network of suppliers - you most likely will acquire a built-in network of customers - you are free from the existing problems of the previous owner, if any - some guesswork will be eliminated as the business is already up and running
- you are free from the existing problems of the previous owner, if any
Which of the following are considered debt financing? - SBA loan - personal savings - trade credit -line of credit
-SBA loan - trade credit - line of credit
The baby boomer generation is very important to small business due to its large size of approximately ______ Americans.
75 million
Small firms represent ______ of the U.S. exporters of goods.
98 percent
What do trade credit terms of 2/15 net 30 mean to a buyer?
A discount of 2 percent is offered if the bill is paid within 15 days, otherwise, the entire amount is due within 30 days.
Which accountant would most likely include a title of controller or internal auditor?
A private accountant
Choose the correct definition for a transaction balance. - A transaction balance is an arrangement by which a bank agrees to lend a specified amount of money to a firm upon request. - A transaction balance is cash kept on hand by a firm to pay normal daily expenses such as employee wages and bills such as utility payments. - A transaction balance is the difference between credit extended to suppliers and credit used by suppliers. - A transaction balance is an account where funds are saved in order to pay off long-term liabilities such as bond issues.
A transaction balance is cash kept on hand by a firm to pay normal daily expenses such as employee wages and bills such as utility payments.
Organizations evaluate their operations through the recording, measurement, and interpretation of financial information. This process is known as ______.
Accounting
The recording, measurement, and interpretation of financial information is known as _______
Accounting
Which of the following is an accurate statement regarding the role of an accountant? - An accountant's role is essentially the same as a bookkeeper. - Accountants are usually responsible for the routine, day-to-day transactions of a business. - Accounting requires less training than does bookkeeping. - Accounting usually requires coursework beyond a college accounting degree.
Accounting usually requires coursework beyond a college accounting degree.
Joan owns a flower shop. As a small business owner, she carefully manages the finances of her business. If Joan purchases flowers from a local producer for $500 and agrees to pay for the flowers within a month, Joan will list the $500 bill as ______ on her balance sheet.
Accounts payable
Which of the following is an asset of a business? - Capital from investors - Accounts receivable - Accounts payable - Accrued expenses
Accounts receivable
The purchase of one company by another, usually by buying its stock, is an _______
Acquisition
What is most commonly required to start a partnership? - Master partnership agreement - Articles of partnership - Corporate charter - Statement of intent
Articles of partnership
Current _______ are short-term resources such as cash, investments, accounts receivable, and inventory.
Assets
Economic resources owned by a firm are called _______
Assets
Refrigerated display cases, commercial meat slicers, and walk-in cold storage units are ______ of David's Deli.
Assets
Managers of most firms tend to keep debt-to-asset levels ______.
Below 50 percent
A _______ is an internal financial plan that forecasts income and expenses of the organization for a set period of time.
Budget
______ refers to the rules and regulations that govern the conduct of business.
Business Law
Which of the following is considered the most important component of an annual report?
CPA's signature
Angela saved $20,000 and acquired another $20,000 as a short-term loan from her parents to start a kid-friendly coffee shop. The $40,000 that Angela is ready to invest in this new venture is known as Blank______.
Capital
The major activities of a firm, as shown on the statement of cash flows, include all of the following except ______.
Cash from taxes
An individual who has been certified by the state in which he or she practices and has the right to express, officially, an unbiased opinion regarding the accuracy of a client's financial statements works as a______.
Certified public accountant
A demand deposit is another name for a ______ account
Checking
The term used to describe a written promise from one company to another to pay a specific amount of money is __________ paper
Commercial
The activities that independent individuals, groups, and organizations undertake to protect their rights as consumers are called _____. - corporate citizenship - sustainability - consumerism - whistleblowing
Consumerism
When producers, consumers, or workers with similar needs pool their resources for mutual gain, they start a ______. - agency - sole proprietorship - franchise - cooperative
Cooperative
Based on the information in the articles of incorporation, the state issues a ______ _______ to the company.
Corporate Charter
A commitment to ______ by a firm indicates a strategic focus on fulfilling the legal, ethical, economic, and voluntary responsibilities expected of it by its stakeholders. - social responsibility - sustainability - business ethics - corporate citizenship
Corporate Citizenship
The extent to which businesses meet the legal, ethical, economic, and voluntary responsibilities placed on them by their stakeholders is referred to as ______. - codes of ethics - social responsibility - consumer relations - corporate citizenship
Corporate Citizenship
Fill in the blank: As a legal entity, _______ have many of the rights, duties, and powers of a person, such as the right to receive, own, and transfer property.
Corporations
The Fed's authority to establish and enforce credit rules for financial institutions and private investors is done through ______.
Credit controls
Fill in the blank: Experience with the _______ in which a business operates is critical to understanding what is ethical or unethical.
Culture
Ratios that measure how much debt an organization is using relative to other sources of capital, such as owners' equity are ______ ratios.
Debt utilization
A checking account is also called a ______.
Demand deposit
The process of spreading the cost of a tangible asset over its estimated useful life is referred to as ______.
Depreciation
Nonfinancial firms that help finance their customers' purchases of expensive equipment are called _______ firms
Diversified
Bartering lacks the ability of ______. The use of quarters, dimes, and nickels makes this characteristic of money possible.
Divisibility
Ricky works as a cashier at a local deli. He is amazed when he accepts dollar bills from customers that look like they've been in use forever yet still function well and do not have rips or tears in them. This describes the ______ of money.
Durability
Which of the following is least likely a sustainability-related issue for businesses? - Protection of biodiversity - Pollution - Urban sprawl - Employee benefits
Employee benefits
What is considered to be one of the most important facets of financial management?
Ensuring that there are sufficient (but not excessive) funds on hand to meet the company's obligations
______ theory states that employees look for fairness in the workplace as compared to others before deciding to perform.
Equity
Fill in the blank: To build trust among individuals, organizations should adhere to conduct that is ______ in order to validate and promote confidence in business relationships.
Ethical
Originally developed by London banks, any dollar-denominated deposit in a non-U.S. bank is called a _______ deposit
Eurodollar
The cost incurred in the day-to-day operations of an organization is known as ______.
Expenses
The costs incurred in the day-to-day operations of an organization are called ______
Expenses
True or false: An expense statement provides an explanation of how the company's cash changed from the beginning of the accounting period to the end.
False
True or false: Commercial certificates of deposit (CDs) work exactly the same way consumer CDs work, except that commercial CDs are issued in larger dollar amounts.
False
True or false: Organizational budgets are always prepared on a monthly basis.
False
True or false: Technological advances and an increase in service exports have created additional challenges for small companies to expand their operations abroad. True false question.
False
_______ statements evaluate the return on stockholders' investment and the overall quality of the firm's management team.
Financial
Flextime, compressed workweeks, job sharing, part-time work, and telecommuting are all _______ scheduling strategies
Flexible
______ is an intangible asset that often includes an organization's reputation.
Goodwill
______ refers to creating a positive association with environmental issues for an unsuitable product, service, or practice. - Sustainability - Green marketing - Greenwashing - Whitewashing
Greenwashing
The bond contract, also called the ______, specifies all of the terms of the agreement between the bondholders and the issuing organization.
Indenture
When businesses calculate the costs to borrow money for capital budget projects they must be sure to include the ______ expenses for the debt used to finance the project.
Interest
______ use a company's existing resources to launch new products and generate new profits. They are the creative people who work as entrepreneurs within corporations.
Intraprenuers
What does it mean to say that an annual report has been audited?
It bears the signature of a CPA attesting that the document is an accurate reflection of the financial condition of the firm.
How does ethical conduct validate and promote confidence in business relationships? - It recognizes that society is a bad judge of what behavior is ethical. - It allows partners to do "whatever it takes" to make a deal. - It emphasizes the notion that "the customer is always right." - It creates a sense of trust between partners.
It creates a sense of trust between partners.
What is the Federal Reserve Board trying to accomplish through the use of tools like the reserve requirement, the discount rate, and credit controls?
It is trying to maintain a balance between the money supply and money demand.
What inventory method is designed to eliminate inventory waste by using smaller quantities of materials that arrive just prior to needing them for the transformation process?
JIT
All of the following are flexible scheduling strategies except ______. - flextime - compressed workweek - job sharing - job rotation
Job rotation
Which of the following scenarios most warrants an organization using a "bottom-up" budget? - slow-growing organizations - static-growth organizations - larger, fast-growing organizations - smaller, entrepreneurial ventures
Larger, fast-growing organizations
All assets on a balance sheet are listed in descending order of ______.
Liquidity
One of the strongest motivations for companies to manage their financial resources wisely is the desire to _______ the costs of their funds in order to increase their overall profitability.
Lower
The internal use of accounting statements by managers in planning and directing the organization's activities is known as ______ accounting
Managerial
The internal use of accounting statements by managers in planning and directing the organization's activities is referred to as ______.
Managerial accounting
______ supply products to industrial, retail, and institutional users for resale or for use in making other products.
Marketers
When money serves as a common standard or yardstick of the value of goods and services, it has the function of being a ______.
Measure of value
The Fed controls the amount of money available in the U.S. economy through ______.
Monetary policy
Which type of fund invests specifically in short-term securities?
Money market funds
________ funds provide professional financial management for investors without the time and/or expertise to invest in particular securities.
Mutual
______ are similar to S&Ls but, like credit unions, they are depositor owned.
Mutual savings banks
The distinguishing feature of the various forms of ______ is that a financial institution issues them in exchange for cash and guarantees that the purchased note will be honored and exchanged for cash when it is presented to the institution making the guarantee.
Near money
Which craft brewer is the first all-wind-powered brewery in the United States? - Lagunitas Brewing Company - New Belgium Brewing Company - Deschutes Brewery - Dogfish Head Brewery
New Belgium Brewing Company
Capital in excess of par is the difference between a stock's par value and its _____.
Offering price
Regarding the misconduct of business firms, which of the following statements is true? - Society is forgiving of businesses that are incorrectly judged of misconduct. - Often, misconduct evolves from ethical conflicts into legal disputes. - The media is eager to report the ethical conduct of businesses, but those stories are hard to find. - In today's society, misconduct by businesses is pretty rare.
Often, misconduct evolves from ethical conflicts into legal disputes.
Unlike manufacturing and production, the broad term _______ describes those processes used in the making of both tangible and intangible products.
Operations
______ describe(s) processes used to create both tangible and intangible products.
Operations
The goods, services, and ideas that result from the conversion of inputs are called _______
Outputs
When project managers analyze tasks involved in completing a project, estimate time needed for each task, and estimate the minimum time needed to complete the project, they are applying what tool to operations management?
PERT
A stock's ______ is a dollar amount assigned to each share of stock on the stock certificate.
Par value
Due, in part, to the classical theory of motivation, more and more corporations are tying ______ to performance in order to motivate employees.
Pay
A challenge of service operations is that they are generally intangible and often _______, thus not allowing the service to be saved, stored, resold, or returned. For example, a seat on an airplane cannot be sold or used at a later date.
Perishable
The interest rate commercial banks charge their best customers, usually large corporations, for short-term loans is the ______ rate.
Prime
When individuals and businesses borrow money, the amount of money borrowed is called ______.
Principle
An accountant that is employed by a large corporation, government agency, or other organization to prepare and analyze their financial statements would be called a ______ accountant. Multiple choice question.
Private
Which facility layout is characterized by workers remaining in one location as the product moves from one worker to another with each person, in turn, performing required tasks or activities?
Product layout
A number of studies have found a direct relationship between social responsibility and ______ as well as a link that exists between employee commitment and customer loyalty. - increased employee turnover - profitability - decreased customer loyalty - monetary losses
Profitability
According to Herzberg, which of the following is a motivational factor and is not a hygiene factor? - job security - recognition - safe working conditions - adequate wages
Recognition
Net income divided by assets is the definition of ______.
Return on assets
Which calculation shows how much income the firm produces for every dollar it invests in assets? - profit margin - return on assets - return on equity - income statement
Return on assets
______ is/are the total amount of money received (or promised) from the sale of goods or services, as well as from other business activities such as the rental of property and investments.
Revenue
Which agency is comprised of retired executives willing to provide advice and knowledge to owners of small firms?
SCORE
Which of the following is not a level in Maslow's hierarchy of needs? - self-awareness - esteem - security - social
Self-awareness
The uniformity of output (or the final product) is more difficult for ______.
Service providers
a business's obligation to maximize its positive impact and minimize its negative impact on society
Social Responsibility
The ______ explains how the company's cash changed from the beginning of the accounting period to the end.
Statement of cash flows
As a _______ of value, money served as a way to accumulate wealth
Store
As a ________ of value, money served as a way to accumulate wealth
Store
The health of the economy has a direct effect on money as a ______.
Store of value
When money serves as a way to accumulate wealth until it is needed, it is functioning as a ______.
Store of value
Fill in the blank: Conducting activities in such a way as to provide for the long-term well-being of the natural environment is referred to as ______
Sustainability
______ involves coordinating efforts to improve customer satisfaction, increasing employee participation, forming and strengthening supplier partnerships, and facilitating an organizational culture of continuous quality improvement.
TQM
Which motivation theory suggests that money is the sole motivator for workers?
The classical theory
According to Herzberg, which of the following accurately describes motivational factors? - Hygiene factors are much more likely to motivate employees to work hard than are motivational factors. - The absence of motivational factors will result in employee dissatisfaction. - The presence of motivational factors is likely to motivate employees to excel. - Because they relate to the work setting and not to the content of the work, motivational factors do not motivate employees to excel.
The presence of motivational factors is likely to motivate employees to excel.
What role do investment bankers play in securities markets?
They assist in the issue and sale of new securities.
Which statement best describes the role of investment bankers? - They regulate the stock exchange. - They underwrite new issues of securities for corporations, states, and municipalities. - They pool the money of investors for mutual fund investments. - They invest in other mutual funds.
They underwrite new issues of securities for corporations, states, and municipalities.
Idle cash typically does not earn interest for the company, thus financial managers try to keep small amounts of cash on hand, called ______, to pay current bills such as wages, supplies, and utilities.
Transaction balances
True or false: The prime rate is reserved for a commercial bank's best customers.
True
Open market operations consist of the buying and selling of Blank______.
U.S. Treasury bills
The _____ is typically more challenging for service organizations since the human element is inherent and each service tends to be performed differently.
Uniformity of outputs
In a sole proprietorship, any debts or damages incurred by the business that cannot be paid by the business are your personal debts and you must pay them. This disadvantage is known as: - unlimited liability. - lack of continuity. - taxation. - limited liability.
Unlimited Liability
A loan that does not require collateral is called an ________ loan
Unsecured
People or organizations that agree to help fund a business provided they receive an ownership interest or stock in a firm are called Blank______.
Venture capitalists
Tony is interested in starting a Subway in the Pearl district of Portland, Oregon. The license to sell another's products or use another's name in a business (in this case Subway) is referred to as ______. Multiple choice question.
a franchise
A small firm can develop ______ if it provides quality products and excellent service.
a good reputation
Which of the following is a type of dividend?
a payment of additional shares or cash to stockholders
Which incentive system, developed by Frederick Taylor, is an example of the application of his classical theory of motivation?
a piece-rate system where workers are paid for each unit they produce
The fee that an insurance company charges for coverage is known as ______.
a premium
All of the following are part of the Fed's regulatory functions except ______. - authorizing mergers - accepting money deposits from individual consumers - conducting annual surprise bank examinations - determining which nonbanking activities should be prohibited - enforcing banking rules that affect monetary policy
accepting money deposits from individual consumers
If you use your Macy's credit card to purchase a new outfit, you represent an ______ on Macy's balance sheet.
accounts receivable
The balance sheet item that reflects money owed to a business by credit customers is ______.
accounts receivable
How is money being utilized when consumers use it as a guide for the value of goods and services, such as knowing that $2 will buy a dozen large eggs?
as a medium of exchange
The check clearing role of the Federal Reserve allows ______.
banks to settle the check payments between banks in different parts of the country
The process of analyzing the needs of the business and selecting assets that will maximize its value is called ______.
capital budgeting
When the board of directors distributes some of a corporation's profits to the owners, it issues them as ______.
cash dividend payments
A private accountant that has passed a rigorous examination by the Institute of Management Accountants may become certified as a(n) ______. Multiple choice question.
certified management accountant (CMA)
Which of the following most accurately describes Generation Y? - many experts believe this demographic is not the market of the future - born between 1946 and 1964 - concerned with advancement, recognition, and improved capacities - a wealthy group, but small businesses tend not to pursue them
concerned with advancement, recognition, and improved capacities
The joining of firms in completely unrelated industries is a ______. - conglomerate merger - cooperative - vertical merger - horizontal merger
conglomerate merger
In order to maintain quality, an organization must Blank______.
consistently produce what the customer wants
A business owned and controlled through pooled resources by the people who use it is a ______. - S corporation - limited liability company - limited partnership - cooperative
cooperative
Nonbanks are financial organizations that do not accept ________ but offer many other services provided by regular banks.
deposits
If Caterpillar helps customers finance its expensive equipment, then Caterpillar would be acting as a ______.
diversified firm
Fill in the blank: While unemployment is seen as an economic issue, it carries _______ implications when the gap between rich and poor is large.
ethical
Bonds that do not have a fixed interest rate, but rather have a rate that changes with the current rates, are called ______.
floating-rate bonds
Depreciation is considered a type of ______.
general and administrative expense
If two companies that both make water valves for plumbing contractors merge, it would be an example of a ______ merger. - vertical - horizontal - conglomerate
horizontal
What was the main objective of the time and motion studies conducted by Frederick Taylor and Frank and Lillian Gilbreth?
increase worker productivity
Which nonbank financial service is most closely associated with the use of premiums?
insurance companies
Which of the following describes a money market account? - savings account, guarantees set interest rate, fixed interval of time - also known as time deposit, fixed interest rate over a specified period of time - interest bearing, more restrictions than traditional checking account, only a limited number of checks per month - interest bearing, also called a demand deposit, funds cannot be withdrawn with prior notice
interest bearing, more restrictions than traditional checking account, only a limited number of checks per month
What type of specialist helps firms underwrite new issues of securities they need to raise money in the capital markets?
investment bankers
Debts that a firm owes to others are called ________
liabilities
Temporary investments of extra cash generated by companies are called:
marketable securities.
Financial managers involved with the management of current assets and liabilities have one primary goal, which is ______.
maximize the return to the business on cash, investments, accounts receivable and inventory
A money market fund is a type of ______.
mutual fund
Mostly found in New England, ______ were originally established to provide a safe place for savings of particular groups of people, like fishermen.
mutual savings banks
A ______ is the difference between a desired state and an actual state. Multiple choice question.
need
Which tool, used by the Federal Reserve Board to control the money supply, is the most common and is performed almost daily?
open market operations
Which element(s) in the work environment was found to dissatisfy workers when not present, but when present did not serve as a motivator for workers?
pay and job security
An assumption made by a Theory X manager about people is that Blank______.
people have little ambition
Owners of ______ stock are given preference in the distribution of the company's profits.
preferred
A metal fabrication plant may have a cutting department, a drilling department, and a polishing department. A company organized in this way is utilizing a ________ layout
process
As an entity, cooperatives are not set up to make
profits
Which calculation shows how much income the firm produces for every dollar it invests in assets?
return on assets
Often called "thrifts," this financial institution primarily offers savings accounts and makes long-term loans for residential mortgages.
savings and loan association
Prior to the 1970s, ______ focused almost exclusively on real estate lending and accepted only savings accounts.
savings and loan associations
A loan backed by collateral with something valuable (like property) is called a _______ loan
secured
If a small business owner takes out a loan to purchase a delivery van, where the delivery van is used as collateral for the loan, it is called a ______.
secured loan
In a ______ economy, entrepreneurs earn income by renting out an underutilized resource such as lodging or vehicles.
sharing
It is the level of ______ of an organization's principal product that tends to classify the company as either a manufacturer or a service provider.
tangibility
Who owns and controls a credit union?
the credit union's depositors
What is the discount rate?
the interest rate that the Federal Reserve charges to loan money to member banks
In a sole proprietorship, the possibility that competitors can obtain trade secrets is minimized because ______. - the fee to view the financial reports of a sole proprietor are costly - the sole proprietor does not have to discuss publicly his or her operating plans - government regulations prevent other companies from gathering competitor information - the sole proprietor is the only employee of the business
the sole proprietor does not have to discuss publicly his or her operating plans
Corporations have all the rights and privileges listed below except:
their owners have unlimited liability.
Idle cash typically does not earn interest for the company, thus financial managers try to keep small amounts of cash on hand, called Blank______, to pay current bills such as wages, supplies, and utilities.
transaction balances
As a sole proprietor, Ellie enjoys many advantages. Which of the following is not one of them? - owner gets to keep the profits - limited government regulation - ease and cost of formation - unlimited liability
unlimited liability
The joining of two companies involved in different but related levels of an industry is called a _______ merger
vertical
_______ do not pay taxes when submitting the organization's tax return to the Internal Revenue Service; the tax return simply provides information about the profitability of the organization and the distribution of profits.
Partners
How is taxation handled in partnerships?
Partners pay taxes at the income tax rate for individuals.
Built-right Manufacturing has a positive image in the community in which it operates. The company gives a percentage of its profits every year to support local charities and causes, its employees regularly volunteer within the community and it is committed to using sustainable manufacturing processes. The actions taken by Built-right manufacturing exemplify ______ - legal responsibility - consumerism - social responsibility - business ethics
Social Responsibility
Fill in the blank: Regardless of what an individual believes about a particular action, if _____ judges it to be unethical or wrong, whether correctly or not, that judgment directly affects the organization's ability to achieve its business goals.
Society
Which form of business ownership is relatively easy and inexpensive to form?
Sole Proprietorship
A major function of operations is ______, which refers to connecting and integrating all parties or members of the distribution system in order to satisfy customers.
Supply chain management
Spending work hours looking at personal email, submitting personal expenses on company expense reports and using the company copier for personal use are all examples of ________ - the misuse of company resources - conflicts of interest - the misuse of company time - abusive behavior
The misuse of company resources
What do studies show about the relationship between social responsibility and profitability?
Social responsibility is associated with improved business performance.
The situation known as "double taxation" only occurs with which form of business ownership? - partnerships - sole proprietorships - corporations
corporations
Financial assistance by the Small Business Administration (SBA) for a new startup company is a form of ______ financing
debt
Trey has $25,000 in savings, two new laptops, two laser printers, and a variety of quality office furniture that he's using to start his new Internet auction startup business. This array of assets brought into a company is known as _______ financing because Trey is using real personal assets rather than borrowing funds from outside sources.
equity
A manufacturer made the decision to buy less expensive materials from another supplier which resulted in the reduced quality of its products. As a result, company sales dropped and many retailers refused to carry the product line. This is an example of ______. - a company being unethical but socially responsible - the importance of always using the most expensive supplies in production - illegal activity by the manufacturer - how negative impressions of a business can affect its ability to achieve its goals
how negative impressions of a business can affect its ability to achieve its goals
Being able to be your own boss is one of the leading reasons that entrepreneurs choose to go into business for themselves. This advantage of small-business ownership is referred to as ______.
independence
A private corporation that needs more money to expand or to take advantage of opportunities may have to obtain financing by "going public" through an ______, that is, becoming a public corporation by selling stock so that it can be traded in public markets. - leveraged buyout - corporate charter - stock split - initial public offering
initial public offering
One advantage of a partnership is that ______. - it is easy to create - it has perpetual life - there is unlimited liability - there are no taxes on profits
it is easy to create
When two firms join together to form one new company, it is called a ______
merger
A & M Manufactured Home Styles, Inc. builds prefabricated modules that can be combined to build homes quickly and efficiently. In this way, A & M is using a ______ design production process that allows the company to build a home for approximately 25 percent less than the cost of a traditional home.
modular
Whistleblowers can be helped by protecting them from ______. - negative treatment on the job - excessive taxation - shareholder scrutiny - government interference
negative treatment on the job
All of the following are advantages of partnerships, EXCEPT: - partnerships are relatively easy to organize and start. - partnerships have unlimited liabilities for the debts incurred by the business. - partners can combine their knowledge and skills to be more successful. - partnerships have fewer regulatory controls affecting their activities than corporations.
partnerships have unlimited liabilities for the debts incurred by the business.
The partnership business entity is not taxed, because each partner pays tax on the business's profits as their ______.
personal income
This is a special type of stock whose owners, though not generally having a say in running the company, have a claim to profits before other stockholders do.
preferred
The layout that requires production to be broken down into relatively simple tasks assigned to workers, who are usually positioned along an assembly line is a ______ layout.
product
Companies like Uber or Lyft are part of the ______.
sharing economy
Javier's Jalapeno hut is the newest taco stand on campus. Javier is the owner and he employs two students to work part-time. Javier's Jalapeno hut would be considered a _______ business
small
Which example describes a market niche? - choosing one form of promotion from all the available options - all the potential competitors for sport utility vehicles - young male, thrill-seekers who enjoy rock climbing - the seven restaurants that serve a downtown shopping district
young male, thrill-seekers who enjoy rock climbing
In the transformation process, ______ are the resources—such as labor, money, materials, and energy—that are converted into goods, services, or ideas.
Inputs
Fill in the blank: A _______ corporation is owned by just one or a few people who are closely involved in managing the business.
Private
______ is when suppliers allow a business to take possession of needed goods and pay for them at a later date or in installments.
Trade credit
A manufacturer is typically more ______-intensive because of the machinery and technology used in mass production of highly similar goods.
capital
Sustainability can be defined as ______ - the principles and standards that determine acceptable conduct in business organizations - conducting activities in such a way as to provide for the long-term well-being of the natural environment - a business's obligation to maximize its positive impact and minimize its negative impact on society - the extent to which businesses meet the legal, ethical, economic, and voluntary responsibilities placed on them by their stakeholders
conducting activities in such a way as to provide for the long-term well-being of the natural environment
Fill in the blank: Of the two types of stock, owners of _______ stock receive preferential treatment regarding dividends.
preferred
This is a corporation whose stock anyone may buy, sell, or trade. - private corporation - public corporation - S corporation -limited corporation
public corporation
Pranav would be a direct seller if he ____.
sold his products through face-to-face sales presentations
What are two volunteer agencies funded by the SBA to provide advice for owners of small firms? - BBB - ACE - FDIC - SCORE
- ACE - SCORE
Which two of the following represent a conflict of interest in the workplace? - Whistleblowing - Plagiarism - Discrimination - Bribery - Insider trading
- Bribery - Insider Trading
Select the three items that are usually listed in the articles of partnership. - How profits will be distributed - Contribution (money or assets) of each partner - Authority and responsibility of each partner - The value of each partner's retirement accounts - Each partner's typical domestic spending
- How profits will be distributed - Contribution (money or assets) of each partner - Authority and responsibility of each partner
What are two reasons that a retail business would be especially attractive to an entrepreneur? Multiple select question. - It is a field that is relatively easy to enter. - It is a field that doesn't take any special skill or knowledge. - It requires low initial financing. - It is an underrepresented industry.
- It is a field that is relatively easy to enter. - It requires low initial financing.
- Financial and economic viability - Compliance with legal and regulatory requirements - Ethics, principles, and values - Philanthropic activities
- Starbucks offers investors a healthy return on investment, including paying dividends. -Starbucks specifies in its code of conduct that payments made to foreign government officials must be lawful according to the laws of the U.S. and the foreign country. - Starbucks offers healthcare benefits to part-time employees and supports coffee growers by offering them fair prices. - Starbucks created the Starbucks Foundation to award grants to eligible nonprofits and to give back to its communities.
Which of the following are forms of debt financing for Jena who is starting a new online training program business for counselors? - a $10,000 loan from her local bank - exchanging computers, printers, and other technology for a share of the business - using her personal savings of $20,000 - using her personal savings of $20,000
- a $10,000 loan from her local bank - exchanging computers, printers, and other technology for a share of the business - a $15,000 SBA loan
What is one advantage of the corporate form of business ownership? - double taxation - lack of government regulations - ease of formation - limited liability
Limited Liability
The United States' largest living generation is called Blank______.
Millennials
Jill Smithers, Operations Manager, takes measurements at various points in the transformation process of producing her company's organic baby food products. This is also known as ______.
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