BUS 101
Which of the following statements is TRUE? Forensic accounting is mostly used as a tool for local police enforcement. Forensic accounting is mostly used as a tool for intracompany investigations. Forensic accounting is mostly used as a tool for government regulation and investigation. Forensic accounting is often used to investigate the misuse of government funds. Forensic accounting is rarely used to investigate the misuse of government funds.
Forensic accounting is often used to investigate the misuse of government funds.
Which of the following financial institutions was taken over by the Federal Housing Finance Agency when it was on the verge of financial failure? Federal Home Loan Banks System JPMorgan Chase Lehman Brothers Holdings Freddie Mac Federal Reserve
Freddie Mac
Which of the following is a scheduling tool that breaks down large projects into steps to be performed and specifies the time required to perform each one? critical path chart Myers graphic process analysis graph master schedule Gantt chart
Gantt chart
Which of the following, if true, would BEST support Marquand's position? Information technology has greatly increased the choices available to consumers Having information to help it plan gives a business the greatest competitive edge. Most businesses are motivated to take advantage of the latest information technology. Information technology has given consumers more choices than ever before. The majority of consumers make at least one online purchase per month.
Having information to help it plan gives a business the greatest competitive edge.
A large company specializing in bread baking has made its annual balance sheet available to its investors. Profits were slightly lower than expected this year. Which of the following items does NOT need to be included in this statement in order to fulfill the principle of full disclosure? Much of the loss of profits can be explained by the sudden rise in the price of wheat during the past year. A baking start-up company founded by some former executives of the company looks like it will be a major competitor in the upcoming years. The company and the union for its workers were able to halt a labor strike by negotiating increased health benefits for its workers, causing a slight increase in operating costs. The company is contemplating a merger with another major baking company. The current rise of local micro-bakeries has not affected and probably will not affect the revenue of the company.
The company is contemplating a merger with another major baking company.
Home Garden Center uses mobile customer service representatives in all of its stores. These floating personnel walk the huge warehouse with smart phones answering customer questions, pointing out locations of items, and directing customers to checkout. Which condition would MOST threaten the use of the mobile customer service at Home Garden Centers in the next business season? The current model of smartphone uses an operating system that no longer supports the store's customer service application program. Several store departments are swapping locations within the store facility. There is a slight increase in the theft rate of smartphones from the stores. The size of the smartphone is causing some employees to continually drop the device. Incoming employees seem less technically savvy with mobile devices.
The current model of smartphone uses an operating system that no longer supports the store's customer service application program.
Dara's Dress Shop was honored last year for its strong commitment to corporate social responsibility. Which of the following would MOST likely decrease the shop's chances of being recognized again this year? The shop has laid off two employees during the past six months. The shop has reduced its line of designer merchandise. Many of the dresses are made from fabrics spun by unprotected child laborers. Fewer clearance sales have been offered to the public this year. An experienced ethics professional has been added to the Board of Directors.
Many of the dresses are made from fabrics spun by unprotected child laborers.
Which of the following is an electronic securities exchange? Europa Osaka Securities Exchange NASDAQ Securities and Exchange Commission Pacific Stock Exchange
NASDAQ
Which scheduling tool shows the necessary sequence of activities in a project and identifies the critical path? PERT chart Gantt chart detailed schedule master production schedule process flowchart
PERT chart
The U.S. Department of Commerce considers a business "small" if it has fewer than how many employees? 10 100 50 500 1,500
500
Which of the following should be the first step in assessing ethical behavior in a certain situation? Gather a range of opinions on the effectiveness of the policy. Collect facts related to the situation. Consider appropriate moral values. Make a judgment based on the outcome of the activity. Seek the advice of managers
Collect facts related to the situation.
What was a major problem with the trait approach to leadership? The results were too inconsistent and thus not very practical. The results were too innovative and thus were not taken seriously at the time. The results were not very inspiring and thus ignored. The results were found to be too pessimistic and thus were dismissed as useless. The results were too worshipful of certain leaders and thus were dismissed as irrelevant.
The results were too inconsistent and thus not very practical.
Which of the following statements BEST describes the difference between current and long-term liabilities? Current liabilities are those which will cost less in debt interest than long-term liabilities. Current liabilities are debts that need to be paid immediately, whereas long-term liabilities do not. Current liabilities are debts that are settled sooner than long-term debts. Current liabilities are debts on current assets, whereas long-term liabilities are debts on fixed and intangible assets. Current liabilities are debts on tangible assets, whereas long-term liabilities are debts on intangible assets.
Current liabilities are debts that are settled sooner than long-term debts.
Which of the following agencies guarantees the safety of all of its members' bank accounts? Federal Exchange Commission Federal Open Market Committee Federal Deposit Insurance Corporation Federal Reserve Bank Internal Revenue Service
Federal Deposit Insurance Corporation
Which statement about codes of ethics is FALSE? Social responsibility involves providing quality products and pricing products fairly. Some ethical responses can be learned through experience. Fewer and fewer companies are adopting codes of ethics Codes of ethics are determined by company managers. Core principles and values should remain a constant characteristic of a company.
Fewer and fewer companies are adopting codes of ethics
Which of the following bodies formulates the generally accepted accounting principles? Accounting Disclosure Board American Institute of Certified Public Accountants Association of Certified Fraud Examiners Financial Accounting Standards Board Securities and Exchange Commission
Financial Accounting Standards Board
Which of the following BEST describes a decision support system? a system of hardware and software that imitates human behavior a quick-reference, easy-access application of information systems specifically designed for instant access by upper-level managers a processor that plans production and delivery schedules an interactive system that creates virtual business models for a particular kind of decision and tests them with different data to see how they respond a system that supports an organization's managers by providing daily reports, schedules, plans, and budgets that can be used for making decisions
an interactive system that creates virtual business models for a particular kind of decision and tests them with different data to see how they respond
Which of the following BEST describes a mission? an objective that a business hopes and plans to achieve a broad set of organizational plans for implementing decisions made for achieving organizational goals an organization's statement of how it will achieve its purpose in the environment in which it conducts business the shared experiences, stories, beliefs, and norms that characterize an organization an organization's competitive standing in the marketplace
an organization's statement of how it will achieve its purpose in the environment in which it conducts business
Which of the following terms refers to the examination of a company's accounting system to determine whether its financial reports fairly represent its operations? audit portfolio analysis forensic accounting preliminary investigation company-wide analysis
audit
Which of the following would be considered a high-contact system? lawn care company gas company postal delivery barber shop electric company
barber shop
Which of these behaviors BEST indicates good organizational citizenship? keeping regular hours meeting job performance standards being willing to help new employees using office supplies for business use asking for a pay raise
being willing to help new employees
Which of the following terms refers to the recording of financial transactions? bookkeeping controlling accounting budgeting auditing
bookkeeping
Advertising for which of the following products is MOST likely to have ethical ramifications? alcohol books sporting equipment decaffeinated beverages swimwear
booze
Which of the following documents would MOST likely come from a planning strategy meeting? income statement flow of cash statement balance sheet budget statement of projected earnings
budget
Toyota, based in Japan, would like to build a new factory and a new retail distribution center. Both or either of these may be built in the United States and in Canada. Currently, the U.S. dollar is weak compared to the Canadian dollar. Assuming the decision does not affect the number of cars sold, which of the following arrangements would be MOST profitable? build the cars in both countries and sell them in both countries build the cars in Canada and sell them in both countries build the cars in the United States and sell them in both countries build the cars in Canada and sell them in the United States build the cars in the United States and sell them in Canada
build the cars in the United States and sell them in Canada
Which term refers to the pattern of short-term ups and downs in an economy? aggregate output business cycle standard of living balance of payments demand and supply schedule
business cycle
What is the name of the document in which an entrepreneur summarizes his or her business strategy for a proposed new venture? balance sheet success chart business plan financial blueprint director's guideline
business plan
Which term refers to the fundamental rethinking and radical redesign of a business activity to achieve dramatic improvements in performance? total quality management business process reengineering supply chain management quality control quality ownership
business process reengineering
How do top managers BEST demonstrate a commitment to ethical business practices? by adopting written codes of ethics by reading employees' e-mails by cooperating with other companies by decentralized decision-making practices by monitoring employees' Web searches
by adopting written codes of ethics
Which of the following is the amount of a product that a company can produce under normal working conditions? output efficiency burden performance capacity
capacity
The profit realized when the market value of an investment increases is known as which of the following? Answers: profiteering diversification asset allocation price appreciation capital gains
capital gains
What name is given to the process by which a company analyzes another company's product to identify desirable improvements in its own product? performance quality analysis quality outsourcing quality reliability analysis benchmarking competitive product analysis
competitive product analysis
Which software can create products ranging from cell phones to auto parts at lower costs compared to manual modeling methods? operations software data warehousing software decision support systems computer-aided design software computer-aided manufacturing software
computer-aided design software
What do both sole proprietorships and partnerships lack? trust adaptable processes continuity shared vision legal standing
continuity
Which type of business is legally considered a separate entity from its owners and is liable for its own debts? sole proprietorship corporation general partnership limited partnership cooperative
corporation
A highly successful bakery specializes in making cherry tarts. Which of the following costs at the bakery is NOT variable? cost of the oven cost of wax paper liners cost of cherries cost of flour cost of heating the oven
cost of the oven
Behaviors that detract from, instead of contribute to, organizational performance are known as what? inclusive counterproductive turnover associative negative reinforcement
counterproductive
A small parochial school uses handwritten timecards and attendance sheets to calculate biweekly payroll and vacation time. Which statement, if true, would BEST support the idea by managers to convert to computer software to maintain employee records? The school has multiple types of employees, with different work schedules and different contracts, whose hours are calculated by hand. The existing management is eager to switch to the new system for human resources. Employees often forget to submit their vacation request forms. Part-time staffing has been allocated for payroll and human resource function Employees often submit their timecards incorrectly.
The school has multiple types of employees, with different work schedules and different contracts, whose hours are calculated by hand.
Which of the following steps would be LEAST likely to help a business develop and maintain an ethical environment? Offer orientation programs so that new employees understand the business's ethical standards. Communicate standards of behavior to all employees. Implement ethics training programs. Trust that management-level employees will act ethically. Ensure that a mission statement is in place.
Trust that management-level employees will act ethically.
Which of the following BEST describes the stability characteristic of money? Units of money have relatively constant value. Units of money of different nations are easily converted to other units of money. Units of money do not expire after a certain time limit. Units of money can be matched with the value of goods. Units of money allow people to measure the relative value of goods and services.
Units of money have relatively constant value.
You need to assign a task to one of your employees. The task involves a high level of detail. To whom should you assign the task? David, who exhibits more negative emotionality and low agreeableness Sarah, who exhibits high openness and low negative emotionality Amy, who exhibits high agreeableness and low conscientiousness Winston, who exhibits high conscientiousness and low extraversion Liza, who exhibits high creativity and low negative emotionality
Winston, who exhibits high conscientiousness and low extraversion
In order for a virus to spread from computer to computer, what must it always attach itself to first? a piece of hardware a router a program all available computer memory a worm
a program
Which of the following BEST describes a firewall? a private network of internal websites and other sources of information available to a company's employees a tool that searches Web pages containing the user's search terms and then displays pages that match a software and hardware system that prevents outsiders from accessing a company's internal network an extranet site that gives customers access to different product lines an Internet connection allowing outsiders limited access to a firm's internal information system
a software and hardware system that prevents outsiders from accessing a company's internal network
Which of the following BEST describes a certified fraud examiner? an accounting agent provided by the Sarbanes-Oxley Act of 2002 concerned with issues of fraud a specialized forensic accountant concerned with issues of fraud a specialized managerial accountant concerned with issues of fraud a specialized certified public accountant concerned with issues of fraud an accounting agent for the Securities and Exchange Commission concerned with issues of fraud
a specialized forensic accountant concerned with issues of fraud
Suppose BrightLights Online Video purchases another company, QuikFlix. What is this an example of? spin-off acquisition merger divestiture collapse
acquisition
Which of the following ratios evaluates management's use of resources? long-term solvency ratio equity ratio profitability ratio short-term solvency ratio activity ratio
activity ratio
What does a planned economy rely on a centralized government to do? support free enterprise in every way possible allocate all or most factors of production encourage citizens to buy shares of stock in small companies keep its control activities to a minimum direct workers to start their own small businesses.
allocate all or most factors of production
As ABC Enterprises has grown during the past few years, more and more workers have been hired from the local Ethiopian population. A number of incidents at the firm have arisen during this time regarding certain customs prevalent among these new workers. Which of the following forms of leadership does the management of this firm need to utilize in order to most harmonize this situation? mentoring leadership charismatic leadership democratic leadership cross-cultural leadership autocratic leadership
cross-cultural leadership
What feature allows people in remote locations to work simultaneously on one document? voice mail text messaging dataconferencing digital information service videoconferencing
dataconferencing
Sally wants to determine any changes in the plant's performance based on an estimated 20 percent increase in sales. What technology will Sally most likely use? decision support system (DSS) enterprise resource planning (ERP) CAD system groupware application spyware application
decision support system (DSS)
What are profits? total money taken in by a corporation increases in income from year to year increases in a corporation's stock price revenue generated by goods and services. difference between revenues and expenses
difference between revenues and expenses
What is a chief goal of an economic system? economic stability income equality money supply growth national debt reduction product innovation
economic stability
What term denotes a nation's basis for allocating its resources among its citizens? capital structure economic system ownership processes distribution network national regulations
economic system
Which of the following would be considered a low-contact service? surgery piano lesson massage electric power haircut
electric power
What is a computer-based system that allows people to communicate simultaneously from different locations via telephone, e-mail, or video? a management information system electronic conferencing a data communication network hypertext groupware
electronic conferencing
The extent to which people are self-aware is an aspect of which of the following? negative emotionality empathy attitude social skills emotional intelligence
emotional intelligence
What is the point at which the supply curve and the demand curve intersect on a graph? equilibrium price decision point surplus price perfect price parity point
equilibrium price
What are beliefs about what is right and wrong or good and bad called? ethics cultures rules motivators laws
ethics
Which of the following indices indicates the relative strength of the currencies of two countries? international loan rate trade balance exchange rate trade rate
exchange rate
At Chaparral Steel, delivery times, sales, profits, and customer service and loyalty have been boosted by a system that gives customers electronic access to the mill's inventories. What is the name of this kind of system? distribution channel intranet extranet handbook product availability
extranet
What is the name of software and hardware that prevent hackers from accessing a company's internal network? partition index security firewall extranet
firewall
What is the MOST common type of partnership? general partnership sole partnership cooperative partnership limited partnership corporate partnership
general partnership
What is the full meaning of the acronym GAAP? gradually accepted activity positions greater antagonistic action plans general action audit principles generally accepted accounting principles general action accounting points
generally accepted accounting principles
Which of the following refers to the rules and procedures governing the content and form of financial reports? national guidelines of accounting principles generally accepted accounting principles accounting and financial rules core competencies for accounting national bookkeeping standards
generally accepted accounting principles GAAP
Which of the following is the difference between revenues and the cost of revenues? cash flow interest expense accounts payable gross profit net income
gross profit
What does the Sarbanes-Oxley Act of 2002 require a chief financial officer to do? oversee the implementation of ethical standards prevent insider trading guarantee the accuracy of financial reporting engage in strategic management hire a forensic accountant
guarantee the accuracy of financial reporting
Companies that price their product low enough to attract a large number of buyers are MOST likely pursuing which of the following objectives? low market volatility stable market activity high profits high market share stable market pricing
high market share
What does productivity measure? the total value of all goods and services produced by a national economy how much a system produces with the resources needed to produce it how much output is necessary to produce a certain level of demand the standard of living relative to purchasing power parity how much gross national product results from inputs of labor
how much a system produces with the resources needed to produce it
Which of the following affects the value of money? how many units the currency can be divided into how much currency has been saved how durable the form of currency is how portable the form of currency is how much currency is in circulation
how much currency is in circulation
Which of the following is NOT a major objective of JIT production? reducing goods in process eliminating disruptions by continuous improvement reducing inventory levels complying with schedules increasing stop-and-go production
increasing stop-and-go production
Which of the following is the BEST description of organizational stakeholders? ompetitors government regulators individuals and businesses that own stock in a company the officers and key employees of an organization individuals and groups that are directly affected by the practices of a company
individuals and groups that are directly affected by the practices of a company
What is the economic condition characterized by widespread increased prices without increased purchasing power? unemployment inflation expansion deflation recession
inflation
Which of the following is a fundamental element of charismatic leadership? controlling influencing organizing planning analyzing
influencing
How often should an organization change its objectives? infrequently every year every decade constantly never
infrequently
Which of the following occurs when someone uses confidential information to gain from the purchase or sale of stocks? insider trading identity theft a margin purchase collusion a guarantee
insider trading
An inward belief about something, often without conscious consideration, is frequently referred to as what? commitment rationality intuition risk taking discernment
intuition
Which element of an organization is defined by shared experiences, stories, beliefs, and norms? its product philosophy its human resources its organizational structure its mission statement its corporate culture
its corporate culture
Starbucks has established itself as the premier marketer of the finest coffee in the world while maintaining its uncompromising principles and continuing to grow. This statement illustrates what aspect of Starbucks' organization? its mission its strategy its profitability its tactic its diversity
its mission
What does a company need to operate so that it has total control over its communications without dependence on other companies? its own groupware site an extranet its own website enterprise planning its own VSAT system
its own VSAT system
What type of network links computers and workstations, usually within one building? wide area personal digital global positioning local area satellite communication
local area
Save-A-Lot grocery stores use which type of strategy for attracting customers? low-cost consistency quality dependability flexibility
low-cost
Which of the following factors MOST contributes to small business failure? managerial incompetence or inexperience time spent raising capital personnel issues legal problems bad product design
managerial incompetence or inexperience
Which business constituents analyze their competitive environments and plan, organize, direct, and control the operations of their organizations? stockholders agents customers managers regulators
managers
What is the term for the process of creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders? marketing financial planning demographic profiling controlling operations management
marketing
Which of the following managers are directly responsible for getting products from producers to consumers? information managers human resource managers marketing managers financial managers public relations managers
marketing managers
What is the term for a detailed strategy for focusing marketing efforts on consumers' needs and wants? marketing manager product differentiation marketing plan marketing mix product development
marketing plan
Which of the following is NOT an unethical or illegal accounting action? hiding expenses maximizing the value of a company's intangible assets underreporting liabilities inflating revenues overestimating depreciation value of equipment
maximizing the value of a company's intangible assets
Which of the following occurs when two firms combine to create a new company? venture acquisition merger takeover divestiture
merger
Which of the following exists when an industry or market has only one producer? ompetition oligopoly monopoly communism socialism
monopoly
Noxzema, Prudential, and Minute Maid would be examples of which kind of brand name? international convenience national licensed private
national
The mission statement of Coco's Chocolate & Confectioners reveals a primary emphasis on ethical sourcing and procurement. Which action below would the company MOST likely seek to avoid? reducing the size of their marketing department neglecting the welfare of the region from which it imports cacao beans adding a new line of fat-free confections splurging on a company-wide holiday party decreasing health care benefits for employees
neglecting the welfare of the region from which it imports cacao beans
Which of these is one of the "big five" personality traits? logic organization creativity musical talent openness
openness
Which of the following are the three categories on a company's cash flow statement? profit inflow, debt outflow, taxes operating activities, investing activities, financing activities profitable activities, deficit activities, taxes operating activities, purchase activities, taxes operating activities, investing activities, taxes
operating activities, investing activities, financing activities
Which term refers to all the activities involved in making products-goods and services-for customers? processes operations scheduling performance planning
operations
Which term refers to a set of methods and technologies used to produce a good or service? contingency plan reduction production episode methods plan operations process
operations process
What is the term given to the groups, individuals, and organizations that are directly affected by the practices of an organization? social auditors senior managers primary agents of interest local communities organizational stakeholders
organizational stakeholders
When developing the human resources for achieving an agenda, what do managers focus on? controlling and problem solving aligning people establishing direction motivating and inspiring organizing and staffing
organizing and staffing
Which of the following terms refers to the amount of money that owners would receive if they sold all of a company's assets and paid all of its liabilities? inventory owners' equity credit asset liability
owners' equity
Whereas managers focus on plans, results, and goals, what do leaders focus on? productivity sales people organization profitability
people
What is the MOST important source of money for new business start-ups? the SBA banks government grants venture capital personal resources
personal resources
Which type of utility is created when a company makes products available where consumers want them? possession place form time operations
place
Which of the following is considered the starting point of effective human resource management? compensation recruitment financing external staffing planning
planning
Congress has conducted hearings on the use of cell phones while driving. What factors would this constitute in a company's external environment? competitive technological political-legal sociocultural demographic
political-legal
Marketing does not stop with the sale of a product. What is the term that describes what happens after the sale? rational motives evoked set prepurchase evaluation emotional motives postpurchase evaluation
postpurchase evaluation
Bob, Joe, and Larry can all perform their jobs well without supervision. What does this indicate? presence of a highly automated system presence of a leadership neutralizer presence of a rigid reward system presence of a leadership substitute presence of a leadership incentive
presence of a leadership substitute
What is the term used to describe a situation when increased demand leads to overly steep and often unwarranted price increases? price fixing price gouging price comparison price stabilization price matching
price gouging
Jose is a recent college graduate who has been hired for an entry-level professional position in the accounting department of a large corporation. Which of the following terms BEST describes Jose's capacity as an accountant? public accountant private accountant advisory accountant management accountant forensic accountant
private accountant
When a wholesaler or retailer develops a brand name and has the manufacturer place that name on the product, what is that product name called? national brand licensed brand luxury brand private brand manufacturer brand
private brand
J.C. Penney owns and maintains its own warehouses. What is this type of warehouse called? retail stockroom storage warehouse public warehouse relay warehouse private warehouse
private warehouse
What is the process for converting government enterprises into individually owned firms known as? production allocation privatization entrepreneurship demand assessment profit maximization
privatization
Receiving and storing materials, billing patients for treatment, and filling customer orders from Internet sales are examples of which kind of activity? benchmarks quality ownership functions processes techniques
processes
Which of the following ratios measures a firm's potential earnings? activity ratio long-term solvency ratio profitability ratio equity ratio short-term solvency ratio
profitability ratio
Burberry is repositioning itself as a global luxury brand, such as Gucci and Louis Vuitton, a strategy that calls for luring fashion-conscious customers. This is an example of what type of market segmentation? demographic psychographic product-use strategic geographic
psychographic
A husband and wife have just opened a gymnastics center, with the hope of training future Olympians. They desire to run their center in a socially responsible way. Which of the following should they certainly avoid? doubling of enrollment fees for the program advertising methods intended to profit the center initiatives that decrease the satisfaction of investors provision of attractive salaries for employees purchase of substandard gym equipment
purchase of substandard gym equipment
Which term is defined as the combination of "characteristics of a product or service that bear on its ability to satisfy stated or implied needs"? production quantity capacity quality clarification
quality
What type of marketing is a "loyalty banking" program an example of? relationship marketing industrial marketing social marketing economic marketing consumer marketing
relationship marketing
Which of the following terms refers to the formal recording and reporting of revenues in financial statements? ethical practice revenue recognition full disclosure materiality compliance
revenue recognition
Phillip is an independent intermediary who deals in the local produce market of northeast Ohio. Over the years, he has formed long-term relationships and come to represent several farmers in the area in the sale of their produce to local grocery stores. Which of the following titles BEST describes Phillip's role in the distribution mix of northeast Ohio produce? direct marketer retailer sales agent broker wholesaler
sales agent
Which type of layout is designed to move resources through a smooth, fixed sequence of steps? same-steps make-to-order quality location custom-products
same-steps
Which of the following terms refers to stocks, bonds, and mutual funds representing secured, or financially viable, claims on the part of investors? private placements exchanges commodities dividends securities
securties
What occurs when the quantity demanded exceeds the quantity supplied? demand deficit surplus equilibrium point shortage supply schedule
shortage
Who invests all of the funds needed for a business but plays no role in its management? silent partner sole proprietor director general partner principal
silent partner
Which entity is defined as independent and has little influence on its market? government agency joint venture partnership small business corporation
small business
What term refers to the way in which a business tries to balance its commitments to groups and individuals in its social environment? stakeholder consciousness corporatization business ethics socialization social responsibility
social responsibility
Which of the following does NOT represent a degree of competition in a private enterprise system? oligopoly socialism perfect competition monopoly monopolistic competition
socialism
A company decides to introduce a line of crackers made with organically grown grains and vegetables. What environmental trend is the company responding to? sociocultural economic technological competitive political-legal
sociocultural
Which of the following types of businesses is MOST common in the United States? general partnerships sole proprietorships limited partnerships corporations cooperatives
sole proprietorships
What is the condition in an economic system in which the amount of money available and the number of goods and services produced are growing at about the same rate? unemployment stability deflation inflation oversupply
stability
Which term refers to the total quantity and quality of goods and services that people living in an economic system can purchase? business cycle demand and supply schedule standard of living aggregate output consumer price index
standard of living
Which of the following is an organization of individuals coordinated to provide an institutional setting in which stock can be bought and sold? stock exchange commission server over-the-counter market brokerage
stock exchange
What is the term for a division of stock that gives stockholders a greater number of shares but does not change each individual's proportionate share of ownership? stock split stock exchange stock yield stock dividend stock warrant
stock split
Which of the following BEST describes what is called the "open-market operations" of the Federal Reserve System? the development of new financial opportunities for banks the buying and selling of securities the minting of new money to disperse into the money market the control of interest rates among banks the maintenance of a well-functioning lending system among banks
the buying and selling of securities
In client-server networks, who or what is the usual client? he network which supports the database and software systems the computer through which users make requests for information the customer who does business online the supplier who checks the availability of components the application through which users answer information requests
the computer through which users make requests for information
Which environment is NOT an important dimension of a business organization's external environment? the political-legal environment the sociocultural environment the technological environment the corporate cultural environment the global business environment
the corporate cultural environment
A new U.S. company plans to introduce an inexpensive, high-quality line of shoes to the American market. It has found a manufacturer in another country that can produce the shoes at a low enough cost that they will still be cheaper than other brands of the same quality. Which of the following represents a potential ethical implication that the company should consider before beginning production? the country's existing labor laws and the factory working conditions the average exchange rate of the country's currency over a ten-year period the challenges of doing business in a country with a nonconvertible currency the basic international business strategy it will use the energy demands of the manufacturer's facility
the country's existing labor laws and the factory working conditions
What is a stock's market value? the price of the stock plus the previous year's dividend the current price of a share of stock in the stock market the face value of a share of stock, set by the issuing company's board of directors the average price of one share of stock over the past year the monthly average of a stock's price over a year
the current price of a share of stock in the stock market
What is the price at which the quantity of goods demanded and the quantity of goods supplied are equal? the going rate the margin rate the market price the optimum price the cost price
the market price
Which of the following BEST describes supply chain management? the principle of looking at the supply chain as a whole in order to improve the overall flow through the system a limitation on the number of suppliers allowed to supply a particular company complete movement of raw materials throughout a manufacturing or service facility a cost-reduction program in which wholesalers and retailers are eliminated in an effort to entice consumers to purchase directly from manufacturers the principle of improving the supply chain by focusing on the slowest step in the chain
the principle of looking at the supply chain as a whole in order to improve the overall flow through the system
Which of the following BEST describes competitive product analysis? the process by which a company analyzes a different company's products to identify desirable improvements the sum of all activities involved in getting a high-quality product into the marketplace. the consistency of a product's quality from unit to unit examining a product to improve its form utility the principle that quality belongs to each person who creates it while performing a job
the process by which a company analyzes a different company's products to identify desirable improvements
Which of the following BEST describes depreciation? the process of increasing the value of fixed assets over time the process of reducing the value of fixed assets over time the process of distributing the cost of intangible assets over time the process of deducting operating expenses from the value of fixed assets the process of distributing the cost of liabilities over time
the process of reducing the value of fixed assets over time
Which of the following is the MOST significant disadvantage of starting a business from scratch? having competition inability to franchise coming up with new ideas the risk of failure having few employees
the risk of failure
What distinguishes the two most commonly used categories of owners' equity? the amount of equity within each type of asset-current versus fixed and intangible the use of the equity-invested versus saved the source of the equity-investments versus earnings the age of the equity-older investments and earnings versus newer investments and earnings the financial form of the equity-cash investments versus stock and bond investments
the source of the equity-investments versus earnings
Which of the following BEST describes total quality management? the sum of all activities involved in getting high-quality products into the marketplace the principle that quality belongs to each person who creates it while performing a job the process by which a company analyzes a competitor's products to identify desirable improvements a certification program attesting that an operations process has met rigorous requirements the consistency of a product's quality from unit to unit
the sum of all activities involved in getting high-quality products into the marketplace
A cell phone store manager needs to forecast sales for the upcoming Black Friday sales weekend. Which information would be MOST helpful? the store with the highest sales of all store locations for the past five years the number of customers who entered the cell phone store for all locations the store with the least sales of all store locations for the past five years the total amount spent per customer in each cell phone store for all locations for the past five years the cell phone model which earned the most revenue in all store locations for the past five years
the total amount spent per customer in each cell phone store for all locations for the past five years
What marks the key difference between economic systems? the way they manage the factors of production the way they transport goods within their borders the way rules and regulations are legislated the way workers are relocated to different regions the way basic necessities are determined
the way they manage the factors of production
How can customers order a messenger bag from the online Timbuk2 site with exactly the features they desire? through mass-customization through anti-virus software through mass production through process management through unit production
through mass-customization
Which of the following has a fixed term?Answers: time deposits credit card accounts savings accounts demand deposits money market mutual funds
time deposits
Why might businesses want to analyze data that reveal what consumers do in the marketplace? to be able to close the customer service department to be able to stabilize employee turnover to be able to reduce production costs to be able to send them tailor-made advertisements to be able to manage long-term costs
to be able to send them tailor-made advertisements
At Nordic Enterprises, Johann is most effective in carrying out the management of daily tasks that must be performed. Which of the following BEST describes Johann's leadership role? behavorial transformational situational transactional charismatic
transactional
Bill Lopez spends most of his time performing normal, routine tasks. Which of the following types of leadership is he primarily involved with? transformational leadership situational leadership charismatic leadership behavioral leadership transactional leadership
transactional leadership
What is a major drawback of sole proprietorships? unlimited liability short-term focus of shareholders low start-up costs structured hours work flexibility
unlimited liability
Tootsie Roll Industry's corporate principle, "We run a trim operation and continually strive to eliminate waste, minimize costs, and implement performance improvements," is an example of which of the following? a quality circle just-in-time production benchmarking value-added analysis competitive product analysis
value-added analysis
Which of the following are groups of small investors seeking to make profits on companies with rapid growth potential? government securities dealers equity managers venture capital companies community banks stock brokers
venture capital companies
What is the term for an employee who detects and tries to put an end to a company's unethical, illegal, and/or socially irresponsible actions by publicizing them? government inspector fast-track manager corporate lookout whistle-blower blue sky thinker
whistle-blower
Rachel has set up a firm that buys circuit boards from overseas producers and sells them to a local computer manufacturing company. Which title BEST describes her role in the computer manufacturing distribution mix? marketer wholesaler retailer sales agent broker
wholesaler
What is the formula for measuring a firm's working capital? current assets = working capital /current liabilities current liabilities = current assets + working capital working capital = current assets - current liabilities working capital = current assets x current liabilities current liabilities = current assets / working capital
working capital = current assets - current liabilities
What is the MOST effective way for an entrepreneur to become a competent manager? working alone relying on luck working for a successful company first getting a college degree being open to opportunities
working for a successful company first
Which of the following is the name for a portion of the ownership of a corporation? dividend partnership Schedule C stock LLC
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Who are the owners of a corporation? top managers financial officers stockholders board of directors entrepreneurs
?
Which of the following gives examples of bargain retailers? local bakery, discount shoe chain bakery thrift shop, athletic shoe store bakery outlet, athletic shoe store local bakery, shoe factory outlet bakery thrift shop, shoe factory outlet
?
In which of the following retail outlets is there a most direct communication line between producer and consumer? mail-order retailing specialty store retailing brokered retailing catalog showroom retailing e-retailing
?
In which of the following ways is product development different for services than for physical goods? The commercialization step is gradual for services, but rapid for physical goods. The business analysis step is not needed, since there are no production costs with services. Instead of gathering product ideas, the company goes immediately to the testing phase. Instead of screening ideas, the company tests all of them, since no prototype is needed. Instead of creating a prototype, the company develops a service process design.
?
PepsiCo's juice product line includes Tropicana juice, Tropicana Twister juice drinks, and Trop50 reduced-calorie juices. Which of the following new products would also belong in this product line, if PepsiCo were to introduce it? lemon-flavored Pepsi-Cola Tropicana breakfast cereal farm-stand orange and pineapple juices in containers shaped like fruit cookbooks with recipes using Tropicana products Trop50 reduced-calorie candy
?
What are specific locations of Ramada, McDonald's, and Subway examples of? networking businesses university sponsored businesses government entities cooperatives franchises
?
What percent of all businesses in the United States are corporations? 75 percent 17 percent 85 percent 12 percent 50 percent
?
What type of users would download spyware? users seeking to prevent viruses from attacking users who are keen to share documents users who want easy access to their coworkers' files users who wish to prevent spam from entering their computer users who are unaware that their computer activities will be monitored
?
When Ford assembles parts into a Ford Focus, it creates which type of utility? possession time form place ownership
?
Which form of business ownership generates the MOST sales in the United States? corporation sole proprietorship limited partnership general partnership cooperative
?
Which of the following costs refers specifically to those that are unaffected by the quantity of a product sold or produced? fixed costs market-adjusted costs variable costs marginal costs annual costs
?
Which of the following federal laws made transactions between banks significantly more efficient? the Economic Emergency Recovery Act the Federal Reserve Act the USA Patriot Act the Check Clearing for the 21st Century Act the Bank Secrecy Act
?
What is likely the single MOST effective step that a company can take to set ethical standards? Demonstrate support from top management. Post ethical rules on bulletin boards State that the workplace values diversity Suggest that employees take ethics training. Offer large cash awards for whistle-blo
Demonstrate support from top management.
A new feature on the latest Acme smart phone has made it wildly popular. Which action should Acme take to maximize profits? Increase the supply of the smart phone. Decrease the supply of the smart phone. Reduce the price of the smart phone. Maintain the current supply until demand falls. Create a shortage of the smart phone.
Increase the supply of the smart phone.
What act was passed in 2002 as a response to a number of highly publicized accounting scandals? arbanes-Oxley Act Accounting Standards Act McCain-Feingold Act Securities and Exchange Act Dodd-Frank Act
Sarbanes-Oxley Act
Which of the following bodies enforces accounting and auditing rules and procedures? Financial Accounting Standards Board Association of Certified Fraud Examiners Accounting Disclosure Board American Institute of Certified Public Accountants Securities and Exchange Commission
Securities and Exchange Commission
Which of the following statements is TRUE? Since insurance companies generate revenue from both premium payments and investments thereof, market fluctuations will not generally affect one's health insurance benefits. Since insurance companies also generate revenue from investments of premium payments, market fluctuations may affect one's health care benefits. Since insurance companies also generate revenue from investments of premium payments, market fluctuations may affect one's health insurance premium. Since insurance companies generate the vast majority of revenue from investments of premium payments, market fluctuations will not affect one's health care benefits Since insurance companies generate the vast majority of revenue from premium payments, market fluctuations generally do not affect one's health insurance premium.
Since insurance companies also generate revenue from investments of premium payments, market fluctuations may affect one's health insurance premium.
Tamasaki Sushi Bar is located in the Cotswold Shopping Center in a busy uptown business district. It caters to a few art galleries, a theater, and a nearby technical college. Recently, Tamasaki has noticed a decrease in customers around the lunchtime hour, which is one of its primary sales times during the day. Many customers use cell phones and frequent the Internet cafe in the area during the lunch hour. Which statement, if true, could BEST explain the sagging sales experienced by Tamasaki? Technically savvy customers take advantage of deals offered via the website and Facebook site of the deli and bar-grill down the street. Limited parking spaces discourage customers from stopping by for lunch. College students prefer pizza and burgers for lunch and restaurant food for dinner. The nearby establishments have their own cafeteria for employees and students to use. Most of the workers use the lunchtime hour for taking food out instead of eating in.
Technically savvy customers take advantage of deals offered via the website and Facebook site of the deli and bar-grill down the street.
In a small town of 3,000 people, the number of car washes has grown from two to five in the last two months. Which result will likely occur? he increase in supply will have no effect on the equilibrium price. The increase in supply will lead to a decrease in demand. The increase in supply will lead to a decrease in the equilibrium price. The increase in supply will lead to an increase in demand. The increase in supply will lead to an increase in equilibrium price.
The increase in supply will lead to a decrease in the equilibrium price.
Don Dillon is a 24-year-old graphic designer. He eventually wants to get married, raise a family, and buy a house. He knows that he has to start putting money away so that his goals can someday become a reality. He has heard that investing is risky because you can lose money as well as make money. So Don decides to play it safe and deposit money in a bank on a regular basis. Why might this not be his best strategy? Stock investments will always result in high returns You can actually lose money with bank savings due to inflation and taxes. It pays to take chances with your money. Most savings accounts are insured by the FDIC. People usually benefit from risky investments.
You can actually lose money with bank savings due to inflation and taxes.
Trina is a loan borrower, and the terms of her loan say she must keep a portion of the loan amount on deposit with the bank in a non-interest-bearing account. What is Trina required to have? an unsecured loan an angel investor venture capital a compensating balance collateral
a compensating balance