Business Management Midterm

a business earns $200,000 in sales, has expenses of $80,000 and COGS are $90,000. what is the gross profit?

$110,000

banks and other lenders would be most interested in looking at which financial ratio

acid test

which of the following is a liquidity ratio

acid test

which of the following statements relates best to a laissez-faire leader

allows the experienced staff to complete tasks with little or no intervention

which item is not a qualitative factor when considering an investment appraisal

alternative investment projects and their potential return on investment or APR

autocratic leaders excel when dealing with

an unexpected crisis

what is the common time frame for employee appraisals

annually

the document that outlines the work history and achievements of a job applicant is known as the

application form

suppliers would be interested in the accounts of a business in order to

assess business profitability

which management or leadership style is most suitable during a hostile takeover

autocratic

which of the following is most likely to be a long-term liability

bonds

which of the following sources of finance will raise the value of the gearing ratio

bonds (long-term liabilities)

all of the following are considered current assets except

building

identify the option from the list that would be considered verbal communication

business meeting

the ARR can best be described as an investment appraisal technique that

calculates the average annual profit of a project as a percentage of the initial investment

which item is a strength of oral communication

can be questioned quickly

according to the management theory of Herzberg, hygiene factors

can cause a worker dissatisfaction in the job, but cannot, by themselves, cause motivation of workers

what is the purpose of a workforce audit

check on the skills and qualifications of existing employees

who is usually at the top of a hierarchal management

chief executive

the exchange of information between people or groups with feedback is

communication

off-the-job training refers to training that is

conducted by specialist trainers located outside the workplace

what are liquid assets

current assets that are cash or can be considered cash (i.e. accounts receivable)

which of the following ratios has an acceptable range of 1.5-2

current ratio

in the worst case scenario, firms struggling to survive may sell ___ in order to generate working capital

debentures

which ratio would a business prefer to be low in value

debtor days

the net profit margin can be used to identify a firm's

degree of overhead expense control

a workforce plan will determine what vacancies exist in an organization and include a relevant job ___ and person ___ for each vacant position

description, specification

which statement below best describes hire purchase

differs from leasing in that ownership occurs with last payment

current assets do not include

dividends

calculating the return on capital employed provides information on a firm's

effective use of capital resources

julie sends an email to her manager. which communication method did she use?

electronic

informal communication could include of the following except

emails to a supplier

which of the following is considered an asset

equipment

a non-cash form of reward is

fringe benefits

if expenses are greater than gross profit for a business, then the business

has made an overall loss

which term is used to describe the system of organizing people within business by rank

hierarchy

an advantage of using internal funds vs. external funds to purchase a new office building could inclue

increased value of fixed assets

which of the following is not an overhead cost

interest

which option is an advantage of a wide span of control

it is more cost effective due to less hierarchal prospects

which option is likely to be a problem for XYZ Company if they use financial incentives to improve motivation at the firm

it may be divisive rather than promote teamwork

increasing the amount of work an employee performs is

job enlargement

making a job more challenging is an example of

job enrichment

which option is likely to cause communication failure

lack of interest in the message from the recipient

the management style that sees the leader allowing subordinates to achieve targets in their own way is known as

laissez-faire

money owed to other people or organizations are shown on a balance sheet as

liabilities

capital employed is equal to

long-term liabilities plus shareholder's equity

when a business is responsible for money owed to another party for more than 12 months, this is called a

long-term liability

all of the following statements apply to Maslow's theory of level of needs except

lower level needs do not have to be satisfied in order to move to the next level on the hierarchy of needs

taylor's theory of the "economic man" states that

man is motivated by money alone

the employer pays education costs for an employee who is willing to seek a CPA certification in accounting so the business can lower monthly fees to a corporate CPA firm. this is an example of what?

management by objective

which of the following is an advantage of commission-based pay

may encourage high-pressure sales tactics

which business would be least pleased with a stock turnover ratio of 95 days

mcdonald's

the document that outlines the discussions that occurred at a business meeting is called

minutes

accounts payable means

money owed to suppliers

which two items must agree to consider the balance sheet "balanced" and correct

net assets and capital employed

revenue-COGS-overheads is the formula for calculating

net profit

the ratio that measures profit after all expenses have been paid is the

net profit margin

which of the following is considered a disadvantage to teamwork

not everyone is a team player

the inability of a worker to switch from one job to another due to a particular skill set is known as

occupational immobility

what is meant by employee "poaching"

other businesses extending job offers to well-trained staff

which of the following is a current liability

overdrafts/credit line

if an employee works beyond their contracted hours, they are usually entitled to

overtime pay

which quantitative factor applies to a firm considering investing in a new computerized stock control system

pay-back period

intrinsic motivation is the result of

personal satisfaction derived from completing a task

the payment system that rewards workers for each item that they produce is known as

piece rate

businesses might choose to use external sources of finance because

potential cash flow problems are avoided

the payment system where employees receive a share of the company's profits is known as

profit-related pay

one major purpose of constructing a cash flow forecast is to

provide a planning and decision-making tool for managing a firm's cash flow

which of the following is an example of investment in a business context

purchasing new machinery

human resources management deals with

recruitment and selection

which of the following describes being dismissed for reasons not caused by the employee

redundancy

all of the following are sources of external financing for a public limited company except

retained profits

a business that has a relatively high staff turnover rate has a low rate of

retention

raising finance by selling an asset and then renting it back immediately on a long-term basis is known as

sale and leaseback

a democratic management style is useful when managers

seek and value the opinions of employees

the main purpose of constructing a balance sheet is to

show the value of a business at a particular point in time

which type of leader adapts their style of leadership to the situation or employee skill levels

situational

the gearing ratio measures

size of long-term finance in relation to a firm's capital employed

which of the following is least likely to appear in a person specification for a person working in new product design

skilled in customer relations

according to Maslow, identification with and acceptance from a particular group can help to meet which level of human needs

social

which item is an advantage of using electronic media to communicate

speed

which of the following features applies to organizations with flat structures

suitable when employees are multi-skilled

which of the following is not an internal constraint

supply chain issues

what is a criterion rate

the acceptable level of payback for a project

the payback period is used to calculate

the amount of time required for the investment to be paid and the project to begin returning a profit

induction training is likely to cover

the basics of a worker's job

the chain of command refers to

the direct relationship between a superior and subordinates

stock turnover is the ratio used to measure

the frequency of stock purchased and sold by shareholders

the trading account gives details of

the gross profit made during a trading period

the average rate of return is

the return on a capital investment expressed as a percentage

on an income statement, dividends represent

the share of "after-tax profits" that is distributed to shareholders

which of the following is a factor in determining the structure of an organization

the size and number of employees in a business

which of the following is a drawback to a business that issues debentures to raise working capital for the business

the value of liabilities increase

which payment system is preferred for situations where quality and quantity of output cannot be easily measured

time based

which of the following is a reason for conducting a financial ratio analysis

to aid management decision making

what is the ratio used to measure the proportion of an organization's workforce that leaves during the course of a year

turnover rate

a firm could increase its gross profit by

using cheaper suppliers of raw materials

a consequence of paying workers by hourly wage is that

workers may ignore quality due to the emphasis on speed of work

there must be sufficient finance to pay for the daily running of the business. this money is known as

working capital

which of the following is not a financial ratio used to evaluate business performance

working capital