COL 2 Business Test
Which of the following is a recommended practice to avoid race or ethnicity bias?
Forgo any references to race or ethnicity.
Nelson, the CEO of a company, holds a meeting with the board of directors that includes both male and female members. While addressing them, Nelson is careful to use phrases such as "Welcome board members" and "Dear stockholders" instead of solely using "he" or "she." In this scenario, which of the following biases is Nelson avoiding?
Gender bias
Who among the following is the most appropriate person to start his or her own venture?
Gita, who has been an event manager for five years but discontinues her job as she wants to spend enough time with her one-year-old child
A _____ is a form of business ownership in which the business is considered a legal entity that is separate and distinct from its owners.
corporation
John and Lena sign a contract with the owner of Little Fairy, a well-known preschool chain, to start a preschool in their city. They take permission from the owner to use the name and products of Little Fairy. They also furnish their preschool in Little Fairy's trademark style. In this scenario, John and Lena are starting a _____.
franchise
An advantage of franchising is the:
training and support provided by the franchisor.
In the context of creating and delivering successful verbal presentations, which of the following is a suggestion for effective hooks at the opening of a presentation?
A relevant simile
Which of the following statements is true of business emails?
Descriptive and detailed emails should be used to provide the reader with ample information.
In the context of business communication, identify a true statement about American culture.
It demonstrates negative age bias toward old people.
Which of the following statements is true of the board of directors of a corporation?
It establishes the corporation's mission.
Which of the following is an advantage of an S corporation?
Its stockholders have limited liability.
Which of the following is a disadvantage of franchising?
The franchise agreement usually requires the franchisee to follow the franchisor's procedures to the letter.
Which of the following is a characteristic of successful entrepreneurs?
Tolerance of uncertainty
In the context of funding options for small businesses, the _____ assists entrepreneurs by partially guaranteeing loans from local commercial lenders
U.S. Small Business Administration
A sole proprietorship is a form of business ownership in which:
a single owner actively manages the company.
Tanya is planning a presentation on the best practices in communication. After much thought, she decides to restrict herself to just three key points. Tanya most likely decides to stick to just three key points in her presentation because
audiences can only absorb about two to four main points.
Tanya is planning a presentation on the best practices in communication. After much thought, she decides to restrict herself to just three key points. Tanya most likely decides to stick to just three key points in her presentation because:
audiences can only absorb about two to four main points.
A manager who does not use words such as "his," "young," "her," etc. in business communication is most likely trying to:
avoid bias.
A(n) _____ cannot distribute dividends to its members.
not-for-profit corporation
If you encounter a hostile questioner while giving a presentation, you should avoid:
reestablishing eye contact once you have answered the question.
In the context of an acquisition, the firm that is purchased by another firm is called the _____.
target firm
In the context of limited partnerships, which of the following statements is true of limited partners?
Their personal wealth is not at risk as long as they do not actively participate in managing the company.
Which of the following statements is true of stockholders of corporations?
They do not have to be individuals.
Which of the following statements is true of people with an external locus of control?
They feel buffeted by the actions of others.
Which of the following statements is true of entrepreneurs who are tolerant of uncertainty?
They view the world in shades of gray.
In the context of entrepreneurs, which of the following statements is a difference between an internal locus of control and an external locus of control?
An internal locus of control involves personal responsibility, whereas an external locus of control does not.
Which of the following practices is most likely to strike the right tone in a business message?
Using common words
In the context of an acquisition, when the acquiring firm buys the target firm despite the opposition of the target's board and top management, the result is called a _____.
hostile takeover
In the context of communication channels, which of the following is a similarity between memos and email?
Both can be used when your content is uncontroversial.
Which is the largest threat to a small business owner?
High risk of failure due to lack of capital
_____ is the profit or loss a firm earns in the time period covered by the financial statement that reports the revenues and expenses
Net income
A job listing that invites recent graduates to apply for the job illustrates:
age bias.
Marion begins her presentation on waste management by sharing the story of a rival firm that gained significant economic benefits from waste segregation. In the given scenario, Marion uses a(n) _____ to open her presentation.
anecdote
In the event that a large company has to downsize, the middle-aged workers who are laid off find it difficult to find new jobs. When such workers decide to start their own businesses, they:
are called necessity entrepreneurs.
In the context of balance sheets, resources owned by a firm are known as _____.
assets
Before starting his presentation on the benefits of taxi services, Mark engages the listeners by asking them to imagine themselves driving in a drunken state. He goes on to ask them the possible outcomes that they can imagine. This exercise ensures that Mark gets the listeners' complete attention. In the given scenario, Mark uses _____ to open his presentation.
audience involvement
When writing a high-impact message, one should:
avoid using contractions, such as "don't" and "I'll."
The three kinds of basic financial statements that are prepared in financial accounting are:
balance sheet, income statement, and statement of cash flows.
As globalization gains speed, intercultural communication will:
become increasingly pivotal to long-term business success.
The various ways in which a message can be sent, ranging from one-on-one in-person meetings to Internet message boards, are called _____.
communication channels
A(n) _____ is a combination of two firms that are in unrelated industries.
conglomerate merger
In a sole proprietorship, any debts the company incurs are:
considered to be the owner's personal liabilities.
The basic rules governing how a corporation is organized and how it conducts its business are known as _____.
corporate bylaws
In the context of balance sheets, accounts receivable is an example of _____.
current assets
Balance sheets usually organize liabilities into two broad categories, which are:
current liabilities and long-term liabilities.
In the context of statement of cash flows, cash flows from operating activities show the amount of cash that flowed into the company from:
dividends.
When a business that is incorporated in one state does business in other states, it is called a(n) _____ in the state where it is incorporated.
domestic corporation
The primary reason people choose to become entrepreneurs is to:
earn more money.
To decide the vocabulary and the complexity of a message, one must know the _____ of the audience.
education level
As a listener, you are most likely to interpret the maximum meaning from a speaker's:
facial expressions.
Similar to a corporation, all owners of a limited liability company (LLC):
have restricted debts.
In the context of balance sheets, patents, trademarks, and copyrights are examples of _____.
intangible assets
In the context of active listening, one of the dos for better listening is the use of _____.
nonverbal communication
Which of the following is an appealing benefit that entrepreneurs enjoy?
The ability to set their own hours
Which of the following statements avoids gender bias?
A manager who does not lead by example is a poor manager.
Andrew wants to give some constructive feedback to his superiors about improving the work environment. However, he is reluctant to do so because his supervisors are nonresponsive to team members' queries and suggestions. In the given scenario, Andrew faces a(n) _____.
organizational barrier
A(n) _____ is a voluntary agreement under which two or more people act as co-owners of a business for profit.
partnership
Lorraine works for an accounting firm that performs external audits, provides consulting services, and does the tax preparation for other businesses and individuals. Given this information, Lorraine is most likely a _____.
public accountant
In the case of C corporations, shareholders don't pay income taxes on _____.
retained earnings
The assets of Prosian Italia, a marble and granite company, amount to $400 million, and its liabilities add up to $180 million. Based on the accounting equation, Prosian Italia's owners' equity is equal to _____.
$220 million
The owners' equity of Senesta Corp., an event management company, adds up to $23 million, and its liabilities add up to $17 million. Based on the accounting equation, the assets of Senesta Corp. are worth _____.
$40 million
_____ is a vibrant, compelling presentation style that grabs and holds the attention of the audience.
Dynamic delivery
Which of the following is a difference between a C corporation and an S corporation?
A C corporation is double taxed, whereas an S corporation is taxed as a partnership.
_____ is a type of divestiture in which a firm converts a particular unit or division into a separate company and issues stock in the newly created corporation to outside investors.
A carve-out
_____ is a deep-seated sense that forces other than the individual are responsible for what happens in his or her life.
An external locus of control
Which of the following is a similarity between a sole proprietorship and a partnership?
Both their earnings are untouched by the Internal Revenue Service.
Which of the following statements is true of a limited liability company (LLC)?
It is a relatively new form of business ownership in the United States.
Which of the following practices is recommended for an effective business presentation?
Citing trusted sources, specific data, and expert quotations
In the context of the various roles employees take up in an organization, who among the following is most likely to spend a lot of their time listening?
Executives
_____ indicate the cash a firm spends, or other assets it uses up, to carry out the business activities necessary to generate its revenue.
Expenses
Which of the following statements is true of the formation of general partnerships?
Expert legal assistance can be acquired when drawing up a partnership agreement.
Lawrence wants to pursue a law degree in a renowned law school in her city. She writes an application to the dean of the school. However, she is unsure if the dean is male or female, and therefore, she decides to address the dean by his or her official title. In this scenario, which of the following biases is Lawrence avoiding?
Gender Bias
Tobin starts a catering company of his own and earns a substantial profit in the first year itself. His total earnings are more than what he used to earn as a salaried person. Which of the following advantages of entrepreneurship is highlighted in the given scenario?
Greater financial success
The owners of limited liability companies (LLCs) are called members because:
LLCs are neither corporations nor partnerships.
When giving a business presentation, which of the following practices is likely to alienate the audience?
Launching into another point after finishing the presentation
In the context of balance sheets, which of the following is a difference between liabilities and owners' equity?
Liabilities indicate the claims outsiders have against the firm's assets, whereas owners' equity refers to the claims the owners have against their firm's assets.
_____ is the profit or loss a firm earns in the time period covered by the financial statement that reports the revenues and expenses.
Net income
Which of the following statements is true about nonverbal communication?
People communicate through a wide range of facial expressions.
Which of the following categories of people is most likely to step into entrepreneurship?
People who have trouble being subordinates because of their personalities
In which of the following ways do public accountants differ from management accountants?
Public accountants conduct external audits, whereas management accountants analyze the financial statements of their own organization.
Which of the following is an advantage associated with a sole proprietorship?
Retention of control
Which of the following scenarios exemplifies a nonverbal communication that is most likely to have a negative impact on the outcome of a conversation?
Rudolph fidgets frequently when he delivers a PowerPoint presentation to his sales team.
Which of the following is an advantage of a C corporation?
Shareholders have limited liability in the firm.
Which of the following practices should ideally be followed when giving a business presentation?
Telling the audience the key points before launching into the body of the presentation
Which of the following is an example of an intangible asset?
The goodwill showed by a food manufacturing company by helping its competitor at a time of crisis
As a communication channel, _____ has the highest level of channel richness and is used when the message to be communicated is personal, emotional, or high-priority.
a face-to-face meeting
Betty's job entails detecting problems such as embezzlement, waste, mismanagement, and employee theft at her organization. In this case, Betty is a(n) _____.
internal auditor
The management of Lovelo, a candy manufacturing company, comes across a case of employee theft in their inventory. In this case, the company should seek the help of a(n) _____ to look into the matter.
internal auditor
Unlike a sole proprietorship, a corporation:
is considered to be a legal entity that is separate and distinct from its owners.
In the accounting equation, assets are equal to:
liabilities plus owners' equity
Chestelle Corporation, a sports equipment manufacturing company, borrows a considerable sum of money as loan from GRJ Bank, a private bank, at a time of financial crisis. The corporation has four years to repay the principal amount along with the interest to the bank. In this scenario, the money that Chestelle Corporation owes the bank represents its _____.
long-term liability
Technological tools such as the Internet and email have:
made it easy for small business owners to manage their firms on the go.
All owners of a _____ can actively participate in management while still having limited liability.
statutory close corporation
An owner of a C corporation is called a _____.
stockholder
Albert is the owner of a car service center. As a sole proprietor, any profit that he earns is:
treated as Albert's personal income.