Exam 4

When compared to a wired LAN, the wireless LAN is: unable to transmit data at one single site faster and more reliable is unable to communicate with wired communication systems significantly more expensive typically inconvenient to use

faster and more reliable

General Electric saves $1.6 billion per year by using its private corporate network that links its 340,000 employees. Another name for this network that operates behind a firewall is a(n): intranet functional network specialized network extranet information system

intranet

_____ management focuses on gathering and sharing an organization's collective knowledge to improve productivity and foster innovation. Knowledge Entrepreneurial Creative Information Productivity

knowledge

A network that connects computers at one site is called a(n): local area network Web-based network long-distance communications system wide area network in-house communications computer system

local area network

The funds that are reinvested in the firm out of profits and after dividends are paid are called: retained earnings stock equity investor earnings secondary earnings convertible bonds

retained earnings

In finance, the opportunity for profit is called: return potential risk value maximization

return

The NYSE and NASDAQ are vying for supremacy in the U.S. securities markets. T/F

True

An enterprise portal is an internal Web site that provides proprietary corporate information to a defined user group. T/F

True

Securities are investment certificates issued by corporations or governments. T/F

True

The Internet is essentially a worldwide wide area network (WAN). T/F

True

Capital budgeting: analyzes production costs selects asset proposals for maximum profitability helps select new products combines all budgets into a master budget allows managers to analyze profit and loss statements

selects asset proposals for maximum profitability

"Of all the forms of equity capital, venture capital is the easiest to obtain." T/F

False

A computer program that copies itself into other software and can spread to other computer systems is called a software infestation. T/F

False

Intranets, VPNS, and extranets are forms of LANs. T/F

False

Lines of credit are short-term loans that are secured by collateral. T/F

False

Preferred stock is a form of debt financing because the dividend must be paid before dividends can be paid to the equity owners. T/F

False

Treasury bills, certificates of deposit, and mortgage loans are the most popular marketable securities. T/F

False

Which of the following statements does NOT describe an advantage inherent in equity financing? The company is not required to repay equity. Interest is tax-deductible. Equity has no maturity date. A firm has no obligation to pay dividends. Equity owners have residual claim on income.

Interest is tax-deductible.

Which of the following statements about computer viruses is true? Another name for computer viruses is worms. There is no way to protect against computer viruses Viruses copy themselves onto other software. Viruses cannot hide on your computer Spam is unrelated to viruses.

Viruses copy themselves onto other software.

Which of the following businesses would be most likely to require an unsecured bank loan, such as a line of credit or a revolving credit agreement? a manufacturer of integrated circuits a Christmas tree farm a poultry producer an envelope manufacturer a manufacturer of health and beauty aids

a christmas tree farm

Collecting data over a period of time and then processing that data all at the same time is called _____ processing. off-line on-line auxiliary batch group

batch

_____ is the process of selecting the capital expenditures that offer the best returns and meet the goal of maximizing the firm's value. Capital evaluation Capital allocation Capital budgeting Budget analysis Budget allocation

capital budgeting

A secured loan requires that the borrower pledge specific assets to secure the loan. These assets are called: collateral pledges intangible assets negotiable assets asset requirements

collateral

In 2004, a large department store chain in Germany was forced to withdraw customer loyalty cards when the press discovered that the company had secreted radio-frequency identification (RFID) tags in the plastic. Even when enclosed in a wallet or purse, these cards can transmit information over distances of about a meter, and the stores planned to use them to track which departments the customer visited. At issue was which data security issue? unauthorized access chat rooms sexual innuendoes expressed through lewd humor biometrics consumer privacy

consumer privacy

Australia's Health Insurance Commission processes 300 million health claims and makes annual payments of $8 billion of payments to clients. The company would store all of its more than three gigabytes of information in a(n) _____ to support management decision making. data mine information center data station data warehouse information network

data warehouse

The three major categories of applications supplied by application service providers are: office automation systems, expert systems, and decision support systems transaction processing systems, enterprise applications, and predictive applications enterprise applications, predictive applications, and decision support systems predictive applications, expert systems, and security applications enterprise applications, collaborative applications, and applications for personal use

enterprise applications, collaborative applications, and applications for personal use

Maysteel, which makes components for electric utilities, has created a(n) _____ that allows its six plant managers in Wisconsin and Ireland to access customized information about the costs and sales at the other plants. The only people who can access this information are its managers. work station internal network virtual network enterprise portal knowledge manager

enterprise portal

Academic advisement is unevenly provided in many high schools and colleges. There is a plan to provide advice to high school students and to college freshmen that are seeking a potential major. The on-demand consultation gathers information about a student's grades, interests, test scores, interests and aptitudes. It assesses student qualifications for a variety of majors. The _____ will then recommend six majors for them to consider and provides further information sources about the major. collateral information operating information reporting expert decision support

expert

Financial managers constantly strive for a balance between: the opportunity for profit and the potential for loss cash and marketable securities economic responsibility and social responsibility common and preferred stock dividends paid out and interest payments

the opportunity for profit and the potential for loss

Tracy Lefteroff is the global managing partner for PricewaterhouseCoopers. She said that her company is eager to invest in newly created biotech companies because the U.S. has an aging population that will need new medications and treatments. What kind of equity capital would Lefteroff be likely to provide? mortgage loan dividends retained earnings venture capital secured bonds

venture capital