Final (BUSN) study guide

One of the three basic functions performed by the Equal Employment Opportunity Commission is:

- investigates charges of discrimination - attempts to settle charges - file lawsuit in federal court

Which of the following calculations is a formal expression of the accounting equation?

assets = liabilities + owner's equity

The U.S. money supply is composed of:

currency, demand deposits, traveler's checks, and other checkable accounts.

The World Trade Organization (WTO):

deals with the global rules of trade between nations.

_____ deals with reporting to outsiders. _____ accounting deals with the internal operations of the firm.

financial accounting managerial accounting

According to the _____, a firm should first identify consumer needs and then produce the goods and services that will satisfy them.

marketing concept

Manila Water, the provider of the water and sewerage services in the capital of the Philippines has purchased the government owned water and sewerage system for the entire country. It promises to make the nation's water and sewerage system run as efficiently and profitably as the one it operates in Manila. The development, maintenance, and allocation of resources to achieve its goal will require:

planning

What are the four functions of management?

planning, organizing, leading, and controlling

_____ is the amount of money remaining from a firm's sales revenue after it deducts production costs, interest costs, and taxes.

profit

A(n) _____ is the financial statement that is used to assess the sources and uses of cash flow during the year.

statement of cash flows

Accounting involves the _____ of the financial activities for firms.

summarizing

In a mixed economy, the government is involved in the economic system through:

taxes

Which of the following is NOT one of the main activities for a human resource manager?

terminating

On a statement of cash flows for a manufacturer of digital thermometers, the cash flows from operating activities would include:

the sale of land adjacent to the manufacturer's administrative office building.

A stakeholder is an individual or group that has a legitimate interest in a company, organization, or business.

true

Management is the process of guiding the development, maintenance, and allocation of objectives.

true

The local community is an external stakeholder.

true

The key element in socialism is:

Calculation in kind, Collective ownership, Cooperative common ownership,Economic democracy Economic planning, Equal opportunity,Industrial democracy, Input-output model, Internationalism, Material balancing.

What is the primary difference between a good and a service?

Goods are tangible, as in these have a physical presence and they can be touched, while services are intangible in nature.

Which of the following is the BEST example of a not-for-profit business?

Goodwill Industries uses the revenue generated from the sale of donations in its retail stores to fund job training and placement service for people with disabilities.

After graduating from college, Joseph Tantillo decided to start a retail Web site that specializes in personalized Greek apparel. To fund his Web site, he borrowed money from his parents (who expect to be repaid with interest). In other words, he used _____ financing.

debt

When Grand Metropolitan, a British company, purchased U.S.-based Pillsbury Co. in order to expand its product line and the market for its existing consumer products, it was an example of a(n):

direct foreign investment

Internal stakeholders are groups outside a business or people who don't work inside the business but are affected in some way by the decisions and actions of the business.

false, external

Suppliers are internal stakeholders.

false, external stakeholders

On an income statement, expenses, such as professional salaries, utilities, office supplies, rent, and insurance, are called _____ expenses.

general and administrative

Managerial accounting provides information that would probably be most beneficial to:

the IRS financial analysts a lending officer of the bank

_____ is financing obtained from investment firms that specialize in financing small, high-growth companies and receive an ownership interest and a voice in management in return for their money.

venture capital

A "mixed economy" is an economic system that:

an economy in which there is a blend of economic systems; individuals and the government share in the decision-making process

U.S. plane manufacturer McDonnell-Douglas has authorized Mitsubishi Heavy Industries, a Japanese company, to use its trademarks, patents, and other proprietary knowledge to manufacture F-15 fighter planes. Mitsubishi Heavy Industries pays McDonnell-Douglas. This is an example of:

contract manufactring

Management is the process of guiding the development, maintenance, and allocation of objectives.

false/ of resource to attain organizational goals

_____ financing is a form of business financing consisting of borrowed funds that must be repaid with interest over a stated time period.

debt

The two forms of business financing are _____ (borrowed funds) and _____ (ownership funds).

debt equity

The _____ summarizes an organization's financial status at the end of an accounting period.

balance sheet

Which of the following statements about the Federal Deposit Insurance Corporation (FDIC) is true?

The manner in which the FDIC is set up helps protect depository institutions from the rigors of true market competition

CoolBrands International has entered an agreement with Binney & Smith to create a line of frozen novelties based on the Crayola brand, including pops, bars, sandwiches, cups, cones, sundaes and shakes. CoolBrands will pay Binney & Smith a royalty for the right to use the Crayola trademark. This is an example of:

a licensing agreement

Customer satisfaction:

a measurement that determines how happy customers are with a company's products, services, and capabilities.

Andy Yocom was looking to start a small business so he could be his own boss. While golfing one day, he saw prime advertising space on the flags on the course. He has decided to call his new venture Invision Golf Group Inc. What should he include in his business plan?

all of the above

Which of the following factors affects an employee's compensation?

all of the above

An economic system based on competition in the marketplace and private ownership of the factors of production is known as:

capitalism

In a _____, the factors of production are owned collectively rather than individually, and no incentives to work harder or to produce quality products are provided.

communist economy

What type of business organization generates the most total sales?

corporation

Which of the following is NOT one of the four functions of management?

elucidating

The least costly and least risky method for selling a product on the global market is:

exporting

_____ is the process of hiring, developing, motivating, and evaluating people in order to achieve organizational goals.

human resource management

International accounting standards:

international principles and rules for the presentation of financial accounts.

_____ refers to sending work functions to another country resulting in domestic workers losing their jobs.

outsourcing

The most common form of business organization is the:

sole proprietorship

The _____ is an agreement that dramatically lowered trade barriers worldwide and created the new World Trade Organization (WTO).

Uruguay round

_____ is the system used to record a firm's financial transactions in a routine and clerical process.

bookkeeping

_____ is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.

marketing

A company that has a global vision:

that management recognizes and reacts to international marketing opportunities, uses effective marketing strategies,