Business 001 - Introduction to Business » Fall 2020 » Final Exam

Need help with your exam preparation?

Question #1
The person who directs a firm's management information systems and related computer operations is often called the ________.
A.   chief information officer
B.   executive information manager
C.   chief executive officer
D.   financial advisor
Question #2
Autocratic leaders make decisions______________.
A.   by including subordinates in the decision-making process
B.   offer little input
C.   win loyalty of employees through friendship
D.   on his or her own without consulting employees
Question #3
There is a new emphasis in human resources for which of the following reason(s):
A.   Increased legal complexities
B.   Increased costs
C.   Increased productivity
D.   All of the above
Question #4
The four goals of advertising are:
A.   attention, interest, desire and alternative
B.   attention, interest, desire and advantage
C.   observation, interest, desire and action
D.   attention, interest, desire and action
Question #5
Businesses selling to the consumer market is also known as:
A.   B2B
B.   C2B
C.   B2C
D.   B2B2
Question #6
The “price” element of marketing means the product or service must be available to consumers when they want it.
A.   TRUE
B.   FALSE
Question #7
Ann owns a business and is reviewing her company's current financial statements. As a user of accounting information, Ann is most interested in using this information to _____.
A.   plan and control activities
B.   approve new issues of stocks and bonds
C.   evaluate credit risk
D.   evaluate The Federal Reserve’s monetary policy
Question #8
Walker is a loan officer for a bank and is reviewing the financial statements of a prospective borrower. As a user of accounting information, Walker is most interested in using this information _____.
A.   in contract negotiations
B.   to plan and control daily operations
C.   to make an investment decision and estimate its future returns
D.   to evaluate financial soundness of potential clients
Question #9
Market segmentation may include:
A.   Geographic – region, population density, zip code.
B.   Psychographic – people with similar lifestyles, attitudes, opinions.
C.   Demographic – age, gender, income, education, family size, occupation.
D.   All of the above
Question #10
Variable costs are costs that:
A.   are the same as fixed costs.
B.   change with the number of units produced.
C.   don’t change with the number of units produced.
D.   none of the above
Question #11
All of the following are assets EXCEPT _____.
A.   cash
B.   patents
C.   inventory
D.   bank loans
Question #12
To provide reliable, consistent, and unbiased information to decision makers, accountants follow guidelines, or standards, known as _____.
A.   the accounting system
B.   Financial Accounting Standards Board (FASB)
C.   the accounting process
D.   generally accepted accounting principles (GAAP)
Question #13
Revenue can be defined as:
A.   selling price multiplied by the number of units sold
B.   assets minus liabilities
C.   the total percentage of cost of goods sold to the amount of sales
D.   the amount of owner’s equity
Question #14
In a high-priced environment, a manufacturer would expect to sell _______ units, but have _______ revenue per unit.
A.   more, more
B.   more, less
C.   less, more
D.   less, less
Question #15
All of the following are liabilities EXCEPT _____.
A.   accounts payable
B.   profits
C.   bank loans
D.   wages payable
Question #16
Milwaukee Fabrication has $80 million in assets and $50 million in owners’ equity. How much does the firm have in liabilities?
A.   $80 million
B.   $20 million
C.   $30 million
D.   $50 million
Question #17
Jayce Products buys a $500,000 machine by taking out a bank loan. The company's assets will _____ by $500,000 while its liabilities will _¬____¬¬ by $500,000.
A.   increase; increase
B.   decrease; decrease
C.   decrease; increase
D.   increase; decrease
Question #18
Which of the following financial statements shows a firm's financial position on a particular date?
A.   Statement of Cash Flows
B.   Statement of Changes in Retained Earnings
C.   Balance Sheet
D.   Income Statement
Question #19
Frank, chief financial officer for a company, wants to take a look at the summary of expenses, revenues, and profits of the firm for the most recent quarter. He can best find this information by consulting the _____.
A.   Cash Flow Statement
B.   Balance Sheet
C.   Income Statement
D.   Statement of Owners’ Equity
Question #20
If your costs are $10 per unit, what would be your selling price with a 40% markup?
A.   $11
B.   $24
C.   $14
D.   $4
Question #21
A firm's balance sheet shows its financial position over a period of time.
A.   FALSE
B.   TRUE
Question #22
The difference between what you own and what you owe is your _____.
A.   debt factor
B.   asset ratio
C.   net worth
D.   gross worth
Question #23
All of the following are types of securities EXCEPT _____.
A.   cash
B.   bonds
C.   stock
D.   mutual funds
Question #24
___ are short-term securities issued by the U.S. Treasury and backed by the full faith and credit of the U.S. government
A.   Treasury bills
B.   Commercial paper
C.   CDs
D.   Corporate Bonds
Question #25
Written communication in business should be:
A.   kept short
B.   possibly sent later
C.   read before sending
D.   all of the above
Question #26
Two types of municipal bonds exist. What are they?
A.   revenue bonds and general obligation bonds
B.   government bonds and mortgage pass-through security bonds
C.   revenue bonds and junk bonds
D.   corporate bonds and general obligation bonds
Question #27
The ____ is a collection of financial markets in which previously issued securities are traded among investors.
A.   super market
B.   primary market
C.   secondary market
D.   government market
Question #28
The three elements of a legal contract are ___________________________.
A.   offer, acceptance, and consideration
B.   offer, acceptance, and convenience
C.   offer, activities, and consideration
D.   offer, acceptance, and consciences
Question #29
The gain or loss that results from an investment over a specified period of time is known as _____.
A.   return
B.   probability
C.   risk
D.   value
Question #30
In order for a contractual offer to be valid, it must contain ___________________________.
A.   “language of potential”
B.   “language of promise”
C.   “language of protection”
D.   “language of provision”
Question #31
A contract may be expressed or ___________________.
A.   implied by action
B.   innate by action
C.   instructed by action
D.   implied by relationship
Question #32
  
A.   both b and c
B.   occasional misuse
C.   possible hazard
D.   foreseeable misuse
Question #33
All of the following could be considered “start-up” costs, except_____________?
A.   utility deposits
B.   insurance
C.   phone system
D.   direct expenses
Question #34
Accounts Receivable(s) is money owed to our business.
A.   TRUE
B.   FALSE
Question #35
Expenses generated by maintaining the office are called indirect expenses.
A.   TRUE
B.   FALSE
Question #36
Expenses generated by the actual production of the product or service are called indirect expenses.
A.   TRUE
B.   FALSE
Question #37
Profit is generated when total income is greater than total expenses.
A.   FALSE
B.   TRUE
Question #38
The two main considerations when deciding a business’ legal structure are: liability and tax implications
A.   FALSE
B.   TRUE
Question #39
The money used to finance the day to day operations of the business can come from:
A.   lines of credit
B.   both a and b
C.   net sales
D.   a but not b
Question #40
A limited liability corporation provides the least protection of the owner’s personal assets.
A.   TRUE
B.   FALSE
Question #41
All of the following are advantages of a partnership, except:
A.   No personal liability for the partners
B.   Combination of resources
C.   Ease of set up
D.   Avoidance of double taxation
Question #42
In most businesses a General Manager is required by law.
A.   FALSE
B.   TRUE
Question #43
Gross Revenue $60,000 Cost of Goods Sold $30,000 Gross Profit: Indirect Expenses $10,000 Net Profit: The Gross Profit is ____________ and the Net Profit is ______________.
A.   $30,000, $40,000
B.   $20,000, $30,000
C.   $90,000, $100,000
D.   $30,000, $20,000
Question #44
Which of the following statements is true of management?
A.   Management is the process of achieving organizational objective through people and other resources.
B.   Management happens only at the top management levels.
C.   Management principles do not apply to not-for profit organizations.
D.   Management is solely the process of reporting organizational successes and failures to investors and others.
Question #45
Which of the following management functions is most likely to be responsible for planning for staffing needs, recruiting and hiring workers, providing for training and evaluating performance, determining compensation and benefits, and overseeing employee separation?
A.   change management
B.   research and development (R & D)
C.   human resource management
D.   human asset accounting
Question #46
Which of the following is the first step in the recruitment process?
A.   interviewing candidates
B.   identifying job requirements
C.   conducting employment tests
D.   reviewing applications and resumes
Question #47
Saleem, an electrician for FCG Electricals, is paid $40 for each hour he works during the day. After 5 p.m. and on weekends, he is paid the overtime rate of one and one-half times the regular hourly rate. In this scenario, Saleem is paid a _____.
A.   salary
B.   wage
C.   commission
D.   bonus
Question #48
Antonio is paid $55,000 per year as a research analyst. This type of compensation is called a(n) _____.
A.   commission
B.   salary
C.   wage
D.   bonus
Question #49
The 4 P’s of marketing include all of following, except:
A.   promotion
B.   production
C.   price
D.   product
Question #50
The law of supply states that producers will offer more of a product as its price ______ and less of a product as its price ________.
A.   rises, drops
B.   drops, rises
C.   rises, rises
D.   rises, remains constant
Question #51
A subsidy is a government payment to help a domestic business compete with foreign firms.
A.   FALSE
B.   TRUE
Question #52
Fixed costs, such as rent, insurance and utilities must be paid regardless of the the number of units produced and sold.
A.   TRUE
B.   FALSE
Question #53
Mr. Caruana’s teaching skills can best be described as:
A.   amazing, exciting, gifted
B.   amateurish, boorish, pontifical
C.   mundane, tired, dull
D.   humdrum, unremarkable, repetitive

Need help with your exam preparation?