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

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Question #1
The person who directs a firm's management information systems and related computer operations is often called the ________.
A.   chief executive officer
B.   executive information manager
C.   chief information officer
D.   financial advisor
Question #2
Autocratic leaders make decisions______________.
A.   win loyalty of employees through friendship
B.   on his or her own without consulting employees
C.   offer little input
D.   by including subordinates in the decision-making process
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 action
C.   observation, interest, desire and action
D.   attention, interest, desire and advantage
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.   approve new issues of stocks and bonds
B.   evaluate credit risk
C.   evaluate The Federal Reserve’s monetary policy
D.   plan and control activities
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.   to evaluate financial soundness of potential clients
B.   in contract negotiations
C.   to make an investment decision and estimate its future returns
D.   to plan and control daily operations
Question #9
Market segmentation may include:
A.   Psychographic – people with similar lifestyles, attitudes, opinions.
B.   Demographic – age, gender, income, education, family size, occupation.
C.   Geographic – region, population density, zip code.
D.   All of the above
Question #10
Variable costs are costs that:
A.   change with the number of units produced.
B.   are the same as fixed costs.
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.   patents
B.   inventory
C.   cash
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.   generally accepted accounting principles (GAAP)
D.   the accounting process
Question #13
Revenue can be defined as:
A.   assets minus liabilities
B.   selling price multiplied by the number of units sold
C.   the amount of owner’s equity
D.   the total percentage of cost of goods sold to the amount of sales
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, less
D.   less, more
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.   $20 million
B.   $30 million
C.   $80 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; decrease
B.   decrease; increase
C.   increase; increase
D.   decrease; decrease
Question #18
Which of the following financial statements shows a firm's financial position on a particular date?
A.   Balance Sheet
B.   Income Statement
C.   Statement of Cash Flows
D.   Statement of Changes in Retained Earnings
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.   Statement of Owners’ Equity
B.   Balance Sheet
C.   Cash Flow Statement
D.   Income Statement
Question #20
If your costs are $10 per unit, what would be your selling price with a 40% markup?
A.   $24
B.   $14
C.   $4
D.   $11
Question #21
A firm's balance sheet shows its financial position over a period of time.
A.   TRUE
B.   FALSE
Question #22
The difference between what you own and what you owe is your _____.
A.   net worth
B.   asset ratio
C.   gross worth
D.   debt factor
Question #23
All of the following are types of securities EXCEPT _____.
A.   bonds
B.   stock
C.   cash
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.   CDs
B.   Commercial paper
C.   Treasury bills
D.   Corporate Bonds
Question #25
Written communication in business should be:
A.   read before sending
B.   possibly sent later
C.   kept short
D.   all of the above
Question #26
Two types of municipal bonds exist. What are they?
A.   revenue bonds and junk bonds
B.   corporate bonds and general obligation bonds
C.   revenue bonds and general obligation bonds
D.   government bonds and mortgage pass-through security bonds
Question #27
The ____ is a collection of financial markets in which previously issued securities are traded among investors.
A.   primary market
B.   secondary market
C.   government market
D.   super market
Question #28
The three elements of a legal contract are ___________________________.
A.   offer, acceptance, and consciences
B.   offer, acceptance, and convenience
C.   offer, activities, and consideration
D.   offer, acceptance, and consideration
Question #29
The gain or loss that results from an investment over a specified period of time is known as _____.
A.   probability
B.   value
C.   return
D.   risk
Question #30
In order for a contractual offer to be valid, it must contain ___________________________.
A.   “language of provision”
B.   “language of potential”
C.   “language of promise”
D.   “language of protection”
Question #31
A contract may be expressed or ___________________.
A.   implied by relationship
B.   implied by action
C.   innate by action
D.   instructed by action
Question #32
  
A.   foreseeable misuse
B.   both b and c
C.   possible hazard
D.   occasional misuse
Question #33
All of the following could be considered “start-up” costs, except_____________?
A.   direct expenses
B.   utility deposits
C.   insurance
D.   phone system
Question #34
Accounts Receivable(s) is money owed to our business.
A.   FALSE
B.   TRUE
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.   FALSE
B.   TRUE
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.   net sales
B.   both a and b
C.   lines of credit
D.   a but not b
Question #40
A limited liability corporation provides the least protection of the owner’s personal assets.
A.   FALSE
B.   TRUE
Question #41
All of the following are advantages of a partnership, except:
A.   No personal liability for the partners
B.   Avoidance of double taxation
C.   Combination of resources
D.   Ease of set up
Question #42
In most businesses a General Manager is required by law.
A.   TRUE
B.   FALSE
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.   $20,000, $30,000
B.   $30,000, $20,000
C.   $30,000, $40,000
D.   $90,000, $100,000
Question #44
Which of the following statements is true of management?
A.   Management happens only at the top management levels.
B.   Management is solely the process of reporting organizational successes and failures to investors and others.
C.   Management principles do not apply to not-for profit organizations.
D.   Management is the process of achieving organizational objective through people and other resources.
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.   human asset accounting
B.   change management
C.   human resource management
D.   research and development (R & D)
Question #46
Which of the following is the first step in the recruitment process?
A.   interviewing candidates
B.   conducting employment tests
C.   identifying job requirements
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.   commission
B.   bonus
C.   wage
D.   salary
Question #48
Antonio is paid $55,000 per year as a research analyst. This type of compensation is called a(n) _____.
A.   wage
B.   commission
C.   bonus
D.   salary
Question #49
The 4 P’s of marketing include all of following, except:
A.   price
B.   product
C.   promotion
D.   production
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, rises
B.   rises, remains constant
C.   drops, rises
D.   rises, drops
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.   mundane, tired, dull
C.   humdrum, unremarkable, repetitive
D.   amateurish, boorish, pontifical

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