BUS 100 FINAL EXAM REVIEW

Question 1

Typically, only highly regarded customers with financial stability receive

Accepted Answer

unsecured loans.

Question 2

Which financial statement reports the company's revenues and selling cost over a period of time

Accepted Answer

income statement

Question 3

_refers to the strategy of using borrowed funds to increase the rate of return for stockholders

Accepted Answer

leverage

Question 4

Undercapitalization refers to the problem of

Accepted Answer

insufficient start-up funds.

Question 5

A company's income statement is important to accountants and other stakeholders. It reveals a

Accepted Answer

company's ability to earn a profit over time.

Question 6

International issues of social responsibility and ethical behavior are

Accepted Answer

difficult and not as clear-cut as U.S. firms want them

Question 7

An ethical dilemma refers to a situation where you must

Accepted Answer

choose between equally unsatisfactory alternatives.

Question 8

Which of the following financial statements will reveal a firm's bottom line?

Accepted Answer

income statement

Question 9

Which business function involves credit management/collecting funds from customers?

Accepted Answer

finance

Question 10

_means that the mutual fund company does not show a fee or commission for investing in the fund

Accepted Answer

no load

Question 11

A(n) __________ accepts savings and checking account deposits and provides home mortgage loans.

Accepted Answer

savings and loan association

Question 12

Top leaders in government and business today are

Accepted Answer

held to higher ethical standards than in the past.

Question 13

The position a firm takes on issues that affect the corporation as well as society is known as

Accepted Answer

corporate policy.

Question 14

The ___________ plays a role in making certain that checks clear and sellers get paid

Accepted Answer

Federal Reserve system

Question 15

Which of these represents a special feature included with some bond issues?

Accepted Answer

convertibility of a bond into a stock

Question 16

A rapid increase in the money supply may lead to a(n)

Accepted Answer

increase in the rate of inflation.

Question 17

when prices r rising, using the FIFO eval will result in ________ net income figures than LIFO

Accepted Answer

higher

Question 18

to calculate the current ratio for your firm, you divide the total value of current assets by

Accepted Answer

the total value of current liabilities.

Question 19

The strength of the U.S. dollar relative to other currencies depends mainly on

Accepted Answer

performance o the U.S. economy relative to other economies

Question 20

If a business fails to meet its responsibilities to employees which of the following will occur

Accepted Answer

Employees do the minimum needed to get by

Question 21

_ measures the amount of profit earned by a company for each share of outstanding common stock.

Accepted Answer

Basic earnings per share (basic EPS)

Question 22

An investor who purchases stock in a company becomes a(n)

Accepted Answer

owner

Question 23

the Fed chairman is in control of

Accepted Answer

the U.S money supply

Question 24

Compliance-based ethics codes typically

Accepted Answer

rely on laws and regulations outside the firm for guidance.

Question 25

A stock certificate contains which of the following?

Accepted Answer

the type of stock the investor is buying

Question 26

The terms of the agreement in a bond issue are referred to as the

Accepted Answer

indenture terms.

Question 27

We describe charitable donations by corporations to nonprofit organizations as __________.

Accepted Answer

corporate philanthropy

Question 28

Which provides an assessment of the relative level of risk of a particular firm's bond issue?

Accepted Answer

Standard & Poor's

Question 29

The term ________ refers to investors who anticipate increases in stock prices.

Accepted Answer

bulls

Question 30

________ persuaded Congress to establish the first central bank in the United States

Accepted Answer

Alexander Hamilton

Question 31

The Federal Reserve represents a "bankers' bank" because

Accepted Answer

makes loans to banks that need additional funds

Question 32

Net profit refers to

Accepted Answer

the net earnings after the deduction of all expenses

Question 33

An increase in the rate of inflation would likely result from a(n)

Accepted Answer

increase in the supply of money in circulation.

Question 34

The ________ insures holders of accounts in savings and loan associations.

Accepted Answer

Savings Association Insurance Fund

Question 35

A time deposit that earns interest is a

Accepted Answer

certificate of deposit

Question 36

The bottom line of an income statement shows the firm's

Accepted Answer

net income or net loss

Question 37

A firm's carbon footprint is

Accepted Answer

the amount of carbon it releases in effort to do business

Question 38

The Foreign Corrupt Practices Act deals with

Accepted Answer

bribery to obtain business.

Question 39

Government bonds can vary in denomination, but most corporate bonds are issued in

Accepted Answer

$1,000 denominations.

Question 40

Through equity financing, stockholders become _________ of the firm.

Accepted Answer

owners

Question 41

Which of the following is a major difference between Internet banks and traditional banks?

Accepted Answer

Online banks have lower overhead costs.

Question 42

The danger in writing new laws to correct behavior is that

Accepted Answer

people will think that if its legal is ethically acceptable.

Question 43

_________ represent a powerful force in the buying and selling of corporate securities.

Accepted Answer

institutional investors

Question 44

The _______ ratio helps determine the ability of a firm to repay its short-term debts

Accepted Answer

acid-test

Question 45

A promissory note that requires the borrower to repay the loan in specified installments is a

Accepted Answer

term loan agreement.

Question 46

When issuing stock to obtain long-term funding, dividend payments are

Accepted Answer

not tax deductible

Question 47

Which of these is a common source of long-term financing for a corporation?

Accepted Answer

a bond issue

BUS 100 FINAL EXAM REVIEW

Questions 47

BUS 100 FINAL EXAM REVIEW

Questions 47