Important provisions of the Sarbanes-Oxley Act:

Require CEO and CFO to certify the financial reports

An unfavorable balance of trade occurs when the value of

imports exceed the value of exports

When demand exceeds capacity, all of the following are reasonable options for the firm except

turning away some long-time customers

The fundamental accounting equation states: Assets=

liabilities plus owner's equity

Title VII of the Civil Rights Act of 1964

prohibits discrimination on race, religion, sex, or origin

All of the following are sources of external recruiting except

using recommendations of present employees

In the control process the first step is to:

set clear and appropriate standards

Unlimited liability means

the owner is responsible for all business debts.

The elements of the marketing mix are

product, price, place, and promotion

Significance of the name "preferred stock"

it claims on dividends are paid before those of common stock

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PBM Final Exam Study #1

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Questions 94

Answers

1
Contractual agreement where one firm gives another permission to produce and market its product
Joint Venture
Exporting
Countertrade
Licensing
2
The simplest form of business owned and operated by one person is called a(n)
franchise
sole proprietorship
partnership
S-corporation
3
Acquiring funds through borrowing represents:
equity financing
debt financing
speculative capital
venture capital
4
You can work 40 hours anytime between Monday through Saturday between 7 a.m. and 10 p.m.
part-time
flex-schedule
job-sharing
flextime
5
The number of units that must be sold for the total revenue to equal the total cost is called
breakeven
parity
intersect
stabilization
6
Management function determining whether an organization is progressing towards its goal
Officiating
Leading
Controlling
Organizing
7
A company had sales revenues of $1,500,000. Expenses were $800,000. What was the profit?
$2,300,000
$800,000
$1,500,000
$700,000
8
When starting a corporation, people submit articles of incorporation to
the Small Business Administration
a county judge
a secretary of state
the U.S. Attorney General
9
Important provisions of the Sarbanes-Oxley Act:
Encourage outside CPA firms to deliver several services
Require CEO and CFO to certify the financial reports
Approve corporate loans to directors of the company
Encourage the destruction of financial documents
10
Consumers purchase these goods with a minimum of shopping effort.
specialty goods
shopping goods
convenience goods
unsought goods
11
Method of inventory control that suppliers deliver parts and materials just as they are needed
just-in-time inventory
purchase planning
flexible manufacturing
materials resource planning
12
Which of the following represents the largest floor-based stock exchange in the world?
NYSE Euronext
Chicago Stock Exchange
American Stock Exchange
NASDAQ
13
___ involves creating a vision for others to follow, establishing values and ethics
leadership
organizing
tactical planning
production management
14
Purchasing products or materials in other nations and bringing them into one's own country
exporting
trading
balancing
importing
15
Narrow span of management implies the height of the organization will be__; wide span implies
short; tall
flat; sloped
short; tall
tall; flat
16
An unfavorable balance of trade occurs when the value of
imports equal the value of exports
imports exceed the value of exports
exports exceed the value of imports
cash inflows are equal to the value of cash outflows
17
When demand exceeds capacity, all of the following are reasonable options for the firm except
turning away some long-time customers
starting a second or third shift
operating overtime hours to meet demand
subcontracting part of the work to other producers
18
Document that describes the nature of the business, target market, competitive advantage
professional action plan
entrepreneurial mission statement
business plan
profit and loss statement
19
The fundamental accounting equation states: Assets=
payables plus cash equivalents
liabilities plus receivables
liabilities plus owner's equity
liabilities minus owner's equity
20
Title VII of the Civil Rights Act of 1964
requires firms to have an affirmative action plan
gives all citizens over the age of 18 the right to vote
prohibits firms from using employment testing
prohibits discrimination on race, religion, sex, or origin
21
All employers are required by law to provide certain benefits to their employees. An example
health insurance
reduced-price cafeterias
unemployment insurance
pension programs
22
___ are the firm's after tax profits that are distributed to stockholders.
Interest payments
Dividends
Equity capital
Retained earnings
23
Most large cities there are a large number of bakeries. These bakeries produce similar products
monopolistic competition
an oligopoly
a monopoly
perfect competition
24
An economic system in which individuals and businesses make the decisions is called a
market economy
command economy
planned economy
product economy
25
By definition, every country has a(n) ____ advantage in some product.
relative
absolute
comparative
superior
26
Primary disadvantage of both a sole proprietorship and a partnership
ease of start-up
unlimited liability
no access to capital
taxing complications
27
All of the following are sources of external recruiting except
newspaper advertising
using recommendations of present employees
recruiting on college campuses
using employment agencies
28
___means tailoring products to meet the needs of a large number of individual customers.
Mass production
Mass customization
Competing in time
Feedback response production
29
Borden offers snacks and dairy along with films and other nonfoods. This is Borden's
product line
produce life cycle
product mix
product differentiation
30
The strategy of using borrowed funds to increase the rate of return for stockholders.
pledging
factoring
retained earnings
leverage
31
Del Aluminum uses its stock of unsold aluminum products as collateral for a short term loan
an unsecured loan
a revolving credit agreement
a secured loan
factoring
32
The top governing body of a corporation
incorporators
stockholders
board of directors
officers
33
Customers, employees, stockholders, suppliers, creditors of a business
stakeholders
market makers
economic environment
social mentors
34
Fern Motors is offering a rebate on cars purchased this month. What P of marketing mix?
promotion
place
price
product
35
In the control process the first step is to:
monitor and record performance
set clear and appropriate standards
communicate results and deviations to employees
compare results to plans and standards
36
Line of authority that moves from the top of hierarchy to the lowest level
organizational design
chain of command
chain of logic
delegation of contingent authority
37
Rating an organization's practices, processes, and products against the best of the world
benchmarketing
outsourcing
webworking
core competencies
38
Unlimited liability means
the owner is responsible for all business debts.
creditors will absorb any loss from nonpayment of debt.
the business can borrow money for any type of purchase.
there is no limit on the amount an owner can borrow.
39
Strategy of charging the highest possible price for a product during the introduction stage
sample pricing
penetration pricing
prestige pricing
price skimming
40
The elements of the marketing mix are
markets, goods, pricing, and transportation
product, price, merchandising, and promotion
product, price, place, and promotion
product, buyers, sellers, and price
41
The ____ is a statistic used to compute the pace of inflation or deflation.
index of inflationary trends
index of leading indicators
gross domestic product
consumer price index
42
Empowerment and better educated lower level management, span of control in organizations has
become an obsolete term in organization design
increased
decreased
led to tall organizations
43
U.S. hires workers in other countries
domestic outsourcing
offshore outsourcing
offshore procurement
foreign distribution
44
Hierarchy of human needs was developed by
Maslow
Herzberg
Taylor
McGregor
45
Assignment part of a manager's work and authority to a worker
authorization
accountability
responsibility
delegation
46
Two consecutive three-month periods of decline in a country's gross domestic product
repression
trough
prosperity
recession
47
A market segment toward which a company directs its marketing effort is called a
target market
consumer market
marketing group
marketing sample
48
A firm's ___ reports the profit or loss for the firm over a specified time period.
income statement
bank statement
statement of cash flows
balance sheet
49
Means giving employees the authority and responsibility to respond quickly to customer requests
restructuring
empowerment
intrapreneuring
delineating
50
Significance of the name "preferred stock"
it claims on dividends are paid before those of common stock
more corporations issue preferred stock
this stock is available only to select individuals
type of stock that most investors would rather have
51
Stage in the evolution of new products in which the product is introduced in a limited way
test marketing
business analysis
screening
commercialization
52
The most basic form of company ownership and includes voting rights and dividends
carrier stock
capital stock
preferred stock
common stock
53
Dana is a supervisor at a small manufacturing plant. Her pay is $635/week. Dana is paid on
commission pay plan
salary pay system
rolling rate system
income averaging plan
54
In which order do the stages of the product life cycle occur?
growth, introduction, maturity, decline
introduction, maturity, slowdown, decline
introduction, growth, maturity, decline
innovation, distribution, maturity, decline
55
Process of establishing and maintaining contacts
social integration
orienteering
networking
training and development
56
Borrowed money that will be used for more than one year
long-term financing
trade credit
secured financing
equity capital
57
A lack of guests during the peak season. These resorts have a felt an impact from ___ forces.
technological
sociocultural
competitive
economic
58
Statement with best description of how scientific management viewed employees
Employees will only exert their maximum effort if goals
Employees are given a great deal of freedom and flexibility
Employees are like machines programmed to perform
Employees are individuals who do not respond the same way
59
Plan to deal with external circumstances
retroactive planning
concurrent planning
tactical planning
contingency planning
60
The balance sheet is composed of the following types of accounts:
operating expenses, cash flow, and capital expenditures
capital, cost, and valuation
revenue, expenses, and earnings
assets, liabilities, and owner's equity
61
Which of the following is not a disadvantage of sole proprietorship?
double taxation
unlimited liability
lack of money
lack of continuity
62
Human resources department administers a(n) __ program to introduce new employees.
on-the-job training
job selection
orientation
employee training
63
Leadership style advocating that a leader makes all decisions and tells subordinates what to do
laissez-faire
participative
authoritarian
democratic
64
U.S. imports no more than 100 million tons of sugar from India. This type of import restriction
import duty
import quota
foreign exchange control
embargo
65
A list of duties and working conditions of a job
specification
orientation
analysis
description
66
The U.S. economy is now characterized as a(n) ____ economy.
industrial
centralized
service
stagnant
67
The idea that satisfaction and dissatisfaction are distinct dimensions is referred to
motivation-hygiene theory
scientific management
Theory X and Theory Y
the hierarchy of needs
68
Which statement is most accurate about the Federal Reserve Bank (the Fed)
Fed ensures the US maintains enough gold reserves
Fed is an agency of the U.S. Treasury Department
Fed is the primary government agency to carry out policies.
Fed manages the U.S. money supply and interest rates.
69
Arizona Jean Co. brand of jeans, owned by JCPenney, is a(n) ____ brand.
national
private
generic
individual
70
If you own all the stock of a corporation and it is not sold to the general public
alien corporation
limited liability company
closed corporation
master limited partnership
71
Legally, a partnership must
not have any general partners.
have at least one limited partner.
make all owners general partners.
have a least one general partner.
72
Which government agency is responsible for encouraging the development of small business?
Federal Trade Commission
Entrepreneur Assistance Center
Federal Microloan Authority
Small Business Administration
73
The three countries participating in NAFTA are:
Canada, Nicaragua, and Mexico
Canada, Mexico, and the United States
Mexico, Panama, and the United States
Canada, Panama, and the United States
74
Cultural diversity represents
the differences among people in a work force.
a business theory that is no longer valid.
a technical skill.
a statistical method used to project sales revenue
75
Process of systematically gathering, recording, and analyzing marketing data
marketing segmentation
target marketing
marketing research
market sampling
76
What are two types of costs associated with inventory?
holding costs and selling costs
stock-out costs and holding costs
shipping and handling costs and holding costs
overstock costs and stock-out costs
77
If the demand for a product declines, what happens to the price of the product?
The price increases.
The price decreases.
The price stays the same.
The equilibrium price will be maintained.
78
Assets are $124,000, Liabilities are $31,000, which of the following statements is correct?
The firm's current liabilities are $24,000
The owners' equity is $155,000
The firm's current assets are $62,000
The owners' equity is $93,000
79
Planning, organizing, leading/motivating, and controlling make up the
four basic functions in the management process
step-by-step management procedure
four organizational goals every firms wants to achieve
process of coordinating people and other resources
80
The board of governors of the Fed determines
exchange rates
U.S. monetary policy
and monitors the inflows and outflows of gold reserves
how much money the U.S. will loan to foreign governments
81
Most important impact of the Hawthorne study
changed the direction of research away from Taylor's
physical working conditions have no impact on productivity
showed that employees could be programmed like machines
helps managers find level of lighting for optimal production
82
A merger between two firms that make and sell similar products in similar markets
joint venture
vertical merger
cooperative
horizontal merger
83
Often in business the greater the risk, the
lower the value provided to society
lower the expected revenues
greater the potential reward
greater the number of stakeholders
84
Executive summary section of the business plan contains:
information that will capture attention of bankers
a financial summary prepared by the business' accountant
computerized info that readers can access interactively
qualifications, experience, and education of entrepreneur
85
A firm that has sizeable investments and a physical presence in several foreign countries.
multinational corporation
trade cartel
host company
import trading company
86
Volunteers for SCORE are
retired business people from different industries
graduate business students working on projects
active executives from large corporations
mostly university business professors
87
Ethical behavior covers a ____ range of conduct than legal behavior.
less demanding
more limited
wider
smaller
88
The type of utility on which production and operations management focuses is ___ utility.
place
form
possession
time
89
____ refers to how quickly an asset can be converted into cash.
Fundability
Velocity
Liquidity
Accessibility
90
The resources that contribute to the create of wealth are known as
factors of production
production aggregates.
production coefficients
production technologies.
91
What does double taxation mean?
Companies must pay taxes on earnings and stockholders do to
Companies have to pay both sales taxes and income taxes.
Companies pay taxes on corporate income and on distributions
Companies must pay taxes on their income and employees pay
92
The head of the marketing department at CBS supervises twelve people in her department.
span of management
chain of command
level of authority
degree of specialization
93
Manager who has the ability to see the big picture and how it fits together has ____ skills
conceptual
technical
leadership
interpersonal
94
Government agency with power to investigate complaints of discrimination
Equal Employment Opportunity Commission
Civil Service Commission
Better Business Bureau
National Alliance of Business

PBM Final Exam Study #1 Flashcards | StudBud