BUS 475 FINAL EXAM (SET-01) - 31315

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1) What is the preparation of reports for each level of responsibility in the company’s organization chart called?

A.  Responsibility reporting

B.  Static reporting

C.  Exception reporting

D.  Master budgeting analysis

 

2) The income statement and balance sheet columns of Pine Company's worksheet reflects the following totals:

Income Statement  Balance Sheet Dr. Cr.  Dr. Cr.Totals  $58,000 $48,000  $34,000 $44,000 To enter the net income (or loss) for the period into the above worksheet requires an entry to the __________.

A.  income statement credit column and the balance sheet debit column

B.  income statement debit column and the balance sheet credit column

C.  income statement debit column and the income statement credit column

D.  balance sheet debit column and the balance sheet credit column

 

3) Managerial accounting __________.

A.  is governed by generally accepted accounting principles

B.  is concerned with costing products

C.  pertains to the entity as a whole and is highly aggregated

D.  places emphasis on special-purpose information

 

4) These are selected account balances on December 31, 2008.

Land (location of the corporation's office building) $150,000

Land (held for future use) 225,000

Corporate Office Building 900,000

Inventory 300,000

Equipment 675,000

Office Furniture 150,000

Accumulated Depreciation 450,000

What is the net amount of property, plant, and equipment that will appear on the balance sheet?

A.  $1,650,000

B.  $2,400,000

C.  $1,950,000

D.  $1,425,000

5) Disney’s variable costs are 30% of sales. The company is contemplating an advertising campaign that will cost $22,000. If sales are expected to increase $40,000, by how much will the company's net income increase?

A.  $28,000

B.  $12,000

C.  $18,000

D.  $6,000

 

6) The income statement and balance sheet columns of Pine Company's worksheet reflects the following totals:

Income Statement  Balance Sheet Dr. Cr.  Dr. Cr.Totals  $58,000 $48,000  $34,000 $44,000

The net income (or loss) for the period is __________.

A.  $10,000 income

B.  $10,000 loss

C.  $48,000 income

D.  not determinable

 

7) The cost of an asset and its fair market value are __________.

A.  the same when the asset is sold

B.  irrelevant when the asset is used by the business in its operations

C.  never the same

D.  the same on the date of acquisition

 

8) The income statement and balance sheet columns of Pine Company's worksheet reflects the following totals:

Income Statement  Balance Sheet

Dr. Cr.  Dr. Cr.

Totals  $58,000 $48,000  $34,000 $44,000

Closing entries are necessary for __________.

A.  temporary accounts only

B.  both permanent and temporary accounts

C.  permanent accounts only

D.  permanent or real accounts only

 

 

 

9) Which list below best describes the major services performed by public accountants?

A.  Employee training, auditing, bookkeeping

B.  Auditing, taxation, management consulting

C.  Bookkeeping, mergers, budgets

D.  Cost accounting, production scheduling, recruiting

 

10) The first step in activity-based costing is to __________.

A.  compute the activity-based overhead rate per cost driver

B.  identify the cost driver that has a strong correlation to the activity cost pool

C.  assign manufacturing overhead costs for each activity cost pool to products

D.  identify and classify the major activities involved in the manufacture of specific products

 

11) The standards and rules that are recognized as a general guide for financial reporting are called __________.

A.  generally accepted accounting principles

B.  standards of financial reporting

C.  generally accepted accounting standards

D.  operating guidelines

 

12) Sam's Used Cars uses the specific identification method of costing inventory. During March, Sam purchased three cars for $6,000, $7,500, and $9,750, respectively. During March, two cars are sold for $9,000 each. Sam determines that at March 31, the $9,750 car is still on hand. What is Sam’s gross profit for March?

A.  $4,500

B.  $8,250

C.  $5,250

D.  $750

 

13) Of the following companies, which one would not likely employ the specific identification method for inventory costing?

A.  Farm implement dealership

B.  Hardware store

C.  Music store specializing in organ sales

D.  Antique shop

 

14) The major reporting standard for management accounts is __________.

A.  the Sarbanes-Oxley Act of 2002

B.  generally accepted accounting principles

C.  the Standards of Ethical Conduct for Practitioners of Management Accounting and Financial Management

D.  relevance to decisions

 

 

15) In computing GDP, market prices are used to value final goods and services because __________.

A.  market prices do not change much over time, so it is easy to make comparisons between years

B.  Market prices are not used in computing GDP

C.  market prices reflect the values of goods and services

D.  if market prices are out of line with how people value goods, the government sets price ceilings and price floors

 

16) When a firm sells a good or a service, the sale contributes to the nation’s income __________.

A.  only if the buyer of the good or service is a household or another firm

B.  We have to know whether the item being sold is a good or a service in order to answer the question

C.  only if the buyer of the good or service is a household

D.  whether the buyer of the good or a service is a household, another firm, or the government

 

17) The general term for market structures that fall somewhere in-between monopoly and perfect competition is __________.

A.  imperfectly competitive markets

B.  incomplete markets

C.  oligopoly markets

D.  monopolistically competitive markets

 

 

 

18) For a college student who wishes to calculate the true costs of going to college, the costs of room and board __________.

A.  should be counted only to the extent that they are more expensive at college than elsewhere

B.  should be counted in full, regardless of the costs of eating and sleeping elsewhere

C.  usually exceed the opportunity cost of going to college

D.  plus the cost of tuition, equals the opportunity cost of going to college

 

19) A rational decision maker __________.

A.  ignores the likely effects of government policies when he or she makes choices

B.  ignores marginal changes and focuses instead on “the big picture”

C.  takes an action only if the marginal benefit of that action exceeds the marginal cost of that action

D.  takes an action only if the combined benefits of that action and previous actions exceed the combined costs of that action and previous actions

 

20) To move the allocation of resources closer to the social optimum, policymakers should typically try to induce firms in an oligopoly to __________.

A.  form various degrees of cartels

B.  collude with each other

C.  compete rather than cooperate with each other

D.  cooperate rather than compete with each other

 

21) Maurice receives $100 as a birthday gift. In deciding how to spend the money, he narrows his options down to four choices: Option A, Option B, Option C, and Option D. Each option costs $100. Finally he decides on Option B. The opportunity cost of this decision is __________.

A.  the value to Maurice of Options A, C and D combined

B.  the value to Maurice of the option he would have chosen had Option B not been available

C.  $100

D.  $300

 

 

22) In the market for foreign-currency exchange in the open economy macroeconomic model, the amount of net capital outflow represents the quantity of dollars __________.

A.  supplied for the purpose of buying assets abroad

B.  supplied for the purpose of selling assets domestically

C.  demanded for the purpose of buying U.S. net exports of goods and services

D.  demanded for the purpose of importing foreign goods and services

 

23) Consider two items that might be included in GDP: (1) The estimated rental value of owner-occupied housing; and (2) purchases of newly-constructed homes. How are these two items accounted for when GDP is calculated?

A.  Item (1) is included in the consumption component, while item (2) is included in the investment component.

B.  Item (1) is included in the investment component, while item (2) is included in the consumption component.

C.  Only item (2) is included in GDP and it is included in the investment component.

D.  Both item (1) and item (2) are included in the consumption component of GDP.

 

24) Edward Prescott and Finn Kydland won the Nobel Prize in Economics in 2004. One of their contributions was to argue that if a central bank could convince people to expect zero inflation, then the Fed would be tempted to raise output by increasing inflation. This possibility is known as __________.

A.  the monetary policy reaction lag

B.  the time inconsistency of policy

C.  the sacrifice ratio dilemma

D.  inflation targeting

 

25) In the open-economy macroeconomic model, other things the same, a decrease in the interest rate shifts __________.

A.  the demand for dollars in the market for foreign-currency exchange to the left

B.  the supply of dollars in the market for foreign-currency exchange to the right

C.  the supply of dollars in the market for foreign-currency exchange to the left

D.  the demand for dollars in the market for foreign-currency exchange to the right

 

26) In general, the longest lag for __________.

A.  both fiscal and monetary policy is the time it takes for policy to affect aggregate demand

B.  monetary policy is the time it takes to change policy, while for fiscal policy the longest lag is the time it takes for policy to affect aggregate demand

C.  fiscal policy is the time it takes to change policy, while for monetary policy the longest lag is the time it takes for policy to affect aggregate demand

D.  both fiscal and monetary policy is the time it takes to change policy

 

27) Real GDP __________.

A.  evaluates current production at the prices that prevailed in some specific year in the past.

B.  is not a valid measure of the economy's performance, since prices change from year to year.

C.  is a measure of the value of goods only; it excludes the value of services.

D.  evaluates current production at current prices.

 

28) Having individuals actually do the job they are applying for as a test to see if they can do it is __________.

A.  an informal means of screening candidates

B.  a formal means of screening candidates

C.  an approach with high reliability

D.  an approach with low reliability

E.  an approach with high face validity

 

29) Building a dynamic organization is another way of describing which function of management?

A.  Leading

B.  Staffing

C.  Controlling

D.  Planning

E.  Organizing

 

30) To be competitive in a global economy, Europeans must increase their level of:

A.  Espionage activity

B.  Financial subsidy

C.  Philanthropic contributions

D.  Population density

E.  Productivity

 

31) The term used to refer to all kinds of differences including religious affiliation, age, disability status, economic class and lifestyle in addition to gender, race, ethnicity and nationality is:

A.  Selection

B.  Managerial ethics

C.  Recruiting

D.  Diversity

E.  Employment

 

32) Sebastian Stabilio just joined a team of people from throughout his organization whose primary task is to recommend valuable uses for the scrap generated in the manufacturing process. The team meets twice per week; otherwise members work within the usual organizational structure. The team, not permanent, which Sebastian has joined, would be considered a:

A.  Project group

B.  Parallel team

C.  Project team

D.  Work team

E.  Working group

 

33) An invisible barrier that makes it difficult for certain groups, such as minorities and women, to move beyond a certain level in the organizational hierarchy is referred to as the:

A.  Job enrichment theory

B.  Glass floor

C.  Job enlargement concept

D.  Black box theory

E.  Glass ceiling

 

34) Your roommate is interested in starting a business and everybody has been giving him different information about being an entrepreneur. Since you have been studying about entrepreneurship and new ventures, which of these would you tell him is true?

 

A.  Money should not be considered a start-up ingredient

B.  Anyone can start a business

C.  All entrepreneurs need venture capital in order to get started

D.  Successful entrepreneurs take very careful, calculated risks

E.  Entrepreneurs are their own bosses and completely independent

 

35) Teams that work on long-term projects but disband once the work is completed are known as:

A.  Traditional work groups

B.  Parallel teams

C.  Transnational teams

D.  Project and development teams

E.  Management teams

 

36) The most dominant areas in the global economy include:

A.  North America, South America and Western Europe

B.  North America, Western Europe and Asia

C.  Western Europe, Asia and Africa

D.  North America, Asia and Africa

E.  North America, Mexico and Asia

 

37) As related to managing of human resources, diversity refers to:

A.  Differences in demographics (such as age, race, gender, disability status, lifestyle, veteran status, educational level, etc.)

B.  Differences in employee benefit plans (such as pensions, insurance, vacations, memberships, etc.)

C.  Differences in retention strategies (such as training, hiring, incentives, etc)

D.  Differences in pay methods (such as hourly, salaried, overtime, hazard-pay, commissioned, etc.)

E.  Differences in recruiting methods (such as newspapers, schools, flyers, magazines, agencies, etc.)

 

38) Which of the following has proven to be a particularly good predictor for jobs that require cognitive complexity?

A.  work sampling

B.  intelligence tests

C.  behavioral assessment

D.  aptitude tests

E.  integrity evaluations

 

39) Managers will utilize __________ skills with increasing frequency as they rise within an organization.

A.  Technical

B.  Conceptual and decision

C.  Professional

D.  Professional

E.  Interpersonal and communication

 

40) The pursuit of lucrative opportunities by enterprising individuals is called:

A.  Business incubating

B.  Intrapreneurship

C.  Social experimentation

D.  Entrepreneurship

E.  Independence

 

41) An organization that is managed aggressively and has growth and high profits as primary objectives may be considered a(n):

A.  Small business

B.  Large corporation

C.  Online Business

D.  Multinational corporation

E.  Entrepreneurship venture

 

42) In a right-tail test, a statistician came up with a z test statistic of 1.469. What is the p-value?

A.  .0708

B.  .0874

C.  .4292

D.  .0301

 

 

 

43) Twelve randomly-chosen students were asked how many times they had missed class during a certain semester, with this result: 2, 1, 5, 1, 1, 3, 4, 3, 1, 1, 5, 18. For this sample, the median is _____.

A.  3

B.  3.5

C.  2

D.  2.5

 

44) In a random sample of 810 women employees, it is found that 81 would prefer working for a female boss. The width of the 95% confidence interval for the proportion of women who prefer a female boss is _____.

A.  ± .0105

B.  ± .0196

C.  ± .0288

D.  ± .0207

 

45) To estimate the average annual expenses of students on books and class materials a sample of size 36 is taken. The average is $850 and the standard deviation is $54. A 99% confidence interval for the population mean is __________.

A.  $832.36 to $867.64

B.  $826.82 to $873.18

C.  $823.72 to $876.28

D.  $825.48 to $874.52

 

46) Use the following table to answer question:

P(S | W) is approximately _____.

A.  .40

B.  .30

C.  .58

D.  .12

 

47) Use the following table to answer question:

Are Service provider and county independent events?

A.  No

B.  Insufficient information to determine

C.  Yes

48) In a network diagram, an activity:

A.  should always be something the company has had experience with.

B.  must always have a single, precise estimate for the time duration.

C.  is the largest unit of work effort consuming both time and resources that a project manager can schedule and control.

D.  is the smallest unit of work effort consuming both time and resources that a project manager can schedule and control.

 

49) Which one of the following statements concerning production and staffing plans is best?

A.  Production plans are based primarily on information from the master production plan.

B.  A master production schedule is a projected statement of income, costs, and profits.

C.  Aggregation can be performed along three dimensions: product families, labor, and time.

D.  A staffing plan is the intermediate link between the business plan and the master production schedule.

 

50) Which one of the following statements concerning production and staffing plans is best?

A.  When production and staffing plans are made, aggregation can be performed only along two dimensions: products and time.

B.  The impact of production and staffing plans cuts across several functional areas of the firm.

C.  Production and staffing plans specify production rates, workforce levels, and inventory holdings, but do not account for capacity limitations because they are aggregated.

D.  Production and staffing plans attempt to achieve several objectives, all of which must be consistent with one another.

 

51) Which one of the following statements about managerial inputs to production and staffing plans is best?

A.  Marketing provides new product or service developments.

B.  Materials provide the current staffing level.

C.  Finance provides labor and machine standards.

D.  Human resources provide the training capacity and labor-market conditions.

52) A project has three paths. A–B–C has a length of 25 days. A–D–C has a length of 15 days. Finally, A–E–C has a length of 20 days. Which one of the following statements is TRUE?

A.  The expected duration of this project is 25 days.

B.  The expected duration of this project is 25 + 15 + 20 = 60 days.

C.  A–D–C is the critical path.

D.  A–B–C has the most slack.

 

53) When your purchases are swiped over the bar-code reader at the point-of-sale terminals at Wal-Mart, a _____ records the data.

A.  enterprise resource planning system

B.  transaction processing system

C.  functional area information system

D.  office automation system

E.  dashboard

 

54) _____ is the integration of economic, social, cultural, and ecological facets of life, enabled by information.

A.  globalization

B.  regionalization

C.  nationalization

D.  business environment

 

55) Search engines and metasearch engines are examples of which network application?

A.  Web services

B.  Discovery

C.  Communications

D.  Local Area Network

E.  Collaboration

 

56) Which of the following are disadvantages of the buy option for acquiring IS applications?

A.  software may not integrate with existing systems

B.  software may not exactly meet the company’s needs

C.  software may be impossible to modify

D.  all of the these are disadvantages

E.  company will not have control over software improvements

 

57) Networks enable which of the following applications?

A.  Web services

B.  Discovery

C.  Communications

D.  All of the these

E.  Collaboration

 

58) Geocoding is __________.

A.  integrating organizational transactions with spatially oriented databases

B.  integrating maps with spatially oriented databases and other databases

C.  encrypting spatial information

D.  programming spatially oriented databases

E.  accessing geographical information

 

59) _____ is the efficient and effective execution of specific tasks.

A.  Expertise

B.  Management control

C.  Operational control

D.  Strategic planning

E.  Wisdom

 

60) Computer support is greatest for which of the following problems?

A.  Semistructured and management control

B.  Unstructured and operational control

C.  Semistructured and strategic planning

D.  Structured and operational control

E.  Structured and management control

 

61) Credit card companies would most likely use which of the following to check for fraudulent credit card use?

A.  Data mining

B.  Expert systems

C.  Neural networks

D.  Multidimensional data analysis

E.  Structured query languag

 

62) The end result of the Data Life Cycle is the generation of _____.

A.  wisdom

B.  data

C.  information

D.  knowledge

E.  decisions

 

63) Bell Weather, Inc. has a beta of 1.25. The return on the market portfolio is 12.5%, and the risk-free rate is 5%. According to CAPM, what is the required return on this stock?

A.  14.37%

B.  9.37%

C.  20.62%

D.  15.62%

 

64) You hold a portfolio with the following securities:

Security Percent of Portfolio Beta Return

X Corporation 20% 1.35 14%

Y Corporation 35% .95 10%

Z Corporation 45% .75 8%

Compute the expected return and beta for the portfolio.

A.  34.4%, .94

B.  9.9%, 1.02

C.  10.67%, 1.02

D.  9.9%, .94

 

65) Which of the following represents an attempt to measure the earnings of the firm’s operations over a given time period?

A.  Income statement

B.  Cash flow statement

C.  Balance sheet

D.  Quarterly statement

 

66) The common stockholders are most concerned with:

A.  the risk of the investment.

B.  the size of the firm’s beginning earnings per share.

C.  the percentage of profits retained.

D.  the spread between the return generated on new investments and the investor’s required rate of return.

 

67) At 8% compounded annually, how long will it take $750 to double?

A.  12 years

B.  9 years

C.  6.5 years

D.  48 months

 

68) Tri State Pickle Company preferred stock pays a perpetual annual dividend of 2 1/2% of its par value. Par value of TSP preferred stock is $100 per share. If investors’ required rate of return on this stock is 15%, what is the value of per share?

A.  $6.00

B.  $16.67

C.  $37.50

D.  $15.00

 

69) A machine costs $1,000, has a three-year life, and has an estimated salvage value of $100. It will generate after-tax annual cash flows (ACF) of $600 a year, starting next year. If your required rate of return for the project is 10%, what is the NPV of this investment? (Round your answerwer to the nearest $10.)

A.  -$150

B.  $900

C.  $490

D.  $570

 

70) Which of the following best represents operating income?

A.  Income from discontinued operations

B.  Income from capital gains

C.  Income after financing activities

D.  Earnings before interest and taxes

 

71) Exchange rate risk:

A.  doesn’t affect trades made in US Dollars.

B.  has been phased out due to recent international legislation.

C.  arises from the fact that the spot exchange rate on a future date is a random variable.

D.  applies only to certain types of domestic businesses.

 

72) Disadvantages of using current liabilities as opposed to long-term debt include:

A.  decreased risk of liquidity

B.  certainty of interest costs

C.  uncertainty of future liabilities

D.  higher cash flow exposure

E.  greater risk of illiquidity, and uncertainty of interest costs

 

73) An increase in future value can be caused by an increase in the __________.

A.  dividends paid

B.  annual interest rate and number of compounding periods

C.  original amount invested

D.  starting value

E.  rate of return

 

74) PepsiCo calculates unlevered betas for each peer group in order to:

A.  eliminate different financial risks.

B.  eliminate different business risks.

C.  eliminate judgment factors.

D.  eliminate competitive factors.

 

75) Bondholders have a priority claim on assets ahead of:

A.  creditors.

B.  common and preferred stockholders.

C.  investors

D.  shareholders.

 

76) When doing "positioning," a marketing manager should:

A.  exclusively use focus groups.

B.  avoid targeting strategies.

C.  rely on how customers think about proposed and/or existing brands in a market.

D.  focus on specific product features of all generic competitors.

E.  plan physical product changes rather than image changes.

 

77) "Positioning":

A.  eliminates the need for judgment in strategy planning.

B.  applies to new products--but not existing products.

C.  is concerned with obtaining the best shelf space in retail outlets.

D.  helps strategy planners see how customers view competitors' offerings.

E.  is useful for combining but not for segmenting.

 

78) The three basic tasks of ALL managers, according to the text, are:

A.  planning, implementation, and control.

B.  planning, staffing, and evaluating.

C.  execution, feedback, and control.

D.  marketing, production, and finance.

E.  hiring, training, and compensating.

 

79) Comparing GDP for foreign countries can help a marketing manager evaluate potential markets if the manager remembers that:

A.  Other countries most likely don’t use the US Dollar as their primary currency.

B.  GDP estimates may not be very accurate for very different cultures and economies.

C.  GDP measures show the degree of competition in a market.

D.  income tends to be evenly distributed among consumers in most countries.

E.  GDP measures show people's tendency to buy particular products.

 

80) In comparison to the buying of final consumers, the purchasing of organizational buyers:

A.  is always emotional.

B.  leans basically toward economy, quality, and dependability.

C.  is even less predictable.

D.  is always based on competitive bids from multiple suppliers.

E.  is strictly economic and not at all emotional.

 

81) Coca-Cola is taking advantage of the new willingness of Chinese leaders to engage in international trade by marketing its soft drinks in China. What type of opportunity is Coke pursuing?

 

A.  test marketing

B.  product development

C.  market penetration

D.  diversification

E.  market development

 

82) The economists' view of buyers:

A.  None of these are true

B.  assumes that they always buy the lowest-price alternative.

C.  emphasizes psychological variables rather than social influences.

D.  is based on the idea that consumers value time and select the first alternative they learn about.

E.  puts a great deal of emphasis on differences in buying behavior related to individual differences among consumers.

 

83) Economists' economic-buyer theory assumes that __________.

A.  consumers only want the cheapest price

B.  consumers should purchase only low-priced products

C.  consumers always make rational decisions

D.  buyers logically compare choices in order to maximize their satisfaction

E.  demographic data are very useful for predicting consumer behavior

 

84) Which of the following is a business or organizational customer?

A.  All of these are business and organizational customers.

B.  a wholesaler.

C.  a government agency.

D.  a retailer.

E.  producers of goods or services.

 

85) The managerial process of developing and maintaining a match between the resources of an organization and its market opportunities is called:

A.  market planning.

B.  strategic (management) planning.

C.  marketing strategy planning.

D.  management by objective.

E.  marketing programming.

 

 

 

86) Good marketing strategy planners know that:

A.  target markets cannot be large and spread out.

B.  the terms "mass marketing" and "mass marketer" mean basically the same thing.

C.  mass marketing is often very desirable and effective.

D.  firms like Nabisco and Wal-Mart are too large to aim at clearly defined target markets.

E.  target marketing does not limit one to small market segments.

 

 

87) An Australian wine producer, facing declining sales at home, set up a new channel of distribution to sell wine in the United States. This seems to be an effort at:

A.  stratification.

B.  product development.

C.  market penetration.

D.  market development.

E.  diversification.

 

88) In which of the following are these steps of a criminal case listed in the correct order?

A.  Arrest, indictment, trial, arraignment

B.  Arrest, arraignment, indictment, trial

C.  Indictment, arraignment, arrest, trial

D.  Arraignment, arrest, trial, indictment

E.  Arrest, indictment, arraignment, trial

 

89) In responding to a constitutional challenge to the Computer Decency Act, the U.S. Supreme Court ruled that:

A.  The Internet was similar to television and that restrictions similar to those on television programming were appropriate.

B.  The Act was unconstitutional because its provisions were too vague to define.

C.  Obscene materials could not be available between 6:00 a.m. and 10:00 p.m. local time.

D.  Computers and the Internet were not covered by the free speech provisions of the U.S. Constitution because they did not exist when the Constitution was drafted.

E.  The Act was constitutional because obscene speech receives no protection.

 

90) Justin was hired in February of 2004 as a salesperson. There is no written employment contract, and Justin is paid on a commission basis. Justin’s manager has said to Justin on several occasions that if Justin continues to meet his sales quotas, that the company “will keep him around for a long time.” Justin has always met his sales quotas, but is told one day that they have decided to replace him because he does not project the image that the company wants. If Justin is an at-will employee, which of the following is true?

A.  The employer would not be able to fire Justin on the basis of public policy.

B.  The statements by the manager could likely give Justin contract rights that could amount to an exception to the at-will doctrine.

C.  The employer can terminate Justin only if the employer would suffer a loss by not terminating him.

D.  As an at will employee, there are no restrictions on the employer terminating Justin.

E.  Because there is no written employment contract, the employer can terminate Justin.

 

91) Which of the following is correct about litigating commercial disputes?

A.  In all states, commercial disputes must be heard in a limited-jurisdiction court.

B.  Nearly all states have specialized trial courts that hear commercial disputes.

C.  Businesses generally dislike the concept of specialized trail courts for commercial disputes because the large numbers of consumers who sue businesses in these courts have led the judges to become generally biased against business.

D.  A few states have established specialized trial courts for commercial disputes.

E.  Commercial disputes, because of their specialized nature, are first heard at the appellate court level.

 

 

 

92) Bob, an employee of Risky Manufacturing, Inc. is accidentally injured by a fellow worker while working his shift. Under workers’ compensation, Bob can:

A.  Recover from workers’ compensation only if Risky was negligent in allowing the injury to occur.

B.  Sue Risky or seek workers’ compensation recovery, but not both.

C.  Seek workers’ compensation only.

D.  Sue Risky or seek workers’ compensation recovery.

 

93) Information which comes to the knowledge of an agent is:

A.  Will result in termination of the agency arrangement if it is not communicated to the principal.

B.  Required to be communicated to the principal in all circumstances.

C.  Can be disclosed to the principal only with the third party’s consent.

D.  Is imputed to the principal.

 

94) What is the major convention that provides international protection to patents?

A.  The Digital Millennium Treaty.

B.  The Berne Convention of 1786.

C.  The Paris Convention.

D.  The General Agreement on Tariffs and Trade (GATT).

 

95) Which of the following is correct about the states’ powers regarding foreign affairs?

A.  Because of the sharing of powers between the federal government and the states, states have powers over foreign affairs equal to the powers of the federal government.

B.  The states have no power over foreign affairs because the U.S. Constitution grants that power exclusively to the federal government.

C.  The states can pass laws so long as they do not unduly burden foreign commerce, but the states have no authority to enter into treaties with foreign nations.

D.  The states can pass laws affecting foreign commerce and enter into treaties with foreign nations so long as they first obtain the consent of the Senate.

E.  The states can pass laws and enter into treaties with foreign nations so long as they do not unduly burden foreign commerce.

 

96) The Houston-based energy company that filed for Chapter 11 bankruptcy and whose business conduct is one of the grossest examples of corporate greed and fraud in America was:

A.  Mobil Oil Company.

B.  Shell Oil Company.

C.  Enron Corporation.

D.  Houston Oil and Gas Corporation.

E.  Exxon Corporation.

 

97) Generally, which of the following statements relating to contractual capacity is correct?

A.  Persons with full competence make enforceable contracts.

B.  Minors make void contracts.

C.  People with limited competence make void contracts.

D.  People with no competence make voidable contracts.

E.  People who have been adjudicated insane make voidable contracts.

 

98) Which country does the text describe as becoming the largest producer and consumer of many of the world's goods?

A.  Japan

B.  China

C.  Canada

D.  Mexico

E.  Ecuador

 

99) One study found that manufacturing labor costs about _____ an hour in China, compared to _____ dollars in the United States.

 

A.  Less than $1; about 15

B.  $2; about 25

C.  About $2; about 15

D.  Less than $1; about 25

E.  Less than $1; about 40

 

100) Although the U.S. has had a longstanding agreement with _____ after the passage of NAFTA, _____ became the United States' second largest trading partner.

A.  Canada, Venezuela

B.  Mexico, Venezuela

C.  Canada, Mexico

D.  Mexico, Canada

E.  Great Britain, Paraguay

 

 

 

 

 

 

Solution Description

One study found that manufacturing labor costs about _____ an hour in China, compared to _____ dollars in the United States.

 

A

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