1) Which one of the following is a product cost?
A. Sales person’s salaries
B. Advertising costs C. Indirect labor D. Office salaries
2) If a company reports a net loss, it __________.
A. will not be able to make capital expenditures B. will not be able to get a loan C. may still have a net increase in cash D. will not be able to pay cash dividends
3) "Generally accepted" in the phrase generally accepted accounting principles means that the principles __________.
A. have been approved for use by the managements of business firms
B. have been approved by the Internal Revenue Service C. have substantial authoritative support D. are proven theories of accounting
4) 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
5) 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
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?
6) The primary purpose of the statement of cash flows is to __________.
A. provide information about the cash receipts and cash payments during a period
B. facilitate banking relationships C. provide information about the investing and financing activities during a period
D. prove that revenues exceed expenses if there is a net income
7) A well-designed activity-based costing system starts with __________.
A. analyzing the activities performed to manufacture a product
B. computing the activity-based overhead rate
C. assigning manufacturing overhead costs for each activity cost pool to products
D. identifying the activity-cost pools
8) 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
9) As Plant Controller, you are trying to determine which costs over which you have the most control on a day to day basis. Your goal is to achieve better profitability. The Plant Operations Manager suggests that overhead is the easiest area to directly reduce costs. Which of the following items would be classified as manufacturing overhead?
A. General corporate liability insurance
B. Factory janitor
C. The western division’s vice president’s salary
D. Cost of landscaping the corporate office
10) These are selected account balances on December 31, 2008.
Land (location of the corporation's office building)$100,000
Land (held for future use)150,000
Corporate Office Building600,000
What is the net amount of property, plant, and equipment that will appear on the balance sheet?
B. $950,000 C. $1,300,000
11) The conceptual framework developed by the Financial Accounting Standards Board __________.
A. are rules that all accountants must follow
B. was approved by a vote of all accountants
C. is legally binding on all accountants
D. is viewed as providing a constitution for setting accounting standards for financial reporting
12) What is value chain management best defined as?
A. The incremental value of costs associated with hiring a new production floor leader
B. All activities associated with providing a product or service C. A large chain that keeps the machines from falling on the production floor D. Management decisions that affect how quickly the production run occurs
13) Balance sheet accounts are considered to be __________.
A. capital accounts B. nominal accounts C. temporary stockholders’ accounts D. permanent accounts
14) Which one of the following items is not generally used in preparing a statement of cash flows?
A. Adjusted trial balance
B. Comparative balance sheets C. Additional information D. Current income statement
15) Resources are
A. scarce for households but plentiful for economies.
B. plentiful for households but scarce for economies.
C. scarce for households and scarce for economies.
D. plentiful for households and plentiful for economies.
16) When, in a particular market, the law of demand and the law of supply both apply, the imposition of a binding price ceiling in that market causes quantity demanded to be
A. greater than quantity supplied.
B. less than quantity supplied.
C. equal to quantity supplied.
D. Any of the above is possible
17) The general term for market structures that fall somewhere in-between monopoly and perfect competition is __________.
A. monopolistically competitive markets
B. imperfectly competitive markets
C. incomplete markets
D. oligopoly markets
18) Lekeisha's income exceeds her expenditures. Lekeisha is a __________.
A. saver who demands money from the financial system B. borrower who demands money from the financial system
C. borrower who supplies money to the financial system D. saver who supplies money to the financial system
19) There are two types of markets in which firms face some competition yet are still able to have some control over the prices of their products. The names given to these market structures are __________.
A. perfect competition and monopolistic competition B. duopoly and imperfect competition C. duopoly and triopoly D. monopolistic competition and oligopoly
20) Assume oligopoly firms are profit maximizers, they do not form a cartel, and they take other firms’ production levels as given. Then the output effect
A. must dominate the price effect.
B. must be smaller than the price effect.
C. must balance with the price effect.
D. can be larger or smaller than the price effect
21) In economics, the cost of something is __________.
A. what you give up to get it B. often impossible to quantify, even in principle C. the dollar amount of obtaining it D. always measured in units of time given up to get it
22) The model of short-run economic fluctuations focuses on the price level and __________.
A. the neutrality of money
B. real GDP C. economic growth D. Net GDP
23) The Federal Open Market Committee __________.
A. is required to keep the interest rate within a range set by Congress
B. operates with almost complete discretion over monetary policy
C. is required to increase the money supply by a given growth rate each year
D. is required by its charter to change the money supply using a complex formula that concerns the tradeoff between inflation and unemployment
24) 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
25) Which of the following is not correct?
A. In 2005, the U.S. government had a deficit.
B. A potential cost of deficits is that they reduce national saving, thereby reducing growth of the capital stock and output growth.
C. The U.S. debt per-person is large compared with average lifetime income.
D. Deficits give people the opportunity to consume at the expense of their children, but they do not require them to do so.
26) The model of aggregate demand and aggregate supply explains the relationship between __________.
A. real GDP and the price level B. unemployment and output C. the price and quantity of a particular good D. wages and employment
27) The principal lag for monetary policy __________.
A. is the time it takes for policy to change spending. The principal lag for fiscal policy is the time it takes to implement it
B. is the time it takes to implement policy. The principal lag for fiscal policy is the time it takes for policy to change spending
C. and fiscal policy is the time it takes for policy to change spending D. and fiscal policy is the time it takes to implement policy
28) The best way for an employer to find out if a potential employee can do a job is by __________.
A. administering an IQ test B. using the interview process C. using a performance simulation test D. using a written test E. having them spend a day in the office
29) 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
30) 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.)
31) 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
32) When a company establishes technology leadership by pioneering unique products or services that command premium prices, it has benefited from a:
A. Differentiation strategy
B. High-price strategy
C. High-cost strategy
D. Diversification strategy
E. Low-cost strategy
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) ABC International carefully watches the actions of its most innovative competitor and learns from them. ABC can establish a low-cost position by:
A. Mass-producing products that have an established market niche
B. Producing an imitation of the new technology that utilizes lower-quality and lower-cost materials
C. Making subtle changes to the product, thereby avoiding patent restrictions
D. Learning from the leader thereby avoiding the costs and risks of technology leadership
E. Technology followers are not successful at low-cost strategies
35) Which of these describes a vision, as it pertains to leadership
A. Likely to land you in a padded room
B. A short-term goal of an organization
C. The method through which leaders achieve goals
D. A long-term goal of an organization
E. A mental image of a future state of an organization
36) 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
37) Listening to employee suggestions, gaining support for organizational objectives and fostering an atmosphere of teamwork are all considered:
A. Diagnostic skills B. Conceptual C. Interpersonal/communication skills
D. Technical skills E. Professional skills
38) The Aquatic Center, Inc. periodically reviews the goals of the company. During the process, The Aquatic Center managers analyze their current strategies as compared to their competitors, determine goals that they will pursue and decide upon specific actions for each area of the company to take in pursuit of these goals. The Aquatic Center managers have been engaged in the management function of:
A. Staffing B. Planning C. Organizing D. Controlling E. Goal Coordination
40) A manager's ability to stimulate people to be high performers is referred to as:
41) A leader is:
A. Someone with authority over others B. Someone who influences others to attain goals C. The top level manager in a firm or business
D. Someone well-respected by others E. A strategic level manager
42) 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 _____.
43) Dullco Manufacturing claims that its alkaline batteries last forty hours on average in a certain type of portable CD player. Tests on a random sample of 18 batteries showed a mean battery life of 37.8 hours with a standard deviation of 5.4 hours.
In a left-tailed test at = .05 we would __________.
A. comfortably accept the claim B. switch to alpha of 0.01 for a more powerful test C. comfortably reject the claim D. feel uncomfortable with either decision (too close)
44) Use the following table to answer question:
P(S | W) is approximately _____.
45) Use the following table to answer question:
Are Service provider and county independent events?
B. Insufficient information to determine
46) William used a sample of 68 U.S. cities to estimate the relationship between Crime (annual property crimes per 100,000 persons) and Income (median income per capita). His estimated regression equation was Crime = 428 + .050 Income.
Assuming b1 is significant, if Income decreases by 1000 we would predict that Crime will __________.
A. increase by 428
B. decrease by 50 C. increase by 500 D. increase by 50
47) William used a sample of 68 U.S. cities to estimate the relationship between Crime (annual property crimes per 100,000 persons) and Income (median income per capita). His estimated regression equation was Crime = 428 + .050 Income.
Which outcomes would be likely in a bivariate regression on 45 randomly chosen U.S. cities in 2005 with
Y = number of robberies in each city (thousands of robberies) and
X = size of police force in each city (thousands of police)?
A. No correlation
B. Positive slope (due to city size).
D. High R2 (due to city size).
48) Likely reasons for inaccurate control limits would include which of the following?
A. Process variation was not zero, as expected. B. The engineers were underpaid for their work. C. The engineering parameter for variance is unknown. D. There was insufficient preliminary sampling.
49) Assume that the arrival of airplanes at a one-runway airport is a Poisson distribution with a mean rate of l = 8 planes per hour. The landing time is an exponential distribution with a mean of 5 minutes per plane. What is the mean number of planes in a holding pattern?
50) 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.
51) Companies using lean systems generally have:
A. many suppliers to ensure that material shortages never occur.
B. suppliers that are located nearby to decrease delivery lead time.
C. suppliers that are willing to accept short-term contracts.
D. suppliers who are low-cost producers.
52) A computer analysis reveals that the best-fitting trend model is Yt = 4.12 e 0.987 t. The trend was fitted using year-end common stock prices for Melodic Kortholt Outlet for the last six years. The R2 is 0.8571.
Which conclusion is not correct?
A. Few investments could match the astounding growth rate. B. The stock's true intrinsic value is $4.12. C. At the end of year 3 the stock price would be nearly $80. D. The absolute annual growth (in dollars per share) is increasing.
53) The Global, Web-Based Platform enables individuals to do which of the following?
A. all of these are true B. produce and sell goods and services C. exchange knowledge D. access information, services, and entertainment E. connect, compute, communicate, collaborate, and compete everywhere and all the time
54) A set of programs that enable the hardware to process data is _____.
A. procedures B. database C. software D. network E. hardware
55) What is _____ is not necessarily _____
A. unethical, legal
B. ethical, illegal
C. illegal, unethical
D. unethical, illegal
56) _____ is the integration of economic, social, cultural, and ecological facets of life, enabled by information.
D. business environment
57) Which of the following statements is correct?
A. An individual’s right to privacy supersedes the needs of society B. Advances in information technologies have not affected individual privacy
C. It is difficult to determine and enforce privacy regulations D. The Internet has increased individuals’ privacy E. An individual’s right to privacy is absolute
58) 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 language
59) Which of the following is not a reason that managers need IT support
A. Decisions becoming more complex
B. Need to access remote information sources
C. Decisions made under pressure
D. Number of alternatives are decreasing
60) Which of the following statements about information systems is not correct?
A. Information systems are concentrated in the IS Department.
B. Information systems tend to follow the structure of the organization.
C. Information systems are based on the needs of employees.
D. Any information system can be strategic.
E. Managing information systems is difficult.
61) _____ is the efficient and effective execution of specific tasks.
B. Management control
C. Operational control
D. Strategic planning
62) _____ is the acquisition and efficient use of resources in accomplishing organizational goals.
A. Strategic planning B. Wisdom C. Management control
D. Expertise E. Operational control
63) Petrified Forest Skin Care, Inc. pays an annual perpetual dividend of $1.70 per share. If the stock is currently selling for $21.25 per share, what is the expected rate of return on this stock?
A. 12.5% B. 36.13%
C. 8.0% D. 13.6%
64) Given the following annual net cash flows, determine the IRR to the nearest whole percent of a project with an initial outlay of $1,520.
YearNet Cash Flow
A. 48% B. 32% C. 28% D. 40%
65) According to the hedging principle, permanent assets should be financed with _____ liabilities.
A. fixed B. permanent C. current D. spontaneous
66) Which of the following best represents the stream of income that is available to common stockholders?
A. Gross profit B. Net profit after tax and after preferred dividend payments C. Earnings before interest and taxes D. Operating profit
67) 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. $570 B. $900 C. -$150 D. $490
68) 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
69) 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
70) 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.
71) 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
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) 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?
74) Forward rates are quoted:
A. in direct form and at a premium or discount
B. by the FDIC
C. in an indirect form
D. on financial statements
75) Bondholders have a priority claim on assets ahead of:
B. common and preferred stockholders.
76) Regarding organizational buying, the people who have the power to select or approve the supplier--especially for larger purchases--are called:
A. users. B. buyers. C. deciders. D. influencers. E. gatekeepers.
77) 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.
78) The "four Ps" of a marketing mix are:
A. Production, Personnel, Price, and Physical Distribution
B. Promotion, Production, Price, and People C. Potential customers, Product, Price, and Personal Selling
D. Product, Price, Promotion, and Profit E. Product, Place, Promotion, and Price
79) A cluster analysis of the "toothpaste market" would probably show that:
A. most consumers are concerned about cost. B. most consumers are mainly concerned about brightness of teeth. C. the broad product-market can be served effectively with one marketing mix. D. factors such as taste, price, and "sex appeal" are not important. E. different market segments seek different product benefits.
80) Marketing strategy planning" means:
A.selecting a target market and developing a marketing strategy.
B.finding attractive opportunities and selecting a target market.
C.selecting an attractive marketing mix.
D.selecting an attractive target market.
E.finding attractive opportunities and developing profitable marketing strategies.
81) In an effort to increase its total sales, Champion has started exporting its spark plugs for use by several German auto producers. Champion is pursuing a _____ opportunity.
A. mass marketing
C. market penetration
D. market development
E. product development
82) 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.
83) 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.
84) The basic objective of the U.S. market-directed economic system is to:
A. achieve an annual growth rate of at least 10 percent. B. provide each person with an equal share of the economic output.
C. make the most efficient use of the country's resources. D. minimize inflation. E. satisfy consumer needs as they--the consumers--see them.
85) The clustering techniques that can be used in segmenting:
A. looks for differences between groups of people. B. group people together based on age. C. eliminate the need for management intuition and judgment. D. group people together into heterogeneous product-market segments.
E. try to find similar patterns within sets of data.
86) 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
E. market development
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:
B. product development.
C. market penetration.
D. market development.
89) Which of the following statements is generally not true about state intermediate appellate courts?
A. The appellate court allows the parties to make oral arguments outlining their position.
B. The appellate court allows the parties to introduce new evidence so long as it was not previously introduced at the original trial.
C. The appellate court usually allows the parties to file briefs outlining support for their positions.
D. The appellate court reviews the record of the trial court. E. Appellate court decisions are final and further appeal is not possible.
90) The tort of intentional interference with contractual relations requires the following except:
A. Third-party inducement to breach the contract. B. A new contract involving the third party who induced the breach.
C. Third-party knowledge of this contract. D. A valid, enforceable contract between the contracting parties.
91) Which of the following is true about the Sherman Act?
A. A business can be liable under either Section 1 or Section 2 without any agreement with another party.
B. Liability under Section 1 for restraint of trade requires agreement with another party, but liability under Section 2 for monopolization does not.
C. Liability under Section 2 for monopolization requires agreement with another party, but liability under Section 1 for restraint of trade does not.
D. Liability under either Section 1 or Section 2 requires agreement with another party.
92) Which of the following is correct about interpretive rules?
A. Interpretive rules are not subject to judicial review. B. All federal administrative agencies have implied power to make interpretive rules.
C. They must be accompanied by substantive rules.
D. They do not establish new law.
E. They require public notice and participation to create.
93) What makes a publicly held corporation different from a public corporation?
A. A publicly held corporation must have a charitable purpose, but a public corporation need not have a charitable purpose.
B. They are two terms that have the same meaning.
C. A publicly held corporation has many shareholders rather than being a corporation owned by a governmental entity.
D. A publicly held corporation is entitled to limited liability, but a public corporation is not.
95) Generally speaking, the contract of a minor:
A. Is void. B. Is not enforceable by the minor. C. Is voidable at the minor’s option. D. Must be in writing.
96) An agent’s obligation to perform in accordance with the terms of the agency arrangement is the agent’s duty of:
B. Obedience. C. Loyalty. D. Performance. E. Nonbreach.
97) Which of the following statements is true regarding the relationship of law and ethics?
A. The legal requirements will almost always be the same as the ethical requirement because the law is based on ethical standards.
B. Depending on the circumstances, the law can require a higher, lower, or the same standard of conduct as ethics demands.
C. In some cases, the law will require a high standard of conduct than ethics, but never vice versa.
D. In some cases, ethics will require a higher standard of conduct than the law, but never vice versa.
98) 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
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) Which country does the text describe as becoming the largest producer and consumer of many of the world's goods?
Which country does the text describe as becomin