No student devices needed. Know more
99 questions
Businesses must comply with regulations that limit the amount and type of pollution and waste they produce. These regulations are referred to as __________ laws.
Environmental
Antitrust
Property
Industrial
What form of business ownership is best to use when the business owners have difficulty acquiring enough money to pay for the startup costs and initial operating expenses?
Partnership
Sole Proprietorship
Franchise
Corporation
An important purpose of full-disclosure laws and regulations is to
allow company employees to use inside information for personal gain.
provide information to investors so they can make informed decisions.
require companies to disclose all information about their operations.
prevent a stock's par value from dropping below its market value
Which of the following is a tax-deductible gift:
stocks
vacation home
charitable donation
inherited items
Which of the following is an example of a preventive internal control:
physical inventories
data reconciliations
variance analyses
segregation of duties
What type of technology do businesses use to inspect financial transactions and ensure that they are in compliance with government regulations?
domain computing
cyber mapping
virtual auditors
simulation browsers
A researcher should consider an author's expertise in a particular topic when assessing the validity of written articles and publications to
analyze the author's emotional intellegience
verify the timeliness of the information
evaluate the author's level of credibility
confirm personal understanding of the information
What method of note-taking involves using headings and subheadings to record the relationships and
content in a well-organized, multi-level structure?
sentence
outline
mapping
shorthand
In a formal business letter, the salutation is written
after the body of the letter.
on the front of the envelope
on the back of the envelope
before the body of the letter
What is an example of a topic that would be addressed in an informational message?
request for payment on a past-due account
date and time of appointment with customer
charitable appeal for a corporate donation
invitation to speak at a national conference
Because Caroline does not have enough time to read an entire 400-page business report, what section of the report should she review to obtain an overview of the most important content?
appendices
table of contents
executive summary
conclusions
What type of information is often transmitted through upward communication?
instructions
suggestions
evaluations
corrections
It is appropriate for a participant to ask questions during a staff meeting when
she/he needs a point clarified
another participant is speaking
the agenda is being distributed
she/he does not agree with the speaker
A customer asked a salesperson whether a hair dryer purchased last month could be returned or exchanged. In order to answer the question, the salesperson should be familiar with the business's
finances
promotions
policies
products
Which of the following types of customer relationship management software would be most appropriate for a company that is looking for a more efficient way to track potential new clients and customers:
matching engine technology
campaign management software
personalization technology
sales force automation
What is the most common reason for a client to leave or fire his/her financial advisor?
location of the office
poor investment return
high commission fees
lack of communication
Businesses use data-cleansing applications to
calculate statistical data
update their databases
duplicate internal records
generate necessary reports
Justin is trying to decide whether he wants to spend a $50 birthday check on a new video game or tickets to a concert. If he chooses the video game, what is the opportunity cost of this decision?
Birthday check
video game
concert tickets
$50
Which of the following is most likely to affect the selling price of roses:
a large number of rose bushes are killed by disease
Plants and small shrubs are also sold at the flower shop
the flower shop also carries silk flowers.
a reorder shipment of roses arrives.
What must a business be organized to do to be able to contribute to society?
preserve the environment
earn a profit
sell an idea
hire an advisor
Which of the following is a result of globalization:
shrinking product life cycles
decrease competition
increased consumer spending
higher productivity
What type of tax are businesses required to pay on the profits they earn?
excise
income
sales
property
Allowing employees to make more decisions, set their own work pace, and supervise coworkers is considered to be job
rotation
satisfaction
enrichment
enlargement
The rate of underemployed workers is often highest when a nation is experiencing an economic
recession
satisfaction
enrichment
enlargement
Businesspeople must be cautious not to offend their international customers by understanding the importance of nonverbal cues, which include the use of
proper grammar
accurate word pronunciation
hand gestures
interactive feedback
Which of the following is a main cause of prejudice and discrimination:
a lack of knowledge about a group of people
exposing yourself to new situations
openly discussing bias with others
naturally occurring differences of opinion
Susan is a purchasing manager for a manufacturer. On Monday, Susan received a call from the plant manager, who frantically told Susan that the production line ran out of 3/8” washers, which has forced production to stop. Because Jason is the senior buyer in charge of ordering the washers, Susan set up a meeting with Jason to discuss the problem. During the meeting, Susan asked Jason to explain why the washers were out of stock. Jason replied, “Well, I told the office assistant to check the inventory. It's not my fault that we don't have the washers in stock.” What is Jason doing?
denying that a problem exists
helping susan resolve the problem
providing Susan with a valid reason for the stock-out
blaming another person for his mistake
Joe has a two-hour sales meeting with a new customer at 10 a.m. today. Early this morning, a vendor telephoned Joe to schedule a one-hour luncheon meeting to discuss a co-op advertising program. The vendor would like to meet at a restaurant that is 30 minutes from Joe's office at 1:00 p.m. today. Joe must be back at his office by 2:00 p.m. for an important computer training session. Should Joe meet with the vendor today?
Yes. Joe can meet with the vendor after the vendor changes the lunch reservation to 12:45 p.m.
No. It is rude for the vendor to assume that Joe has time to meet today.
Yes. Joe can meet with the vendor after he reschedules his training session.
No. Joe would have only 30 minutes to meet with the vendor before he needs to return to the office.
Typical characteristics of a person with a negative attitude are that s/he is
courteous and considerate toward others
inflexible and resistant to change
generous and helpful to others
flexible and open to new ideas
When you react defensively to criticism, the result is likely to be
pleasant
sympathetic
negative
cooperative
Being able to put yourself in another person's place means that you have
perspective
respect
empathy
understanding
What is the first step toward building trusting relationships?
increasing sales
increasing productivity
developing ideas
being transparent
An example of assertive verbal behavior would be
complimenting someone to obtain a favor
maintaining appropriate eye contact.
initiating conversations with others.
giving a progress report in a staff meeting.
Ethical behavior increases productivity and morale because it
makes employees want to support the organization's mission.
makes sure people are following the rules.
leads to increased profits and more product sales.
makes sure laws are never broken.
When a person is inspired, s/he is
driven to take action
disengaged from work
uninterested and bored
likely to break the rules
. Unethical actions
are acceptable if everyone else does them
always have legal consequences
are not always illegal
only affect the person doing them
At what stage of the entrepreneurial process does an entrepreneur determine the amount of capital needed to launch the business?
actualization
discovery
development
harvesting
By understanding the time value of money concept, you know that
saving money can buy time on debt payment.
it is better to receive $101 a year from now than $100 today
sit is better to receive $100 today than $101 a year from now. .
time and money are related by due date.
Margot wants to be sure that when she dies, her money, house, and cars will go to her sister. Margot should create a
will
retirement fund
college savings fund
bank account
When should you record bank transactions in your check register?
When checks bounce
When bank statements are received
As bank statements are reconciled
As soon as each check is written
Which of the following international financial institutions provides financing and advice to countries to encourage economic development:
Commonwealth of Nations
Small Business Administration
World Bank Group
Liberty Institute
Which of the following statements regarding debt and equity markets is correct:
If a company suffers financial difficulties, its stockholders are paid before its bondholders.
Investors who purchase a company's bonds gain partial ownership of the business.
Bonds, which are debt instruments, are typically less risky investments than stocks.
Common stock, an example of a debt instrument, is traded on the equity market
The Money for You Bank recently merged with the Keeping You Safe Insurance Company. The merger is an example of __________ in the finance industry.
licensing
consolidation
tactical planning
convergence
When the unemployment rate rises, stock values typically
increase
decrease
stabilize quickly
remain unchanged
Which of the following has contributed to financial globalization:
An increase in restrictions on foreign investment and international trade
an increase in taxes on international financial transactions
a reduction in foreigners' access to domestic financial markets
a movement from fixed exchange rates to floating exchange rates
Which of the following is a true statement about stock information resources:
It has never been easier to find stock information
There are very few stock information sources
Only wealthy investors have access to stock information
It is very difficult to find stock information
Certificates of deposit and collectibles are types of
earnings
accounts
securities
investments
When preparing a statement of changes in an owner's equity document, which of the following are specifically represented on the statement:
new investments by the owner
property taxes paid by the owner
depreciation of company assets
lost revenue due to discharged debt
Which of the following is an example of a finance professional exhibiting responsible behavior:
During their first meeting, a financial planner asks Colin specific questions about his financial goals.
Katherine wants to make a large commission, so she tries to sell a high-risk financial product to a client.
A financial advisor delays contacting Olivia to advise her that the value of some of her stock is rapidly declining.
During a dinner party, Ryan tells his friend specific details about a client's stock portfolio and financial status.
A new employee left JRB Manufacturing two weeks after s/he completed the company's training program. The expense of training the new employee is a(n) __________ for the company.
external cost
sunk cost
current asset
capital liability
A managerial accountant can help a company market its products by
examining the relevant costs of advertising options
determining whether to make or buy a component
developing a target market analysis
creating a budget for hiring increases.
What type of variance analysis involves determining the difference between the standard costs and the actual costs of raw materials used for production?
selling price
purchase price
material yield
fixed overhead
Kenneth is easily able to guide the actions of his employees by referring to his budget. This is an example of which function of budgets?
controlling
planning
directing
monitoring
Gathering and communicating financial information that businesses can use to plan the business's operations is the focus of __________ accounting.
accrual
managerial
financial
equity
Which of the following is an example of an indirect cost in an automobile factory:
shipping
glass
electricity
assembly line workers' salaries
What is one of the main purposes of a business's sales budget?
to estimate income
to forecast trends
to predict the economy
to track the competition
Yazmin earned $5,000 from her summer job. If she invests it at a rate of 5%, how much will it be worth in two years?
$5,025.50
$10,250
$5,500
$5,512.50
What is the most negative information possible on a credit report?
collection agency report
late payment
lien
bankruptcy
An effective financial-information management system enables managers to obtain reports to determine how the company is using its funds. If the managers find that the company is not operating efficiently, they may reallocate funds from one business function to another to improve profitability. In this situation, the reports generated by the financial-information management system are
guiding decision-making
ensuring compliance
improving customer service
tracking purchasing behavior
Pamela was dismissed from her job as a financial database administrator because she shared her username and password with a coworker so that he could access a customer database that is typically off-limits to him. Pamela failed to fulfill her responsibilities as a data
processor
auditor
sponsor
steward
Why has online technology's use increased in financial-information management?
Protection of customers' right to privacy
removal of electronic information exchange procedures
recognition that the security of transactions is no longer an issue
passage of laws that recognize electronic documents as legally binding
What computer application enables a business to access information from its enterprise resource planning (ERP) software program for use in its budgeting software program?
cross-reference
automated data transfer
group
data-validation
Helena's manager asked her to put together a report containing a number of different financial ratios, including the company's current ratio and rate of return on equity. To create the report, Helena should use __________ software.
data-mining
budgeting
financial analysis
field service
Tank's Trucking Company is focusing on eliminating waste and creating more value with fewer resources. Which of the following methodologies is Tank's Trucking Company using:
sustainability
six sigma
activity-based costing
lean
What is the primary reason that creditors analyze their customers' financial information?
to determine how often their customers' inventory turns over
to know whether they're making a good investment
to determine the likelihood of getting paid
to understand the type of accounting method customers use
Latisha, a human resources manager at a hospital, is writing a list of the skills, knowledge, and characteristics for a nurse position she hopes to fill. She focuses on what education a nurse in that position should have, what personal traits s/he should have, and what s/he should be like. Latisha is working on a(n)
on boarding activity
job description
strategic plan
job specification
Marketing encourages people from different countries to __________ frequently.
train
trade
think
travel
A benefit of informed decisions is that they
reduce a business's risk
are usually bad decisions
cost less money
hurt a businesses's chances at competing
Why is it important for businesses to manage employee information in a way that keeps it secure?
to beat the competition
to be secretive
to be ethical
to avoid publicity
A legal issue associated with the use of information might involve the violation of __________ laws.
patent
copyright
trademark
contract
What type of system synchronizes sales and marketing efforts?
Customer relationship management
transaction processing
supply chain management
decision support
Which of the following is a computer-based time-management tool that helps employees keep track of their appointments and activities:
perpetual calendar
electronic task organizer
instant-messaging program
What is the first step in designing a multi-table query?
determine the criteria
pinpoint exactly what you want to know
locate the correct tables
set the correct join direction
Businesses may review invoices to evaluate their customers'
storage needs
business plan
purchasing habits
selling policies
Philippe wants to find out the average length of time that visitors spend on his business's website. Which of the following data would be most useful to Philippe:
receiving data
external data
clickstream data
qualitative data
The Halifax Retail chain uses computer applications to track its inventory and order goods from its vendors. What form of technology is the company using to streamline its purchasing processes?
customer relationship management (CRM)
Global positioning system (GPS)
Electronic data interchange (EDI)
Territorial routing application (TRA)
The most important reason why workplace accidents which do not result in injuries should be reported to supervisors is because
the next accident could result in an injury
this is required by state law
the report prevents future liability
this is an OSHA requirement.
What should you do when creating a schedule for your project?
break down the work into specific activities and tasks
figure out exactly when you will get each part of the project done
determine when certain parts of the project are due
identify the risks that could affect your schedule
. In which stage of project management does risk analysis take place?
closing
initiation
execution
planning
Determining project costs involves taking the information gained from assessing needed resources and
asking the client for atleast twice as much funding
using it for scheduling purposes
adjusting the project purpose as necessary
translating it into a realistic budget.
Comparing the prices offered by different vendors for the same goods and services is what part of the purchasing process?
price fixing
bid analysis
invoice payment
receipt of goods
What can you do to help your company control expenses?
focus strictly on how much work you can get done
Follow company policies and procedures
Handle sales transactions as quickly as possible
Carry out research and development activities
Which of the following is a benefit of putting your goals in writing:
clarifies the goals
develops your perseverance
makes the goals attainable
provides a challenge
Which of the following is a true statement about creativity:
Creativity is primarily demonstrated through entertainment and the arts.
Only people born with a natural gift can display creativity.
Creativity is a skill we only use on special occasions.
People show creativity in a variety of ways.
If a question on a job application does not apply to you, how should you respond?
leave it blank
make up a response
write "does not apply"
write "cannot answer"
Why will it benefit you to learn as much as possible about a prospective employer before you go for a job interview?
it prepares you to ask good questions
it shows that you do a lot of reading
it ensures that you'll be considered for the job
it gives you something to discuss during the interview.
What should job applicants offer to do in the closing paragraph of an interview follow-up letter?
send an appropriate gift
work for a reduced salary
provide further information
accept any available job
Bobbi, who works for an insurance company, is responsible for calculating the risk of loss, establishing premium rates, and designing insurance policies to cover risk. Bobbi works as a(n)
underwriter
agent
accountant
financial analyst
Which of the following statements regarding corporate governance is true:
A. Corporate governance makes a firm's shareholders accountable to its managers.
Corporate governance emphasizes individual goals over group goals.
Corporate governance aligns the interests of individuals, corporations, and society. .
Corporate governance is only used to protect the interests of the shareholders.
One way that organizations can achieve their corporate governance objectives is by
encouraging employee participation at board meetings.
preventing stakeholders from viewing financial information.
allowing senior managers to serve on the board of directors.
releasing an annual report detailing their failures and losses.
Internal audits are used by __________, while external audits are used by __________.
management; stakeholders
stakeholders; employees
creditors; management
employees; competitors
Which of the following serves as an organization's conscience during decision-making:
the public
the "C-Suite" (CEO, CFO, etc.)
Employees
Board of Directors
To build professional relationships, Brynn serves on several trade association committees, co-authors articles with other finance professionals to publish in the local newspaper, and treats business contacts to dinner or golf. These activities are forms of
advertising
cooperating
networking
up-selling
How can management reduce the business's level of risk associated with ethics?
Advise employees that following business ethics depends on the situation.
Allow employees to follow their own set of ethics.
Assume employees know what constitutes ethical behavior.
Train employees about expectations in relation to workplace ethics.
A business can protect its computerized financial data from losses associated with fire, flood, and electrical outages by
changing passwords and encryption techniques periodically.
installing intrusion detection systems.
performing backup procedures on a regular basis.
implementing a manual filing system.
When businesses in a particular industry carry risks that commercial insurance companies typically do not cover, they often form __________ to __________ risk.
captive insurance companies; transfer
insurance rating companies; avoid
insurance brokerage firms; assume
independent life insurance agencies; minimize
Why is the choice of a risk measure for internal and external risk of great practical importance?
It determines the maximum number of clients that can be served effectively by a financial institution.
It determines the minimum reserve requirements in financial trading.
It identifies the types of risks that the financial institution will encounter.
It designates the audience that will receive the resulting financial reports.
Which of the following is a true statement regarding enterprise risk management (ERM):
All risks considered in ERM are negative.
ERM focuses on the combined impact of all risks.
ERM can make achieving goals more difficult.
Risks usually relate to relationships between employees.
Setting the overall goals for a business, guiding the activities of the business, and keeping the business moving toward its goals are part of the role of
employees
managers
consultants
supervisors
Explore all questions with a free account