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144 Cards in this Set
- Front
- Back
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Bonds with an S&P rating of ______ and below are classified as junk bonds.
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BB
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A bond issue that consists of several bonds that mature on different dates is a ______bond
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Serial
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A 30year old is investing for retirement. What shole his or her primary investment objective be?
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Growth in capital
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If an investor's main motivation is liquidity, which of the following securities is least appropriate? Gov. bonds, Common stocks, municipal bonds, or money market instruments?
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Common stocks
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In terms of the dollar value of stocks traded, which market is the largest?
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New York Stock Exchange
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In the _____market, buyers and sellers meet in a virtual stock market in which they can trade directly with one another without a specialist or market maker.
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Electronic communications networks
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When reading a stock price quotation, an investor will find all of the following information except, stock's closing price, company's total assets, dividend per share, p/e ratio?
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Company's total assets
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What is the single most important advantage of mutual funds?
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diversification
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Which agency has most of the federal regulatory responsibility over the securities market?
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Securities and exchange commission
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The natural progression of a business begins with_____?
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financing
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Public accounts usually perform all oof the following tasks for a business client EXCEPT, developing the firm's marketing strategy, reviewing a firm's financial statements, tax planning, or management consulting?
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Developing the firm's marketing strategy
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The procedure used by accountants to convert transactions into financial statements is called _____?
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The accounting process
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The rules followed by accountants when preparing financial statements are referred to as _____?
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Generally Accepted Accounting Practices (GAAP).
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The _______ was createed by Sarbanes Oxley Act of 2002
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Public Company Accounting Oversight Board
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What is the basic accounting equation?
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Assets=liabilities+owners equity
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Which of the following financial statemenst shows a firm's financial position at a particular date?
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Balance sheet
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All of the following aqre profitability ratios EXCEPT, return on equity, inventory turover, return on assets, or gross profit margin?
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Inventory turnover
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Daniel wishes to create a financial blueprint for a future period that reflects such items as expected sales revenues, operating expenses, and cash receipts and disbursements. What does Daniel want to create?
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A budget
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Companies such as Coca-Cola generate more than half their annual revenues from sales outside the US, including Europe. If the dollar gets stronger relative to the euro, what will be the financial impact on the company?
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Overall earnings will decrease
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Who is recognized worldwide as the body with sole responsibility and authority to issue pronouncements on international accounting standards?
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IASC.
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Giving employees responsibility and authority to make decisions about their work is called
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Empowerment
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In many compmanie, shared decision-making authority extends to all of the following EXCEPT: purchasing supplies, selecting members of the board of directors, overseeing the safety program, or determining individeal working hours.
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selecting members of the board of directors
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Microsoft and Home Depot have turned hundreds of their employees into millionaires by offering ____as a company benefit.
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Stock options
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All of the following statements concerning team size are correct EXCEPT: SMALL TEAMS MAKE THE MOST DEMANDS ON team leaders, large teams often suffer from disagreemtnes, absenteeism, and membership turnover, small teams may lack sufficient diversity, and large teams tend to work slower than small teams.
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Small teams make the most demands on team leaders
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Team diversity is often established in a _____ team, by bringing together the expertise of members from various functions in the organization.
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Cross-functional
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_____listening is the basis for effective communication.
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Active
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What is considered to be the biggest problem with using email as a form of business communication?
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Too much email
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Concerning the grapevine, all of the following statements are correct EXCEPT: the grapevine is an informal communication channel, information on the grapevine is wrong most of the time, the grapevine is a frequent source of information for employees, or gra[evines convey information rapidly?
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Information on the grapevine is wrong most of the time.
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All of the following are examples of nonverbal communication EXCEPT: informal speech, eye contact, clothing choieces, tone of voice.
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Informal speech
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_______communication with customers should create goodwill and contribute to customer satisfaction.
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EVERY
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What is the first step a company should do when responding to a crisis?
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Respond quickly with a prepared statement
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Manuel is looking through the Wall Street Journal. He notices an ad announcing the sale of a new bond issued by the city of Columbus. What is the proper name for this type of ad?
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Tombstone
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Which of the following statements about markets is correct? The NYSE is a primary market? The secondary securities markets are larger than the primary markets? Whenever a firm's stock is bought or sold in the secondary market money either flows into or out of the firm? Or daily news of stock and bond trading mnost likely refers to the primary market?
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The secondary securities markets are larger than the primary markets.
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When an investment banking firm puts together a group of other investment banking firms to sell a new security issue, a(n) ________ is formed.
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Syndicate
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All of the following are motives for investing in money market instruments EXCEPT: current income, low risk, easy to convert into cash, long-term price appreciation.
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Long-term price appreciation.
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The senior financial manager has the title of _________.
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Chief Financial officer
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A company's financial plan should answer all of the following questions except ______. What is the contingency plan in case of bankruptcy, what funds will the firm require during the appropriate period of operatings, how will it obtain the necessary money, when will it need more cash?
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What is the contingency plan in case of bankruptcy?
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Anythings generally accepted as a means for paying for goods and services is known as_____?
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Money
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Which of the following financial assets is most liquid?
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Checking accounts
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All of the following statements concerning credit cards are true except____. Credit cards are a very expensive source of credit, credit card debt has increased 400 percent in the past 20 years, credit cards are rarely a source of fund for businesses, or credit cards are included in the money supply.
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Credit cards are rarely a source of funds for businesses.
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It is common when a firm has temporary excess cash that the financial manager most likely will:
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invest in marketable securities.
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All of the following are examples of debt capital EXCEPT: bank loans, company profits, commercial paper, or bonds?
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Company profits
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When a firm receives goods or services from a supplier and agrees to pay for them at a later date, this arrangement is called ______.
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trade credit
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Borrowing money creates ________?
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leverage
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Which of the following agencies regulates both state and federally chartered commercial banks?
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FDIC
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The chairman of the Federal Reserve Board can accelerate economic activity by lowering interest rates. What primary method does the Federal Reserve use to accomplish this?
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Open market operations
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Many developing countries have had _______rates of GDP growth compared with the US and other developed countries.
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higher
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An absolute advantage occurs when a country can maintain ________.
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a monopoly by being the lowest-cost producer.
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A country has a good chance of selling more of its goods abroad if it ________.
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Devalues its currency
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All of the following are considered to be hard currencies EXCEPT the _______. US dollar, the russian ruble, japanese yen, euro
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Russian ruble
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All of the following constitute a country's infrastructure EXCEPT ______. housing, communication, energy facilities, and transportation.
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housing
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With the fear of Mad Cow disease, certain countries have imposed a total ban on imported beef, creating an _____
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embargo
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A less developed nation is facing a financial crisis due to the rapid devaluation of its currency. Which of the following might aid this country.
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International Monetary Fund
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Which of the following is the first step in the decision for a business to exand globally?
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Determining which foreign markets to enter
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BMW and Toyota set up a factory in Brazil to produce minivans. Slightly different minivan verstion are sold in Brazil--one as a Toyota and one as a BMW. This is an example of
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A joint venture
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A US electronis firm sets up a venture capital firm to fund promising British and Irish start-up companies. This is an example of
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a direct investment
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When firms develop products and marketing strategies that appeal to the customer tastes and buying habits of particular national markets they are using a
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multidomestic strategy
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______are the largest group of minority business owners in the United States.
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Hispanics
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Traditionally, small businesses tended to be concentrated in the _______ industry.
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Retailing
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_______newly launched businesses fail within 2 years after commencing iperations.
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1/3rd
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When the SBA assists small business in applying for a major loan, it acts as the lender's _______.
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guarantor
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Which of the following is the largest franchise in the US? Supercuts, McDonald's, Curves for Women, or Subway?
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Subway
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The franchiser provides all of the following services except, building plan, accounting systems, on-sight management, name recognition?
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on sight management
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Corporations have all fo the following advantages EXCEPT favorable tax treatment, limited liability, expanded financial capacity, unlimited life
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Favorable tax treatment
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The maximum number of shareholders is limited to _____for a firm to qualify as a subchapter S corporation.
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75
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All of the following are duties of the board of directors of a corporation EXCEPT: hiring the corporation's chief executive officer, authorizing major transactions of the corporation, guaranteeing the payment of chas dividends every year, or electing its own officers.
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Guaranteeing the payment of cash dividends every year.
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Which type of merver is likelly to receive the closest examination by the Fed trade Commission?
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Horizontal merger
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A _____ would most likely be publicly owned. Trucking company, cable television company, movie theater, or city sewer system?
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City sewer system
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ACE hardware is a _______of independently owned hardware stores, whose owners join forces to collectively operate all or part of the functions in their industry.
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Cooperative.
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All of the following statements are correct EXCEPT:
successful businesses seek to meet their social and ethical responsibilities, business is the economic pulse of a nation, business includes nonprofit organizations that provide services to the public, business provides goods and services necessary to an economic system. |
Business includes nonprofit organizations that provide services to the public
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The factors of productions in an ordinary economic system are.
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natural resources, human resources, capital, and entrepreneurship
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Donovan corporation's sources of capital can include all of the following except: Investments from stockholders, reinvested profits, cash dividends declared by Donovan's board of directors and paid to the stockholders, investments from venture capitalists
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cash dividends declared by Donovan's board of directors and paid to the stockholders.
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Technology, tools, information, and physical facilities for the operation of a business are called?
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Capital
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IN his book, the wealth of nations, economist Adam Smith was the first person to describe
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capitalism
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What is the fundamental right of the private enterprise system?
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Private property
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In colonial society, real economic and political power was centered in?
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rural areas
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Henry Ford is noted in business history for introducing the moving assembly line, which greatly reduced the cost of producing a car. Assembly lines firs became common during the?
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production era
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Concentrating on building and promotine products in hopes that enough customers will buyt themm in order to cover costs and earn acceptable profits is called ________.
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transaction management
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Members of ________ generation will soon begin to retire
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the baby boom
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Diverse employee teams tend to perform ________ and develop ______ than do homogenous employee groups
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more effectively; better solutions
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When a US company outsources work to Mexico is is
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nearshoring
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For today's managers, which of the following is LEAST important? The ability to work by strict rules, vision, critical thinking skills, creativity?
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The ability to work by strict rules.
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wHICH OF THE FOLLOWING IS not AN EXAMPLE OF AN INTERNal force that requires organizational change? Labor union demands, production problems, new technologies, or new company goals?
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new technbologies
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When management adheres to a set of standards involving the right and wrong actions arising in the work environment management is practicing _______/
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business ethics
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Businesses have responsibilities to _______.
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investors, customers, employees, and society
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Businesses should _______.
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find the balance between doing what is right and what is profitable
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All of the following are minimum requirements for ethics compliance programs EXCEPT__________. High-level personnel responsible for compliance, government regulation, consistent enforcement, consistent improvement.
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government regulation
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If an individual follows personal principles for resolving ethical dilemmas and considers personal, group, and soceital intereste, he or she is at the ______stage of ethical devellopment.
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Postconventional
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How should a businessperson deal with a conflict of interest?
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disclose it or avoid it
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_______ goes beyond truthfulness.
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Integrity
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A formal statement that defines how the organization expects and requires employees to resolve ethical questions is ________/
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a code of conduct
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The foundationa of an ethical climate is ethical ________.
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awareness
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Which of the folllowing can improve ethical reasoning in a company? A code of conduct, practical training sessions, a mission statement, organicational culture.
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Practical training sessions
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All of the following are examples of corporate philanthropy EXCEPT _______. Supporting the local public radio station, sponsoring a Red Cross blood drive, paying local property taxes, or giving employees release time to participate in volunteer activities.
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PPaying local property taxes
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Consumer rights include all of the following except the right to : Choose, boycott, be heard or be informed
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boycott
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Which federal agency is responsible for ensuring the safety of prescription drugs?
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FDA
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Which federal agency is responsible for setting workplace health and safety standards?
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OSHA
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All of the following groups are specifically identified by federal equal employment opportunity laws EXCEPT: Vietnam era vetrans, obese persons, handicapped persons, persons over age 40
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obese persons
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Zardoc inc. uses questionable accounting practices to artifically inflate its profits. Which federal agency might become involved?
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The Securities and Exchange Commission SEC
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The Class-Action Fairness ACt of 2005 provides all of the following EXCEPT: It moves most large, multistate actions rom state into federal courts, avoids large, arbitrary injury awards to plaintiffs, prevents attorneys from charging a percentage of uncollected rewards, or elimates the need for class-action lawsuits.
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Eliminates the need for class action lawsuits.
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Which branch of gov. is responsible for settling disputes among parties by applying laws?
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Judicial
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The three types of law include all of the followin EXCEPT: common, statutory, business, or modern.
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Modern
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which regulatory act specifically banned monopolies and restraints of trade?
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Sherman ACt
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Which employee protection act provided for the payment of the minimum wage, and restricted the employment of children
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Fair Labor Standards Act.
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A _____refers to a civil wrong inflicted on another person or the person's property.
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Tort
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Most UD business law is based on the
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UCC
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The three principles of academic hoinesty by Lipson include all of the following EXCEPT: When you say you did the work yourself, you actually did it, when you rely on someone else's work you cite it, when you present research materials, you present them fairly and truthfull, when you reuse a paper you wrote, ask permission from the instructer.
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When you reuse a paper you wrote, ask permission from the instructor.
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Which of the following is not a tip on how to participate profitably in class discussions given by Lipson: attend regularly and arrive on time, keep up with the assigned work. always respond to every question the instructor asks, or listen to your fellow students as well as your teacher and contribute to the discussion?
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Always respond to every question your professor asks
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Which of the following is not a tip on honesty in group assignments given by Lipson: Know your professor's expectations for group work before you hand in your work, if you got it in a group study session, you may turn it in as your own ansewers, together, you can go over the material several times until you understand it, once you understand the material, you should write your own answers.
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If you got it in a group study session, you may turn it in as your own answers.
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What is the first question to consider when developing a Web site?
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What is the purpose of the Web site.
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When it comes to the contents of a web site, which of the following is LEAST important? Utilizing the latest advance graphics software, relevance to viewers, conversion rates, or revenue and profitability.
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Utilizing the latest advanced graphics software
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All of the following are measures of Web site effectiveness except? The cost of developing and maintaining the site, web site traffic counts, conversion rates, or revenue and profitability
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the cost of developing and maintaining the site.
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As someone moves up the management hierarchy, which skills become relatively less important?
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Technical skills
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Generally speaking, which type of manager needs vision the most?
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members of top management.
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______ planning is the most general and far-reaching type of planning.
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Strategic
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tactical planning is primarily the responsibility of _______.
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middle managers
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A written explanation of an organizations business interactions and aims is called an? SWOT analysis, strategy for competitive differentiation, objective, mission statement.
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Mission statement.
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decisions involving simple, common, frequently occurring problems for which solutions have already been determined are ______ decisions.
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programmed
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The first step in the decision making process is to ______.
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identify the problem
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Which leadership style would allow sales personnel to participate in setting sales quotas?
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Democratic
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Which of the following groups is typically most responsible for shaping a corporate culture?
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The company's founders.
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Organization charts are the visual indication of a firm's
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job positions and functions.
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the set of relationships that indicates who gives directions to whom and who reports to whom is known as the _______.
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organization chart
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Ian wonders what type or organizational structure is best suited for his manufacturing firm. In addition to its normal product lines, the company occasionally produces special products that require the cooperation of a variety of personnel from many departments. What form of organizational structure is best suited for this operation.
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Matrix organization
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Entrepreneurs are similar to small-business owners in all of the following ways EXCEPT: Entrepreneurs possess more drive, entrepreneurs eventually want to become big business owners, entrepreneurs have more creative energy, or enrepreneurs focus on the growth of their company.
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Entrepreneurs focus on the growth of their company.
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Which of the following starts his or her own company? Classic entrepreneur, change agent, intrepreneur, manager, or all three start their own companies
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Classic entrepreneur
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An entrepreneurially oriented person who develops innovations within the context of a large organization is an _______.
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Intrapreneur
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_______ are people who seek to develop new products, ideas, or ventures within larger organizations.
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intrapreneurs
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studies indicate that approx ______ percent of Americans run their own businesses.
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10 percent
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The primary reasons people become entrepreneurs include all EXCEPT which one of the following reasons? to be one's own boss, to become a financial success, to create employment opportunities for other people, or to create one's own job security.
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to create employment opportunities for other people
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In what ways can the internet be a challenge for entrepreneurs?
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Customers can check prices from large or small companies around the world.
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Which of the following persons is LEAST likely to become an entrepreneur? An inquisitive person, an intelligent person, a calm, low energy person, or a flexible person
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a calm, low-energy person
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_____ ARE BUSINESS ORGANIZATIONS OR GROUPS OF PRIVATE INDIVIDUALS WHO INVEST IN NEW OR GROWING FIRMS.
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VENTURE CAPITALISTS
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A ________ program is initiated by an employee who conceives of an idea. skunkworks, pacing, wealth creation, entrepreneurship
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skunkworks
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Which of the following companies has the longest and best known record of encouraging entrepreneurship? IBM, 3M, General Motors Co., or Microsoft
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3M
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The word e-tailing is another word for?
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virtual storefronts
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The business to business exchange of data using compatible software is called.
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electronic data interchange
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companies utilize all of the following business tools EXCEPT_____. Electronic data interchange, extranets, e-procurement, electronic bulletin boards
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electronic bulletin boards
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When a company wants to share E-business data with its suppliers, they often establish _____, which relays info on everything from product design through order delivery.
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private exchanges
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What is the fastest growing online retail category?
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cosmetics and fragrances
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______ are search programs that check hundreds of sites, gather info, and bring it back to the sender.
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Bots
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aLL OF THE FOLLOWING ARE FACING E-COMMERCE EXCEPT: PRIVACY CONCERNS, PROTECTION OF INTELLECTUAL PROPERTY, GETTING PEOPLE TO GO ONLINE, OR MEASURING THE EFFECTIVENESS OF INTERNET PROMOTIONS
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GETTING PEOPLE TO GO ONLINE
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What is the leading source of online fraud?
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Online auctions
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______ can be used to post shared answers to common questions without having to respond to individual inquiries.
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Electronic bulletin boards
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