MGT 100 Introduction to Business Final Exam Answers

 

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  Question 1 1 points Save
The most typical time frame for a budget is
one month.
three months.
six months.
one year.
five years.

 

  Question 2 1 points Save
Which of the following is NOT a Core Competency in Accounting as identified by the CPA Vision Project?
skills in interpreting converging information
strategic and critical skills
technology skills
computational skills
communication and leadership skills

 

  Question 3 1 points Save
The ____________ measures the average number of times that inventory is sold and restocked during the year.
inventory turnover ratio
current ratio
the restock factor
The Learning Effect
the acid test ratio

 

  Question 4 1 points Save
As buildings and equipment wear out or become obsolete, their value decreases. To reflect decreasing value, accountants use
prepaid expenses.
subtracting methods.
depreciation.
licensing.
all of the above.

 

  Question 5 1 points Save
_______________ is concerned with reporting the operations of the company as a whole to shareholders and the public.
Managerial accounting
Government accounting
Minor accounting
Financial accounting
Stock market accounting

 

  Question 6 1 points Save
An expense, such as rent, that is paid before the upcoming period in which it is due is referred to as _________ on the balance sheet.
accounts receivable
futures
prepaid expenses
merchandise inventory
marketable securities

 

  Question 7 1 points Save
__________ is also known as net profit or net earnings.
Operating income
Net income
Cash flow
Leverage
Selling income

 

  Question 8 1 points Save
Subtracting income taxes from operating income reveals
operating income.
net income.
cash flow.
leverage.
selling income.

 

  Question 9 1 points Save
Depreciation is
the process of distributing the cost of an asset over its useful life.
the amount paid for an existing business above the value of its other assets.
a debt that must be paid within the year.
additional money, above proceeds from a stock sale, paid directly to a firm by its owners.
a debt that is not due for at least one year.

 

  Question 10 1 points Save
Which of the following statements is the most accurate?
All inventory turnover ratios should be five or above.
A “good” inventory turnover ratio depends upon the industry that a firm is in.
As a rule, any firm strives to achieve an inventory ratio below five.
Most firms pay no attention to inventory turnover.
Inventory turnover is a short-term solvency ratio.

 

  Question 11 1 points Save
Along with the computer, Mega Computers has sent a document that states the promised payment date and amount. The buyer must sign it before taking the computer. This is a(n)
revolving credit agreement.
open-book credit.
promissory note.
trade draft.
line of credit.

 

  Question 12 1 points Save
Financial control is
the process of checking actual performance against plans to ensure that desired financial results occur.
a firm’s strategies for reaching some future financial position.
rules governing a firm’s extension of credit to customers.
the granting of credit by one firm to another.
the management of cash inflows and outflows to ensure adequate funds for purchases and the productive use of excess funds.

 

  Question 13 1 points Save
Property insurance is
insurance covering income lost during times when a company is unable to conduct business.
insurance underwritten for a group as a whole rather than each individual in it.
insurance covering losses resulting from physical damage to or loss of the insured’s real estate or personal property.
coverage provided by a firm to employees for medical expenses, loss of wages, and rehabilitation costs resulting from job-related injuries or disease.
insurance covering losses resulting from medical and hospital expenses as well as income lost from injury or disease.

 

  Question 14 1 points Save
Cash-flow management is
the process of checking actual performance against plans to ensure that desired financial results occur.
a firm’s strategies for reaching some future financial position.
rules governing a firm’s extension of credit to customers.
the granting of credit by one firm to another.
the management of cash inflows and outflows to ensure adequate funds for purchases and the productive use of excess funds.

 

  Question 15 1 points Save
The mix of debt and equity funding that a firm uses is called its
capital structure.
long-term funding mix.
financial mix.
debt-to-equity ratio.
corporate capital mix.

 

  Question 16 1 points Save
Credit policies are
the process of checking actual performance against plans to ensure that desired financial results occur.
a firm’s strategies for reaching some future financial position.
rules governing a firm’s extension of credit to customers.
the granting of credit by one firm to another.
the management of cash inflows and outflows to ensure adequate funds for purchases and the productive use of excess funds.

 

  Question 17 1 points Save
A __________ is an arrangement in which a lender agrees to make funds available on demand and on a continuing basis.
line of credit
revolving credit agreement
commercial paper
factoring
trade acceptance

 

  Question 18 1 points Save
_________ risks involve the possibility of gain or loss.
Acts of God
Market
Speculative
Pure
Financial

 

  Question 19 1 points Save
__________ is uncertainty about future events.
Flow
Risk
Leverage
Liquidity
Hedging

 

  Question 20 1 points Save
_______ are purchases of fixed assets such as land, buildings, and machinery.
Capital expenditures
Operating expenditures
Fixed expenditures
Budgeted expenditures
Investments

 

  Question 21 1 points Save
Search engines such as Yahoo! serve as ___________, collections of business Web sites representing diverse products.
internet service providers
electronic storefronts
cybermalls
multi-level marketers
e-catalogs

 

  Question 22 1 points Save
___________ help Internet customers by gathering and sorting information on products and prices.
Rack jobbers
Syndicated sellers
E-referrals
Shopping agents
Brokers

 

  Question 23 1 points Save
Which of the following would violate FCC cross-ownership regulations?
Montrose Broadcasting owns newspapers in San Diego and San Francisco.
Wine Tarner owns one newspaper and one television station in Omaha.
Entertainment Systems owns a newspaper in Orlando and a radio station in Tampa.
All of the above.
None of the above.

 

  Question 24 1 points Save
The Federal Communications Commission has regulations against ____________, ownership of more than one media outlet in the same market.
channeling
multi-plexing
cross-ownership
dual ownership
dual distribution

 

  Question 25 1 points Save
The type of nonstore marketing used by Tupperware, Amway, and Avon is
direct selling.
video marketing.
electronic shopping.
telemarketing.
mail order.

 

  Question 26 1 points Save
__________ generate large sales volume by offering goods at substantial price reductions. In recent years they have offered higher quality and a few department store services.
Discount houses
Warehouse clubs
Factory outlets
Off-price stores
Catalog showrooms

 

  Question 27 1 points Save
In _________, the telephone is used to sell directly to consumers.
direct selling
video marketing
electronic shopping
telemarketing
mail ordering

 

  Question 28 1 points Save
There are over _______ million retail establishments in the U.S.
10.0
7.5
5.0
2.5
1.6

 

  Question 29 1 points Save
___________ distribution is a strategy by which a manufacturer grants exclusive rights to distribute or sell a product to a limited number of wholesalers or retailers in a given geographic area.
Network
Exclusive
Selective
Matrix
Intensive

 

  Question 30 1 points Save
Which of the following work on commission, do not take title to the goods they sell, and serve as sales reps to manufacturers who need them?
merchant wholesalers
merchant shippers
drop shipper
rack jobbers
agents and brokers

 

  Question 31 1 points Save
Only corporations can issue ___________ bonds.
municipal
serial
callable
convertible
sinking fund

 

  Question 32 1 points Save
A _______ is a bond for which no specific property is pledged as collateral.
bearer bond
debenture
registered bond
secured bond
callable bond 

 

  Question 33 1 points Save
Animal names have figured prominently in the stock market for years. Which animal listed below do we associate with a rising market?
lamb
tiger
bear
bull
panther

 

  Question 34 1 points Save
What condition would lead an issuer to call a bond?
The coupon payments on the bond are high.
Prevailing interest rates are lower than the rate being paid on the bond.
Government regulation.
The coupon payments on the bond are low.
Prevailing interest rates are higher than the rate being paid on the bond.

 

  Question 35 1 points Save
Which of the following are aspects of a short sale by an investor?
Borrowing of stock from a broker.
Required return of the stock to broker.
Hope for falling price on the stock sold short.
Money not required up front.
All of the above.

 

  Question 36 1 points Save
On the stock pages of The Wall Street Journal, which column informs us as to how many shares of a given stock was sold during the market session reported on?
Vol 100s
Close
Net Chg
52-Week High
Div

 

  Question 37 1 points Save
Among municipal bonds, which are backed by the issuer’s taxing power?
obligation bonds
revenue bonds
supported bonds
commonwealth bonds
trans-issued bonds

 

  Question 38 1 points Save
Through _________, the risk of loss is reduced by spreading the total investment across more stocks.
spreading
shorting
margin buying
asset allocation
diversification

 

  Question 39 1 points Save
Typically, a state or local government will issue ___________ to fund new elementary and high schools.
obligation bonds
revenue bonds
supported bonds
commonwealth bonds
trans-issued bonds

 

  Question 40 1 points Save
Which is the most widely cited U.S. stock market index?
Standard & Poor’s Composite Index
the NYSE index
The New York Times index
Dow Jones Industrial Average
NASDAQ composite index

 

  Question 41 1 points Save
Buyers fall into two groups: buyers of __________ and buyers of ___________.
shopping goods, convenience goods
temporary goods, permanent goods
quick goods, fast goods
consumer products, industrial products
cheap goods, expensive goods

 

  Question 42 1 points Save
Companies often price their products to establish ______________, a company’s percentage of the total market sales for a specific product type.
market share
fixed costs
sales percentage
variable costs
breakeven point

 

  Question 43 1 points Save
Which of the following is most likely to generate profits to cover the expenses of developing new products?
price fixing
price skimming
penetration pricing
market pricing
price lining

 

  Question 44 1 points Save
___________ is frequently used to stimulate sales.
Price fixing
Price discounting
Psychological pricing
Market pricing
Price lining

 

  Question 45 1 points Save
Which of the following is NOT a function of packaging?
Serves as in-store advertisement.
Reduces risk of spoilage.
Increases the quality of the product inside.
Makes the product attractive.
Displays the brand name.

 

  Question 46 1 points Save
___________ refers to the physical container in which a product is sold, advertised, or protected.
Labeling
Branding
Pricing
Packaging
Lining

 

  Question 47 1 points Save
The three types of brand names are ________________ brands.
national, licensed, and private
large, medium, and small
local, regional, and national
nearer, farther, and farthest
numerical, logistical, and literal

 

  Question 48 1 points Save
A ____________ is the tangible and intangible features that characterize a product.
product line
service package
service mix
prototype
product mix

 

  Question 49 1 points Save
When companies extend their horizons and identify opportunities outside existing product lines, the result is
conglomeration.
multiple product lines.
ubiquity.
universalism.
global response.

 

  Question 50 1 points Save
A product __________ is a group of similar products intended for a group of similar buyers.
line
assortment
mix
shield
range

 

  Question 51 1 points Save
The evaluation of all work activities, materials flows, and paperwork to determine the value that they add for customers is
quality/cost studies.
value-added analysis.
benchmarking.
getting closer to the customer.
statistical process control.

 

  Question 52 1 points Save
Through _________, a firm compares its products and processes with those of competitors or even companies in other lines of business.
external benchmarking
quality improvement
failure management
internal benchmarking
process improvement

 

  Question 53 1 points Save
Which of the following was used where GTE improved its over-the-phone business?
ISO 9000
reengineering
ROQ
Back to Basics
Six Sigma

 

  Question 54 1 points Save
Business process reengineering is
the concept that all employees are valuable contributors to a firm’s business, and should be entrusted with decisions regarding their work.
the redesigning of business processes to improve performance, quality, and productivity.
a program certifying that a factory, laboratory, or office has met the quality management standards of the International Organization for Standardization.
the principle of looking at the supply chain as a whole in order to improve the overall flow through the system.
a certification program attesting to the fact that a factory, laboratory, or office has improved environmental performance.

 

  Question 55 1 points Save
A product with a very low defect rate would have high
quality control.
quality reliability.
quality circles.
total quality management.
performance quality.

 

  Question 56 1 points Save
Productivity measures how much we produce with the _______ we use to produce it.
materials
labor
resources
dollars
time

 

  Question 57 1 points Save
The process by which a company analyzes a competitor’s product to identify desirable improvements in its own is called
competitive product analysis.
benchmarking.
quality/cost studies.
performance quality analysis.
quality reliability analysis.

 

  Question 58 1 points Save
Employee empowerment is
the concept that all employees are valuable contributors to a firm’s business, and should be entrusted with decisions regarding their work.
an ongoing commitment to improving products and processes in the pursuit of ever-increasing customer satisfaction.
a program certifying that a factory, laboratory, or office has met the quality management standards of the International Organization for Standardization.
the principle of looking at the supply chain as a whole in order to improve the overall flow through the system.
a certification program attesting to the fact that a factory, laboratory, or office has improved environmental performance.

 

  Question 59 1 points Save
A _________ could be used to analyze variations in the weight of cereal boxes.
process capability study
value-added analysis
benchmark
quality circle
quality/cost study

 

  Question 60 1 points Save
Total quality management is
the principle that quality belongs to each person who creates it while performing a job.
the consistency of a product’s quality from unit to unit.
the performance features offered by a product.
the sum of all activities involved in getting high-quality products into the marketplace.
the process by which a company analyzes a competitor’s products to identify desirable improvements.

 

  Question 61 1 points Save
Information is
the useful interpretation of facts and figures.
names and numbers from a large phonebook.
raw facts and figures.
proven facts.
controlled flow of words for a useful purpose.

 

  Question 62 1 points Save
Netscape Navigator, Netscape Communicator, and Internet Explorer are
data communication networks.
Web links.
browsers.
Web servers.
connections.

 

  Question 63 1 points Save
__________ need information to analyze trends in the business environment and overall company performance in order to make long-range plans.
Middle managers
Members of the board of directors
Top-level managers
First-level managers
Knowledge workers

 

  Question 64 1 points Save
The ________ was originally commissioned by the Pentagon.
Fox News Channel
World Wide Web
National Public Radio
Federal Communications Commission
Internet

 

  Question 65 1 points Save
_________ allows people in remote locations to work simultaneously on one document.
Videoconferencing
Voice mail
Data conferencing
Digital information service
An Internet service provider

 

  Question 66 1 points Save
A(n) ________________ is a quick-reference, easy-access application of information systems specially designed for instant access by upper-level managers.
application
decision support
executive support
expert
artificial intelligence

 

  Question 67 1 points Save
Which of the following is a database management program?
Microsoft Access
Word Perfect
Lotus 1-2-3
A, b, and c
None of the above

 

  Question 68 1 points Save
Robotics is a special category of
applied technology.
human support.
executive support.
an expert system.
artificial intelligence.

 

  Question 69 1 points Save
Which of the following are spreadsheet packages?
Lotus 1-2-3
Quattro Pro
Microsoft Excel
All of the above
None of the above

 

  Question 70 1 points Save
Lotus Notes and Netscape Communicator are __________ products.
groupware
data communication network
Internet
electronic conferencing
Internet service provider

 

  Question 71 1 points Save
A nondeposit financial institution that pools funds from it members to provide retirement income for its members is a(n)
credit union.
securities dealer.
insurance company.
finance company.
pension fund.

 

  Question 72 1 points Save
The _________ funds national improvements by making loans to build roads, schools, power plants, and hospitals.
Federal Reserve
World Bank
Import-Export Bank
European Union
International Monetary Fund

 

  Question 73 1 points Save
Approximately ________ of all U.S. currency is held by residents of other countries who want the security of U.S. dollars.
10 percent
20 percent
25 percent
50 percent
75 percent

 

  Question 74 1 points Save
Which of the following is a purpose of the International Monetary Fund?
Promote the stability of exchange rates.
Provide temporary, short-term loans to member countries.
Encourage members to cooperate on international monetary issues.
Encourage development of a system for international payments.
All are purposes of the IMF.

 

  Question 75 1 points Save
Which of the following will result in an increase of the money supply?
An increase in reserve requirements.
An increase in the discount rate.
A decrease in reserve requirements.
An increase in taxes.
Sale of securities by the Fed.

 

  Question 76 1 points Save
David has a savings account and his home mortgage with this financial institution. In addition, he periodically receives a dividend check from them. He is invested with a
commercial bank.
finance company.
savings and loan associations.
mutual savings bank.
credit union.

 

  Question 77 1 points Save
Which of the following is NOT part of the M-2 money supply?
time deposits
money market mutual funds
savings deposits
government bonds
currency

 

  Question 78 1 points Save
Where will one find the most avid users of the smart card?
United States
Great Britain
North Africa
Europe and Asia
Scandinavia

 

  Question 79 1 points Save
If today’s currency wears out it can be replaced, thus demonstrating that it is
portable.
divisible.
stable.
durable.
valuable.

 

  Question 80 1 points Save
Individual banks that need money can borrow from the Federal Reserve and pay interest on the loans, while the Fed provides storage for commercial banks. The preceding sentence describes which role of the Fed?
the government’s bank
the bankers’ bank
guardian of the currency
controlling the money supply
overseeing the economy

 

  Question 81 1 points Save
Approximately ________ of the Gross Domestic Product is generated by the service sector.
20 percent
40 percent
60 percent
70 percent
80 percent

 

  Question 82 1 points Save
The typical layout in automobile, food-processing, and computer assembly plants is the _______ layout.
process
customer
product
cellular
fixed-position

 

  Question 83 1 points Save
Using a _________ chart, managers list all the activities needed to complete a job, estimate the time required for each step, and check the progress of the project against the chart.
lead time
Simon
MRP II
PERT
Gantt

 

  Question 84 1 points Save
Lockheed Martin is using _________ to automatically inform their engineers and those of their subcontractors of changes to designs.
monthly updates
an electronic bulletin board
a product data management system
a newsletter
annual meetings

 

  Question 85 1 points Save
The layout that is efficient and inexpensive because it simplifies work tasks and uses unskilled labor is the _______ layout.
process
customer
product
cellular
fixed-position

 

  Question 86 1 points Save
Steve manages people who take various raw materials and pre-made assemblies and puts them together in a unique product that is sold to retail stores. Steve is involved in
service creation.
goods creation.
plant management.
manufacturing management.
operations management.

 

  Question 87 1 points Save
Check processing at your local bank is a(n) ___________ system.
active
high-contact
low-contact
high-interaction
low-interaction

 

  Question 88 1 points Save
Employment in the service sector accounts for approximately _________ of jobs in the United States.
20 percent
40 percent
60 percent
70 percent
80 percent

 

  Question 89 1 points Save
The layout where the arrangement of production facilities is design to move families of products through similar flow paths is the _______ layout.
process
customer
product
cellular
fixed-position

 

  Question 90 1 points Save
A _________ chart is a production schedule specifying the sequence and critical path for performing the steps in a project.
lead time
Simon
MRP II
PERT
Gantt

 

  Question 91 1 points Save
The sending of fliers or other types of printed advertisements to consumer’s homes is
magazines.
television.
newspaper.
radio.
direct mail.

 

  Question 92 1 points Save
__________ indicate(s) that the buyer is interested and pinpoint(s) the parts of the presentation that trouble the buyer.
Approaching
Demonstrations
Objections
Closing
Qualifying

 

  Question 93 1 points Save
To stimulate sales, drug companies use
educational events.
funding for medical research.
direct-to-consumer marketing.
promotional gifts.
all of the above.

 

  Question 94 1 points Save
The owner of Billy Joe’s Barbecue is looking at his advertising, sales promotion, and publicity programs. He is reviewing the company’s ___________ mix.
communications
marketing
promotional
publicity
consumer information

 

  Question 95 1 points Save
When New York Life advertises the safety and security of its products, it is using a _______ advertising strategy.
push
persuasive
comparative
pull
reminder

 

  Question 96 1 points Save
As an example of adding value, Burger King cut back on advertising dollars and used those funds for
meat purchases in South America.
adding highly trained managers for their units.
customer discounts.
expansion of the chain.
none of the above.

 

  Question 97 1 points Save
____________ allow companies to rent booths to display and demonstrate products to customers who have a special interest in them.
Premiums
Directional signs
Point-of-purchase displays
Trade shows
Coupon incentives

 

  Question 98 1 points Save
During the postpurchase evaluation stage of the consumer buying process, the most effective promotional tool(s) is/are
advertising and sales promotion.
personal selling.
advertising and publicity.
sales promotion and personal selling.
advertising and personal selling.

 

  Question 99 1 points Save
When selling new, innovative products the type of selling most likely needed is
order processing.
sales promotions.
creative selling.
missionary selling.
public relations.

 

  Question 100 1 points Save
Which of the following make it easier for customers to find a product and eliminate competitors’ products from consideration?
contests
POP displays
coupon
premiums
trade shows