MGT100-HK1. INTRODUCTION TO BUSINESS (MGT100-HK1) > TAKE ASSESSMENT: FINAL EXAM

Take Assessment: Final Exam

Name Final Exam

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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

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__________ 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

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  _________ 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

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_______ 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

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  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 1 points   Save

43

 

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

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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

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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