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BUS 475 Final Exam Study Guide 2012 - Set 4
BUS 475 Final Exam Study Guide 2012 - Set 4
2) Lucy starts her own psychiatric practice, but her expenditures to open
the practice exceed her income. Lucy is a __________.
A. borrower who demands money from the financial system
B. borrower who supplies money to the financial system
C. saver who supplies money to the financial system
D. saver who demands money from the financial system
3) Of the following companies, which one would not likely employ the
specific identification method for inventory costing?
A. Music store specializing in organ sales
B. Antique shop
C. Farm implement dealership
D. Hardware store
4) Which one of the following items is not generally used in preparing a
statement of cash flows?
A. Adjusted trial balance
B. Comparative balance sheets
C. Additional information
D. Current income statement
5) The conceptual framework developed by the Financial Accounting
Standards Board __________.
A. was approved by a vote of all accountants
B. is viewed as providing a constitution for setting accounting
standards for financial reporting
C. are rules that all accountants must follow
D. is legally binding on all accountants
6) What is the preparation of reports for each level of responsibility in
the companys organization chart called?
A. Static reporting
B. Exception reporting
C. Responsibility reporting
D. Master budgeting analysis
7) The cost principle requires that when assets are acquired, they be
recorded at __________.
A. appraisal value
B. selling price
C. exchange price paid
D. list price
8)
A.
B.
C.
D.
21) When a firm sells a good or a service, the sale contributes to the
nations income __________.
A. only if the buyer of the good or service is a household or another firm
B. only if the buyer of the good or service is a household
C. We have to know whether the item being sold is a good or a service in order
to answer the question
D. whether the buyer of the good or a service is a household, another
firm, or the government
22) The open-economy macroeconomic model includes __________.
A. only the market for foreign-currency exchange
B. only the market for loanable funds
C. neither the market for loanable funds or the market for foreign-currency
exchange
D. both the market for loanable funds and the market for foreigncurrency exchange
23) Most economists use the aggregate demand and aggregate supply
model primarily to analyze __________.
A. the effects of macroeconomic policy on the prices of individual goods
B. short-run fluctuations in the economy
C. productivity and economic growth
D. the long-run effects of international trade policies
24) In the market for foreign-currency exchange in the open economy
macroeconomic model, the amount of net capital outflow represents the
quantity of dollars __________.
A. supplied for the purpose of buying assets abroad
B. supplied for the purpose of selling assets domestically
C. demanded for the purpose of importing foreign goods and services
D. demanded for the purpose of buying U.S. net exports of goods and services
25) Which of the following is not correct?
A. A potential cost of deficits is that they reduce national saving, thereby
reducing growth of the capital stock and output growth.
B. The U.S. debt per-person is large compared with average lifetime
income.
C. Deficits give people the opportunity to consume at the expense of their
children, but they do not require them to do so.
D. In 2005, the U.S. government had a deficit.
26) The Federal Reserve will tend to tighten monetary policy when
__________.
A. interest rates are rising too rapidly
B. the growth rate of real GDP is quite sluggish
C. it thinks the unemployment rate is too high
D. it thinks inflation is too high today, or will become too high in the
future
27) Which of the following statements about GDP is correct?
A.
B.
C.
D.
E.
Online Business
Entrepreneurship venture
Large corporation
Small business
Multinational corporation
A. 3.5
B. 3
C. 2.5
D. 2
45) Twelve randomly-chosen students were asked how many times they
had missed class during a certain semester, with this result: 2, 1, 5, 1, 1,
3, 4, 3, 1, 1, 5, 18.
For this sample, the standard deviation is approximately _____.
A. 3.75
B. 4.55
C. 4.75
D. 3.03
46) William used a sample of 68 U.S. cities to estimate the relationship
between Crime (annual property crimes per 100,000 persons) and
Income (median income per capita). His estimated regression equation
was Crime = 428 + .050 Income.
Which outcomes would be likely in a bivariate regression on 45 randomly
chosen U.S. cities in 2005 with
Y = number of robberies in each city (thousands of robberies) and
X = size of police force in each city (thousands of police)?
A. Autocorrelation.
B. High R2 (due to city size).
C. No correlation.
D. Positive slope (due to city size).
47) Dullco Manufacturing claims that its alkaline batteries last forty
hours on average in a certain type of portable CD player. Tests on a
random sample of 18 batteries showed a mean battery life of 37.8 hours
with a standard deviation of 5.4 hours.
In determining the p-value for reporting the study's findings, which of
the following is true?
A. The p-value is less than .05.
B. The p-value is equal to .05.
C. The p-value cannot be determined without specifying .
D. The p-value is greater than .05.
48) In an activity-on-node [AON] network, the nodes represent
____________, whereas the arcs represent ____________.
A. precedence relationships; time
B. events; activities
C. activities; time
D. activities; precedence relationships
49) Theoretically, service capacity must exceed demand, lest queues
become infinitely long. If capacity does not exceed demand, what is
likely to happen?
A. All of these
A.
B.
C.
D.
E.
56) Success in the _____ phase of the decision making process results in
resolving the original problem, and failure leads to a return to previous
phases.
A. implementation
B. choice
C. design
D. intelligence
E. consideration
57) When customers access a Web site and make purchases, they
generate __________.
A. Web data
B. Tracking cookies
C. Information
D. Clickstream data
E. Hyperlink data
58) _____ is the efficient and efective execution of specific tasks.
A. Expertise
B. Operational control
C. Management control
D. Strategic planning
E. Wisdom
59) Geocoding is __________.
A. integrating organizational transactions with spatially oriented databases
B. integrating maps with spatially oriented databases and other
databases
C. encrypting spatial information
D. accessing geographical information
E. programming spatially oriented databases
60) Information-based industries are most susceptible to which one of
Porters five forces?
A. threat of substitute products
B. bargaining power of suppliers
C. bargaining power of customers
D. rivalry among existing firms in an industry
61) International Game Technologys new ERP system produced all of the
following benefits except:
A. The company gained flexibility in manufacturing products
B. Integrated the companys business functions
C. Company was able to maintain its original business processes
12%
16%
$100 per share. If investors required rate of return on this stock is 15%,
what is the value of per share?
A. $15.00
B. $16.67
C. $6.00
D. $37.50
67) Which of the following is most consistent with the hedging principle
in working capital management?
A. Fixed assets should be financed with short-term notes payable.
B. Inventory should be financed with preferred stock.
C. Accounts receivable should be financed with short-term lines of
credit.
D. Borrow on a floating rate basis to finance investments in permanent assets.
68) At what rate must $400 be compounded annually for it to grow to
$716.40 in 10 years?
A. 5%
B. 7%
C. 8%
D. 6%
69) PepsiCo calculates unlevered betas for each peer group in order to:
A. eliminate competitive factors.
B. eliminate judgment factors.
C. eliminate diferent financial risks.
D. eliminate different business risks.
70) According to the hedging principle, permanent assets should be
financed with _____ liabilities.
A. spontaneous
B. current
C. fixed
D. permanent
71) Bondholders have a priority claim on assets ahead of:
A. shareholders.
B. investors
C. creditors.
D. common and preferred stockholders.
72) Which of the following represents an attempt to measure the
earnings of the firms operations over a given time period?
A. Balance sheet
B. Income statement
C. Quarterly statement
D. Cash flow statement
73) Given the following annual net cash flows, determine the IRR to the
nearest whole percent of a project with an initial outlay of $1,520.
1
2
3
A. 48%
B. 32%
C. 28%
D. 40%
74) Bell Weather, Inc. has a beta of 1.25. The return on the market
portfolio is 12.5%, and the risk-free rate is 5%. According to CAPM, what
is the required return on this stock?
A. 20.62%
B. 14.37%
C. 15.62%
D. 9.37%
75) You hold a
Security
X Corporation
Y Corporation
Z Corporation
A. the best approach is to consider the profit generated by individual firms within
the overall system.
B. one must consider each individual firm's role in the marketing system.
C. one must consider the societys role in the marketing system.
D. one must determine how efficiently the society's resources are used.
E. the evaluation is necessarily subjective.
79) "Marketing strategy planning" means:
A. finding attractive opportunities and selecting a target market.
B. selecting an attractive marketing mix.
C. selecting a target market and developing a marketing strategy.
D. selecting an attractive target market.
E. finding attractive opportunities and developing profitable marketing
strategies.
80) __________ is a marketing management aid which refers to how
customers think about proposed and/or present brands in a market.
A. Customer relationship management (CRM)
B. Market segmentation
C. Brand familiarity
D. Positioning
E. Market scanning
81) When doing "positioning," a marketing manager should:
A. exclusively use focus groups.
B. plan physical product changes rather than image changes.
C. avoid targeting strategies.
D. focus on specific product features of all generic competitors.
E. rely on how customers think about proposed and/or existing brands
in a market.
82) In comparison to the buying of final consumers, the purchasing of
organizational buyers:
A. is always emotional.
B. is even less predictable.
C. is strictly economic and not at all emotional.
D. is always based on competitive bids from multiple suppliers.
E. leans basically toward economy, quality, and dependability.
83) The clustering techniques that can be used in segmenting:
A. looks for differences between groups of people.
B. group people together based on age.
C. eliminate the need for management intuition and judgment.
D. group people together into heterogeneous product-market segments.
E. try to find similar patterns within sets of data.
84) A firm's "marketing mix" decision areas would NOT include:
A. Place.
B. Product.
C. Promotion.
D. People.
E. Price.
85) Comparing GDP for foreign countries can help a marketing manager
evaluate potential markets if the manager remembers that:
A. Other countries most likely dont use the US Dollar as their primary currency.
B. GDP measures show the degree of competition in a market.
C. GDP measures show people's tendency to buy particular products.
D. income tends to be evenly distributed among consumers in most countries.
E. GDP estimates may not be very accurate for very different cultures and
economies.
86) Regarding organizational buying, the people who have the power to
select or approve the supplier--especially for larger purchases--are
called:
A. users.
B. gatekeepers.
C. influencers.
D. deciders.
E. buyers.
87) Clustering techniques applied to segmenting markets __________.
A. is time consuming and expensive
B. remove the need for managerial judgment
C. eliminate the need for marketing managers to specify in advance what
dimensions might be relevant for grouping consumers
D. usually require computers to group people based on data from
market research
E. doesnt apply to demographic data
88) Justin was hired in February of 2004 as a salesperson. There is no
written employment contract, and Justin is paid on a commission basis.
Justins manager has said to Justin on several occasions that if Justin
continues to meet his sales quotas, that the company will keep him
around for a long time. Justin has always met his sales quotas, but is
told one day that they have decided to replace him because he does not
project the image that the company wants. If Justin is an at-will
employee, which of the following is true?
A. The statements by the manager could likely give Justin contract
rights that could amount to an exception to the at-will doctrine.
B. Because there is no written employment contract, the employer can terminate
Justin.
C. The employer can terminate Justin only if the employer would suffer a loss by
not terminating him.
D. As an at will employee, there are no restrictions on the employer terminating
Justin.
E. The employer would not be able to fire Justin on the basis of public policy.
89) Which of the following is correct about litigating commercial
disputes?
94) If you are a creditor, your best protection in the event of the
debtors bankruptcy (including protection from the debtors other
creditors) is usually obtained if you had previously received:
A. A security interest granted by the debtor.
B. A written promise from the debtor to pay the debt as agreed.
C. Audited financial statements of the debtor.
D. The debtors agreement to pay you first.
95) Which of the following terms is not required to be disclosed under
the Truth-in-Lending Act?
A. The amount of attorneys fees to be charged if legal action is needed
to collect the debt.
B. The number of payments.
C. The amount of late charges or delinquency penalties.
D. The date the finance charge begins to accrue.
E. The annual percentage rage of interest.
96) Which of the following lists, in descending priority, of sources
considered by most courts in settling questions of international law?
A. Conventions, comity, customs, general principles of law
B. Conventions, treaties, comity, customs
C. Treaties, customs, conventions, comity
D. Treaties, customs, general principles of law, judicial decisions and
teachings
E. Treaties, customs, conventions, comity
97) Generally speaking, the contract of a minor:
A. Is void.
B. Is not enforceable by the minor.
C. Is voidable at the minors option.
D. Must be in writing.
98) Although the U.S. has had a longstanding agreement with _____ after
the passage of NAFTA, _____ became the United States' second largest
trading partner.
A. Mexico, Canada
B. Mexico, Venezuela
C. Great Britain, Paraguay
D. Canada, Mexico
E. Canada, Venezuela
99) One study found that manufacturing labor costs about _____ an hour
in China, compared to _____ dollars in the United States.
A. Less than $1; about 25
B. $2; about 25
C. Less than $1; about 40
D. About $2; about 15
E. Less than $1; about 15
100) Which country does the text describe as becoming the largest
producer and consumer of many of the world's goods?
A. Mexico
B. China
C. Ecuador
D. Canada
E. Japan