1. Question : What is the formula for the break-even point of a simple profit model?
Student Answer: Fixed Cost / Variable Cost Per Unit
Selling Price Per Unit - (Fixed Cost / Variable Cost Per Unit)
Fixed Cost / (Variable Cost Per Unit - Selling Price Per Unit)
(Selling Price Per Unit -Variable Cost Per Unit) / Fixed Cost
Fixed Cost / (Selling Price Per Unit -Variable Cost Per Unit)
Question 2. Question : Historical data indicates that only 20% of cable customers are willing to switch companies. If a binomial process is assumed, then in a sample of 20 cable customers, what is the probability that exactly 2 customers would be willing to switch their cable?
Student Answer: 0.206
Question 3. Question : Below is an opportunity loss table. What decision should be made based on the minimax regret criterion?
Student Answer: Alternative 1
State of Nature A
Does not matter
Question 4. Question : Enrollment in a particular class for the last four semesters has been 122, 128, 100, and 155 (listed from oldest to most recent). The best forecast of enrollment next semester, based on a three-semester moving average, would be
Student Answer: 116.7
Question 5. Question : The "point at which to reorder" depends directly on which of the following?
Student Answer: ordering cost
unit purchasing cost
Question 6. Question : Which of the following is not a property of all linear programming problems?
Student Answer: A computer program
The presence of restrictions
Optimization of some objective
Usage of only linear equations and inequalities
Alternate courses of action to choose from
Question 7. Question : Given an activity's optimistic, most likely, and pessimistic time estimates of 4, 14, and 18 days respectively, compute the PERT expected activity time for this activity.
Student Answer: 12
None of the above
Question 8. Question : A vendor selling newspapers on a street corner is an example of a:
Student Answer: multichannel, single-phase system.
single-channel, single-phase system.
multichannel, multiphase system.
single-channel, multiphase system.
none of the above
Question 9. Question : R-charts measure changes in:
Student Answer: number of defects per production lot.
degree of variation.
none of the above
uestion 10. Question : Refer to the Table below. Bags of chocolate candy are sampled to ensure proper weight. The overall average for the samples is 36 ounces. Each sample contains twelve bags. The average range is 1.3 ounces. The upper control chart limit for the sample averages would be:
Student Answer: 38.310
Question 11. Question : When customers don't know what they want or don't even know what's possible, the most effective marketing strategy is ____________ marketing.
Student Answer: customer-driven
Question 12. Question : Coronary Foods has contracted with UPS to manage all their shipping, warehousing, and store deliveries, including stocking the shelves at big box stores. What part of the marketing mix is UPS providing?
Student Answer: Product
Proof (physical evidence)
Question 13. Question : In most cases, what is the most expensive promotion tool?
Student Answer: Advertising
Question 14. Question : The selling concept is typically practiced ____________.
Student Answer: to balance consumers' wants, the company's requirements, and the society's long-run interests
with products that offer the most in terms of quality, performance, and innovative features
when the company focuses on building long-term customer relationships
with goods that buyers normally do not think of buying
by customer-driven companies
Question 15. Question : __________ involves dividing a market into nations, states, and regions.
Student Answer: Demographic segmentation
Question 16. Question : Responding to very strict "green" legislation, the chemical firm Atticus Environmental is touting the safety of its consumer-based vegetable garden insecticide, claiming it bio-degrades in 90 days, which is twice as fast as required by the new law. Which environmental factor is the firm hoping to leverage for additional sales?
Student Answer: Technological
Question 17. Question : ____________ is determined by a customer's evaluation of the benefits and costs of a market offering relative to those of competing offers.
Student Answer: Customer-perceived value
Customer lifetime value
Share of customer
Brand value proposition
Question 18. Question : Patty's Party Palace plans all year for their Halloween spectacular specializing in adult versions of animated characters such as Snow White and the Little Mermaid. Which subset of behavioristic segmentation would Patty most likely use?
Student Answer: Heavy/light user
Question 19. Question : The managers of Arrow, an American retail chain, are currently reviewing new demographic markets to sell the firm's current products. This is an example of ____________.
Student Answer: market penetration
Question 20. Question : The firm that makes Betty Sue's Down Home Pork Rinds found that their best customers enjoy NASCAR, pro wrestling, family gatherings, and are politically conservative. These are considered to be the ____________ of the market segment
Student Answer: demographics
psychographics or lifestyle
social planning elements
Question 21. Question : Which of the following budgets is a major part of the master budget and focuses on the income statement and its supporting schedules?
Student Answer: Sales budget
Capital expenditures budget
Question 22. Question : Totals of various columns from the work sheet are shown below. What is the net income or loss?
Student Answer: Net loss of $4,300
Net loss of $1,750
Net income of $4,300
Net income of $1,750
Question 23. Question : Which of the following is not a use of international accounting standards?
Student Answer: As national requirements
As standards to be violated to improve intercountry comparability
As an international benchmark for those countries that develop their own requirements
By regulatory authorities for domestic and foreign companies
Question 24. Question : What is the name given to the agreement between the FASB and IASC to harmonize accounting standards?
Student Answer: The Norwalk Agreement
The London agreement
The Washington D.C. agreement
The Paris Accords
Question 25. Question : Which of the following entries would be made to record the purchase of $20,000 of raw materials on account for Jake's Custom Furniture?
Question 26. Question : How many members serve on the IASB?
Student Answer: 16
Question 27. Question : How does the IASC enforce its standards?
Student Answer: Through the International Organization of Securities Commission
Through the concept of best endeavors
Through the Securities and Exchange Commission
Through the Financial Accounting Standards Board
Question 28. Question : Buildings, land, and equipment would be classified as:
Student Answer: current assets.
B or C.
Question 29. Question : The net sales for a company were $3,600,000; gross profit was $600,000; and net income was $260,000. The rate of return on net sales would be:
Student Answer: 0.2389.
Question 30. Question : There are more __________ than any other form of business organization.
Student Answer: partnerships
limited liability partnerships
Question 31. Question : Suppose that the XYZ industry produces a product that results in negative external costs to society. This information suggests that:
Student Answer: resources are under-allocated to the industry.
the equilibrium market price of the product includes the external costs borne by society.
resources are over-allocated to the industry.
at the market price, quantity demanded is less than quantity supplied.
Question 32. Question : Suppose the U.S. can produce 4 tons of food or 3 yards of cloth, while Mexico could produce 12 tons of food per hour and 6 yards of cloth per hour. Assuming constant opportunity costs, it is likely that:
Student Answer: the United States will export food.
Mexico will import cloth.
the United States will import both cloth and food.
Mexico will import both cloth and food.
Question 33. Question : A firm could lower prices and still increase revenue if:
Student Answer: demand is elastic.
elasticity of demand is equal to unity.
demand is inelastic.
elasticity of demand is equal to zero.
Question 34. Question : In order to maximize utility, a consumer should allocate money income so that:
Student Answer: the marginal utility of the last unit of each product consumed is greater than the total utility of each product consumed.
the total utility derived from each product consumed is the same.
the marginal utility obtained from the last dollar spent on each product is the same.
the elasticity of demand on all products purchased is the same.
Question 35. Question : The rate of unemployment is calculated as the number of:
Student Answer: unemployed workers divided by the number of employed workers.
people in the civilian labor force divided by the number of unemployed.
unemployed divided by the number of people in the civilian labor force.
employed workers divided by the number of unemployed workers.
Question 36. Question : Using trade restrictions to protect special interests such as the U.S. auto industry:
Student Answer: results in lower prices for U.S. auto consumers.
raises the prices that U.S. consumers must pay for autos.
is a very cost-efficient way of dealing with trade problems.
is the best long-term solution for threatened U.S. jobs.
Question 37. Question : Suppose we observe the following two simultaneous events in the market for beef. First, there is a decrease in the demand for beef due to changes in consumer tastes. And second, there is a reduction in supply due to cattle farmers selling their land to real estate developers. We know with certainty that these two simultaneous events will cause which of the following?
Student Answer: No change in the equilibrium quantity and a reduction in the equilibrium price
An increase in the equilibrium quantity and in the equilibrium price
A decrease in the equilibrium quantity and an indeterminate change in the equilibrium price
A decrease in the equilibrium quantity and an increase in the equilibrium price
Question 38. Question : Microeconomics is the study of:
Student Answer: the behavior of the economy as a whole.
how rising prices affect the level of employment in the economy.
how individuals and firms make decisions.
the effect that money has in the economic system.
Question 39. Question : A firm seeking to maximize economic profits should produce at the output at which
Student Answer: total revenue equals total cost.
marginal revenue equals marginal cost.
average revenue equals average cost.
marginal revenue equals average revenue.
Question 40. Question : When money is accepted as payment in a market transaction, it is functioning as a:
Student Answer: store of value.
unit of accounting.
medium of exchange.
unit of investment.
Question 41. Question : In relation to investments made by the firm, retained earnings:
Student Answer: have no costs since they are owned by the firm.
are sunk costs.
have an opportunity cost associated with them.
have the lowest cost of all financing sources.
Question 42. Question : Foreign sales expose a firm to:
Student Answer: reduced transaction exposure.
reduced translation exposure.
reduced translation and transaction exposure..
exchange risk and political risk.
Question 43. Question : What impact will an increase in risk usually have on the required rate of return on an investment?
Student Answer: A decrease
An increase and then a decrease
Question 44. Question : A previously incurred cost that cannot be recovered is a(n):
Student Answer: opportunity cost.
Question 45. Question : __________ leverage magnifies the effect of changes in sales on earnings per share.
Student Answer: Financial
Total or Combined
Question 46. Question : A compensating balance:
Student Answer: raises the nominal interest rate.
lowers the nominal interest rate.
raises the effective interest rate.
lowers the effective interest rate.
Question 47. Question : Which of these shows financing sources in order from least costly to most costly?
Student Answer: New common stock, retained earnings, long-term debt
Retained earnings, new common stock, long-term debt
Retained earnings, long-term debt, new common stock
Long-term debt, retained earnings, new common stock
Question 48. Question : A firm's capital structure is composed of the following sources and after-tax costs: 30% long-term debt (cost 6%), 10% preferred stock (cost 8%), and 60% common stock (cost 14%). The weighted average cost of capital is:
Student Answer: 10 percent.
Question 49. Question : What is the present value of $100 received in one year, $200 received in two years, and $300 received in three years if the opportunity cost is 12%?
Student Answer: $417
Question 50. Question : If the exchange rate between the U.S. dollar and the Euro is $1.40 per Euro, how many Euros will be needed to purchase a $10,000 asset?
Student Answer: 0.0001
Question 51. Question : Damages in excess of any actual loss are:
Student Answer: punitive damages.
Question 52. Question : Real property is:
Student Answer: immovable.
either A or B.
none of the above.
Question 53. Question : A portable trailer is an example of:
Student Answer: real property.
subsurface property right.
none of the above.
Question 54. Question : If the harmed person does not attempt to mitigate his damages, recovery is limited to:
Student Answer: damages for direct loss.
damages for consequential loss.
Question 55. Question : Statutes of limitations apply, for the most part, to:
Student Answer: both criminal and civil wrongs.
criminal wrongs only.
civil wrongs only.
none of the above.
Question 56. Question : Farida tells Jose that her boss, Marco, takes illegal drugs at the office. Marco does not take illegal drugs.
Student Answer: This is slander whether it is true or not.
This is slander only because it is untrue.
This is an intentional tort.
This is malice.
Question 57. Question : Which of the following are torts?
Student Answer: Slander
Assault and battery
Wrongful interference with another's business rights
All of the above.
Question 58. Question : Torts are specifically:
Student Answer: physical crimes against persons.
physical crimes against persons or property.
civil wrongs causing injuries to others not arising from breach of contract.
none of the above.
Question 59. Question : A duty to pay the reasonable value rendered when there is no actual contract would be called:
Student Answer: quasi-contractual.
Question 60. Question : Ralph comes onto Garzon's property to help Tim who has fallen and struck his head. Ralph may:
Student Answer: have committed trespass.
have a defense to trespass.
have committed wrongful interference.
none of the above.
Question 61. Question : Planning is concerned with __________.
Student Answer: both ends and means
neither ends nor means
Question 62. Question : What final step must occur before the process of decision making can be completed?
Student Answer: The statement of a problem
The implementation of an alternative
The establishment of criteria
The evaluation of the decision
The development of alternatives
Question 63. Question : The avoidance of premature judgments is a large part of __________.
Student Answer: information overload
Question 64. Question : Which organization would the transformational model probably least likely be applied to?
Student Answer: A car repair shop that also sells automotive parts
A major chain sporting goods store
A wholesale clothing retailer
A small lawn care business
A family-style restaurant
Question 65. Question : Which of the following is not a step in the strategic planning process?
Student Answer: Mission statement
Question 66. Question : A project team is plagued by many issues, including communication programs and a discrepancy in norms between members. Some issues, however, are not present, including issues of polite agreement that would otherwise impede progress. What type of team is this most likely describing?
Student Answer: Cross-functional team
Question 67. Question : For what purpose are political skills most useful to a manager?
Student Answer: Delegating tasks to others
Securing scarce resources
Performing job-specific skills
Analyzing business situations
Question 68. Question : Is objective setting top-down or bottom-up?
Student Answer: Neither
It is case specific
Question 69. Question : Which one of the four functions of management includes the coordination of activities to meet organizational goals?
Student Answer: Controlling
Question 70. Question : Affirmative action programs seek to make sure that employers __________ minority groups.
Student Answer: enhance employment opportunities for
establish training programs for
provide unemployment benefits for
pay equal wages to
Question 71. Question : ___________ is a suite of applications called modules, a database, and a set of inherent processes for consolidating business operations into a single, consistent, computing platform.
Student Answer: Enterprise resource planning
Customer relationship management
Enterprise application integration
Business process reengineering
Question 72. Question : When a network does not have a server, all the computers essentially are equal, and programs and data are distributed among them. This is called a __________ network.
Student Answer: local area
Question 73. Question : A(n) __________ server is a computer responsible for directing internet traffic.
Student Answer: Web
Question 74. Question : DSL is a type of an Internet __________.
Student Answer: connection
Question 75. Question : Most web pages are created using the __________ programming language to describe the format of a Web page.
Student Answer: HTML
Question 76. Question : A relational DBMS allows you to create database structures containing __________.
Student Answer: fields
all of the above
Question 77. Question : C++ and Java are examples of __________.
Student Answer: machine language
Question 78. Question : A(n) __________ is a computer program that senses when another computer is attempting to scan the disk or otherwise access a computer.
Student Answer: intrusion detection system
access control system
Question 79. Question : Brenda, the sales manager of a firm, wants to generate a particular report containing sales analyses of the second and third quarter of the year. She should use a __________ to obtain the information that she wants from the database.
Student Answer: report
database administrative function
Question 80. Question : Which of the following conditions exist when data are isolated in separated information systems?
Student Answer: Information overload
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