question

Reasons to eliminate trade restrictions include all the following except?

answer

Protect natural security

question

______________ is the contractual relationship in which an established firm supplies another business with unique resources in exchange for payment and other considerations

answer

Franchising

question

What is the different between outsourcing and importing?

answer

Importing is when a firm buys foreign products that have already been produced, and outsourcing is when a firm contracts with foreign vendors to produce products

question

The rate of entrepreneurship differs from country to country with countries like Bolivia and Columbia having the highest rates in the world. Research conducted by the Global Entrepreneurship Monitor (GEM) theorized the rates are highest in countries in which people

answer

Start their own business, simply because they have no other options

question

Entrepreneurs

answer

Create benefits for others while seeking profit for themselves

question

A small mountain kingdom in the south of Africa, Lesotho is primarily an agrarian economy. If its king and political leadership made decisions that sank the kingdom into unmanageable debt through loans it could not hope to repay, to which international body would the king appeal for debt forgiveness?

answer

IMF (International Monetary Fund)

question

Trading blocs are groups of countries

answer

That have reduced or eliminated tariffs allowing for a free flow of goods among member nations

question

___________ refers to government efforts to influence the economy through taxation and spending decisions designed to encourage growth, boost employment, and curb inflation

answer

Fiscal Policy

question

Today the economies of virtually all nations would be classified as

answer

Mixed economies

question

Which of the following is NOT a significant drawback of getting into business by entering into a franchise arrangement

answer

Franchising is generally considered to be the riskiest option for starting a business

question

When comparing a nation's balance of trade with its balance of payments, it is important to realize that

answer

The balance of payments includes the balance of trade, but it also includes other financial flows such as foreign borrowing and lending

question

Nonprofit organizations are not in the business of

answer

Financial gain

question

In the broadest sense, economics studies the choices that

answer

People, governments, and companies make in allocating resources

question

Companies that attempt to monopolize a particular market are likely to violate the

answer

Sherman Antitrust Act of 1890

question

The three countries participation in the North American Free Trade Agreement (NAFTA) are

answer

Canada, Mexico, and US

question

A nonprofit corporation enjoys the benefit of

answer

Earnings that are exempt from state and federal taxes

question

___________________ refers to actions that shape the economy by influencing interest rates and the supply of money

answer

Monetary Policy

question

The purpose of a written code of ethics is to

answer

Provide guidance to help employees make sound ethical decisions across and range of situations

question

A limited liability partnership (LLP) is attractive to partners because

answer

There is no distinction between limited and general partners

question

The goal of _______ is to meet the needs of the current generation without harming the ability of future generations to meet their needs

answer

Sustainable development

question

Which of the following is NOT an accurate statement about a sole proprietorship?

answer

Legally, the business is considered separate and distinct from its owner

question

What are the three types of partnerships?

answer

General, limited, and limited liability

question

A ________ occurs when two companies agree to combine operations to form a new company

answer

Merger

question

Suppose the value of the US dollar strengthened considerably against the euro. Who would be the most likely to benefit from this result?

answer

European firms exporting goods to America

question

In the business cycle, a transition period of rising economic growth and increasing employment is a

answer

Recovery

question

Foreign _______________ involves a firm buying the rights to produce, promote, and use the domestic firm's trademark/parents in a defined geographical area as long as there is agreement on specific operating procedures

answer

Licensing

question

Which of the following questions would an entrepreneur most likely ask in the aftermath of a business failure?

answer

What can I learn from this experience that will help me be more successful in the future?

question

Manufacturing jobs have migrated overseas due to increased productivity and low wages of workers in other countries. This contributes to ______ unemployment for American workers in the manufacturing sector

answer

Structural

question

A nation's legal system provides businesses with _____ for examining ethical standards.

answer

A starting point

question

In ____________ many firms compete by selling differentiated products,

answer

Monopolistic competition

question

A key difference between S Corporations and C Corporations is that

answer

S Corporations may have no more than 100 shareholders who must all be citizens or permanent residents of the United States, while C Corporations do not have these restrictions on ownership

question

In the business world, social responsibility refers to

answer

The obligation of a business organization to contribute to society

question

Basil Pappas sent his youth working in the restaurants of several of his close relatives. Now he wants to venture into his own business and has decided that he will open his own restaurant. Basil needs more money than he can come up with on his own, so he plans to ask his brothers to put up some money in exchange for a share of the ownership. Such an arrangement means that the company CANNOT be formed as a

answer

Sole proprietorship

question

Macroeconomics focuses on

answer

The major issues facing the national economy that may seem abstract, but directly affect an individual's day-to-day life

question

To evaluate inflation the government uses

answer

consumer price index (CPI) and producer price index (PPI)

question

A supply curve shows that as prices rise the

answer

Quantity of products produced rises

question

The _________ of the company that produces gourmet coffee includes its employer coffee bean growers who supply the company, people who drink its gourmet coffee, and the people who live in the community where the company produces the coffee

answer

Stakeholders

question

A _____________ maintains limited liability but offers more flexibility in terms of tax treatment than other forms of business ownership.

answer

Limited liability company

question

Entrepreneurs tend to have an internal locus of control. This means they

answer

Have a sense that they are personally responsible for what happens in their lives

question

Types of corporations include

answer

General, S, statutory close, and nonprofit

question

Miguel Santos became very wealthy when his 10-year-old company made it big and he sold it for several million. Now, he is a ________ who invests in other promising start-up companies. His goal is to make a sizeable return on his investments when these new companies grow to the point where they, too, are sold to a larger firm, or when they go public.

answer

Angel investor

question

A ___________ merger is the combination of two or more firms at different stages of production of a given product or service so the firms have a buyer-seller relationship.

answer

Vertical

question

Research suggests that many entrepreneurs fund their new business with

answer

Personal resources of the founder

question

A trade _____________ occurs when a country imports more goods and services than it exports

answer

Deficit

question

A ___________ is any activity that provides goods and services in an effort to earn a profit

answer

Business

question

The four major categories of factors of production are

answer

Natural resources, capital, human resources, and entrepreneurship

question

A well-written partnership agreement for a general partnership can help the partners deal with all of the following issues EXCEPT how to

answer

Avoid unlimited liability

question

A possible drawback when buying an existing business is that

answer

You may inherit the mistakes made by the previous owner

question

Demand is defined as

answer

The quantity of products that consumers are willing to buy at different prices

question

_____________ are companies that invest in start-up businesses with high growth potential in exchange for an ownership stake

answer

Venture capital firms

question

Ben & Jerry's is recognized for being a socially conscious trendsetter. As a socially responsible company this maker of high-quality ice cram is likely to focus on

answer

Finding the proper balance between earnings and profits and meeting responsibilities to other stakeholders

question

The general partnership avoids the problem of double taxation experienced by __________ because earnings of partnerships are taxed only as income of the ___________ with no separate tax on the income of the ___________.

answer

C Corporations, business, partners

question

Itunes...Expedia... and Charles Schawb are all examples of ______companies participating in e-commerce.

answer

B2C

question

Financial managers who have a good understanding of the risk-return tradeoff know that..

answer

higher rates of return are riskier than lower rates of return

question

Lou French works for the Oakland County Police Department. He is charged with sorting through massive amounts of data with statistical and mathematical programs in an effort to detect fraud and crime. Lou Freeh is using...

answer

data mining

question

eCommerce is different from bricks and mortar business because

answer

all the above (its nearly irrelevant where the seller is located, there are low barriers to entry for merchants starting a new business, no travel is required to purchase goods)

question

Investors who employ the "buy and hold" investment approach...

answer

hold a diversified portfolio of securities and are willing to ride out the short-term downturns in the market.

question

Stockholders would most likely use accounting information provided by their firm to...

answer

gauge whether the firm is generating a satisfactory return on their investment

question

Financial planning asks all of the following questions Except:

answer

when will the firm need to acquire external financing?

question

What is the accounting equation?

answer

assets=liabilities + owner's equity

question

When a company utilizes______ it arranges for other organizations in the value chain to perform functions that were previously performed internally...

answer

outsourcing

question

_____ addresses the needs of the external stakeholders including stockholders...creditors...and government regulators.

answer

Financial accounting

question

The three basic types of securities corporations issue to raise long-term financial capital are..

answer

common stock, preferred stock, and bonds

question

As a part of the financial planning process, planners would create projected financial statements also known as _____ statements.

answer

pro forma

question

The_____ summarize a firm's financial position at a specific point in time(a specific quarter or year).

answer

Balance sheet

question

Capital _____ is the process a firm uses to evaluate long-term investment proposals.

answer

mapping

question

According to the _____ method of accounting revenues are recognized when they are earned and payment is reasonably assured.

answer

accrual-basis

question

All of the following are assets Except

answer

salaries payable (cash, inventory, building)

question

Candidates wishing to become certified public accountants must complete all of the following to reach certification Except

answer

must complete an accounting-related internship while in college (must complete 150-semester hours (5years) of college education with heavy emphasis on accounting and business-related courses, must pass a rigorous exam, must complete one year direct work experience in the field of accounting)

question

Choose the best example of viral marketing.

answer

word-of-mouth promotion

question

Some have said with good sense that "the secret to having money is not__________ but________.

answer

making more; spending less

question

Intellectual property refers to..

answer

marketable products and services that result from someone's creative and intellectual efforts

question

To facilitate trade several European nations have adopted a single currency—the ______________:

answer

Euro

question

For the past several decades the _________ and ___________ were the two largest securities exchanges in the United States.

answer

New York Stock Exchange(NYSE); NASDAQ

question

____ provide reports...information...and analysis to managers to assist them with making better informed decisions.

answer

Managerial accountants

question

With debt capital...companies___; with equity capital...companies___.

answer

repay borrowed money with interest; exchange ownership for money

question

____ accountants provide services such as tax preparation...external auditing...or management consulting to clients on a fee basis.

answer

Public

question

A(n)_____ is a network confined to sites on internal web servers and only available to individuals within an organization.

answer

intranet

question

Currency simplifies trade when it is.

answer

all the above (portable, divisible, durable)

question

In operations management quality is defined in terms of:

answer

how well a product satisfies the preferences of customers.

question

Greg is a recent graduate with this accounting degree. He has also sat for and passed the CPA exam. At his new accounting position at Get With It.com he notices that depreciation expense is not calculated in what he understands to be an acceptable accounting method. Greg has decided to approach his supervisor and clarify what he believes to be a discrepancy in standard practices. To make his case he should refer to...

answer

GAAP

question

In some economies...prices escalate...causing currencies to not be stable. Zimbabwe is a recent example of this rapid price escalation which we call:

answer

hyperinflation

question

_____is the functional area of business that is responsible for finding... among man alternatives... the best sources for funds and the best way to use them.

answer

Finance

question

An organization's activities and processes that involve the physical flow of goods from the raw material state to the final consumer is known as_____

answer

supply chain

question

Equity financing is provided by____ while debt financing is provided by____.

answer

owners, creditors

question

Which item would be listed first on the income statement?

answer

revenue

question

A____ allows investors to track general market conditions.

answer

stock index

question

For financial managers to be socially responsible... it requires them..

answer

to make a long-term commitment to the needs of many stakeholders.

question

Which statement about Enterprise Resource Planning (ERP) is false?

answer

A key advantage of ERP systems is that compared to older systems, they are relatively inexpensive to implement and easy to establish.

question

Profit is the difference between..

answer

revenue and expenses

question

One advantage of many mutual funds is that they..

answer

offer investors professional management and liquidity

question

A firm's current liabilities..

answer

are due to lenders in less than a year

question

The___ shows the cash flowing in and out of a firm through its operating...investing...and financing activities.

answer

statement of cash flows

question

If every piece if inventory in a company's supply chain can be tracked precisely with RFID technology what is that firm using?

answer

ERP

question

The process of developing the operating budget begins with the..

answer

sales budget

question

Financial management includes all of the following functions EXCEPT

answer

making decisions about the appropriate way to promote products.

question

Which of the following would be listed in the liabilities section of the balance sheet?

answer

wages payable

question

Given the nature of their products many service firms base their facility location decisions primarily on:

answer

proximity to their customers

question

Moor's Law suggest that information technology..

answer

advances at a rapid pace

question

A commonly-used hierarchy depicts data being transformed from lower to higher levels of meaning specifically from data to:

answer

information>knowledge>wisdom

question

The___ is an index based on the adjusted average price of stocks of 30 major corporations picked by editors of The Wall Street Journal..

answer

Dow Jones Industrial Average

question

While TQM has several goals... Six Sigma is about_____

answer

reducing defects

question

An initial____ is the first time a corporation issues stock that may be purchased by the general public.

answer

public offering

question

The___ is a broad stock index that includes many of the largest and best known United States corporations.

answer

Standard & Poor's 500

question

The two primary sources of equity financing are _____ and ____.

answer

owner contributions; retained earnings

question

For the followers of Jesus... scripture says a great deal about money...such as

answer

all of the above

question

Preferred stockholders enjoy a preference over common stockholders with respect to...

answer

dividends

question

A business has two sources of funds: the owners and the non-owners. The financing provided by owners is represented on the balance sheet as____ and the financing provided by non-owners is represented on the balance sheet as____.

answer

owner's equity; liabilities

question

Which of the following is NOT one of the big four international accounting firms?

answer

Boyd and Walker

question

The current chairman of the Board of Governors of the Federal Reserve Bank of the United States is..

answer

Ben Benanke

question

As ____ you work within an organization preparing reports and analyzing financial information such as budgets and cost management.

answer

Management accountant

question

Angel investors are...

answer

wealthy persons who invest in young business

question

A stock ____ is a short combinations of letters used to identify the stock of a particular company.

answer

symbol

question

The___ is a project management tool illustrating relationships among all activities involved in completing a project thus enabling mangers to identify activities that are most likely to delay the project's completion.

answer

Critical path method

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