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1. Which of the following is NOT an element of manufacturing
1. Which of the following is NOT an element of manufacturing overhead? a. 0 Factory employee’s salary b. 0 Depreciation on the factory c. 0 Plant manager’s salary d. 0 Factory repairperson’s wages 2. What accounts are NOT classified in the current assets section of the balance sheet? a. 0 Cash b. 0 Accounts payable c. 0 Security deposits d. 0 Inventory 3. The starting point of a master budget is the preparation of the a. 0 cash budget. b. 0 sales budget. c. 0 production budget. d. 0 budgeted balance sheet. 4. What amounts are not included in Gross Margin? a. 0 Operating expenses b. 0 Sales c. 0 Cost of goods sold d. 0 Commissions paid 5. At what rate is the income statement converted for US $ comparison? a. 0 Month end b. 0 First day of the month rate c. 0 Average rate d. 0 It is not appropriate to convert to US $. 6. Which list below best describes the major services performed by public accountants? a. 0 Bookkeeping, mergers, and budgets b. 0 Employee training, auditing, and bookkeeping c. 0 Auditing, taxation, management consulting d. 0 Cost accounting, production scheduling, recruiting 7. Jaime Inc. manufactures two products, sweaters and jackets. The company has estimated its overhead in the order-processing department to be $180,000. The company produces 50,000 sweaters and 80,000 jackets each year. Sweater production requires 25,000 machine hours, jacket production requires 50,000 machine hours. The company places raw materials orders 10 times per month, 2 times for raw materials for sweaters and the remainder for raw materials for jackets. How much of the order-processing overhead should be allocated to jackets? a. 0 $90,000 b. 0 $120,000 c. 0 $110,770 d. 0 $144,000 8. ABC Bread sells a box of bagels with a contribution margin of 62.5%. Its fixed costs are $150,000 per year. How much sales dollars does ABC Bread need to break-even per year if bagels are its only product? a. 0 $93,750 b. 0 $150,000 c. 0 $240,000 d. 0 $90,000 9. What exists when budgeted costs exceed actual results? a. 0 A budgeting error b. 0 A favorable difference c. 0 An unfavorable difference d. 0 An excess profit 10. Disclosures about inventory should include each of the following EXCEPT a. 0 The basis of accounting b. 0 The costing method c. 0 The quantity of inventory d. 0 The major inventory classifications 11. Which of the following is NOT a part of the accounting process? a. 0 Recording b. 0 Identifying c. 0 Financial decision making d. 0 Communicating 12. The cost principle is the basis for preparing financial statements because it is a. 0 a conservative value. b. 0 relevant and objectively measured, and verifiable. c. 0 an international accounting standard. d. 0 the most accurate measure of purchasing power. 1. Data is considered invalid when a. 0 it is outdated. b. 0 it is inconsistent. c. 0 it is unreliable. d. 0 it does not measure the intended concept . 2. Data is considered reliable when a. 0 the test measures what we actually want to measure. b. 0 it is quantitative. c. 0 the measurement process is accurate and precise. d. 0 it is qualitative. 3. When the reported data is different from the actual data, there is a a. 0 reporting error. b. 0 sampling error. c. 0 response error. d. 0 computation error. 4. When measures of central tendency are not affected by extremely low or extremely high values? a. 0 Mean and median b. 0 Mean and mode c. 0 Mode and median d. 0 Standard deviation and mean 5. What is the relationship among the mean, median, and mode in a symmetric distribution? a. 0 All equal b. 0 Mean is always the smallest value c. 0 Mean is always the largest value d. 0 Mode is the largest value 6. Suppose you want to show the changes in the unemployment rate in the United States during 2000–2008. The most appropriate chart you would use will be a a. 0 pareto chart. b. 0 line chart. c. 0 bar chart. d. 0 pie chart. e. 0 All are suitable 7. If two events are independent, the probability that both occur is a. 0 0. b. 0 0.50. c. 0 1.00. d. 0 the multiple of probabilities of the two events. 8. What will happen to the width of a confidence interval if the sample size is doubled, from 100 to 200? a. 0 It will increase. b. 0 It will decrease. c. 0 It will remain the same. d. 0 It will double. 9. The shape of the F distribution is a. 0 symmetric. b. 0 skewed right. c. 0 skewed left. d. 0 the same as the t distribution. 10. The French Enterprise wants to market its product, Learn French in 5-Days. It has chosen television and radio to market this product. A 1-minute television ad costs $30,000 and a 1- minute radio add costs $5,000. The French Enterprise must decide how many television ads to purchase. What are the decision variables? a. 0 x1 = television channels and x2 = radio channels b. 0 x1 = number of French students and x2 = number of English students c. 0 x1 = 30,000 and x2= 5,000 d. 0 x1 = number of 1-minute television ads and x2= number 1-minute radio ads 11. Which of these statements is NOT true about CPM and PERT? a. 0 In a project, if the duration of the activities is known we use PERT, if the duration is not known we use CPM. b. 0 CPM and PERT have been used in scheduling construction projects, c. 0 The predecessors are a set of activities that must be completed before an activity. d. 0 CPM and PERT have been used in building ships. 12. Which of these costs are involved in Inventory Modeling? a. 0 Unit purchasing costs b. 0 Ordering and setup costs c. 0 Holding costs d. 0 All of these 13. Opportunities for improvement are often found in eliminating waste. Which area often attributes to waste? a. 0 Overproduction b. 0 Transportation c. 0 Inventory d. 0 None of these e. 0 All of these 14. Which of these statements is false? a. 0 Simulation imitates the real-world operations as it evolves over time. b. 0 Simulation is straightforward and easier than analytical models. c. 0 Simulation optimization is a slow process. d. 0 None of these 1. The marketing management process is the process of a. 0 planning marketing activities. b. 0 implementing marketing plans. c. 0 controlling marketing plans. d. 0 All of these e. 0 None of these 2. Segmenting in international markets can be more challenging than segmenting in domestic markets because a. 0 there is less diversity in the key segmenting dimensions. b. 0 there is often more data available about key segmenting dimensions. c. 0 critical data is often less available and less dependable. d. 0 international laws are different than domestic laws. e. 0 None of these 3. A detailed customer database, containing past purchases and other segmenting information, is used to focus marketing efforts on individual customers in a a. 0 clustering management systems. b. 0 product positioning matrix. c. 0 product differentiation matrix. d. 0 diversification management system. e. 0 customer relationship management system. 4. Dell, Inc. was to offer customers televisions in addition to computers. This is a change in their __________________ strategy? a. 0 pricing b. 0 promotional c. 0 personnel d. 0 product e. 0 placement 5. Which of the following statements about world population is TRUE? a. 0 In general, countries that have higher stages of development experience faster rates of growth than less-developed countries. b. 0 The extent to which a country’s population is clustered around urban areas DOES NOT vary much from country to country. c. 0 People are moving from rural areas into more industrial and urban areas. d. 0 The trend toward urbanization has made companies less interested in international markets. e. 0 All of these 6. Which of the following is TRUE: a. 0 The product “P” in the marketing mix stands for only physical goods. b. 0 The product “P” in the marketing mix stands for both physical goods and services. c. 0 The product “P” in the marketing mix stands for only tangible merchandise. d. 0 The product “P” in the marketing mix stands for both physical goods and tangible merchandise. e. 0 The product “P” in the marketing mix stands for only services. 7. Habitat for Humanity is considered which type of organizational customer? a. 0 Producer b. 0 Middleman c. 0 Government d. 0 Nonprofit e. 0 Independent 8. Which of the following statements regarding marketing’s influence on values is FALSE? a. 0 Many companies refuse to use ads that would be offensive to their target customers. b. 0 Marketing never elevates the wrong values. c. 0 Many companies work hard to determine their customers’ beliefs and values. d. 0 Marketing tends to reflect social values in the short run. e. 0 Marketing tends to reinforce and enhance social values in the long run. 9. When a company grows globally, this is an example of a. 0 market development. b. 0 product development. c. 0 diversification. d. 0 market penetration. e. 0 mass marketing. 1. The present value of the dollar a. 0 increases with lower interest rates and decreases with longer periods of time. b. 0 increases with higher interest rates and decreases with longer periods of time. c. 0 increases with longer periods of time and increases with shorter periods of time. d. 0 decreases with higher interest rate and increases with longer periods of time. 2. Which of the following is TRUE? a. 0 The payback period is the most superior of all the capital budgeting tools. b. 0 The only projected net income and not the projected net cash flow should be used in capital budgeting analyses. c. 0 Discounted payback does not take into account the time value of money in its calculations. d. 0 If the calculated Net Present Value (NPV) equals $1, then the Internal Rate of Return (IRR) will equal the discount rate used in the NPV calculation. 3. Your company, in a typical 30-day month, received 100 checks that total $90,000. These are delayed 6 days on average. What is the average daily float? a. 0 $18,000 b. 0 $5,400 c. 0 $1,800 d. 0 $15,000 4. A high current ratio suggests that the firm a. 0 has a small amount of long-term debt. b. 0 is carrying little inventory. c. 0 is able to meet its current obligations. d. 0 is profitable. e. 0 has a strong electrical system. 5. You want to find your target capital structure. Your company’s weighted average cost of capital is 12.5%. The cost of equity is 15% and the cost of debt is 8%. Given a tax rate of 35%, what is your target debt-equity ratio? a. 0 .34 b. 0 .68 c. 0 .17 d. 0 .25 6. You are the CFO for an all-equity type of firm that is considering the following projects: Project W: Beta = .70, Return = 11% Project X: Beta = .95, Return = 13% Project Y: Beta = 1.05, Return = 14% Project Z: Beta = 1.60, Return = 15% The T-bill rate equals 5% and the market expected rate of return equals 12%. Which projects should be accepted? a. 0 X, Y, and Z b. 0 W, X, and Y c. 0 W, Y, and Z d. 0 W, Y, and Z e. 0 None of these 7. Which one of the following is NOT true? a. 0 Bonds have many features that are spelled out in a document called the indenture. b. 0 Bonds are rated based on their default risk. Some bonds, like Treasury Bonds, have no risk of default; whereas junk bonds have significant default risk. c. 0 Bond values move in the direction of interest rates, leading to gains or losses for the investor. d. 0 When determining bond prices or yields, it is application of discounted cash flow concepts. 8. Common stockholders usually have the right a. 0 to vote for directors. b. 0 to share proportionally in dividends paid. c. 0 to vote on stockholder matters of great importance. d. 0 All of these 9. If the U.S. Dollar equivalency to the Euro is .8883, how many Euros could you get for $100? a. 0 88.83 b. 0 99.11 c. 0 112.57 d. 0 188.83 1. Which of the following is NOT a classical approach to Management Thought? a. 0 Systematic management b. 0 Administrative management c. 0 Scientific management d. 0 Organizational behavior e. 0 Human relations 2. Which of the following are the four functions of management? a. 0 Organizing b. 0 Leading c. 0 Planning d. 0 Controlling e. 0 All of these 3. Teams are critical to today’s business environment. Which of the following is NOT critical to today’s business environment? a. 0 Parallel teams b. 0 Transnational teams c. 0 Virtual teams d. 0 Football teams e. 0 Management teams 4. Total Quality Management a. 0 only applies to operations. b. 0 supports customer satisfaction. c. 0 relies on short-term relationships. d. 0 is the same as Six Sigma. e. 0 is regulated by OSHA. 5. Leading people versus managing them is an important difference. Which of the following describes characteristics of leading? a. 0 Motivating for performance b. 0 Managerial control c. 0 Creating and managing change d. 0 Managing technology e. 0 Managing innovation 6. Managers need a certain skill set to be effective. Which of the following skill(s) do they need? a. 0 Technical skills b. 0 Conceptual and decision skills c. 0 Interpersonal and communication skills d. 0 None of these e. 0 All of these 7. Diversity in today’s workforce is an important factor. Which of the below is considered in the components of a diversified workforce? a. 0 Ethnicity b. 0 Religious affiliation c. 0 Gender d. 0 Age e. 0 All of these are important 8. Which of the following is NOT part of human resource planning? a. 0 Demand forecast b. 0 Internal labor supply c. 0 External labor supply d. 0 Job analysis e. 0 Product demand forecast 9. Strategic planning is based on strategic analysis. Identify which of the below best describes strategic planning: a. 0 Tactical planning b. 0 Operational planning c. 0 Long-term decisions about the entire organization d. 0 Financial planning e. 0 Short-term decisions about the entire organization 10. Environmental factors a business needs to consider when planning are important to the success of the business. Which of the following is not considered an environmental factor in this context? a. 0 Competitors b. 0 Threat of entry c. 0 Substitutes d. 0 Endangered species e. 0 Customers 11. Globalization is a term we all use in business. Listed below are some terms; which of the following are entry modes for corporations to spread globally? a. 0 Licensing b. 0 Wholly owned subsidiaries c. 0 Joint ventures d. 0 Franchises e. 0 All of these 12. Entrepreneurs are an important part of the business environment. Which of the following is NOT a myth about entrepreneurs? a. 0 Anyone can start a business. b. 0 Entrepreneurs are their own business and completely independent. c. 0 Entrepreneurs are not gamblers. d. 0 If an entrepreneur is talented, success will happen in a year or two. e. 0 Any entrepreneur with a good idea can raise venture capital. 1. The modern business environment has all of the following characteristics EXCEPT a. 0 Global b. 0 Interconnected c. 0 Competitive d. 0 Relatively static e. 0 Real-time 2. ________________ issues involve collecting, storing, and disseminating information about individuals. a. 0 Privacy b. 0 Accuracy c. 0 Transferability d. 0 Property e. 0 Accessibility 3. The introduction of ATM machines by Citibank is a classic example of which strategy for competitive advantage? a. 0 Cost leadership b. 0 Innovation c. 0 Differentiation d. 0 Operational effectiveness e. 0 Customer-orientation 4. Which of the following systems acquisition methods results in software that can be tried out, has been used for similar problems in other organizations, and can save time? a. 0 Systems development life cycle b. 0 Prototyping c. 0 End-user development d. 0 Buy option e. 0 Object-oriented development 5. The end result of the data life cycle is the generation of a. 0 information. b. 0 data. c. 0 knowledge. d. 0 wisdom. e. 0 decisions. 6. Many organizations have implemented corporate portals for which of the following reasons? a. 0 To cut costs b. 0 To free up time for busy managers c. 0 To improve profitability d. 0 To offer customers self-service opportunities e. 0 All of these 7. In the ____________ phase of the decision-making process, managers construct a model that simplifies the problem. a. 0 implementation b. 0 choice c. 0 design d. 0 intelligence e. 0 consideration 8. Which capability of digital dashboards enables users to obtain the latest data available on key performance indicators or some other metric, ideally in real time? a. 0 Drill down b. 0 Key performance indicators c. 0 Status access d. 0 Trend analysis e. 0 Exception reporting 9. To effectively manage by exception (that is use exception reports), the company must first create a. 0 performance standards. b. 0 best practices. c. 0 user information requirements. d. 0 a database. e. 0 employee evaluation guides. 10. Being an entrepreneur, disturbance handler, and negotiator is part of the ______________ managerial role. a. 0 interpersonal b. 0 entrepreneurial c. 0 informational d. 0 decisional e. 0 confrontational 11. Offering different products, services, or product features is which strategy for competitive advantage? a. 0 Cost leadership b. 0 Differentiation c. 0 Innovation d. 0 Operational effectiveness e. 0 Customer-orientation 12. ______________ attempts to find the value of the inputs necessary to achieve a desired level of output. a. 0 What-if analysis b. 0 Statistical analysis c. 0 Sensitivity analysis d. 0 Goal-seeking analysis e. 0 Simulation 13. Computer support is least for which of the following problems? a. 0 Semistructured and strategic planning b. 0 Unstructured and strategic planning c. 0 Semistructured and management control d. 0 Unstructured and operational control e. 0 Structured and strategic planning 1. For society, a good is not scarce if a. 0 at least one individual in society can obtain all he or she wants of the good. b. 0 firms are producing the good at full capacity. c. 0 all members of society can have all they want of the good if the good’s price was zero. d. 0 those who have enough income can buy all they want of the good. 2. The production possibilities frontier is a downward-sloping straight line when a. 0 it is possible to switch between one good and the other good at a constant opportunity cost. b. 0 there is no tradeoff involved in switching between one good and the other good. c. 0 the same amount of time is required to produce a unit of one good as is required to produce a unit of the other good. d. 0 the person for whom the frontier is drawn wishes to consume equal amounts of the two goods. 3. Trade among nations is ultimately based on a. 0 absolute advantage. b. 0 strategic advantage. c. 0 comparative advantage. d. 0 technical advantage. 4. When opening a restaurant you may need to buy ovens, freezers, tables, and cash registers. Economists call these expenditures: a. 0 Capital investment b. 0 Investment in human capital c. 0 Business consumption expenditures d. 0 None of these are correct 5. A legal minimum price at which a good can be sold is a. 0 exemplified by rent-control laws. b. 0 usually intended to enhance efficiency in a market. c. 0 called a price ceiling. d. 0 called a price floor. 6. To say that "people respond to incentives" is to say that a. 0 changes in costs (but not changes in benefits) influence people's decisions and their behavior. b. 0 changes in benefits (but not changes in costs) influence people's decisions and their behavior. c. 0 changes in benefits or changes in costs influence people's decisions and their behavior. d. 0 tradeoffs can be eliminated by rational people who think at the margin. 7. The marginal product of labor can be defined as a. 0 change in profit/change in labor. b. 0 change in output/change in labor. c. 0 change in labor/change in output. d. 0 change in labor/change in total cost. 8. Monopolistically competitive firms are typically characterized by a. 0 many firms selling products that are similar, but not identical. b. 0 many firms selling identical products. c. 0 a few firms selling products that are similar, but not identical. d. 0 a few firms selling highly different products. 9. The prisoners' dilemma provides insights into the a. 0 difficulty of maintaining cooperation. b. 0 benefits of avoiding cooperation. c. 0 benefits of government ownership of monopoly. d. 0 ease with which oligopoly firms maintain high prices. 10. In a market economy, government intervention a. 0 will always improve market outcomes. b. 0 reduces efficiency in the presence of externalities. c. 0 may improve market outcomes in the presence of externalities. d. 0 is necessary to control individual greed. 11. Which of the following items is included in GDP? a. 0 The sale of stocks and bonds b. 0 The sale of used goods c. 0 The sale of services such as those performed by a doctor d. 0 All of these are included in GDP 12. Which of the following adjusts to bring aggregate supply and demand into balance? a. 0 The price level and real output b. 0 The real rate of interest and the money supply c. 0 Government expenditures and taxes d. 0 The saving rate and net exports 13. To decrease the money supply, the Fed could a. 0 sell government bonds. b. 0 increase the discount rate. c. 0 increase the reserve requirement. d. 0 All of these are correct 14. President George W. Bush and congress cut taxes and raised government expenditures in 2003. According to the aggregate supply and aggregate demand model a. 0 both the tax cut and the increase in government expenditures would tend to increase output. b. 0 only the tax cut would tend to increase output. c. 0 only the increase in government expenditures would tend to increase output. d. 0 neither the tax cut nor the increase in government expenditures would tend to increase output. 15. All else equal, which of the following would tend to cause real GDP per person to rise? a. 0 Changing policy from outward- to inward-oriented b. 0 Investment in human capital c. 0 In the short-term, effects of a rapid growth in the number of workers d. 0 All of these are correct 16. A trade policy is a government policy a. 0 directed toward the goal of improving the tradeoff between equity and efficiency. b. 0 that directly influences the quantity of goods and services that a country imports or exports. c. 0 intended to exploit the tradeoff between inflation and unemployment by altering the budget deficit. d. 0 toward trade unions. 17. If Kenya experienced capital flight, the supply of Kenyan schillings in the market for foreign-currency exchange would shift a. 0 left, which would make the real exchange rate of the Kenyan schilling appreciate. b. 0 left, which would make the real exchange rate of the Kenyan schilling depreciate. c. 0 right, which would make the real exchange rate of the Kenyan schilling appreciate. d. 0 right, which would make the real exchange rate of the Kenyan schilling depreciate. 18. The open-economy macroeconomic model examines the determination of a. 0 the output growth rate and the real interest rate. b. 0 unemployment and the exchange rate. c. 0 the output growth rate and the inflation rate. d. 0 the trade balance and the exchange rate. 1. Which of the following regarding the Commerce Clause of the U.S. Constitution is TRUE? a. 0 The Commerce Clause places federal responsibility for the judicial determination in the Commerce Department. b. 0 The Commerce Clause cannot regulate business when it occurs within a state. c. 0 The Commerce Clause can apply to a business that only does business in one state. d. 0 The Commerce Clause can regulate commerce, but not the transportation of goods. 2. Which of the following is NOT TRUE about alternative dispute resolution? a. 0 A mediator will assist the parties in trying to identify opportunities for resolution of the dispute. b. 0 In arbitration, the arbitrator will make a decision on the matter presented by the parties. c. 0 A mediator will resolve the dispute by making a decision if the parties are unable to do so. d. 0 Arbitration is final and binding in some but not all cases in which it is applied. 3. Which of the following can the Environmental Protection Agency do? a. 0 Establish permissible levels of particulates in the air. b. 0 Determine how testing will be done at industrial sites. c. 0 Levy fines on businesses that are in violation of the permissible level of particulates. d. 0 The EPA can do all of these things. . 4. While on the way from the office to a client’s business to deliver computer software, an employee of Acme Data Systems accidentally runs into another car, injuring the driver. Is Acme Data Systems liable to pay the damages of this accident if the driver is found liable? a. 0 No, because driving to the site is an incidental duty that does not arise out of the work. b. 0 No, because the driver is required to have insurance as a condition to drive any vehicle and have a driver’s license. c. 0 Yes, if it is determined that the driver is liable for the accident. d. 0 Yes, but only if it is determined that the accident with the fault of the business, not the driver. 5. Can a corporate CEO legally refuse to answer a question that will incriminate the corporation? a. 0 Yes, under the 5th Amendment as applied by the 6th Amendment. b. 0 Yes, but only under the 5th Amendment to the U.S. Constitution. c. 0 No, because a corporation does not have the Constitutional right to avoid self-incrimination. d. 0 No, because the court can compel testimony of anyone, but the answer is inadmissible evidence. 6. Chris works Monday through Friday at her job, as a nonexempt worker. Chris was required to work 10 hours on both Monday and Tuesday, and then worked 8 hours on both Wednesday and Thursday. On Friday, Chris worked 4 hours, then went home. How much overtime is Chris entitled to for the week, under provisions of the Fair Labor Standards Act? a. 0 Chris is entitled to 4 hours of overtime. b. 0 Chris is entitled to 4 hours of overtime IF Chris was sent home, but not overtime if Chris voluntarily went home on Friday. c. 0 Chris is entitled to 16 hours of overtime, because Chris worked more than 8 hours on both Monday and Tuesday. d. 0 Chris is entitled to NO overtime. 7. Mary, who lives openly as a lesbian, was discharged from her position, and evidence establishes that she was discharged because she is homosexual. Which is true regarding Mary’s rights under Federal antidiscrimination laws? a. 0 Assuming the evidence established that she was discharged for being a lesbian, she can recover damages from her employer. b. 0 If Mary can prove that the supervisor who discharged her was biased against homosexuals, she can get her job back. c. 0 Mary does not have a legal remedy because discrimination against homosexuals is not illegal under federal law. d. 0 None of these is correct. 8. Which of the following is an example of horizontal price fixing? a. 0 A car dealer and the manufacturer agree that the actual sales price of the car will never be below $30,000. b. 0 A gas station owner and the supplier of gasoline set the price of gas based on the strike price of crude oil. c. 0 The four Toyota dealers in the metro area agree on a “floor” on priced for the Prius, without informing the regional office. d. 0 The four Toyota dealers in a metro area agree that they will not be open on Sundays. 9. State lemon laws are designed to protect consumers who have purchased a. 0 fruits and vegetables. b. 0 new cars. c. 0 used motorcycles. d. 0 all consumer products. 10. Does the Foreign Corrupt Practices Act (FCPA) permit grease payments to lower-level foreign officials to speed up the clearance of imported goods? a. 0 Yes, as long as there is no attempt to influence government policy, but only to speed up the processes. b. 0 Yes, so long as there is an attempt to influence government policy, which is permitted under the FCPA. c. 0 No, unless the payment was approved by the State Department under the FILO provisions of the DUBI Act. d. 0 No, not under any circumstances. 11. Why is insider trading prohibited by the Securities Exchange Act? a. 0 To prohibit sales fraud by the unscrupulous traders b. 0 To prevent people with nonpublic information from having an advantage c. 0 To avoid discrimination against people who work outdoors, rather than in offices d. 0 To assure that people who subscribe to financial newsletters do not have an unfair advantage 12. Mary took good care of her grandfather for many years. As he lay dying, he said “Because you have provided me with so much great care in the past, I am giving you my house when I die. He does not change the title on his house or take any other steps to transfer ownership. Which of the following is true? a. 0 Mary will get the house because she did not provide valuable consideration to her grandfather before he promised her the house. b. 0 Mary will get the house because even though there is no contract, the acts of her grandfather constitute promissory estoppel. c. 0 Mary will NOT get the house because there is no valid contract with her grandfather. She did not provide valid consideration. d. 0 Mary will NOT get the house because her grandfather’s contract became void when he died. 13. Jack and Jill are partners in a water transport business. While Jack is out of town, Jill fails to purify the water the partnership sold to a restaurant, and many customers became ill. The restaurant sued Jack and Jill for $20,000. Can Jack be held liable for Jill's mistake? a. 0 Yes, Jack is fully liable for judgments against the partnership. b. 0 No, because Jack was not present when the error occurred. c. 0 Yes, if Jack is a general partner. d. 0 Yes, if both Jack and Jill are general partners. 14. Andy is an employee of Packing Corp. While he does not have the authority to obligate Packing Corp. to contracts, his office, his behavior and his comments on the job—all known by Packing Corp.—make it appear that he does have authority to enter into contracts on behalf of Packing. If he does enter into a contract, is Packing obligated by his statements? a. 0 No, because he does NOT have actual authority. b. 0 No, because he was the only one who performed the behavior that would reasonably lead a third party to conclude that he is an agent of Packing. c. 0 Yes, if it is definite that Packing allowed Andy to appear to be an agent of Packing. d. 0 Yes, because he is an employee of Packing. 15. Bob wrote a screenplay, but before he could register it with the U.S. Copyright Office, the screenplay was stolen and later appeared in a movie. Will Bob prevail if he sues the person claiming ownership of the play? a. 0 No, because he never registered the screenplay. b. 0 No, because he cannot prove that he was the author of the screenplay. c. 0 Yes, if it can be proved that Bob is the true owner of the screenplay. d. 0 Yes, but only if Bob has another copy of the screenplay. 16. In determining which course of action to select in a matter, Rogero decides that he will do what creates the greatest good for the greatest number of people. Which theory of ethics is Rogero applying? a. 0 Utilitarianism b. 0 Polytheism c. 0 The Golden Rule d. 0 Deontological theory 17. Which of these parties are considered when decisions are made utilizing stakeholder ethical theory? a. 0 Shareholders b. 0 Customers c. 0 Employees d. 0 All of these are considered then using stakeholder theory
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