12) What exists when budgeted costs exceed actual results?
A. An excess profit...
12) What exists when budgeted costs exceed actual results? Submitted: 7 years ago.Category: Multiple Problems
A. An excess profit
B. An unfavorable difference
C. A budgeting error
D. A favorable difference
13) The standards and rules that are recognized as a general guide for financial reporting are called __________.
A. standards of financial reporting
B. operating guidelines
C. generally accepted accounting standards
D. generally accepted accounting principles
14) Managerial accounting __________.
A. places emphasis on special-purpose information
B. pertains to the entity as a whole and is highly aggregated
C. is concerned with costing products
D. is governed by generally accepted accounting principles
15) If a binding price ceiling were imposed in the computer market, __________.
A. the quality of computers would increase
B. a shortage of computers would develop
C. the demand for computers would increase
D. the supply of computers would decrease
16) Resources are __________.
A. plentiful for households and plentiful for economies
B. scarce for households and scarce for economies
C. scarce for households but plentiful for economies
D. plentiful for households but scarce for economies
17) Lekeisha's income exceeds her expenditures. Lekeisha is a __________.
A. borrower who supplies money to the financial system
B. borrower who demands money from the financial system
C. saver who demands money from the financial system
D. saver who supplies money to the financial system
18) In order to be successful, a cartel must __________.
A. agree on the prices charged by each member, but they need not agree on amounts produced
B. agree on the total level of production and on the amount produced by each member
C. find a way to encourage members to produce more than they would otherwise produce
D. agree on the total level of production for the cartel, but they need not agree on the amount produced by each member
19) Which of the following would be most likely to contribute to the breakdown of a cartel in a natural resource (e.g., bauxite) market?
A. Unequal member ownership of the natural resource
B. High compatibility of member interests
C. High prices
D. Low price elasticity of demand
20) Without trade, __________.
A. a country is better off because it will have to learn to be self-sufficient without trade
B. a country's production possibilities frontier is also its consumption possibilities frontier
C. a country can still benefit from international specialization
D. interdependence is more extensive than it would be with trade
21) There are two types of markets in which firms face some competition yet are still able to have some control over the prices of their products. The names given to these market structures are __________.
A. monopolistic competition and oligopoly
B. duopoly and triopoly
C. perfect competition and monopolistic competition
D. duopoly and imperfect competition
22) Many U.S. business leaders argue that the current state of U.S. net exports is the result of __________.
A. U.S. export subsidies.
B. free trade policies of foreign governments.
C. unproductive U.S. workers.
D. unfair foreign competition.
23) The principal lag for monetary policy __________.
A. and fiscal policy is the time it takes to implement policy
B. and fiscal policy is the time it takes for policy to change spending
C. is the time it takes to implement policy. The principal lag for fiscal policy is the time it takes for policy to change spending
D. is the time it takes for policy to change spending. The principal lag for fiscal policy is the time it takes to implement it
24) The model of short-run economic fluctuations focuses on the price level and __________.
A. real GDP
B. economic growth
C. the neutrality of money
D. Net GDP
25) President George W. Bush and congress cut taxes and raised government expenditures in 2003. Which of the following is not correct?
A. At the time the economy was just moving into a recession.
B. While there was subsequent improvement in economic performance, it’s not entirely clear that this was due to the policy.
C. In general monetary policy can be implemented faster than fiscal policy.
D. In general it is easier to reverse monetary policy than to reverse fiscal policy.
26) The political business cycle refers to __________.
A. the fact that about every four years some politician advocates greater government control of the Fed
B. the potential for a central bank to increase the money supply and therefore real GDP to help the incumbent get re-elected
C. the part of the business cycle caused by the reluctance of politicians to smooth the business cycle
D. changes in output created by the monetary rule the Fed must follow
27) Edward Prescott and Finn Kydland won the Nobel Prize in Economics in 2004. One of their contributions was to argue that if a central bank could convince people to expect zero inflation, then the Fed would be tempted to raise output by increasing inflation. This possibility is known as __________.
A. inflation targeting
B. the monetary policy reaction lag
C. the time inconsistency of policy
D. the sacrifice ratio dilemma
28) A leader is:
A. Someone with authority over others
B. The top level manager in a firm or business
C. A strategic level manager
D. Someone who influences others to attain goals
E. Someone well-respected by others
29) Listening to employee suggestions, gaining support for organizational objectives and fostering an atmosphere of teamwork are all considered:
A. Technical skills
B. Interpersonal/communication skills
C. Diagnostic skills
D. Professional skills
30) Having individuals actually do the job they are applying for as a test to see if they can do it is __________.
A. an approach with low reliability
B. an approach with high face validity
C. an informal means of screening candidates
D. an approach with high reliability
E. a formal means of screening candidates
31) An invisible barrier that makes it difficult for certain groups, such as minorities and women, to move beyond a certain level in the organizational hierarchy is referred to as the:
A. Black box theory
B. Glass ceiling
C. Job enrichment theory
D. Job enlargement concept
E. Glass floor
32) Which of these represent skills that managers need?
A. Interpersonal & communication, conceptual & decision making and professional
B. Conceptual & decision making, professional and technical
C. Professional, technical and interpersonal & communication
D. Interpersonal, quantitative, and professional
E. Technical, interpersonal & communication and conceptual & decision making
33) A series of quality standards developed by a committee working under the International Organization for Standardization to improve total quality in all businesses for the benefit of both producers and consumers is:
A. Total quality management
B. Computer-integrated manufacturing (CIM)
C. ISO 9000
D. Customer-based integration
E. Just-in-time control (JIT)
34) Japanese manufacturers' kaizen (continuous improvement) programs enable them to maintain:
A. A strategic alliance
B. Positive working relationships with all employees
C. Larger, faster facilities
D. A homogeneous workforce
E. A Learning advantage over their competition
35) Managers will utilize __________ skills with increasing frequency as they rise within an organization.
A. Conceptual and decision
E. Interpersonal and communication
36) Building a dynamic organization is another way of describing which function of management?
37) Teams that work on long-term projects but disband once the work is completed are known as:
A. Parallel teams
B. Project and development teams
C. Traditional work groups
D. Transnational teams
E. Management teams
38) When a company establishes technology leadership by pioneering unique products or services that command premium prices, it has benefited from a:
A. High-cost strategy
B. Diversification strategy
C. Low-cost strategy
D. Differentiation strategy
E. High-price strategy
39) Teams that operate separately from the regular work structure and exist temporarily are known as:
A. Management teams
B. Self-managed teams
C. Self-designing teams
D. Transnational teams
E. Parallel teams
40) Which of these refers to the practices aimed at discovering and harnessing an organization's intellectual resources?
E. Knowledge management
41) One of the most important contributors to total quality management has been the introduction of statistical tools to analyze the causes of product defects in an approach called:
A. Six Sigma Quality
C. ISO 9000
E. Total quality integration
42) In a random sample of 810 women employees, it is found that 81 would prefer working for a female boss. The width of the 95% confidence interval for the proportion of women who prefer a female boss is _____.
A. ± .0207
B. ± .0105
C. ± .0196
D. ± .0288
43) Use the following table to answer question:
P(S | W) is approximately _____.
44) To estimate the average annual expenses of students on books and class materials a sample of size 36 is taken. The average is $850 and the standard deviation is $54. A 99% confidence interval for the population mean is __________.
A. $825.48 to $874.52
B. $823.72 to $876.28
C. $826.82 to $873.18
D. $832.36 to $867.64
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 median is _____.
46) Independent events A and B would be consistent with which of the following statements:
A. P (A) = .4, P (B) = .5, P (A B) = .2
B. P (A) = .5, P (B) = .4, P (A B) = .3
C. P (A) = .3, P (B) = .5, P (A B) = .4
D. P (A) = .4, P (B) = .3, P (A B) = .5
47) 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, which measure of central tendency is least representative of the “typical” student?
48) The one-worker, multiple machines approach functions as:
A. a one-person production line.
B. a way to create uniform workstation loads.
C. a production bottleneck.
D. a poka-yoke device.
49) Theoretically, service capacity must exceed demand, lest queues become infinitely long. If capacity does not exceed demand, what is likely to happen?
A. Customers will renege or balk, thereby reducing demand.
B. All of these
C. Servers will decrease time spent per customer, thereby increasing capacity.
D. Servers will eliminate time-consuming portions of their jobs, thereby increasing capacity.
50) In a network diagram, an activity:
A. is the largest unit of work effort consuming both time and resources that a project manager can schedule and control.
B. must always have a single, precise estimate for the time duration.
C. is the smallest unit of work effort consuming both time and resources that a project manager can schedule and control.
D. should always be something the company has had experience with.
51) A computer analysis reveals that the best-fitting trend model is Yt = 4.12 e 0.987 t. The trend was fitted using year-end common stock prices for Melodic Kortholt Outlet for the last six years. The R2 is 0.8571.
Which conclusion is not correct?
A. The stock's true intrinsic value is $4.12.
B. The absolute annual growth (in dollars per share) is increasing.
C. At the end of year 3 the stock price would be nearly $80.
D. Few investments could match the astounding growth rate.
52) Suppose the estimated quadratic model Yt = 500 + 20 t - t2 is the best-fitting trend of sales of XYZ Inc. using data for the past twenty years (t = 1, 2,.., 20).
Which statement is incorrect?
A. The trend was higher in year 10 than in year 20.
B. Sales are increasing by about 20 units per year.
C. Latest year sales are no better than in year zero.
D. The turning point would be in period 10.
53) It is very difficult to manage data for which of the following reasons?
A. amount of data stays about the same over time
B. data are stored in the same format throughout organizations
C. decreasing amount of external data needs to be considered
D. data are scattered throughout organizations
E. data security is easy to maintain
54) Search engines and metasearch engines are examples of which network application?
B. Local Area Network
E. Web services
55) The costs of delivering products in the _____ channel are much higher than delivering products in the _____ channel.
A. e-commerce, digital
B. physical, digital
C. digital, physical
D. digital, e-commerce
E. physical, financial
56) In the _____ phase of the decision making process, managers test potential solutions “on paper.”
57) What is _____ is not necessarily _____.
A. Illegal, unethical
B. Ethical, illegal
C. Unethical, legal
D. Ethical, legal
E. Unethical, illegal
58) Competitive advantage for an organization manifests as all of the following except:
A. lower costs
B. higher quality
C. increased profits
D. increased speed
E. increased time to market
59) Which of the following are not provided by digital dashboards?
A. Drill down
B. Transaction processing
C. Key performance indicators
D. Exception reporting
E. Status access
60) Computer support is greatest for which of the following problems?
A. Semistructured and strategic planning
B. Unstructured and operational control
C. Semistructured and management control
D. Structured and management control
E. Structured and operational control
61) Which of the following is not a function of functional area information systems?
A. provides information to managers in the functional areas
B. supports the managerial tasks of planning, organizing, and controlling operations
C. provides data from business events to the corporate database
D. provides analysis capabilities to middle level managers and staff
E. provides information mainly in the form of reports
62) Which of the following is not a reason that managers need IT support?
A. Number of alternatives are decreasing
B. Decisions must typically be made under time pressure
C. Need to access remote information sources
D. Decision makers are often in different locations
E. Decisions are becoming more complex
63) At 8% compounded annually, how long will it take $750 to double?
A. 6.5 years
B. 48 months
C. 12 years
D. 9 years
64) Tri State Pickle Company preferred stock pays a perpetual annual dividend of 2 1/2% of its par value. Par value of TSP preferred stock is $100 per share. If investors’ required rate of return on this stock is 15%, what is the value of per share?
65) At what rate must $400 be compounded annually for it to grow to $716.40 in 10 years?
66) You hold a portfolio with the following securities:
Security Percent of Portfolio Beta Return
X Corporation 20% 1.35 14%
Y Corporation 35% .95 10%
Z Corporation 45% .75 8%
Compute the expected return and beta for the portfolio.
A. 10.67%, 1.02
B. 9.9%, 1.02
C. 9.9%, .94
D. 34.4%, .94
67) PepsiCo calculates unlevered betas for each peer group in order to:
A. eliminate different business risks.
B. eliminate competitive factors.
C. eliminate different financial risks.
D. eliminate judgment factors.
68) An increase in future value can be caused by an increase in the __________.
A. annual interest rate and number of compounding periods
B. starting value
C. rate of return
D. dividends paid
E. original amount invested
69) What is the yield to maturity of a nine-year bond that pays a coupon rate of 20% per year, has a $1,000 par value, and is currently priced at $1,407? Round your answer to the nearest whole percent and assume annual coupon payments.
70) Which of the following represents an attempt to measure the earnings of the firm’s operations over a given time period?
A. Balance sheet
B. Income statement
C. Quarterly statement
D. Cash flow statement
71) Your company is considering an investment in a project which would require an initial outlay of $300,000 and produce expected cash flows in Years 1 through 5 of $87,385 per year. You have determined that the current after-tax cost of the firm’s capital (required rate of return) for each source of financing is as follows:
Cost of debt 8%
Cost of preferred stock 12%
Cost of common stock 16%
Long-term debt currently makes up 20% of the capital structure, preferred stock 10%, and common stock 70%. What is the net present value of this project?
72) 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.
Year Net Cash Flow
3 $ 500
73) 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?
74) Petrified Forest Skin Care, Inc. pays an annual perpetual dividend of $1.70 per share. If the stock is currently selling for $21.25 per share, what is the expected rate of return on this stock?
75) According to the hedging principle, permanent assets should be financed with _____ liabilities.
76) Economists' economic-buyer theory assumes that __________.
A. buyers logically compare choices in order to maximize their satisfaction
B. consumers always make rational decisions
C. consumers only want the cheapest price
D. demographic data are very useful for predicting consumer behavior
E. consumers should purchase only low-priced products
77) The basic objective of the U.S. market-directed economic system is to:
A. satisfy consumer needs as they--the consumers--see them.
B. achieve an annual growth rate of at least 10 percent.
C. make the most efficient use of the country's resources.
D. minimize inflation.
E. provide each person with an equal share of the economic output.
78) "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. finding attractive opportunities and developing profitable marketing strategies.
E. selecting an attractive target market.
79) The "four Ps" of a marketing mix are:
A. Production, Personnel, Price, and Physical Distribution
B. Promotion, Production, Price, and People
C. Potential customers, Product, Price, and Personal Selling
D. Product, Price, Promotion, and Profit
E. Product, Place, Promotion, and Price
80) The clustering techniques that can be used in segmenting:
A. group people together into heterogeneous product-market segments.
B. group people together based on age.
C. looks for differences between groups of people.
D. eliminate the need for management intuition and judgment.
E. try to find similar patterns within sets of data.
81) Which of the following is a business or organizational customer?
A. a retailer.
B. a government agency.
C. All of these are business and organizational customers.
D. producers of goods or services.
E. a wholesaler.
82) Coca-Cola is taking advantage of the new willingness of Chinese leaders to engage in international trade by marketing its soft drinks in China. What type of opportunity is Coke pursuing?
B. market penetration
C. test marketing
D. market development
E. product development
83) When one considers the strategy decisions organized by the four Ps, branding is related to packaging as:
A. production is to marketing.
B. pricing is to promotion.
C. personal selling is to mass selling.
D. branding is to pricing.
E. store location is to sales force selection.
84) A firm's "marketing mix" decision areas would NOT include:
85) In comparison to the buying of final consumers, the purchasing of organizational buyers:
A. is always based on competitive bids from multiple suppliers.
B. is always emotional.
C. is even less predictable.
D. is strictly economic and not at all emotional.
E. leans basically toward economy, quality, and dependability.
A. turns consumers into puppets.
B. not important if you have a good product.
C. is only propaganda.
D. creates materialistic values which did not exist before.
E. reflects existing social values in the short run--while reinforcing these values in the long run.
87) Regarding organizational buying, the people who have the power to select or approve the supplier--especially for larger purchases--are called:
88) Which of the following terms need not be disclosed under Truth-in-Lending Act?
A. The cash price of the product.
B. Amount of payments.
C. The total finance charge.
D. The annual percentage rate (APR).
E. The terms available from competitors.
89) In which of the following are these steps of a criminal case listed in the correct order?
A. Arrest, indictment, arraignment, trial
B. Arrest, indictment, trial, arraignment
C. Arrest, arraignment, indictment, trial
D. Arraignment, arrest, trial, indictment
E. Indictment, arraignment, arrest, trial
90) Which of the following receives at least some protection under the U.S. Constitution?
A. Offensive speech
B. Neither obscene speech nor offensive speech
C. Both obscene speech and offensive speech
D. Obscene speech
91) Which of the following statements is generally not true about state intermediate appellate courts?
A. The appellate court usually allows the parties to file briefs outlining support for their positions.
B. Appellate court decisions are final and further appeal is not possible.
C. The appellate court allows the parties to introduce new evidence so long as it was not previously introduced at the original trial.
D. The appellate court reviews the record of the trial court.
E. The appellate court allows the parties to make oral arguments outlining their position.
92) Which of the following is correct about litigating commercial disputes?
A. Commercial disputes, because of their specialized nature, are first heard at the appellate court level.
B. In all states, commercial disputes must be heard in a limited-jurisdiction court.
C. Businesses generally dislike the concept of specialized trail courts for commercial disputes because the large numbers of consumers who sue businesses in these courts have led the judges to become generally biased against business.
D. Nearly all states have specialized trial courts that hear commercial disputes.
E. A few states have established specialized trial courts for commercial disputes.
93) What makes a publicly held corporation different from a public corporation?
A. A publicly held corporation is entitled to limited liability, but a public corporation is not.
B. They are two terms that have the same meaning.
C. A publicly held corporation must have a charitable purpose, but a public corporation need not have a charitable purpose.
D. A publicly held corporation has many shareholders rather than being a corporation owned by a governmental entity.
94) If the value of the collateral is less than the debt owed to the secured party, then:
A. The secured party is unsecured for the excess of debt over the value of the security.
B. The secured party is unsecured for the entire debt.
C. The secured party gets to take some other property as collateral so his entire debt is secured.
D. The secured party is still secured for the entire debt owed him.
E. The secured party loses the excess of debt over the value of the security.
95) Which of the following lists, in descending priority, of sources considered by most courts in settling questions of international law?
A. Treaties, customs, general principles of law, judicial decisions and teachings
B. Treaties, customs, conventions, comity
C. Conventions, treaties, comity, customs
D. Treaties, customs, conventions, comity
E. Conventions, comity, customs, general principles of law
96) The theory of business social responsibility that holds that a business owes duties solely to produce the highest return for its shareholders is:
A. The maximizing profits theory.
B. The stakeholder interest theory.
C. The social audit theory.
D. The corporate citizenship theory.
E. The moral minimum theory.
97) A professional corporation is one that:
A. Has been in existence long enough to reasonably assure that it will be profitable in the near future.
B. Is formed with the assistance of a lawyer.
C. Does not have shareholders.
D. Is typically used as a form of doing business by doctors and lawyers.
98) One study found that manufacturing labor costs about _____ an hour in China, compared to _____ dollars in the United States.
A. About $2; about 15
B. Less than $1; about 25
C. Less than $1; about 40
D. $2; about 25
E. Less than $1; about 15
99) Although the U.S. has had a longstanding agreement with _____ after the passage of NAFTA, _____ became the United States' second largest trading partner.
A. Canada, Mexico
B. Mexico, Canada
C. Great Britain, Paraguay
D. Mexico, Venezuela
E. Canada, Venezuela
100) Which country does the text describe as becoming the largest producer and consumer of many of the world's goods?