BUS 475 Final Exam 100 MCQs (A+ Work) Set 03

BUS 475 Final Exam

1) As Plant Controller, you are trying to determine which costs over which you have the most control on a day to day basis. Your goal is to achieve better profitability. The Plant Operations Manager suggests that overhead is the easiest area to directly reduce costs. Which of the following items would be classified as manufacturing overhead?

A.   General corporate liability insurance

B.   Cost of landscaping the corporate office

C.   The western divisionТs vice presidentТs salary

D.   Factory janitor

2) Balance sheet accounts are considered to be __________.

A.   permanent accounts

B.   capital accounts

C.   nominal accounts

D.   temporary stockholdersТ accounts

3) A company just starting in business purchased three merchandise inventory items at the following prices. First purchase $80; Second purchase $95; Third purchase $85. If the company sold two units for a total of $240 and used FIFO costing, the gross profit for the period would be _____.

A.   $75

B.   $60

C.   $50

D.   $65

4) The major reporting standard for management accounts is __________.

A.   the Sarbanes-Oxley Act of 2002

B.   the Standards of Ethical Conduct for Practitioners of Management Accounting and Financial Management

C.   generally accepted accounting principles

D.   relevance to decisions

5) The standards and rules that are recognized as a general guide for financial reporting are called __________.

A.   generally accepted accounting principles

B.   generally accepted accounting standards

C.   standards of financial reporting

D.   operating guidelines

6) Managerial accounting __________.

7) Hess, Inc. sells a single product with a contribution margin of $12 per unit and fixed costs of $74,400 and sales for the current year of $100,000. How much is HessТs break even point?

8) These are selected account balances on December 31, 2008. 

Land (location of the corporation's office building) $100,000

Land (held for future use) 150,000

Corporate Office Building 600,000

Inventory 200,000

Equipment 450,000

Office Furniture 100,000

Accumulated Depreciation 300,000

What is the net amount of property, plant, and equipment that will appear on the balance sheet?

9) Which one of the following is a product cost?

10) One of Astro Company's activity cost pools is machine setups, with estimated overhead of $150,000. Astro produces sparklers (400 setups) and lighters (600 setups). How much of the machine setup cost pool should be assigned to sparklers?

11) The income statement and balance sheet columns of Pine Company's worksheet reflects the following totals: 

Income Statement Balance Sheet

Dr. Cr. Dr. Cr.

Totals $58,000 $48,000 $34,000 $44,000

The net income (or loss) for the period is __________.

12) Multinational corporations __________.

13) What exists when budgeted costs exceed actual results?

14) The primary purpose of the statement of cash flows is to __________.

15) A logical starting point from which the study of international trade begins is __________.

16) Resources are __________.

17) Which of the following statements about GDP is correct?

18) One characteristic of an oligopoly market structure is:

19) If a binding price ceiling were imposed in the computer market, __________.

20) The general term for market structures that fall somewhere in-between monopoly and perfect competition is __________.

21) A rational decision maker __________.

22) The political business cycle refers to __________.

23) Real GDP __________.

24) The part of the balance of payments account that lists all long-term flows of payments is called the:

25) In general, the longest lag for __________.

26) The balance of payment account is made up of:

27) Most economists use the aggregate demand and aggregate supply model primarily to analyze __________.

28) An organization that is managed aggressively and has growth and high profits as primary objectives may be considered a(n):

29) Which of these describes a vision, as it pertains to leadership?

30) As related to managing of human resources, diversity refers to:

 (31) Which of the following best describes a mental image of a possible and desirable future state of the organization?

32) A leader is:

33) Teams that operate separately from the regular work structure and exist temporarily are known as:

34) Building a dynamic organization is another way of describing which function of management?

35) The term used to refer to all kinds of differences including religious affiliation, age, disability status, economic class and lifestyle in addition to gender, race, ethnicity and nationality is:

36) The pursuit of lucrative opportunities by enterprising individuals is called:

37) The best way for an employer to find out if a potential employee can do a job is by __________.

38) Having individuals actually do the job they are applying for as a test to see if they can do it is __________.

39) Your roommate is interested in starting a business and everybody has been giving him different information about being an entrepreneur. Since you have been studying about entrepreneurship and new ventures, which of these would you tell him is true?

40) Managers will utilize __________ skills with increasing frequency as they rise within an organization.

41) To be competitive in a global economy, Europeans must increase their level of:

42) 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 УtypicalФ student?

43) From its 32 regions, the Federal Aviation Administration selects 5 regions, and then randomly audits 20 departing commercial flights in each region for compliance with legal fuel and weight requirements. This is __________.

44) Dullco Manufacturing claims that its alkaline batteries last forty hours on average in a certain type of portable CD player. Tests on a random sample of 18 batteries showed a mean battery life of 37.8 hours with a standard deviation of 5.4 hours. 

In determining the p-value for reporting the study's findings, which of the following is true?

45) A financial institution wishes to estimate the mean balances owed by its credit card customers. The population standard deviation is estimated to be $300. If a 98 percent confidence interval is used and an interval of ±$75 is desired, how many cardholders should be sampled?

46) A poll showed that 48 out of 120 randomly chosen graduates of California medical schools last year intended to specialize in family practice. What is the width of a 90% confidence interval for the proportion that plan to specialize in family practice?

.

.

.

.

52) Queuing models use an A/B/C notation. What do these variables represent?

A.   average time between arrivals/average service time/number of parallel servers

B.   maximum time between arrivals/maximum allowable service time/maximum number of parallel servers

C.   minimum time between arrivals/minimum allowable service time/minimum number of parallel servers

D.   distribution of time between arrivals/distribution of service times/number of parallel servers

53) The Global, Web-Based Platform enables individuals to do which of the following?

A.   access information, services, and entertainment

B.   produce and sell goods and services

C.   all of these are true

D.   exchange knowledge

E.   connect, compute, communicate, collaborate, and compete everywhere and all the time

54) Networks enable which of the following applications?

A.   Communications

B.   Web services

C.   All of these

D.   Collaboration

E.   Discovery

55) Which of the following is NOT an advantage of the buy option for acquiring IS applications?

A.   software can be tried out

B.   company will know what it is getting

C.   saves money

D.   saves time

E.   few types of off-the-shelf software are available, thus limiting confusion

56) Zappos built the majority of its information systems using which of the following?

A.   Proprietary software

B.   Free software

C.   Consultants

D.   Open source software

E.   Vendor software

57) When customers access a Web site and make purchases, they generate __________.

A.   Information

B.   Web data

C.   Hyperlink data

D.   Clickstream data

E.   Tracking cookies

58) International Game TechnologyТs new ERP system produced all of the following benefits except:

A.   Company was able to maintain its original business processes

B.   ERP system connected the companyТs global operations

C.   The company gained flexibility in manufacturing products

D.   Operations employees were able to access manufacturing process details at their workstations

E.   Integrated the companyТs business functions

59) A company wants to use data from past promotional mailings to identify people who would likely respond favorably to future mailings. This company would most likely use _____.

A.   multidimensional data analysis

B.   neural networks

C.   expert systems

D.   data mining

E.   structured query language

60) Which of the following statements about information systems is not correct?

A.   Information systems tend to follow the structure of the organization.

B.   Information systems are based on the needs of employees.

C.   Any information system can be strategic.

D.   Managing information systems is difficult.

E.   Information systems are concentrated in the IS Department.

61) Computer support is greatest for which of the following problems?

A.   Unstructured and operational control

B.   Structured and operational control

C.   Semistructured and management control

D.   Structured and management control

E.   Semistructured and strategic planning

62) Competitive advantage for an organization manifests as all of the following except:

A.   higher quality

B.   increased time to market

C.   increased profits

D.   increased speed

E.   lower costs

63) Mortgage bonds:

A.   are secured by a lien on real property.

B.   usually pay little or no interest.

C.   can only be issued by financial institutions.

D.   are a type of debenture.

64) Which of the following represents an attempt to measure the earnings of the firmТs operations over a given time period?

A.   Cash flow statement

B.   Income statement

C.   Quarterly statement

D.   Balance sheet

65) 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.   9.9%, 1.02

B.   10.67%, 1.02

C.   34.4%, .94

D.   9.9%, .94

66) An increase in future value can be caused by an increase in the __________.

A.   starting value

B.   annual interest rate and number of compounding periods

C.   rate of return

D.   dividends paid

E.   original amount invested

67) 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.

A.   14%

B.   5%

C.   12%

D.   11%

68) 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 firmТs 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?

69) Bondholders have a priority claim on assets ahead of:

70) A stock with a beta greater than 1.0 has returns that are _____ volatile than the market, and a stock with a beta of less than 1.0 exhibits returns which are _____ volatile than those of the market portfolio.

71) The common stockholders are most concerned with:

72) 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 investorsТ required rate of return on this stock is 15%, what is the value of per share?

73) A machine costs $1,000, has a three-year life, and has an estimated salvage value of $100. It will generate after-tax annual cash flows (ACF) of $600 a year, starting next year. If your required rate of return for the project is 10%, what is the NPV of this investment? (Round your answer to the nearest $10.)

74) Which of the following best represents operating income?

75) 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

1 $1,000

2 $1,500

3 $  500

76) Coca-Cola is taking advantageof 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?

77) When one considers the strategy decisions organized by the four Ps, branding is related to packaging as:

78) The statement, "Of course people will buy our product--each of its features is better than the competition," most closely reflects which consumer behavior concept?

79) Analysis of demographic dimensions:

80) Regarding organizational buying, the people who have the power to select or approve the supplier--especially for larger purchases--are called:

81) "Positioning":

82) The managerial process of developing and maintaining a match between the resources of an organization and its market opportunities is called:

83) The "four Ps" of a marketing mix are:

84) The basic objective of the U.S. market-directed economic system is to:

85) Comparing GDP for foreign countries can help a marketing manager evaluate potential markets if the manager remembers that:

86) An Australian wine producer, facing declining sales at home, set up a new channel of distribution to sell wine in the United States. This seems to be an effort at:

87) Which of the following is a business or organizational customer?

88) Probable cause is most directly associated with which step of the criminal process?

89) Justin was hired in February of 2004 as a salesperson. There is no written employment contract, and Justin is paid on a commission basis. JustinТs manager has said to Justin on several occasions that if Justin continues to meet his sales quotas, that the company Уwill keep him around for a long time.Ф Justin has always met his sales quotas, but is told one day that they have decided to replace him because he does not project the image that the company wants. If Justin is an at-will employee, which of the following is true?

90) In a criminal proceeding, what is the difference between an indictment and an information?

91) Under Section 2 of the Sherman Act, rather than making a presumption whether monopoly power exists, the courts will examine all the facts and circumstances to determine whether monopoly power exists when the defendant holds between _____ percent and _____ percent of the relevant market:

92) Which of the following is true about the Sherman Act?

93) Which of the following is correct with regard to the relationship between law and ethics?

94) What is the major convention that provides international protection to patents?

95) For which of the following kinds of intellectual property is a filing or registration required in order to receive protection?

96) The Houston-based energy company that filed for Chapter 11 bankruptcy and whose business conduct is one of the grossest examples of corporate greed and fraud in America was:

97) Which of the following is true about trademark registration?

98) Although the U.S. has had a longstanding agreement with _____ after the passage of NAFTA, _____ became the United States' second largest trading partner.

99) Which country does the text describe as becoming the largest producer and consumer of many of the world's goods?

100) One study found that manufacturing labor costs about _____ an hour in China, compared to _____ dollars in the United States.