Need help with intro to business questions two exams

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Question 1

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A _______ is a bond for which no specific property is pledged as collateral.

		bearer bond
		debenture
		registered bond
		secured bond
		callable bond

Question 2

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The largest regional exchanges are the _________ and ___________ Stock Exchanges.

		Cincinnati, Spokane
		Philadelphia, Pacific
		Chicago, Pacific
		Atlanta, Philadelphia
		Philadelphia, Boston

Question 3

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A __________ is an order to buy or sell a security at the market price prevailing at the time the order is placed.

		sell order
		market order
		stop order
		prevailing order
		release order

Question 4

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Which of the following is the fastest growing stock market?

		American Stock Exchange
		New York Stock Exchange
		NASDAQ
		Pacific Stock Exchange
		Philadelphia Stock Exchange

Question 5

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The stock prices on the stock pages in The Wall Street Journal reflect

		par values.
		market values.
		book values.
		conglomerate values.
		reapportioned values.

Question 6

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A stock's market value is

		the current price of a share of stock in the stock market.
		the average price of one share of stock over the past year.
		the face value of a share of stock, set by the issuing company's board of directors.
		the value of a common stock expressed as total stockholder's equity divided by the number of shares of stock.
		the price of the stock plus the previous year's dividends.

Question 7

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The __________ is the organization of securities dealers formed to trade stock outside the formal institutional setting of the organized stock exchanges.

		Internet market
		primary market
		secondary market
		over-the-counter market
		preferred market

Question 8

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What condition would lead an issuer to call a bond?

		The coupon payments on the bond are high.
		Prevailing interest rates are lower than the rate being paid on the bond.
		Government regulation.
		The coupon payments on the bond are low.
		Prevailing interest rates are higher than the rate being paid on the bond.

Question 9

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Issuers reduce the risk to bondholders by pledging certain assets in case of default. These bonds are ________ bonds.

		bearer
		secured
		registered
		debenture
		callable

Question 10

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Which of the following is well known for their ratings of bonds?

		Moody's
		Chase Manhattan
		Standard & Poor's
		All of the above
		*e. Both a and c

Question 11

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Subtracting income taxes from operating income reveals

		operating income.
		net income.
		cash flow.
		leverage.
		selling income.

Question 12

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A(n) __________ ratio evaluates management's use of assets.

		financial
		solvency
		managerial
		profitability
		activity

Question 13

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_____________ are current liabilities consisting of bills owed to suppliers, plus wages and taxes due within the upcoming year.

		Accounts receivable
		Accounts payable
		Patents
		Prepaid expenses
		Marketable securities

Question 14

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Which of the responses below is often used as a way of referring to the income statement?

		profit-and-loss statement
		the bottom line
		the revenue account
		winnings and losses
		none of the above

Question 15

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Which of the following is NOT a potential user of accounting information?

		managers
		employees
		unions
		investors
		all are potential users of accounting information

Question 16

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______________ are rules and procedures governing the content and form of financial reports.

		National guidelines
		Accounting society rules
		The Auditor's Bible
		The Rules of the Road
		Generally Accepted Accounting Principles

Question 17

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______________ is the recording of financial transactions.

		Bookkeeping
		Accounting
		Controlling
		Auditing
		Budgeting

Question 18

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Which of the following is a major classification of ratios?

		solvency ratios
		profitability ratios
		activity ratios
		all of the above
		none of the above

Question 19

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As buildings and equipment wear out or become obsolete, their value decreases. To reflect decreasing value, accountants use

		prepaid expenses.
		subtracting methods.
		depreciation.
		licensing.
		all of the above.

Question 20

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___________ requires that expenses will be matched with revenues to determine net income for the accounting period.

		Full disclosure
		Revenue recognition
		Compliance
		Matching
		Materiality

Question 21

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In ___________, all depositors are considered to be owners of the institution.

		commercial banks
		savings and loan associations
		mercantile franchises
		mutual savings banks
		downtown major banks

Question 22

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Merrill Lynch and AG Edwards & Sons are examples of

		credit unions.
		securities dealers.
		insurance companies.
		finance companies.
		pension funds.

Question 23

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Certificates of deposit and savings certificates are examples of

		demand deposits.
		time deposits.
		NOW accounts.
		ATM accounts.
		money market mutual funds.

Question 24

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To shore up the failing Argentine economy, President Eduardo Duhalde proposed devaluation of the currency and

		suspension of all workers' unions.
		price controls on all consumer products.
		new elections.
		temporarily halting all debt payments.
		abandoning the peso in favor of the U.S. dollar.

Question 25

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Which of the following is NOT part of the M-2 money supply?

		time deposits
		money market mutual funds
		savings deposits
		M-1
		all are part of the M-2 money supply

Question 26

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A(n) _______ would be used with a point-of-sale terminal, which would transmit information regarding a sale to the bank's computer system, which in turn would transfer money to the store's account.

		debit card
		e-card
		e-cash card
		smart card
		NetCash card

Question 27

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Which of the following best describes the stability characteristic of money?

		It neither dies nor spoils and, if it wears out, it can be replaced.
		Units of money can be matched with the value of goods.
		It allows people to measure the relative value of goods and services.
		It is light and easy to handle.
		Its value is relatively constant.

Question 28

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The Depository Institutions Deregulation and Monetary Control Act (DIDMCA) of 1980 did which of the following?

		Placed heavy restrictions on what a particular financial institution could do.
		Sought to promote competition.
		Caused check processing to speed up considerably.
		Eliminated restrictions on what a particular financial institution could engage in.
		Both b and d.

Question 29

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Which of the following would NOT be considered part of the M-1 money supply?

		time deposits
		bonds
		certificates of deposit
		stocks in a major motor company
		none are part of the M-1 money supply

Question 30

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If today's currency wears out it can be replaced, thus demonstrating that it is

		portable.
		divisible.
		stable.
		durable.
		valuable.

Question 31

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For loyal buyers of Godiva premium chocolates, __________ includes sensory satisfiers such as aroma, flavor, and texture.

		quality control
		quality reliability
		quality circles
		total quality management
		performance quality

Question 32

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Receiving and storing materials, billing patients for medical treatment, filing insurance claims for auto accidents, and inspecting property for termites are examples of

		functions.
		paybacks.
		techniques.
		processes.
		requests.

Question 33

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The third step in the reengineering process is to evaluate information and human resource requirements for engineering. Which of the following are the key resources for this step?

		process analysis skills
		company vision statement; awareness of competitive status
		teamwork; customer focus
		process flow analysis; process mapping
		information technology; business culture management

Question 34

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A(n) _________ is a process control method that plots test-sampling results on a diagram to determine when a process is beginning to depart from normal operating conditions.

		upper control limit
		lower control limit
		process control chart
		benchmarking
		quality reliability

Question 35

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In ISO 9000:2000, certification firms are required to demonstrate documented procedures for all of the following EXCEPT

		selecting vendors.
		testing products.
		training workers.
		keeping records.
		fixing product defects.

Question 36

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Employee empowerment is

		the concept that all employees are valuable contributors to a firm's business, and should be entrusted with decisions regarding their work.
		an ongoing commitment to improving products and processes in the pursuit of ever-increasing customer satisfaction.
		a program certifying that a factory, laboratory, or office has met the quality management standards of the International Organization for Standardization.
		the principle of looking at the supply chain as a whole in order to improve the overall flow through the system.
		a certification program attesting to the fact that a factory, laboratory, or office has improved environmental performance.

Question 37

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In recent years productivity has increased in which of the following industries?

		cable television
		grocery stores
		newspapers
		funeral services
		communication equipment manufacturing

Question 38

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The value of goods and services produced by each U.S. worker was

		$44,900.
		$49,000.
		$54,900.
		$59,000.
		$65,900.

Question 39

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The filling machine operator at Honey Nuggets weighs a box of cereal every 15 minutes from the production line. Where is he likely to record the data?

		process capability studies
		quality/cost studies
		benchmarking
		value-added analysis
		control charts

Question 40

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If a nation's productivity increases as compared to competing nations, it will experience

		no change in income.
		a drop in its standard of living.
		increased wealth.
		low inflation.
		higher profits.

Question 41

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In selecting the best transportation mode, the major factor is

		cost.
		nature of the product.
		distance the product must travel.
		the speed which the product must be received.
		customer's wants and needs.

Question 42

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_____________ use a technique called piggyback to reduce their costs.

		Railroads
		Planes
		Pipelines
		Water carriers
		Trucks

Question 43

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A __________ is a large product line retailer characterized by organization into specialized departments.

		supermarket
		department store
		convenience store
		specialty store
		factory outlet

Question 44

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Which of the following sets up and maintains product displays in retail stores?

		catalog showroom
		merchant shippers
		drop shipper
		rack jobbers
		agents

Question 45

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Sunglass Hut International is an example of a

		supermarket.
		department store.
		convenience store.
		specialty store.
		factory outlet.

Question 46

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Saturn uses a ___________ to manage parts arriving at its manufacturing facility.

		supply-side hub
		streamline system
		supply chain
		distribution-side hub
		value chain

Question 47

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Stores that service clearly defined market segments by offering full product lines in narrow product fields and often featuring knowledgeable sales personnel are

		off-price stores.
		catalog showrooms.
		factory outlets.
		specialty stores.
		discount houses.

Question 48

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__________ occurs not in stores, but by direct interaction with customers to inform them of products and receive sales orders.

		Direct response retailing
		Nonstore retailing
		Straight retailing
		Personal retailing
		Open retailing

Question 49

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The combined use of several different transportation methods is called

		containerization.
		unitization.
		common carrier.
		freight forwarding.
		intermodal transportation.

Question 50

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Search engines such as Yahoo! serve as ___________, collections of business Web sites representing diverse products.

		internet service providers
		electronic storefronts
		cybermalls
		multi-level marketers
		e-catalogs

Question 51

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GE Transportation Systems helps companies raise productivity, improves on-time delivery, and cuts costs through

		improved fuel economy.
		integrated managerial accounting software.
		customer service training.
		rigorous maintenance schedules.
		remote monitoring diagnostics.

Question 52

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Video monitors, printers, and speakers are ___________ devices.

		program
		central processing unit
		main memory
		input
		output

Question 53

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A(n) _________ permits users to send electronic messages and information quickly and economically.

		videoconferencing system
		data communication network
		information exchange
		data meter
		operating system

Question 54

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___________ need summaries and analyses for setting intermediate and long-range goals for activities under their supervision.

		Middle managers
		Members of the board of directors
		Top-level managers
		First-level managers
		Knowledge workers

Question 55

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Optical scanners, CD drives, and computer mice are __________ devices.

		program
		central processing unit
		main memory
		input
		output

Question 56

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__________ need information to analyze trends in the business environment and overall company performance in order to make long-range plans.

		Middle managers
		Members of the board of directors
		Top-level managers
		First-level managers
		Knowledge workers

Question 57

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An executive support system is

		a system that supports an organization's managers by providing daily reports, schedules, plans, and budgets that can be used for making decisions.
		a quick-reference, easy-access application of information systems specifically designed for instant access by upper-level managers.
		an information processing application for routine business activities involving well-defined processing steps.
		a system of hardware and software that imitates human behavior.
		an interactive system that locates and presents information needed to support the decision-making process.

Question 58

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______________ enhance the performance and productivity of general business activities by providing coordination and communication within the firm and speeding up transactions with other firms.

		Electronic communication systems
		Electronic information technologies
		Group systems
		Data communication networks
		Internet service providers

Question 59

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______________ are useful planning tools because they allow managers to see how making a change in one item will affect related items.

		Word processing packages
		Spreadsheets
		Database management systems
		Multi-number calculations
		Graphics programs

Question 60

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A(n) _________________ system is an interactive system that locates and presents information needed to support the decision-making process.

		application
		decision support
		executive support
		expert
		artificial intelligence

Question 61

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In the mid 1980's, John Deere priced agricultural equipment very low. Its goal in pricing was

		price stability.
		market domination.
		high market share.
		survival.

Question 62

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Bill Jones is looking for a good car insurance policy at an affordable price. Car insurance is a

		shopping good.
		shopping service.
		specialty good.
		convenience service.
		specialty service.

Question 63

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The three types of brand names are ________________ brands.

		national, licensed, and private
		large, medium, and small
		local, regional, and national
		nearer, farther, and farthest
		numerical, logistical, and literal

Question 64

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High definition television and flat panel computer monitors are in the ___________ stage of the product life cycle.

		decline
		maturity
		development
		introduction
		growth

Question 65

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____________ goods are inexpensive products that are purchased often and with little expenditure of time and effort.

		Specialty
		Shopping
		Convenience
		Novelty
		Supply

Question 66

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Which set of features below best matches the idea of capital items?

		They are expensive and purchased infrequently.
		They are consumed quickly and will soon be gone from the firm.
		Managers at the lowest level make decisions about them.
		A large airplane would NOT be an example.
		None of the above.

Question 67

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____________ is pricing a product at a lower price in a foreign market than in its home market.

		Dumping
		Price discounting
		Psychological pricing
		Market pricing
		Price lining

Question 68

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If a firm's goal were to place a new product into the hands of as many consumers as quickly as possible, then the best pricing strategy would be

		penetration pricing.
		what the traffic will bear.
		snob appeal.
		price skimming.
		door-to-door selling.

Question 69

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In __________, an existing product is marketed globally, instead of just domestically.

		reintroduction
		product development
		product adaptation
		product extension
		product expansion

Question 70

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The stages of the product life cycle include all of the following EXCEPT

		decline.
		maturity.
		development.
		introduction.
		growth.

Question 71

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Where possible, the use of standard and uniform components in the production process is

		uniform component control.
		standardization.
		component optimization.
		optimized inventory control.
		component management.

Question 72

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Making a product available to consumers when they want them is creating

		time utility.
		form utility.
		ownership utility.
		price utility.
		place utility.

Question 73

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Key advantages of material requirements planning include all of the following EXCEPT

		fewer early arrivals of parts.
		less money invested in inventory.
		less frequent parts stock shortages.
		lower parts storage costs.
		lower transportation costs.

Question 74

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The acronym PERT refers to

		Program Evaluation and Review Technique.
		Project Evaluation Reassignment Technique.
		Program Element Referral Technique.
		Product Evaluation Review Technique.
		Product Element Referral Technique.

Question 75

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The step-by-step examination of procedures in order to reduce waste and inefficiency is called __________ improvement.

		quality
		process
		methods
		assembly line
		procedures

Question 76

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Using __________, inventory and production schedules are translated into cost requirements for financial managers and personnel requirements for human resource managers.

		master production scheduling
		inventory control
		quality control
		just-in-time
		manufacturing resource planning

Question 77

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The production control method in which a bill of materials is used to ensure that the right amounts of materials are delivered to the right place at the right time is

		master production scheduling.
		inventory control.
		warehousing.
		just-in-time.
		material requirements planning.

Question 78

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Bill is working with a system that uses a bill of materials to project number of components and raw materials needed. It also specifies when they need

		master production scheduling.
		inventory control.
		warehousing.
		just-in-time.
		material requirements planning.

Question 79

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Included in _______ are the receiving, storing, handling, and counting of all raw materials, partly finished goods and finished goods.

		inventory control
		quality control
		transportation
		warehousing
		purchasing

Question 80

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A product's ability to satisfy a human want is called

		marketability.
		utility.
		demand.
		customer satisfaction.
		usefulness.

Question 81

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Which of the following is NOT specified in the bond indenture?

		who gets paid
		amount to be paid
		interest rate
		maturity date
		collateral

Question 82

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Sally is looking at an invoice dated July 1st for $1,000 which has terms of 2/10; net 30. If she pays the bill on July 3rd how much should she write the check for?

		$1,000
		$900
		$700
		$998
		$980

Question 83

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Secured, short-term loans are usually secured by

		inventories.
		commercial paper.
		land.
		buildings.
		equipment.

Question 84

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The process of using accounts receivable as collateral for a short-term loan is

		pledging accounts receivable.
		factoring accounts receivable.
		collateralizing accounts receivable.
		commercial paper.
		equity financing.

Question 85

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Cash-flow management is

		the process of checking actual performance against plans to ensure that desired financial results occur.
		a firm's strategies for reaching some future financial position.
		rules governing a firm's extension of credit to customers.
		the granting of credit by one firm to another.
		the management of cash inflows and outflows to ensure adequate funds for purchases and the productive use of excess funds.

Question 86

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A secured loan is

		a form of trade credit in which buyers must sign statements of payment terms attached to merchandise by sellers.
		a loan for which the borrower must provide collateral.
		a loan for which collateral is not required.
		a form of trade credit in which sellers ship merchandise on faith that payment will be forthcoming.
		a form of trade credit in which buyers sign promise-to-pay agreements before merchandise is shipped.

Question 87

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Key-person insurance

		is a special form of business insurance whereby owners arrange to buy the interests of deceased associates from their heirs.
		is an arrangement whereby selected professional providers offer services at reduced rates and permit thorough review of their service recommendations.
		provides continuous income when disability keeps the insured from gainful employment.
		is a special form of business insurance designed to offset expenses entailed by the loss of key employees.
		is insurance covering losses resulting from medical and hospital expenses as well as income lost from injury or disease.

Question 88

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One of the four characteristics of an insurable risk is ________. This means that the potential losses must be random and must occur independently of other losses.

		verifiability
		casualty
		unconnectedness
		profitability
		predictability

Question 89

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Which of the following guarantees that funds will be available?

		revolving credit agreement
		trade draft
		pledging
		line of credit
		trade credit

Question 90

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When a firm ensures that it always has enough funds on hand to purchase the materials and human resources that it needs to produce goods and services it is exercising

		government tax reporting.
		cash-flow management.
		accounting.
		financial control.
		financial planning.

Question 91

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When Goodyear advertises its Eagle #1 NASCAR street tires and emphasizes year-round traction and responsive cornering, they are using a ___________ advertising strategy.

		push
		persuasive
		comparative
		pull
		reminder

Question 92

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The most widely used advertising vehicle, accounting for 24 percent of all advertising expenditures, is

		magazines.
		television.
		newspaper.
		radio.
		direct mail.

Question 93

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To stimulate sales, drug companies use

		educational events.
		funding for medical research.
		direct-to-consumer marketing.
		promotional gifts.
		all of the above.

Question 94

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When New York Life advertises the safety and security of its products, it is using a _______ advertising strategy.

		push
		persuasive
		comparative
		pull
		reminder

Question 95

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Which of the following make it easier for customers to find a product and eliminate competitors' products from consideration?

		contests
		POP displays
		coupon
		premiums
		trade shows

Question 96

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The first step in the personal selling process is

		handling objections.
		presenting and demonstrating.
		closing.
		prospecting and qualifying.
		approaching.

Question 97

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During the problem recognition stage of the consumer buying process, the most effective promotional tool(s) is/are

		advertising and sales promotion.
		personal selling.
		advertising and publicity.
		sales promotion and personal selling.
		advertising and personal selling.

Question 98

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A marketing promotion strategy of _______ is designed to encourage wholesalers and retailers to market products to the consumer.

		place
		product
		push
		pull
		position

Question 99

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The communications vehicle that is very selective about its audience, allows a more personalized message, and whose response rate is very predictable is

		magazines.
		television.
		newspaper.
		radio.
		direct mail.

Question 100

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Magazine advertising accounts for __________ of all advertising outlays.

		8 percent (5 percent if you have the 7th edition of the textbook)
		9 percent
		10 percent
		12 percent
		20 percent

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