BUS 475 Final Exam Guide ALL 5 Sets. Get an A++.

1) A well-designed activity-based costing system starts with __________.

2) “Generally accepted” in the phrase generally accepted accounting principles means that theprinciples __________.3) The income statement and balance sheet columns of Pine Company’s worksheet reflectsthe following totals:Income Statement        Balance SheetDr.    Cr.        Dr.    Cr.Totals        $58,000    $48,000        $34,000    $44,000The net income (or loss) for the period is __________.4) These are selected account balances on December 31, 2008.Land (location of the corporation’s office building)    $150,000Land (held for future use)    225,000Corporate Office Building    900,000Inventory    300,000Equipment    675,000Office Furniture    150,0005) The first step in activity-based costing is to __________.6) Hess, Inc. sells a single product with a contribution margin of $12 per unit and fixed costsof $74,400 and sales for the current year of

$100,000. How much is Hess’s break even point?7) Sam’s Used Cars uses the specific identification method of costing inventory. During March,Sam purchased three cars for $6,000,

$7,500, and $9,750, respectively. During March, two cars are sold for $9,000 each. Samdetermines that at March 31, the $9,750 car is

still on hand. What is Sam’s gross profit for March?8) These are selected account balances on December 31, 2008.Land (location of the corporation’s office building)    $100,000Land (held for future use)    150,000Corporate Office Building    600,000Inventory    200,000Equipment    450,000Office Furniture    100,000Accumulated Depreciation    300,000What is the net amount of property, plant, and equipment that will appear on the balancesheet?9) The income statement and balance sheet columns of Pine Company’s worksheet reflectsthe following totals:Income Statement        Balance SheetDr.    Cr.        Dr.    Cr.Totals        $58,000    $48,000        $34,000    $44,000

Closing entries are necessary for __________.10) As Plant Controller, you are trying to determine which costs over which you have the mostcontrol on a day to day basis. Your goal is to

achieve better profitability. The Plant Operations Manager suggests that overhead is the

BUS 475 Final Exam Guide ALL 5 Sets. Get an A++.

achieve better profitability. The Plant Operations Manager suggests that overhead is theeasiest area to directly reduce costs. Which of the

following items would be classified as manufacturing overhead?11) The cost of an asset and its fair market value are __________.

12) 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 beassigned to sparklers?13) The cost principle is the basis for preparing financial statements because it is __________.14) Which one of the following items is not generally used in preparing a statement of cashflows?15) To move the allocation of resources closer to the social optimum, policymakers shouldtypically try to induce firms in an oligopoly to

__________.16) Assume oligopoly firms are profit maximizers, they do not form a cartel, and they takeother firms’ production levels as given. Then in

equilibrium the output effect __________.17) The price of a good that prevails in a world market is called the18) A country’s consumption possibilities frontier can be outside its production possibilitiesfrontier if __________.19) When, in a particular market, the law of demand and the law of supply both apply, theimposition of a binding price ceiling in that

market causes quantity demanded to be __________.20) If a binding price ceiling were imposed in the computer market, __________.21) For a college student who wishes to calculate the true costs of going to college, the costsof room and board __________.22) In the market for foreign-currency exchange in the open economy macroeconomic model,the amount of net capital outflow represents

the quantity of dollars __________.

23) The part of the balance of payments account that records the amount of foreign currencythe government buys or sells is the:24) The balance of payment account is made up of:25) The model of aggregate demand and aggregate supply explains the relationship between__________.26) The open-economy macroeconomic model includes __________.

27) The principal lag for monetary policy __________.28) Which of the following best describes a mental image of a possible and desirable futurestate of the organization?29) Sebastian Stabilio just joined a team of people from throughout his organization whoseprimary task is to recommend valuable uses for

the scrap generated in the manufacturing process. The team meets twice per week; otherwisemembers work within the usual

organizational structure. The team, not permanent, which Sebastian has joined, would be

considered a:

considered a:30) An invisible barrier that makes it difficult for certain groups, such as minorities andwomen, to move beyond a certain level in the

organizational hierarchy is referred to as the:31) 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:32) Which of the following has proven to be a particularly good predictor for jobs that requirecognitive complexity?33) To be competitive in a global economy, Europeans must increase their level of:34) Teams that operate separately from the regular work structure and exist temporarily areknown as:35) A manager’s ability to stimulate people to be high performers is referred to as:36) The best way for an employer to find out if a potential employee can do a job is by__________.37) Your roommate is interested in starting a business and everybody has been giving himdifferent information about being an

entrepreneur. Since you have been studying about entrepreneurship and new ventures, whichof these would you tell him is true?

38) One study found that manufacturing labor costs about _____ an hour in China, comparedto _____ dollars in the United States.39) One of the most important contributors to total quality management has been theintroduction of statistical tools to analyze the causes

of product defects in an approach called:40) __________ is the process of working with people and resources to accomplishorganizational goals.41) The Aquatic Center, Inc. periodically reviews the goals of the company. During theprocess, The Aquatic Center managers analyze

their current strategies as compared to their competitors, determine goals that they willpursue and decide upon specific actions for each

area of the company to take in pursuit of these goals. The Aquatic Center managers havebeen engaged in the management function of:

42) William used a sample of 68 U.S. cities to estimate the relationship between Crime (annualproperty crimes per 100,000 persons) and

Income (median income per capita). His estimated regression equation was Crime = 428 +.050 Income.Assuming b1 is significant, if Income decreases by 1000 we would predict that Crime will__________.43) Sampling error can be reduced by __________.44) Use the following table to answer question:P(M  A) is approximately _____.45) Use the following table to answer question:Are Service provider and county independent events?46) Twelve randomly-chosen students were asked how many times they had missed classduring 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?47) Jolly Blue Giant Health Insurance (JBGHI) is concerned about rising lab test costs andwould like to know what proportion of the

positive lab tests for prostate cancer are actually proven correct through subsequent biopsy.JBGHI demands a sample large enough to

ensure an error of ± 2% with 90% confidence. What is the necessary sample size?48) Which one of the following statements concerning production and staffing plans is best?

49) Likely reasons for inaccurate control limits would include which of the following?50) The one-worker, multiple machines approach functions as:51) In an activity-on-node [AON] network, the nodes represent ____________, whereas the arcsrepresent ____________.52) While glancing over the sensitivity report, you note that the stitching labor has a shadowprice of $10 and a lower limit of 24 hours

with an upper limit of 36 hours. If your original right hand value for stitching labor was 30hours, you know that:53) The force behind globalization in _____ was the amount of muscle, horsepower, windpower, or steam power that a country could

deploy.54) In the _____ phase of the decision making process, managers test potential solutions “onpaper.”55) A set of programs that enable the hardware to process data is _____.56) What is _____ is not necessarily _____.57) The Global, Web-Based Platform enables individuals to do which of the following?

58) The management cockpit best exemplifies which type of system?59) _____ is the acquisition and efficient use of resources in accomplishing organizationalgoals.60) International Game Technology’s new ERP system produced all of the following benefitsexcept:61) Which of the following are not provided by digital dashboards?62) _____ provides users with a view of what is happening, where _____ addresses why it ishappening.63) An increase in future value can be caused by an increase in the __________.64) Your company is considering an investment in a project which would require an initialoutlay 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-taxcost 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%, andcommon stock 70%. What is the net present

value of this project?

value of this project?A.   $1,568 B.   $463 C.   $1,241 D.   $87165) Disadvantages of using current liabilities as opposed to long-term debt include:66) Bell Weather, Inc. has a beta of 1.25. The return on the market portfolio is 12.5%, and therisk-free rate is 5%. According to CAPM,

what is the required return on this stock?67) Dublin International Corporation’s marginal tax rate is 40%. It can issue three-year bondswith a coupon rate of 8.5% and par value

of $1,000. The bonds can be sold now at a price of $938.90 each. The underwriters will charge$23 per bond in flotation costs. Determine

the approximate after-tax cost of debt for Dublin International to use in a capital budgetinganalysis.68) Forward rates are quoted:69) Tri State Pickle Company preferred stock pays a perpetual annual dividend of 2 1/2% of itspar value. Par value of TSP preferred

stock is $100 per share. If investors’ required rate of return on this stock is 15%, what is thevalue of per share?

70) Suppose you determine that the NPV of a project is $1,525,855. What does that mean?71) According to the hedging principle, permanent assets should be financed with _____liabilities.72) Exchange rate risk:73) The common stockholders are most concerned with:74) Which of the following is most consistent with the hedging principle in working capitalmanagement?

75) You hold a portfolio with the following securities:Security    Percent of Portfolio    Beta    ReturnX Corporation    20%    1.35    14%Y Corporation    35%    .95    10%Z Corporation    45%    .75    8%Compute the expected return and beta for the portfolio.76) Economists’ economic-buyer theory assumes that __________.77) The statement, “Of course people will buy our product–each of its features is better thanthe competition,” most closely reflects which

consumer behavior concept?78) The three basic tasks of ALL managers, according to the text, are:79) A cluster analysis of the “toothpaste market” would probably show that:80) “Marketing strategy planning” means:81) The managerial process of developing and maintaining a match between the resources ofan organization and its market opportunities

is called:82) Regarding organizational buying, the people who have the power to select or approve thesupplier–especially for larger purchases–are

called:83) The economists’ view of buyers:84) __________ is a marketing management aid which refers to how customers think about

proposed and/or present brands in a market.

proposed and/or present brands in a market.A.   Customer relationship management (CRM)B.   Market scanning C.   Positioning D.   Brand familiarity E.   Market segmentation85) When evaluating macro-marketing:A.    one must consider the society’s role in the marketing system. B.    one must determinehow efficiently the society’s resources are used.C.   the best approach is to consider the profit generated by individual firms within the overallsystem.D.   the evaluation is necessarily subjective. E.   one must consider each individual firm’s rolein the marketing system.86) Marketing:A.   not important if you have a good product. B.   reflects existing social values in the shortrun–while reinforcing these values in the long

run.C.   turns consumers into puppets. D.   creates materialistic values which did not exist before.E.   is only propaganda.87) Clustering techniques applied to segmenting markets __________.A.    doesn’t apply to demographic data B.    eliminate the need for marketing managers tospecify in advance what dimensions might be

relevant for grouping consumersC.   remove the need for managerial judgment D.   usually require computers to group peoplebased on data from market researchE.   is time consuming and expensive88) Product disparagement differs from defamation of a nonpublic figure in that:A.   Intent is only required in a disparagement case. B.   Publication to a third party is requiredin the defamation case, but not in the

disparagement case.C.    Publication to a third party is required in the disparagement case, but not in thedefamation case.D.   Intent is required for the disparagement case, but not in the defamation case.E.   Intent is required for the defamation case, but not in the disparagement case.89) Mary arrived at work one day, and her boss said to her, “That’s the ugliest dress I haveever seen. Because you wore that to work

today, you are fired.” Assuming that Mary is an at-will employee, which of the following istrue?A.    Mary can be fired only if it is in the best interest of the employer. B.    If none of theexceptions to the at-will rule apply, Mary can be

fired. C.   If Mary has the will to work, she cannot be fired without cause. D.   Mary can be firedfor any reason.90) Which of the following is correct about interpretive rules?A.   Interpretive rules are not subject to judicial review. B.   All federal administrative agencieshave implied power to make interpretive

rules.91) In responding to a constitutional challenge to the Computer Decency Act, the U.S.Supreme Court ruled that:92) In a criminal proceeding, what is the difference between an indictment and aninformation?

93) Which social responsibility theory has been advocated by Novel Prizewinning economist

93) Which social responsibility theory has been advocated by Novel Prizewinning economistMilton Friedman?94) If a minor wishes to be bound to a contract after becoming an adult, she must:95) Which of the following statements is true regarding the relationship of law and ethics?

96) Information which comes to the knowledge of an agent is:principal only with the third party’s consent.97) Which of the following is true about “proof of claims?”98) Although the U.S. has had a longstanding agreement with _____ after the passage ofNAFTA, _____ became the United States’ second

largest trading partner.99) Which country does the text describe as becoming the largest producer and consumer ofmany of the world’s goods?100) One study found that manufacturing labor costs about _____ an hour in China, comparedto _____ dollars in the United States

________

1) The income statement and balance sheet columns of Pine Company’s worksheet reflects the followingtotals: Income Statement Balance Sheet Dr. Cr. Dr. Cr.Totals $58,000 $48,000 $34,000 $44,000To enter the net income (or loss) for the period into the above worksheet requires an entry to the__________.

2) Multinational corporations __________.

3) Balance sheet accounts are considered to be __________.

4) What is value chain management best defined as?

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

6) In what situations will a static budget be most effective in evaluating a manager’s effectiveness?

8) These are selected account balances on December 31, 2008. Land (location of the corporation’s office building) $100,000Land (held for future use) 150,000Corporate Office Building 600,000Inventory 200,000Equipment 450,000Office Furniture 100,000Accumulated Depreciation 300,000What is the net amount of property, plant, and equipment that will appear on the balance sheet?

9) Of the following companies, which one would not likely employ the specific identification method forinventory costing?

11) Disney’s variable costs are 30% of sales. The company is contemplating an advertising campaign thatwill cost $22,000. If sales are expected to increase $40,000, by how much will the company’s net income

increase?

12) The cost principle requires that when assets are acquired, they be recorded at __________. 13) Which one of the following items is not generally used in preparing a statement of cash flows? 14) Managerial accounting __________.

15) A logical starting point from which the study of international trade begins is __________. 16) Without trade, __________. 17) Assume oligopoly firms are profit maximizers, they do not form a cartel, and they take other firms’production levels as given. Then in equilibrium the output effect __________. 18) To move the allocation of resources closer to the social optimum, policymakers should typically try toinduce firms in an oligopoly to __________.19) When, in a particular market, the law of demand and the law of supply both apply, the imposition of abinding price ceiling in that market causes quantity demanded to be __________.20) If a price ceiling is a binding constraint on the market, __________.

21) A tax on an imported good is called a __________.

22) The political business cycle refers to __________.

23) Real GDP __________.

24) The model of short-run economic fluctuations focuses on the price level and __________.

25) In the market for foreign-currency exchange in the open economy macroeconomic model, the amountof net capital outflow represents the quantity of dollars __________.

26) The open-economy macroeconomic model examines the determination of __________.

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

28) To be competitive in a global economy, Europeans must increase their level of: 29) Which of these refers to the practices aimed at discovering and harnessing an organization’sintellectual resources?

30) ABC International carefully watches the actions of its most innovative competitor and learns from them.ABC can establish a low-cost position by:

31) The best way for an employer to find out if a potential employee can do a job is by __________. 32) A manager’s ability to stimulate people to be high performers is referred to as:

33) One of the most important contributors to total quality management has been the introduction ofstatistical tools to analyze the causes of product defects in an approach called:

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

35) Listening to employee suggestions, gaining support for organizational objectives and fostering anatmosphere of teamwork are all considered:

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

37) As related to managing of human resources, diversity refers to: 38) 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:

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

40) Which of these represent skills that managers need?

41) The basic components of an effective sexual harassment policy include the following EXCEPT:

42) Which of the following statements is true? 43) Dullco Manufacturing claims that its alkaline batteries last forty hours on average in a certain type ofportable CD player. Tests on a random sample of 18 batteries showed a mean battery life of 37.8 hourswith a standard deviation of 5.4 hours. In a left-tailed test at = .05 we would __________. 44) A poll showed that 48 out of 120 randomly chosen graduates of California medical schools last yearintended to specialize in family practice. What is the width of a 90% confidence interval for the proportionthat plan to specialize in family practice? A. ± .07357

45) Use the following table to answer question: P(S | W) is approximately _____.

46) Twelve randomly-chosen students were asked how many times they had missed class during a certainsemester, 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?

47) In a right-tail test, a statistician came up with a z test statistic of 1.469. What is the p-value?

48) In lean systems, if a defective product is found, which of the following is generally NOT done? 49) A computer analysis reveals that the best-fitting trend model is Yt = 4.12 e 0.987 t. The trend was fittedusing year-end common stock prices for Melodic Kortholt Outlet for the last six years. The R2 is 0.8571. Which conclusion is not correct?

50) In statistical process control a p-chart could __________. 52) Which one of the following statements about managerial inputs to production and staffing plans is best?

53) The costs of delivering products in the _____ channel are much higher than delivering products in the_____ channel.

54) _____ is the integration of economic, social, cultural, and ecological facets of life, enabled by

information.A. globalization B. nationalization C. regionalization D. business environment 55) Which of the following statements is correct?

56) In the _____ phase of the decision making process, managers test potential solutions “on paper.”

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

58) Which of the following is not a reason that managers need IT support?

59) _____ is a process that helps organizations identify, select, organize, disseminate, transfer, and applyexpertise that are part of the organization’s memory and typically reside inside the organization in anunstructured manner.

60) Information-based industries are most susceptible to which one of Porter’s five forces?

61) _____ is the acquisition and efficient use of resources in accomplishing organizational goals.

62) _____ is the efficient and effective execution of specific tasks.

63) Disadvantages of using current liabilities as opposed to long-term debt include:

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

65) Which of the following best represents operating income?

66) Which of the following is most consistent with the hedging principle in working capital management? 67) PepsiCo calculates unlevered betas for each peer group in order to:

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

69) The common stockholders are most concerned with:

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

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

72) Petrified Forest Skin Care, Inc. pays an annual perpetual dividend of $1.70 per share. If the stock iscurrently selling for $21.25 per share, what is the expected rate of return on this stock?

73) Exchange rate risk:

74) If the quote for a forward exchange contract is greater than the computed price, the forward contract is:

75) Which of the following best represents the stream of income that is available to common stockholders?

76) The statement, “Of course people will buy our product–each of its features is better than thecompetition,” most closely reflects which consumer behavior concept?A. needs B. reference groups C. psychographics D. the economic-buyer theoryE. competitive advantage 77) A firm’s “marketing mix” decision areas would NOT include:A. Price. B. People. C. Promotion.D. Place. E. Product. 78) Clustering techniques applied to segmenting markets __________.A. eliminate the need for marketing managers to specify in advance what dimensions might be relevant forgrouping consumersB. remove the need for managerial judgment C. usually require computers to group people based ondata from market researchD. doesn’t apply to demographic data E. is time consuming and expensive 79) The “four Ps” of a marketing mix are:A. Production, Personnel, Price, and Physical DistributionB. Promotion, Production, Price, and People C. Potential customers, Product, Price, and Personal SellingD. Product, Price, Promotion, and Profit E. Product, Place, Promotion, and Price 80) The managerial process of developing and maintaining a match between the resources of anorganization and its market opportunities is called:A. marketing strategy planning. B. marketing programming. C. management by objective. D. marketplanning. E. strategic (management) planning.

81) The economists’ view of buyers:A. assumes that they always buy the lowest-price alternative. B. is based on the idea that consumersvalue time and select the first alternative they learn about.C. puts a great deal of emphasis on differences in buying behavior related to individual differences amongconsumers.D. None of these are true E. emphasizes psychological variables rather than social influences. 82) __________ is a marketing management aid which refers to how customers think about proposedand/or present brands in a market.A. Market scanning B. Positioning C. Brand familiarity D. Customer relationship management (CRM)E. Market segmentation 83) In comparison to the buying of final consumers, the purchasing of organizational buyers:A. leans basically toward economy, quality, and dependability.B. is even less predictable. C. is always based on competitive bids from multiple suppliers.D. is strictly economic and not at all emotional. E. is always emotional. 84) Regarding organizational buying, the people who have the power to select or approve the supplier–especially for larger purchases–are called:A. buyers. B. gatekeepers.C. deciders. D. influencers. E. users. 85) An Australian wine producer, facing declining sales at home, set up a new channel of distribution to sellwine in the United States. This seems to be an effort at:A. market penetration. B. product development.C. diversification. D. market development.E. stratification. 86) The three basic tasks of ALL managers, according to the text, are:A. execution, feedback, and control. B. hiring, training, and compensating. C. marketing, production, andfinance. D. planning, staffing, and evaluating. E. planning, implementation, and control. 87) The managerial process of developing and maintaining a match between the resources of anorganization and its market opportunities is called:A. marketing strategy planning. B. strategic (management) planning.C. marketing programming. D. management by objective. E. market planning.

88) Which of the following is correct about interpretive rules?A. They must be accompanied by substantive rules. B. All federal administrative agencies have impliedpower to make interpretive rules.C. They require public notice and participation to create. D. They do not establish new law. E. Interpretive rules are not subject to judicial review. 89) To be guilty of monopolization, the defendant must:

90) The tort of intentional interference with contractual relations requires the following except:

91) The tort of palming off involves:

92) Which of the following is correct about litigating commercial disputes?

93) An agent’s duty of notification can best be described as a duty to:

94) Which of the following statements is true regarding the relationship of law and ethics?

95) Which of the following is true about “proof of claims?”

96) An agent’s obligation to perform in accordance with the terms of the agency arrangement is the agent’sduty of:

97) Which social responsibility theory has been advocated by Novel Prizewinning economist MiltonFriedman?

98) Which country does the text describe as becoming the largest producer and consumer of many of theworld’s goods? 99) One study found that manufacturing labor costs about _____ an hour in China, compared to _____dollars in the United States.

100) Although the U.S. has had a longstanding agreement with _____ after the passage of NAFTA, _____became the United States’ second largest trading partner.________________1) Which one of the following items is not generally used in preparing a statement of cashflows?

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

3) Of the following companies, which one would not likely employ the specific identificationmethod for inventory costing?

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

5) The conceptual framework developed by the Financial Accounting Standards Board__________.

6) What is the preparation of reports for each level of responsibility in the company’sorganization chart called?

7) The cost principle requires that when assets are acquired, they be recorded at__________.

8) If a company reports a net loss, it __________.

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

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

11) Managerial accounting __________.

12) A well-designed activity-based costing system starts with __________.

13) Balance sheet accounts are considered to be __________.

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

15) There are two types of markets in which firms face some competition yet are still able tohave some control over the prices of their products. The names given to these marketstructures are __________.

16) Lekeisha’s income exceeds her expenditures. Lekeisha is a __________.

17) A tax on an imported good is called a __________.

18) Lucy starts her own psychiatric practice, but her expenditures to open the practiceexceed her income. Lucy is a __________.

19) One characteristic of an oligopoly market structure is:

20) When, in a particular market, the law of demand and the law of supply both apply, theimposition of a binding price ceiling in that market causes quantity demanded to be__________.

21) When a firm sells a good or a service, the sale contributes to the nation’s income__________.

22) The open-economy macroeconomic model includes __________.

23) Most economists use the aggregate demand and aggregate supply model primarily toanalyze __________.

24) In the market for foreign-currency exchange in the open economy macroeconomicmodel, the amount of net capital outflow represents the quantity of dollars __________.

25) Which of the following is not correct?

A. A potential cost of deficits is that they reduce national saving, thereby reducing growth ofthe capital stock and output growth.

26) The Federal Reserve will tend to tighten monetary policy when __________.

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

28) The most dominant areas in the global economy include:

29) 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 andnationality is:

30) A leader is:

31) Teams that operate separately from the regular work structure and exist temporarilyare known

32) __________ is the process of working with people and resources to accomplishorganizational goals.

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

34) A manager’s ability to stimulate people to be high performers is referred to as:

35) A series of quality standards developed by a committee working under the InternationalOrganization for Standardization to improve total quality in all businesses for the benefit ofboth producers and consumers is:

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

37) The basic components of an effective sexual harassment policy include the followingEXCEPT:

38) The best way for an employer to find out if a potential employee can do a job is by__________.

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

40) One of the most important contributors to total quality management has been theintroduction of statistical tools to analyze the causes of product defects in an approachcalled:

A. Mechanistic B. Six Sigma Quality C. Organic D. Total quality integration E. ISO 9000

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

42) Jolly Blue Giant Health Insurance (JBGHI) is concerned about rising lab test costs andwould like to know what proportion of the positive lab tests for prostate cancer are actuallyproven correct through subsequent biopsy. JBGHI demands a sample large enough toensure an error of ± 2% with 90% confidence. What is the necessary sample size?

43) In a right-tail test, a statistician came up with a z test statistic of 1.469. What is the p-value?

44) Twelve randomly-chosen students were asked how many times they had missed classduring a certain semester, with this result: 2, 1, 5, 1, 1, 3, 4, 3, 1, 1, 5, 18.

For this sample, the median is _____.

A. 3.5 B. 3 C. 2.5 D. 2

45) Twelve randomly-chosen students were asked how many times they had missed classduring a certain semester, with this result: 2, 1, 5, 1, 1, 3, 4, 3, 1, 1, 5, 18.

For this sample, the standard deviation is approximately _____.

46) William used a sample of 68 U.S. cities to estimate the relationship between Crime(annual property crimes per 100,000 persons) and Income (median income per capita). Hisestimated regression equation was Crime = 428 + .050 Income.

Which outcomes would be likely in a bivariate regression on 45 randomly chosen U.S. citiesin 2005 with

Y = number of robberies in each city (thousands of robberies) and

X = size of police force in each city (thousands of police)?

A. Autocorrelation. B. High R2 (due to city size). C. No correlation. D. Positive slope (due tocity size).

47) Dullco Manufacturing claims that its alkaline batteries last forty hours on average in acertain type of portable CD player. Tests on a random sample of 18 batteries showed amean 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?

48) In an activity-on-node [AON] network, the nodes represent ____________, whereas thearcs represent ____________.

49) Theoretically, service capacity must exceed demand, lest queues become infinitelylong. If capacity does not exceed demand, what is likely to happen?

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

51) In a network diagram, an activity:

52) Suppose the estimated quadratic model Yt = 500 + 20 t – t2 is the best-fitting trend ofsales of XYZ Inc. using data for the past twenty years (t = 1, 2,.., 20).

Which statement is incorrect?

53) Which of the following statements is correct?

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

55) It is very difficult to manage data for which of the following reasons?

56) Success in the _____ phase of the decision making process results in resolving theoriginal problem, and failure leads to a return to previous phases.

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

58) _____ is the efficient and effective execution of specific tasks.

A. Expertise B. Operational control C. Management control D. Strategic planning E. Wisdom

59) Geocoding is __________.

60) Information-based industries are most susceptible to which one of Porter’s five forces?

61) International Game Technology’s new ERP system produced all of the followingbenefits except:

62) Credit card companies would most likely use which of the following to check forfraudulent credit card use?

63) 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. Ifyour required rate of return for the project is 10%, what is the NPV of this investment?(Round your answerwer to the nearest $10.)

64) Your company is considering an investment in a project which would require an initialoutlay of $300,000 and produce expected cash flows in Years 1 through 5 of $87,385 peryear. You have determined that the current after-tax cost of the firm’s capital (required rateof 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%, andcommon stock 70%. What is the net present value of this project?

65) The common stockholders are most concerned with:

66) Tri State Pickle Company preferred stock pays a perpetual annual dividend of 2 1/2% ofits par value. Par value of TSP preferred stock is $100 per share. If investors’ required rateof return on this stock is 15%, what is the value of per share?

67) Which of the following is most consistent with the hedging principle in working capitalmanagement?

68) At what rate must $400 be compounded annually for it to grow to $716.40 in 10 years?

69) PepsiCo calculates unlevered betas for each peer group in order to:

A. eliminate competitive factors. B. eliminate judgment factors. C. eliminate differentfinancial risks. D. eliminate different business risks.

70) According to the hedging principle, permanent assets should be financed with _____liabilities.

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

72) Which of the following represents an attempt to measure the earnings of the firm’soperations over a given time period?

73) Given the following annual net cash flows, determine the IRR to the nearest wholepercent of a project with an initial outlay of $1,520.

Year Net Cash Flow

1 $1,000

2 $1,500

3 $ 500

74) Bell Weather, Inc. has a beta of 1.25. The return on the market portfolio is 12.5%, andthe risk-free rate is 5%. According to CAPM, what is the required return on this stock?

75) 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.

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

77) Analysis of demographic dimensions:

78) When evaluating macro-marketing:

79) “Marketing strategy planning” means:

80) __________ is a marketing management aid which refers to how customers think aboutproposed and/or present brands in a market.

81) When doing “positioning,” a marketing manager should:

82) In comparison to the buying of final consumers, the purchasing of organizationalbuyers:

83) The clustering techniques that can be used in segmenting:

84) A firm’s “marketing mix” decision areas would NOT include:

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

86) Regarding organizational buying, the people who have the power to select or approvethe supplier–especially for larger purchases–are called:

87) Clustering techniques applied to segmenting markets __________.

88) Justin was hired in February of 2004 as a salesperson. There is no written employmentcontract, and Justin is paid on a commission basis. Justin’s manager has said to Justin onseveral occasions that if Justin continues to meet his sales quotas, that the company “willkeep him around for a long time.” Justin has always met his sales quotas, but is told oneday that they have decided to replace him because he does not project the image that thecompany wants. If Justin is an at-will employee, which of the following is true?

89) Which of the following is correct about litigating commercial disputes?

90) Which article of the United States Constitution deals with the judicial power of thefederal government?91) Mary arrived at work one day, and her boss said to her, “That’s the ugliest dress I haveever seen. Because you wore that to work today, you are fired.” Assuming that Mary is anat-will employee, which of the following is true?92) Which of the following is true about the Sherman Act?

93) If the value of the collateral is less than the debt owed to the secured party, then:

94) If you are a creditor, your best protection in the event of the debtor’s bankruptcy(including protection from the debtor’s other creditors) is usually obtained if you hadpreviously received:

95) Which of the following terms is not required to be disclosed under the Truth-in-LendingAct?

A. The amount of attorneys fees to be charged if legal action is needed to collect the debt.

B. The number of payments. C. The amount of late charges or delinquency penalties. D.The date the finance charge begins to accrue. E. The annual percentage rage of interest.

96) Which of the following lists, in descending priority, of sources considered by most courtsin settling questions of international law?

97) Generally speaking, the contract of a minor:

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

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

_____________

1) The cost principle requires that when assets are acquired, they be recorded at __________.

2) “Generally accepted” in the phrase generally accepted accounting principles means that the principles__________.

3) The standards and rules that are recognized as a general guide for financial reporting are called__________.4) Sam’s Used Cars uses the specific identification method of costing inventory. During March, Sampurchased three cars for $6,000,

$7,500, and $9,750, respectively. During March, two cars are sold for $9,000 each. Sam determines that atMarch 31, the $9,750 car is

still on hand. What is Sam’s gross profit for March? 5) Hess, Inc. sells a single product with a contribution margin of $12 per unit and fixed costs of $74,400 andsales for the current year of

$100,000. How much is Hess’s break even point? 6) As Plant Controller, you are trying to determine which costs over which you have the most control on aday to day basis. Your goal is to

achieve better profitability. The Plant Operations Manager suggests that overhead is the easiest area todirectly reduce costs. Which of the

following items would be classified as manufacturing overhead?7) What is the preparation of reports for each level of responsibility in the company’s organization chartcalled?8) Disney’s variable costs are 30% of sales. The company is contemplating an advertising campaign that

will cost $22,000. If sales are

expected to increase $40,000, by how much will the company’s net income increase? 9) The cost of an asset and its fair market value are __________.10) Which one of the following is a product cost?11) What exists when budgeted costs exceed actual results?12) The income statement and balance sheet columns of Pine Company’s worksheet reflects the followingtotals: Income Statement Balance Sheet Dr. Cr. Dr. Cr.Totals $58,000 $48,000 $34,000 $44,000

Closing entries are necessary for __________.13) Managerial accounting __________. 14) H55 Company sells two products, beer and wine. Beer has a 10 percent profit margin and wine has a12 percent profit margin. Beer

has a 27 percent contribution margin and wine has a 25 percent contribution margin. If other factors areequal, which product should H55

push to customers?15) Lekeisha’s income exceeds her expenditures. Lekeisha is a __________.16) Maurice receives $100 as a birthday gift. In deciding how to spend the money, he narrows his optionsdown to four choices: Option A,

Option B, Option C, and Option D. Each option costs $100. Finally he decides on Option B. The opportunitycost of this decision is

__________.17) A production possibilities frontier will be a straight line if __________. 18) In economics, the cost of something is __________. 19) A tax on an imported good is called a __________.20) Which of the following statements about GDP is correct? 21) In computing GDP, market prices are used to value final goods and services because __________.

22) Which of the following statements about GDP is correct? 23) Which of the following is not correct? 24) The part of the balance of payments account that lists all long-term flows of payments is called the:25) Edward Prescott and Finn Kydland won the Nobel Prize in Economics in 2004. One of theircontributions was to argue that if a central

bank could convince people to expect zero inflation, then the Fed would be tempted to raise output byincreasing inflation. This possibility

is known as __________.

26) In general, the longest lag for __________.27) Consider two items that might be included in GDP: (1) The estimated rental value of owner-occupiedhousing; and (2) purchases of

newly-constructed homes. How are these two items accounted for when GDP is calculated?

28) Managers will utilize __________ skills with increasing frequency as they rise within an organization.29) Which of these represent skills that managers need? 30) Building a dynamic organization is another way of describing which function of management?31) Your roommate is interested in starting a business and everybody has been giving him differentinformation about being an

entrepreneur. Since you have been studying about entrepreneurship and new ventures, which of thesewould you tell him is true?32) 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:33) A manager’s ability to stimulate people to be high performers is referred to as:34) A series of quality standards developed by a committee working under the International Organizationfor Standardization to improve

total quality in all businesses for the benefit of both producers and consumers is:35) Japanese manufacturers’ kaizen (continuous improvement) programs enable them to maintain:36) Listening to employee suggestions, gaining support for organizational objectives and fostering anatmosphere of teamwork are all

considered:37) The basic components of an effective sexual harassment policy include the following EXCEPT:38) Teams that operate separately from the regular work structure and exist temporarily are known as: 39) The Aquatic Center, Inc. periodically reviews the goals of the company. During the process, TheAquatic Center managers analyze

their current strategies as compared to their competitors, determine goals that they will pursue and decideupon specific actions for each

area of the company to take in pursuit of these goals. The Aquatic Center managers have been engaged inthe management function of:40) As related to managing of human resources, diversity refers to: 41) __________ is the process of working with people and resources to accomplish organizational goals.42) Twelve randomly-chosen students were asked how many times they had missed class during a certainsemester, with this result: 2, 1, 5,

1, 1, 3, 4, 3, 1, 1, 5, 18. For this sample, the median is _____.43) Use the following table to answer question: P(S | W) is approximately _____.

44) Use the following table to answer question: P(M A) is approximately _____.

45) Dullco Manufacturing claims that its alkaline batteries last forty hours on average in a certain type ofportable CD player. Tests on a

random sample of 18 batteries showed a mean battery life of 37.8 hours with a standard deviation of 5.4hours. In determining the p-value for reporting the study’s findings, which of the following is true?46) William used a sample of 68 U.S. cities to estimate the relationship between Crime (annual propertycrimes per 100,000 persons) and

Income (median income per capita). His estimated regression equation was Crime = 428 + .050 Income. Which outcomes would be likely in a bivariate regression on 45 randomly chosen U.S. cities in 2005 withY = number of robberies in each city (thousands of robberies) andX = size of police force in each city (thousands of police)?A. High R2 (due to city size). B. Positive slope (due to city size).C. No correlation. D. Autocorrelation. 47) Twelve randomly-chosen students were asked how many times they had missed class during a certainsemester, 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) Likely reasons for inaccurate control limits would include which of the following?Max P = $20X + $30Y and constraints of: 3X + 4Y = 24 (Constraint A) 5X – Y = 18 (Constraint B) 50) A project has three paths. A–B–C has a length of 25 days. A–D–C has a length of 15 days. Finally, A–E–C has a length of 20 days.

Which one of the following statements is TRUE?51) Which one of the following statements concerning production and staffing plans is best? 52) While glancing over the sensitivity report, you note that the stitching labor has a shadow price of $10and a lower limit of 24 hours

with an upper limit of 36 hours. If your original right hand value for stitching labor was 30 hours, you knowthat:

53) The costs of delivering products in the _____ channel are much higher than delivering products in the_____ channel.54) When customers access a Web site and make purchases, they generate __________.55) _____ is the integration of economic, social, cultural, and ecological facets of life, enabled byinformation. 56) Various organizations that promote fair and responsible use of information systems often develop__________.57) What is _____ is not necessarily _____.58) _____ provides users with a view of what is happening, where _____ addresses why it is happening.59) Computer support is greatest for which of the following problems?60) The management cockpit best exemplifies which type of system?61) _____ is the efficient and effective execution of specific tasks.62) Geocoding is __________.

63) At 8% compounded annually, how long will it take $750 to double?64) Which of the following represents an attempt to measure the earnings of the firm’s operations over agiven time period? 65) A machine costs $1,000, has a three-year life, and has an estimated salvage value of $100. It willgenerate 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 theNPV of this investment? (Round

your answerwer to the nearest $10.) 66) Disadvantages of using current liabilities as opposed to long-term debt include:67) Petrified Forest Skin Care, Inc. pays an annual perpetual dividend of $1.70 per share. If the stock iscurrently selling for $21.25 per

share, what is the expected rate of return on this stock?68) Which of the following is most consistent with the hedging principle in working capital management? 69) An increase in future value can be caused by an increase in the __________.70) If the quote for a forward exchange contract is greater than the computed price, the forward contract is: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 thefirm’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 stock70%. What is the net present

value of this project?72) Suppose you determine that the NPV of a project is $1,525,855. What does that mean? 73) The common stockholders are most concerned with:74) PepsiCo calculates unlevered betas for each peer group in order to:75) Which of the following best represents operating income?76) In comparison to the buying of final consumers, the purchasing of organizational buyers: 77) The basic objective of the U.S. market-directed economic system is to:78) Comparing GDP for foreign countries can help a marketing manager evaluate potential markets if themanager remembers that:79) A firm’s “marketing mix” decision areas would NOT include:80) __________ is a marketing management aid which refers to how customers think about proposedand/or present brands in a market.81) The “four Ps” of a marketing mix are:82) When evaluating macro-marketing:83) A cluster analysis of the “toothpaste market” would probably show that:84) Clustering techniques applied to segmenting markets __________.85) The three basic tasks of ALL managers, according to the text, are:

86) The difference between target marketing and mass marketing is that target marketing:does. 87) When one considers the strategy decisions organized by the four Ps, branding is related to packagingas:88) Which of the following statements is not true under the Fair Labor Standards Act?89) Probable cause is most directly associated with which step of the criminal process? 90) Which of the following statements is generally not true about state intermediate appellate courts?91) Which of the following terms need not be disclosed under Truth-in-Lending Act?A. The terms available from competitors.B. The total finance charge. C. The cash price of the product. D. The annual percentage rate (APR). E. Amount of payments. 92) Which of the following activities by an administrative agency requires public notice and participation?A. Substantive rule making and statements of policy only. B. Statements of policy only. C. Substantiverule making and interpretive rule

making only. D. Substantive rule making only. E. Substantive rule making, interpretive rule making, andstatements of policy. 93) Which of the following is not one of the Caux Round Table Principles for International Business?

94) The theory of business social responsibility that holds that a business owes duties solely to produce thehighest return for its

shareholders is:

95) Which social responsibility theory has been advocated by Novel Prizewinning economist MiltonFriedman?

96) Which of the following lists, in descending priority, of sources considered by most courts in settlingquestions of international law? 97) If the value of the collateral is less than the debt owed to the secured party, then:

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

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

100) Although the U.S. has had a longstanding agreement with _____ after the passage of NAFTA, _____became the United States’

______

1) A well-designed activity-based costing system starts with __________.

2) “Generally accepted” in the phrase generally accepted accounting principles means thatthe principles __________.

3) The income statement and balance sheet columns of Pine Company’s worksheet reflectsthe 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 __________.

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

Land (location of the corporation’s office building) $150,000

Land (held for future use) 225,000

Corporate Office Building 900,000

Inventory 300,000

Equipment 675,000

Office Furniture 150,000

Accumulated Depreciation 450,000

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

5) The first step in activity-based costing is to __________.

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

7) Sam’s Used Cars uses the specific identification method of costing inventory. DuringMarch, Sam purchased three cars for $6,000, $7,500, and $9,750, respectively. DuringMarch, two cars are sold for $9,000 each. Sam determines that at March 31, the $9,750 car isstill on hand. What is Sam’s gross profit for March?

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 balancesheet?

9) The income statement and balance sheet columns of Pine Company’s worksheet reflectsthe following totals:

Income Statement Balance Sheet

Dr. Cr. Dr. Cr.

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

Closing entries are necessary for __________.

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

11) The cost of an asset and its fair market value are __________.

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

13) The cost principle is the basis for preparing financial statements because it is__________.

14) Which one of the following items is not generally used in preparing a statement of cashflows?

15) To move the allocation of resources closer to the social optimum, policymakers shouldtypically try to induce firms in an oligopoly to __________.

16) Assume oligopoly firms are profit maximizers, they do not form a cartel, and they takeother firms’ production levels as given. Then in equilibrium the output effect __________.

17) The price of a good that prevails in a world market is called the

18) A country’s consumption possibilities frontier can be outside its production possibilitiesfrontier if __________.

19) When, in a particular market, the law of demand and the law of supply both apply, theimposition of a binding price ceiling in that market causes quantity demanded to be__________.

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

21) For a college student who wishes to calculate the true costs of going to college, the costsof room and board __________.

22) In the market for foreign-currency exchange in the open economy macroeconomic model,the amount of net capital outflow represents the quantity of dollars __________.

23) The part of the balance of payments account that records the amount of foreign currencythe government buys or sells is the:

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

25) The model of aggregate demand and aggregate supply explains the relationship between__________.

26) The open-economy macroeconomic model includes __________

27) The principal lag for monetary policy __________.

28) Which of the following best describes a mental image of a possible and desirable futurestate of the organization?

29) Sebastian Stabilio just joined a team of people from throughout his organization whoseprimary task is to recommend valuable uses for the scrap generated in the manufacturingprocess. The team meets twice per week; otherwise members work within the usualorganizational structure. The team, not permanent, which Sebastian has joined, would beconsidered a:

30) An invisible barrier that makes it difficult for certain groups, such as minorities andwomen, to move beyond a certain level in the organizational hierarchy is referred to as the:

31) 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 andnationality is:

32) Which of the following has proven to be a particularly good predictor for jobs that requirecognitive complexity?

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

34) Teams that operate separately from the regular work structure and exist temporarily areknown as:

35) A manager’s ability to stimulate people to be high performers is referred to as:

36) The best way for an employer to find out if a potential employee can do a job is by__________.

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

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

39) One of the most important contributors to total quality management has been theintroduction of statistical tools to analyze the causes of product defects in an approach called:

40) __________ is the process of working with people and resources to accomplishorganizational goals.

41) The Aquatic Center, Inc. periodically reviews the goals of the company. During theprocess, The Aquatic Center managers analyze their current strategies as compared to their

competitors, determine goals that they will pursue and decide upon specific actions for eacharea of the company to take in pursuit of these goals. The Aquatic Center managers havebeen engaged in the management function of:

42) William used a sample of 68 U.S. cities to estimate the relationship between Crime(annual property crimes per 100,000 persons) and Income (median income per capita). Hisestimated regression equation was + .050 Income.

Assuming b1 is significant, if Income decreases by 1000 we would predict that Crime will__________.

43) Sampling error can be reduced by __________.

44) Use the following table to answer question:

P(M A) is approximately _____.

45) Use the following table to answer question:

Are Service provider and county independent events?

46) Twelve randomly-chosen students were asked how many times they had missed classduring 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?

47) Jolly Blue Giant Health Insurance (JBGHI) is concerned about rising lab test costs andwould like to know what proportion of the positive lab tests for prostate cancer are actuallyproven correct through subsequent biopsy. JBGHI demands a sample large enough to ensurean error of ± 2% with 90% confidence. What is the necessary sample size?

48) Which one of the following statements concerning production and staffing plans is best?

49) Likely reasons for inaccurate control limits would include which of the following?

50) The one-worker, multiple machines approach functions as:

51) In an activity-on-node [AON] network, the nodes represent ____________, whereas thearcs represent ____________.

52) While glancing over the sensitivity report, you note that the stitching labor has a shadowprice of $10 and a lower limit of 24 hours with an upper limit of 36 hours. If your original righthand value for stitching labor was 30 hours, you know that:

53) The force behind globalization in _____ was the amount of muscle, horsepower, windpower, or steam power that a country could deploy.

54) In the _____ phase of the decision making process, managers test potential solutions “onpaper.”

55) A set of programs that enable the hardware to process data is _____.

56) What is _____ is not necessarily _____.

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

58) The management cockpit best exemplifies which type of system?

59) _____ is the acquisition and efficient use of resources in accomplishing organizationalgoals.

60) International Game Technology’s new ERP system produced all of the following benefitsexcept:

61) Which of the following are not provided by digital dashboards?

62) _____ provides users with a view of what is happening, where _____ addresses why it ishappening.

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

64) Your company is considering an investment in a project which would require an initialoutlay of $300,000 and produce expected cash flows in Years 1 through 5 of $87,385 peryear. You have determined that the current after-tax cost of the firm’s capital (required rate ofreturn) 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%, andcommon stock 70%. What is the net present value of this project?

65) Disadvantages of using current liabilities as opposed to long-term debt include:

66) Bell Weather, Inc. has a beta of 1.25. The return on the market portfolio is 12.5%, and therisk-free rate is 5%. According to CAPM, what is the required return on this stock?

67) Dublin International Corporation’s marginal tax rate is 40%. It can issue three-year bondswith a coupon rate of 8.5% and par value of $1,000. The bonds can be sold now at a price of$938.90 each. The underwriters will charge $23 per bond in flotation costs. Determine theapproximate after-tax cost of debt for Dublin International to use in a capital budgetinganalysis.

68) Forward rates are quoted:

69) Tri State Pickle Company preferred stock pays a perpetual annual dividend of 2 1/2% ofits par value. Par value of TSP preferred stock is $100 per share. If investors’ required rate ofreturn on this stock is 15%, what is the value of per share?

70) Suppose you determine that the NPV of a project is $1,525,855. What does that mean?

71) According to the hedging principle, permanent assets should be financed with _____liabilities.

72) Exchange rate risk:

73) The common stockholders are most concerned with:

74) Which of the following is most consistent with the hedging principle in working capitalmanagement?

75) 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.

76) Economists’ economic-buyer theory assumes that __________.

77) The statement, “Of course people will buy our product–each of its features is better thanthe competition,” most closely reflects which consumer behavior concept?

78) The three basic tasks of ALL managers, according to the text, are:

79) A cluster analysis of the “toothpaste market” would probably show that:

80) “Marketing strategy planning” means:

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

82) Regarding organizational buying, the people who have the power to select or approve thesupplier–especially for larger purchases–are called:

83) The economists’ view of buyers:

84) __________ is a marketing management aid which refers to how customers think aboutproposed and/or present brands in a market.

85) When evaluating macro-marketing:

86) Marketing:

87) Clustering techniques applied to segmenting markets __________.

88) Product disparagement differs from defamation of a nonpublic figure in that:

89) Mary arrived at work one day, and her boss said to her, “That’s the ugliest dress I haveever seen. Because you wore that to work today, you are fired.” Assuming that Mary is an at-will employee, which of the following is true?

90) Which of the following is correct about interpretive rules?

91) In responding to a constitutional challenge to the Computer Decency Act, the U.S.Supreme Court ruled that:

92) In a criminal proceeding, what is the difference between an indictment and an

information?

93) Which social responsibility theory has been advocated by Novel Prizewinning economistMilton Friedman?

94) If a minor wishes to be bound to a contract after becoming an adult, she must:

95) Which of the following statements is true regarding the relationship of law and ethics?

96) Information which comes to the knowledge of an agent is:

97) Which of the following is true about “proof of claims?”

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

99) Which country does the text describe as becoming the largest producer and consumer ofmany 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.

BUS 475 Final Exam Guide ALL 5 Sets. Get an A++.