1. The definition of net income is: (Points : 1) Revenues minus Liabilities.Assets minus Liabilities.the change in the owner’s equity from the beginning of the year to the end of the year.Revenues minus Expenses.

2. Suppose it is very difficult for a firm to find a close substitute for a specific input. As a result, the firm's demand for that input will be: (Points : 1) more elasticless elasticdecreasing rapidly if the price of that input risesperfectly elasticunitary elastic

3. Which of the following ratio measures the liquidity of the company? (Points : 1) profit marginfixed asset turnoverquick ratiodebt ratio

4. An audience who does not actually interact with your message is: (Points : 1) a primary audience.secondary audience.auxiliary audience.watchdog audience.

5. Global expansion allows firms to achieve all of the following, except: (Points : 1) Standardize their product offering, marketing strategy, and business strategy for all national conditions.Realize location economies by dispersing value creation activities to the optimal location.Realize cost economies from experience effects generated by serving a larger market from a central location.Expand the market for their domestic product offerings by selling those products in international markets.

6. All other factors held constant, the present value of an ordinary annuity will always be (Points : 1) greater than the present value of an annuity due.less than the present value of an annuity due.equal to the present value of an annuity due.all of above is possible.

7. The level of activity at which operating income is zero is called the: (Points : 1) Margin of safety point.Contribution margin point.Break-even point.Operating leverage point.

8. The Americans with Disability Act: (Points : 1) prohibits discrimination in hiring based on race, color, religion, sex, or nation of originprohibits discrimination in hiring based on disability if the person is able to perform the required taskssays workers may take leave after childbirth, adoption, or to care for a seriously ill family membersays workers with disabilities do not have to be qualified for certain positions

9. All of the following theories show why it is beneficial for a country to engage in international trade even for products it is able to produce for itself, except (Points : 1) Mercantilism.Heckscher-Ohlin.Comparative advantage.Absolute advantage.

10. G&P, Inc. has $10 million of debt outstanding. Currently the YTM is 10.5%. If the firm’s tax rate is 40%, what is the after-tax cost of debt? (Points : 1) 6.3%4.8%4.2%10.5%

11. When an employee claims religious discrimination because of a religious practice: (Points : 1) the employer must bypass seniority rules to accommodate the employee.the employee must honor all bona fide religious practices.the employer must make reasonable efforts to accommodate religious beliefs.the employer must call in a substitute worker at additional cost.

12. The mean of the standard normal distribution is (Points : 1) 01100variable

13. Based on the probability of the event’s occurrence in the following chart, which of the following alternatives is the most conservative in projecting the event.

(Points : 1) D2,S1D1,S3D2,S3

14. Decisions can be: (Points : 1) centralized – made by many peoplecentralized – made by a few peopledecentralized – made by a few peoplenone of the above

15. When NPV>=0, (Points : 1) IRR<required rate of return.IRR>=required rate of return.IRR=0.none of above.

16. Refer to the data below to calculate the 9th moving average:(Points : 1) 6.426.526.626.72

17. The risk a company must consider when selling products overseas using the foreign currency is: (Points : 1) Political instability riskLocal custom violations riskExchange rate riskOverseas shipping risk

18. The rise in FDI in the services sector is a result of all of the following, except: (Points : 1) The general move in many developed countries away from manufacturing and toward servicesAccelerating regulations of servicesMany services cannot be traded internationallyMany countries have liberalized their regimes governing FDI in services

19. ____ occurs when a hacker breaks into a DNS server and redirects all attempts to access a particular website to the hacker’s spoofed site. (Points : 1) PhishingPharmingSpoofingSpying

20. According to McGregor, which is the preferred management style? (Points : 1) Theory WTheory XTheory YTheory Z

21. Given the situation illustrated in this model, which of the following would be an appropriate policy action?(Points : 1) cut government spendingincrease interest ratesincrease wagesdecrease taxes

22. Suppose total deposits in the First Bank of Commerce are $100,000 and required reserves are $10,000. Based on this information, the required reserve ratio is: (Points : 1) 0.100.9110

23. What is not considered a “reasonable accommodation” for persons with disabilities? (Points : 1) an accommodation that would be an “undue hardship” on the employermaking existing facilities accessible to persons with disabilitiesmodifying work schedulesjob restructuring

24. When a network does not have a server, all the computers essentially are equal, and programs and data are distributed among them. This is called a(n)____network. (Points : 1) local areasimplepeer-to-peerPC-to-PC

25. What is the primary federal law regulating equal employment? (Points : 1) Title VII of the Civil Rights Act of 1964U.S. ConstitutionFair Labor Standards ActEqual Pay Act

26. Expected future data that differ among alternative courses of action are referred to as: (Points : 1) Irrelevant information.Historical information.Predictable information.Relevant information.

27. The single most popular form of business promotion: (Points : 1) Personal sellingAdvertisingPublic relationsSales promotion

28. Which of the following statements is NOT correct? (Points : 1) price elasticity will be greater in the long run than in the short runif demand for good X is relatively elastic, an increase in the price of X will result in consumers spending less on good Xfor a typical down-sloping straight line demand curve, price elasticity of demand will be 1.0 at the midpointtaxing a good which for which demand is relatively elastic will generate more revenue than would taxing a good for which demand is relatively inelastic.all the above are correct.

29. A convertible bond: (Points : 1) Allows the creditor to sell back a bond at a given price.Allows the company to buy back a bond at a given price.Gives the bondholders a claim to a specific asset of the issuing company in case of default.Allows bondholders to convert bonds into common stock of the issuing company.

30. A group of investors seeking control of another corporation by offering cash forall of its shares made available for sale is known as a: (Points : 1) cash tender offer.stock redemption offer.

straight rebuy.offer for value.

31. When price rises, quantity supplied increases, and vice versa. This statement is known in economics as: (Points : 1) the Law of Increasing Opportunity Coststhe Law of Supplythe Law of Demandthe Law of Increasing NumbersMurphy's Law

32. The balance in the prepaid rent account before adjustment at the end of the year is $24,000, which represents four months' rent paid on December 1. The adjusting entry required on December 31 is: (Points : 1) debit Rent Expense, $6,000; credit Prepaid Rent, $6,000debit Prepaid Rent, $18,000; credit Rent Expense, $6,000debit Rent Expense, $18,000; credit Prepaid Rent, $6,000debit Prepaid Rent, $6,000; credit Rent Expense, $6,000

33. The process of managing the sourcing, purchasing, shipping, warehousing, and delivery of all the raw materials and components required to deliver a finished product to the consumer is called _________________. (Points : 1) logisticsoutsourcingsupply-chain managementmaterials acquisitioninventory management

34. Which of the following statements about values and norms of a culture is not true? (Points : 1) The values and norms of a society do not emerge fully formedThey are the evolutionary product of a number of factorsThey are influenced by social structure and religionThey do not influence social structure and religion

35. Which type of center has the responsibility for generating revenue as well as controlling costs? (Points : 1) Cost centerRevenue centerInvestment centerProfit center

36. Tariffs allow: (Points : 1) foreign producers to receive a higher pricedomestic producers to receive a higher priceforeign producers to charge a lower pricedomestic producers to charge a lower price

37. A SWOT analysis analyzes: (Points : 1) situations, workers, output, and technologysituations, weaknesses, output, and threatsstrengths, weaknesses, opportunities, and threatsstrengths, workers, opportunities, and technology.

38. An audience who will take an action based on your message is: (Points : 1) primary audiencesecondary audienceauxiliary audiencewatchdog audience

39. The official unemployment rate is the number of people: (Points : 1) without a job divided by the populationlooking for a job divided by the populationwithout a job divided by the labor forcelooking for a job divided by the labor force

40. The emphasis on local responsiveness in firms pursuing a local responsiveness strategy creates strong pressures for: (Points : 1) Decentralizing all decisions to foreign subsidiariesDecentralizing operating decisions to foreign subsidiariesCentralizing all operating decisionsCentralizing all decisions

41. This is a loan between a parent and its subsidiary channeled through a financial intermediary, usually a large international bank. (Points : 1) International loanFronting loanTransfer loanUnbundling loan

42. Approximately what percentage of normally distributed data values will fall within one standard deviation above or below the mean? (Points : 1) 68%95%99.7%variable

43. The standard deviation of the sample means equals (Points : 1) The population standard deviationThe population standard deviation divided by the population meanThe population standard deviation divided by the square root of the sampleThe square root of the population standard devation

44. What types of assets are depreciated? (Points : 1) Natural resourcesIntangible assetsProperty, plant and equipment excluding landLong-term investments in marketable stocks and bonds

45. Which theory says there are five basic needs in an inverted pyramid of importance? (Points : 1) McGregor’sMaslow’sHertzberg’sMcClelland’s

46. When a distribution is positively skewed, the relationship of the mean, median, and mode from left to right will be (Points : 1) Mean, median, modeMode, median, meanMedian, mode, meanMean, mode, median

47. The Family and Medical Leave Act: (Points : 1) prohibits discrimination in hiring based on race, color, religion, sex, or nation of originprohibits discrimination in hiring based on disability if the person is able to perform the required taskssays workers may take leave after childbirth, adoption, or to care for a seriously ill family membersays workers can retain medical insurance coverage after being separated from the company

48. Globalization has _____ the opportunities for a firm to expand its revenues by selling around the world and _____ its costs by producing in nations where key inputs are cheap. (Points : 1) Reduced, reducedIncreased, increasedIncreased, reducedReduced, increased

49. The McGill company has an inventory period of 45 days, an accounts receivables period of 24 days, and an accounts payable period of 16 days. What is the cash cycle of the company? (Points : 1) 45 days24 days29 days53 days

50. Torts are categorized as: (Points : 1) intentional only.negligence only.strict liability only.intentional, negligence, and strict liability.

51. If a price CEILING is enforced at price P-1, the result will be:

(Points : 1) a shortage equal Q4 minus Q2a surplus equal to Q4 minus Q2a shortage equal to Q3 minus Q2a surplus equal to Q3 minus Q2no effect on quantity

52. ____ is a network that can be especially useful in buildings with no wired local area networks. (Points : 1) BluetoothIEEEWiFiPAN

53. Which theory says internal factors lead to job satisfaction and insufficient external factors lead to job dissatisfaction? (Points : 1) McGregor’sMaslow’sHertzberg’sMcClelland’s

54. The full positioning of a brand—the full mix of benefits upon which it is positioned: (Points : 1) Value propositionTarget marketingProduct positionCompetitive advantage

55. Federal regulation of the sale of securities is based on the: (Points : 1) Securities Act of 1933 and the Securities Exchange Act of 1934.Securities Act of 1933 and the Federal Trade Act of 1936.Federal Trade Act of 1936 and the Blue Sky Act of 1933.Fair Stock Act of 1932 and the Investment Securities Act of 1934.

56. Conventions and trade shows are chief: (Points : 1) Ways to drain extra budget lines at the close of the fiscal yearConsumer promotion toolsBusiness promotion toolsFollow-up venues

57. What is the primary advantage of licensing? (Points : 1) It helps a firm avoid the development costs associated with opening a foreign marketIt gives a firm the tight control over manufacturing, marketing, and strategyIt helps a firm achieve experience curve and location economiesIt increases a firm's ability to utilize a coordinated strategy

58. Economies of Scale will cause: (Points : 1) short run total cost to decreaseshort run average cost to decreaselong run total cost to decreaselong run average cost to decreaseno effect on a firm's cost structure

59. Any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor: (Points : 1) AdvertisingSales promotionPublic relations

Personal selling

60. The _____ suggests that given relatively efficient markets, the price of a basket of goods should be roughly equivalent in each country. (Points : 1) Theory of efficient marketsLaw of one priceTheory of price inflationPPP theory

61. In a unilateral contract, the consideration is: (Points : 1) the surrender of a claim against the promisor.the returning of the promisor’s property.a promise to do the act called for by the promisor.the doing of the act called for by the promisor.

62. The weighted-average cost of capital is used as a discount rate because (Points : 1) it is an indication of how much the firm is earning overall.as long as the cost of capital is earned, the common stock value of the firm will be maintained.it is comparable to the prevailing market interest rates.returns below the cost of capital will cover all fixed costs associated with capital and provide an excess return to stockholders.

63. Protecting equipment from physical damage from power surges is: (Points : 1) external security.operational security.physical security.internal security

64. A decision has three possible outcomes: $100,000, $10,000, and -$20,000 with respective probabilities of 0.2, 0.6, and 0.2. What is the expected monetary value (EMV)? (Points : 1) $90,000$22,000$26,000there is insufficient information to tell

65. When developing a marketing plan, which of the following would I probably NOT include? (Points : 1) Competitive analysisProduct descriptionCapacity analysisSWOTPromotional and advertising plan

66. How many permutations of the letters in the word tide are there? (Points : 1) 162416

67. A period cost is: (Points : 1) Reported on the balance sheet.Accumulated in work in process inventory.Expensed in the period in which it is incurred.Regarded as an asset.

68. Marketing research to test hypotheses about cause-and-effect relationships: (Points : 1) Marketing researchExploratory researchDescriptive researchCausal research

69. What advertising objective(s) would I most likely have during the Introductory phase of the product lifecycle? (Points : 1) Sustaining salesProduct awarenessPrice competition

Informative/EducationB&D

70. Trespass applies to: (Points : 1) persons only.property only.both persons and property.only government property.

71. Consideration is: (Points : 1) the concern shown by the other contracting party.what is demanded by the promisor as the price for the promise.a stated number of dollars.the concern of both contracting parties for the protection of the environment.

72. Scientific tools used to manipulate information to help choose the best of several possibilities is: (Points : 1) AI.neural networking.decision support systems.transaction processing systems.

73. Assume stock A has a standard deviation of 0.21, while stock B has a standard deviation of 0.10. We can conclude: (Points : 1) Stock A has higher total risk.Stock B has higher total risk.Stock A has higher market risk.Stock B has higher market risk.

74. To advertise a product on television directly to the end consumer with the intent of subsequently having the consumer solicit his/her retailer to stock and sell the item advertised: (Points : 1) Push strategyPull strategyWord-of-mouth influenceAll the above

75. Which of the following is the greatest obstacle for a multinational company in maintaining consistent ethical standards among all its subsidiaries in different countries? (Points : 1) Pressure from shareholders for high profits without any regard for ethicsDifferences in the legal systems in different countriesDifferences in what various cultures consider unethical behaviorEndemic corruption in many developing countries

76. Which of the following statements is true for programming languages? (Points : 1) Interpreted programs run faster than compiled programs.Compilers translate high-level language programs into machine language programs.Interpreter programs use assembly language as input.None of the above.

77. Printers are ____. (Points : 1) output devicescomputer peripheralscapable of connecting to a USB port if they have a USB connectorall of the above

78. A source of cash from operating activities is the: (Points : 1) Collection of an account receivable.Cash received from the sale of used equipment.Cash received from the sale of treasury stock.Cash received from the sale of preferred stock.

79. The characteristics that distinguish a sales promotion from advertising are: (Points : 1) the consumer must use or buy the product in order to take advantage of the “offer”there is no real difference to the consumer, only to the advertisersales promotion is intended to stimulate an immediate and short-term action by the consumer

sales promotions are more difficult to track than common advertisinganswers a and c

80. Based on the probability of the event’s occurrence in the following chart, which of the following alternatives is the most optimistic in projecting the event.

(Points : 1) D2,S1D1,S3D2,S3

81. For _____ to work, the firm must normally have a profitable position in another national market, which it can use to subsidize aggressive pricing in the market it is trying to monopolize. (Points : 1) Multipoint pricingValue-based pricingExperience curve pricingPredatory pricing

82. Financial intermediaries serve which of the following purposes? (Points : 1) financial intermediaries allow for indirect investment in the capital markets by households.aid in the flow of funds through the economy.help provide allocation of funds to the best investments.all of these.

83. In organizational design, the most common groupings are by: (Points : 1) productgeographical areaprocessall of the above

84. Which of the following is NOT one of the “4 Cs” that text authors Kotler and Armstrong suggest have replaced the traditional 4Ps? (Points : 1) Customer solutionCommunicationCustomer controlConvenienceCustomer cost

85. Which of the following is not a typical function of the Human Resources department? (Points : 1) selection and placementresearch and developmenttraining and developmenthealth, safety and security

86. What type of network has a computer called a file server that acts as the central storage location? (Points : 1) local area (LAN)client/serverpeer-to-peerworkstation

87. The Production Possibilities Frontier is bowed outwards (concave) due to increasing marginal opportunity costs. The principle of increasing marginal opportunity costs states that the initial opportunity costs are: (Points : 1) high but they decrease the more you concentrate on the activitylow but they increase the more you concentrate on the activityhigh but they increase the more you concentrate on the activity.low but they decrease the more you concentrate on the activity

88. Hale's TV Production is considering producing a pilot for a comedy series for a major television network. The network may reject the pilot and the series, but it may also purchase the program for 1 or 2 years. Hale may decide to produce the pilot or transfer the rights for the series to a competitor for $100,000. Hale's profits are summarized in the following profit (in thousands of dollars) payoff table:

Based on the information above, the optimistic approach is D2, S3 at 100. (Points : 1) True False

89. Book value is the difference between: (Points : 1) Accumulated depreciation and market value, and it is reported on the income statement.Historic cost and accumulated depreciation, and it is reported on the balance sheetDepreciation expense and accumulated depreciation, and it is reported on the balance sheet.Historic cost and market value, and it is reported on the balance sheet.

90. Suppose you are given the following scenario: Unemployment is currently 10% and there are no signs of inflation on the horizon, and the economy appears to be well below its potential output. Which of the following policies would be appropriate? (Points : 1) raising taxesincreasing government spending or lowering taxesdecreasing aggregate demandconcretionary fiscal policyraising interest rates

91. The decision process by which business buyers determine which products and services their organizations need to purchase; and then, find, evaluate, and choose among alternative suppliers and brands: (Points : 1) Consumer buyer behaviorConsumer marketBusiness buyer behaviorBusiness buying process

92. Money markets are markets for (Points : 1) foreign currency exchange.corporate stocks.long-term bonds.short-term debt securities.

93. Inventory period is defined as (Points : 1) the time between cash payment for purchase of raw material and cash collection of accounts receivable.the time between sales of inventory and collection of the receivable.the time between the acquisition of inventory and the collection of cash from receivables.the time it takes to acquire and sell inventory.

94. A contract where one or both parties have not yet completely performed is a: (Points : 1) void agreement.executory contract.executive contract.executed contract.

95. If the risk-free rate, estimated using the Treasury Bill rate, is 6%, the stock market’s average return on stock is 16%, and firm A has a beta of 1.2, what is the estimated return expected on firm A’s stock? (Points : 1) 15%17%11%18%

96. An audience who has some type of power (political, social, etc.) and may take future actions based on your message is: (Points : 1) primary audiencesecondary audienceauxiliary audiencewatchdog audience

97. SEC Rule lOb-5: (Points : 1) is the principal antifraud rule relating to the secondary of securities.imposes sanctions for trading on insider information.applies to unregistered securities that make use of the mails.

all of the above.

98. Significant Barriers to Entry may be present in which of the following market structures? (Points : 1) perfect Competition onlyperfect Competition and Oligopolymonopolistic Competition and Monopolyoligopoly and monopolymonopolistic Competition and Oligopoly

99. In a pure prototyping approach: (Points : 1) firms are allowed to explore the use of newer technologies.documentation is typically less complete than with traditional systems development approaches.greater security and control features than with traditional systems development approaches.a and b.

100. In order to prove false imprisonment, a person must show imprisonment for: (Points : 1) any amount of time.at least one minute.at least ten minutes.at least one hour.

101. Which is not a property of the standard normal distribution? (Points : 1) It’s symmetric about the mean.It’s uniform.It’s bell-shaped.Its’ uni-modal.

102. A bond is: (Points : 1) Debt sold to investors.Long-term debt.An agreement, which requires a company to repay principal plus interest.All of the above.

103. The use of outside companies to provide, support, and maintain information systems is known as: (Points : 1) prototyping.outsourcing.enterprise resource planning.None of the above.

104. The main reason why joint ventures do not last very long is: (Points : 1) The ego of the top managers of the two parent companiesChanges in the environment that change the terms of the original cost-benefit analysis of the two partnersCultural differencesDifferent set of skills of the two parent companies

105. DSL is a type of an Internet ____. (Points : 1) connectionprotocoladdressserver

106. Which of the following is true? (Points : 1) Short-term bonds have greater interest rate risk than do long-term bonds.Long-term bonds have greater interest rate risk than do short-term bonds.All bonds have equal interest rate risk.Interest rate risk is highest during periods of high interest rate.

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