In the private accounting field, certified management accountants use accounting to
investigate and support litigation in crimes against companies.
In a licensing arrangement, firms choose foreign organizations to manufacture their
products in another country in return for a fee plus royalties.
A company that sells eco-friendly products should use direct mail with caution because
many consumers view catalogs and other direct mail as environmentally irresponsible.
The point at which the supply curve and the demand curve intersect is the market price.
Strategy has a wider scope than planning.
The sales department relies on the engineering department to send samples and quotes
to prospective customers on a timely basis. The sales department may be considered the
engineering department’s internal customer.
A company that does not act responsibly toward its customers may lose their trust and
ultimately their business.
High levels of experience and group cohesiveness among subordinates cannot
neutralize leadership.
Marketing consists primarily of advertising a product or service.
Cultural values and beliefs are often unspoken.
A conflict of interest occurs when an activity may benefit the individual to the
detriment of his or her employer.
The most essential ingredient in encouraging ethical behavior in an organization is
letting employees dictate ethical norms.
In international payments, equal money inflows and outflows can result in no money
being transferred between countries.
The most commonly used liquidity ratio is found by calculating current assets to current
liabilities.
A business’s social responsibility to investors includes following proper accounting
procedures.
Ethical behavior requires that a CPA give precedence to public trust in the profession
over the directions of her or his employer.
The number of minority-owned businesses has decreased in recent years.
The best stance toward social responsibility a company can take is a proactive one.
Staff schedules identify which products will be produced and when.
Interactive marketing is nonpersonal selling that tries to get consumers to make
purchases from home, at work, or by using a mobile device while traveling.
Agents and brokers buy products from manufacturers and then sell them to other
businesses.
Job analysis is the systematic analysis of jobs within an organization resulting in a job
description.
In the distribution process, the channel captain can be an influential wholesaler or large
retailer.
Spyware authors can use stolen information to create their own intellectual property.
Soliciting favors from an organization or politician, or other influence tactics to gain
support are often legal.
Target marketing requires dividing a market into categories of customer types or
segments.
E-intermediaries include syndicated sellers and shopping agents.
Banks create money through contracts with the government to mint bills and coins.
Employers may require an AIDS test as a condition of an offer of employment.
The pursuit of profits is how a business differs from organizations such as public
universities, public hospitals, and government agencies.
A limited liability corporation is a hybrid of a publicly held corporation and a
partnership.
ERISA was designed to regulate how pension funds are invested.
Most modern organizations are currently working toward becoming more hierarchical
in structure.
Which of the following pricing strategies has stimulation of sales as a higher priority
than maximization of profits?
A) Price fixing
B) Penetration pricing
C) Price skimming
D) Price pointing
E) Price lining
How do certified public accountants ensure a company’s financial reports really
represent its operations?
A) By reviewing GAAP standards
B) By conducting an audit
C) Through the filing of tax information
D) By acting as consultants to noncertified accountants
E) By acting as advisory to senior management
What is the total package that a firm offers employees in return for their labor?
A) Wage
B) Salary
C) Benefits package
D) Compensation package
E) Retention plan
What type of skill is needed to understand foreign markets, cultural differences, and
motives of foreign rivals?
A) Technology
B) Strategic management
C) Decision making
D) Conceptual
E) Global management
Those accountants who are hired by firms as salaried employees, and who specialize in
areas such as financial planning, internal auditing, and taxation are called
A) forensic accountants.
B) certified management accountants.
C) private accountants.
D) certified public accountants.
E) fraud examiners.
What is the Hawthorne effect?
A) The belief that employees are motivated by money alone
B) The conclusion that workers are more productive if management pays attention to
them
C) The determination that the level of lighting in a workplace has no effect on
productivity
D) The theory that workers are more productive if their jobs are analyzed closely
E) The unspoken agreement between the employee and the employer
How much profit does a company which has a total of $5 million invested by its owners
and $4 million in liabilities need to make in order to have an assets-to-liabilities ratio of
2:1?
A) $2 million
B) $3 million
C) $5 million
D) $7 million
E) $8 million
According to rating services such as Moody’s, what type of rating would a bond have if
it was one of the safest investments possible, but produced lower returns?
A) AAA
B) BBB
C) Caa
D) CCC
E) D
Which of the following is the heart of the strategy formulation process and requires
comparing threats and opportunities against strengths and weaknesses?
A) Organizational analysis
B) Matching the organization and its environment
C) Analyzing the organization and the environment
D) Setting strategic goals and mission statements
E) Conducting an analysis using SWOT techniques
Which of the following are the three categories on a company’s cash flow statement?
A) Operating activities, purchase activities, taxes
B) Profit inflow, debt outflow, taxes
C) Profitable activities, deficit activities, taxes
D) Operating activities, investing activities, taxes
E) Operating activities, investing activities, financing activities
Phishing or pharming involve which of the following?
A) Intellectual property theft
B) Firewalls that prevent hacking
C) Viruses sent from one station to another in a LAN
D) Deceptive e-mails that imitate popular Web sites
E) Trading of company secrets
What is the term for an employee who discovers an illegal or unethical activity and tries
to put an end to it?
A) Whistle-blower
B) Inside trader
C) Obstructionist
D) Colluder
E) Accommodator
A restaurant is undergoing a change in cuisine and style of service. It is important that
new staff is hired and existing staff retrained. Why might the HR manager recommend
vestibule training as being highly effective in this situation?
A) Prospective and present employees can be screened to see if they convey the
restaurant’s new ethos.
B) Off-site training has great value for evaluating the effectiveness of performance
appraisals.
C) Employees will be reluctant to undertake training removed from the workplace.
D) The owners can be more confident that the change to the restaurant will be popular
with customers.
E) Employees will see limited connections to everyday work in this type of training.
If a task involves a high level of detail, which type of personality would be best suited
to perform the task?
A) One who exhibits high agreeableness and low conscientiousness
B) One who exhibits more negative emotionality and low agreeableness
C) One who exhibits high openness and low negative emotionality
D) One who exhibits high conscientiousness and low extraversion
E) One who exhibits high creativity and low negative emotionality
A departmental manager is meeting with each of his subordinates to discuss their
performance over the past year. What process is he involved in?
A) Job description
B) Labor negotiations
C) Vestibule assessment
D) Performance appraisal
E) Financial remuneration
Which of the following is MOST directly related to differences in transportation cost
from mode to mode?
A) Packing necessary for the product
B) Fuel efficiency of the carrier
C) Regularity of use of a given carrier
D) Discount agreements with the carriers
E) Delivery speed
How willing a person is to take chances in their decision process indicates a person’s
A) self-esteem.
B) locus of control.
C) risk propensity.
D) self-efficacy.
E) cognitive dissonance.
According to current theories of gender roles in leadership, which of the following
BEST describes the differences in decision making?
A) Males tend to be more democratic than females in making decisions.
B) Males tend to be more critical than females in making decisions.
C) Males tend to be more autocratic than females in making decisions.
D) Males tend to be more rational than females in making decisions.
E) Males tend to be more charismatic than females in making decisions.
In which type of selling does the buyer typically go to the seller?
A) Industrial selling
B) Missionary selling
C) Creative selling
D) Personal selling
E) Retail selling
What type of investment would preserve capital investment but seek capital
appreciation?
A) Blue-chip stock
B) Balanced funds
C) Aggressive growth funds
D) No-load funds
E) Mutual funds
Which of the following treaties sought to eliminate trade barriers such as tariffs and
quotas?
A) United Nations Development Assistant Plan
B) North American Free Trade Agreement
C) General Agreement on Tariffs and Trade
D) General Agreement on Trade in Services
E) European Union Stability and Growth Pact
How can a firm increase the life of a product without involving product changes?
A) Product extension
B) Product adaption
C) Rebranding
D) New product placement
E) Reintroduction
Firms that meet, and occasionally exceed, legal and ethical requirements, take what
type of social responsibility stance?
A) Proactive
B) Social accommodation
C) Defensive
D) Accommodative
E) Obstructionist
When a paycheck is calculated from the number of hours worked during the week times
the hourly rate, what type of system is being used to pay employees?
A) Gainsharing
B) Salary
C) Profit sharing
D) Wage
E) Incentive
Which of the following is the ability of a product to satisfy a human want or need?
A) Utility
B) Relative advantage
C) Content
D) Satisfaction
E) Quality ownership
What type of service is being given when a product performs reliably, has an appealing
fit and consistently meets or exceeds customer expectations?
A) Quality
B) Low cost
C) Flexibility
D) Dependability
E) Exclusivity
Which of the following types of businesses is MOST common in the United States?
A) Sole proprietorships
B) General partnerships
C) Cooperatives
D) Corporations
E) Limited partnerships
What are products that are consumed rapidly and regularly classified as?
A) Industrial goods
B) Shopping goods
C) Specialty goods
D) Convenience goods
E) Production goods
How do top managers BEST demonstrate a commitment to ethical business practices?
A) By adopting and enforcing written codes of ethics
B) By reading employees’ e-mails
C) By decentralized decision-making practices
D) By cooperating with other companies
E) By monitoring employees’ Web searches
When gathering opinions about consumer decisions, what type of research tool would
be most beneficial if the issue is not overly complex?
A) Observation
B) Primary research
C) Surveys
D) Focus groups
E) Experimentation
How is a Trojan horse different from a worm?
Define licensing arrangement and strategic alliance and discuss their relative merits.
How does the amount of national debt influence the bond market in the United States?
What is cost-oriented pricing?
List and describe the three forms of authority.
Explain the steps that an organization must take to foster a company-wide sense of
social responsibility.
Explain what is meant by the term utility. What type of utility is created when a
pharmacy changes its evening schedule to remain open for an extra hour in response to
customer needs?
What options are available to management when contract negotiations break down?
What is the accounting equation?
Explain how a firm may have more direct control with a branch office than it does over
agents or license holders.
Under U.S. antidumping legislation, what conditions must be met to prove that
dumping is being practiced?
What does a divisional structure rely on and why does it rely on this feature?
What is the difference between a credit card and a debit card?
Discuss ways in which using a rational perspective to decision making will help when
making nonprogrammed decisions.
Discuss the fiscal and monetary goals of a stabilization policy.
What are the six ethics related areas enforced by the American Institute of Certified
Public Accountants?
Discuss the impacts information technology has had on the business world.
Discuss ways in which an organization can help to ensure all members of the
organization participate in ethical compliance.