In operations control, production managers monitor production performance by which
method?
A) Comparing results with detailed plans and schedules
B) Checking on each worker on the production floor
C) Observing activities from a platform above the workers
D) Constantly talking with employees involved
E) Performing spot checks of worker performance
In what type of organization do most lower level decisions need to be approved by
upper management before they can be implemented?
A) Line
B) Staff
C) Decentralized
D) Centralized
E) Learning
What legal defense can an employer use when charged with using a pre-employment
test that creates adverse impact?
A) Evidence that the test identifies those who are better able to do the job than others
B) Evidence that the employer sought out minorities
C) Evidence that the employer treated all employees the same
D) Evidence that the test included goals for underused groups
E) Evidence that the test identified how hiring goals will be met
When valuing assets, the U.S. GAAP allows an asset to be decreased if its value
decreases, but cannot be increased if the value increases later. What is the IASB
standard for this activity?
A) The value of the asset must remain as initially recorded.
B) The value of the asset must be increased annually.
C) The value of the asset can be averaged over time.
D) The value of the asset can be increased to reflect the increased market value.
E) The value of the asset must remain the same for four accounting cycles, then can be
changed to reflect current market value.
Which of the following pricing strategies is used by many e-tailers in order to provide
flexibility between buyers and sellers in setting a price?
A) Penetration pricing
B) Psychological pricing
C) Breakeven pricing
D) Fixed pricing
E) Dynamic pricing
What style of organization relies almost entirely on employees working on a common
project with little or no underlying functional hierarchy?
A) Team
B) Virtual
C) Learning
D) Flexible
E) Stratified
What of the following indicates an organization’s reason for being?
A) Strategy
B) Tactic
C) Mission
D) Diversity
E) Profitability
Which of the following describe(s) measurable traits about a consumer, such as income,
gender, or marital status?
A) Psychographics
B) Geographics
C) Geo-demographics
D) Behavior
E) Demographics
An employee’s level of effort began to decline when they learned a new employee with
far less experience was hired at the same salary. The employee’s lack of motivation can
best be described by which theory of motivation?
A) Equity
B) Expectancy
C) Two-factor
D) Scientific management
E) Planning
An accountant’s ability to audit a company’s records is an example of what type of
skills?
A) Motor skills
B) Technical skills
C) Human relations skills
D) Conceptual skills
E) Decision-making skills
Which of the following helps to determine operations capabilities?
A) Flexibility of activity
B) High-context system
C) Business strategy
D) Extent of customer contact
E) Production capability
On average, how many new product ideas are needed to generate one that reaches the
consumer market?
A) 25
B) 50
C) 75
D) 100
E) 500
Which of the following directly affect the price and quantity of foreign made product in
a country, by restricting the amount of product that can be imported?
A) Local content law
B) Quotas
C) Cartels
D) Subsidies
E) Protectionism
Which of the following refers to the total message any company sends to customers
about products and services?
A) Promotion
B) Communication mix
C) Positioning
D) Pull strategy
E) Push strategy
In which accounting standard did the FASB and the IASB jointly propose new
standards designed to improve the comparability of disclosures in financial statements?
A) In devaluing financial assets
B) In revenue recognition
C) In valuing assets
D) In expected loss modeling
E) In fair value discloser
Which of the following is an essential element in coordinating design and testing while
minimizing costs?
A) A streamlined management process
B) Improved global communications
C) Web collaboration on a massive scale
D) Global technical collaboration
E) Fewer employees with a wider range of skills
What is the economic condition characterized by widespread increased prices without
increased purchasing power?
A) Unemployment
B) Inflation
C) Expansion
D) Deflation
E) Recession
Which is the MOST accurate statement regarding one of the main differences between
the Japanese and American cultures?
A) Overall, Japanese culture is often characterized as conservative, whereas American
culture is often characterized as liberal.
B) Overall, Japanese culture is often characterized as rigidly structured, whereas
American culture is often characterized as loosely structured.
C) Overall, Japanese culture is often characterized as authoritarian, whereas American
culture is often characterized as democratic.
D) Overall, Japanese culture is often characterized as collectivist, whereas American
culture is often characterized as individualist.
E) Overall, Japanese culture is often characterized as socialist, whereas American
culture is often characterized as capitalist.
Which of the following is considered by many to be the BEST single indicator of the
U.S. equities market?
A) NASDAQ Composite
B) Russell 2000
C) Dow Jones Industrial Average
D) Standard & Poor’s 500
E) New York Stock Exchange
Which type of manager is responsible for implementing the strategies, policies, and
decisions made by top managers?
A) First-line manager
B) Middle manager
C) Supervisory manager
D) Office manager
E) Financial managers
What is the term for a detailed strategy for focusing marketing efforts on consumers’
needs and wants?
A) Marketing mix
B) Marketing manager
C) Product differentiation
D) Product development
E) Marketing plan
Companies who price their product low enough to attract a large number of buyers are
most likely pursuing which of the following objectives?
A) Stable market pricing
B) High profits
C) Stable market activity
D) Low market volatility
E) High market share
Which of the following terms refers to the interest level at which member banks can
borrow money from the Federal Reserve System?
A) Discount rate
B) Key rate
C) Prime rate
D) Federal insurance premium
E) Reserve requirement
Which of the following links salary increases to performance levels in nonsales jobs?
A) Bonuses
B) Collective bargaining
C) Merit salary systems
D) Cafeteria benefit plans
E) Workers’ compensation insurance
Which of the following allows for financial sanctions against businesses or business
officials who engage in bribery?
A) Sarbanes-Oxley Act
B) SEC Act
C) U.S. Foreign Corrupt Practices Act
D) NRA
E) Political Action Committees
If specific jobs are grouped into logical units based on location, what type of
departmentalization is being utilized?
A) Functional
B) Product
C) Process
D) Customer
E) Geographic
What is the advantage for a firm who works to hire from a diverse workforce?
A) Greater social awareness among employees
B) Increased ability to institute cafeteria-style benefits
C) A higher quality labor force
D) More flexibility in schedules
E) Increased employee retention
What marks the key difference between economic systems?
A) The way the factors of production are managed
B) The way goods are transported within their borders
C) The way rules and regulations are legislated
D) The way workers are relocated to different regions
E) The way basic necessities are determined
Which distribution channel is used by companies that distribute their goods through
their own system of outlets?
A) Direct distribution
B) Retail distribution
C) Wholesale distribution
D) Distribution by agents
E) Distribution by brokers
Which of the following is figured by dividing the yearly dollar amount of dividend
income by the investment’s current market value?
A) Bond yield
B) Current dividend yield
C) Debenture
D) Trading volume
E) Earnings per share
Which of the following refers to the situation when a country’s imports exceed its
exports?
A) Balance of payments
B) Balance of trade
C) Trade deficit
D) Trade surplus
E) Trade advantage
Under the Code of Ethics for CPAs, what should a CPA do in regards to their
responsibilities as a professional?
A) The CPA should demonstrate commitment to the profession by respecting and
maintaining the public trust.
B) The CPA should perform all professional activities with highest regards for integrity.
C) The CPA should exercise “due care,” through professional improvement.
D) The CPA should avoid conflicts of interest and the appearance of conflicts of interest
in performing their professional responsibilities.
E) The CPA should use a high level of morality that is sensitive to bringing credit to
their profession.
Which of the following reflects the extent to which a leader is willing to gamble when
making a decision?
A) Escalation of commitment
B) Overconfidence
C) Caution
D) Intuition
E) Risk propensity
What can an angel investor offer to small businesses when the small business doesn’t
have enough history to get a loan from a commercial bank?
A) A credit history
B) Start-up funds
C) Stock options
D) Financial oversight
E) Bonds