Which of the following terms refers to the accounting process that identifies the causes
of all differences between book and bank balances?
A. Clearing house
B. Float
C. Charge back
D. Reconciling
Blue Moss Inc. ensures that its detergent brand “Pure Plus” is always placed next to
competitors’ detergents in supermarkets. This is a strategy the company uses to imply
that the same quality product is available at a better bargain. Which of the following
pricing strategies is being used by Blue Moss Inc.?
A. Price signaling
B. Price skimming
C. Reference pricing
D. Customary pricing
Amy plans to open a laundromat with a gym. She got the idea from the laundromat with
a bar and game rooms, which she visits regularly. She wants to test her idea by starting
out in a small space with the focus on the laundromat and a small space allocated for
gym equipments. Amy’s idea is an example of _____.
A. a blue ocean strategy
B. a pure innovation
C. an altruistic approach
D. an incremental innovation
In the context of entry wedges, market relinquishment occurs when:
A. the government changes the laws.
B. business firms leave a market.
C. customers are willing to sign a contract with small businesses to ensure the supply of
a product.
D. new products are in demand.
The total cost of obtaining an asset, including such costs as purchase price,
transportation, installation, testing, and calibrating in order to ready it for its first
productive use is termed as _____.
A. replacement cost
B. cost of operating
C. cost of disposition
D. acquisition cost
Which of the following ensures that a new business will be critically examined by
outsiders who have no vested interest in the owners’ idea, product, or service?
A. Securing outside investment
B. Starting with more than one founder
C. Having previous experience of managing small firms
D. Having a detailed start-up budget
When using a(n) _____, the attorney will be paid a specified amount every month
regardless of the workload for that month.
A. hourly fee
B. flat fee
C. retainer
D. contingency fee
Which of the following is most likely to be an example for an elastic product?
A. Staple foods
B. Gasoline
C. T-shirts
D. Basic utilities
A(n) _____ is an amount of inventory carried to ensure that a business will not run out
of inventory because of fluctuating levels of sales.
A. micro inventory
B. safety stock
C. just-in-time inventory
D. perpetual inventory
A(n) _____ is a part of a business or business plan that exposes the firm to any kind of
loss.
A. risk
B. achievement
C. credit
D. opportunity
The job rotation technique is an example of _____.
A. cronyism
B. nepotism
C. off-the-job training
D. on-the-job training
Which federal law describes the steps publicly traded businesses must take to protect
and provide their key financial information?
A. Service Contract Act
B. Sarbanes-Oxley Act
C. Walsh-Healey Public Contracts Act
D. Davis-Bacon Act
Operations management is primarily concerned with:
A. directing and controlling.
B. planning and organizing.
C. staffing and planning.
D. controlling and organizing.
General partnerships are similar to limited partnerships in that:
A. both don’t require government permission to be set up.
B. both dissolve when their respective partnership mix changes.
C. both impose double taxation of income and business to individual partners.
D. both must have at least one general partner and one limited partner.
If a business owner assumes that he or she needs to do all the work, make all the sales
calls, and solve everybody’s problems, which major pitfall is the business owner
becoming a victim to while trying to become more innovative?
A. Obeying rules that do not exist
B. Judging ideas too quickly
C. Identifying the wrong problem
D. Failing to ask for support
Obeying rules that do not exist is a major pitfall that a business owner can be victim to
if he or she tries to do everything while trying to become more innovative.
A(n) _____ is a delay in transferring money among banks due to internal procedures.
A. overdraft
B. availability float
C. charge back
D. processing float