________ is an over-the-counter marketplace for short-term debt instruments such as
Treasury bills and commercial papers.
A) Options market
B) Bond market
C) Money market
D) Stock market
E) Futures market
A buyer engages in short selling when he or she ________.
A) thinks that a stock has high long-term growth potential
B) wants to diversify his or her portfolio
C) believes that a stock’s price is about to drop
D) wants to partially liquidate his or her portfolio
E) thinks that a stock has high short-term growth potential
________ budget identifies the money a new company will need to spend to launch
operations.
A) Master
B) Start-up
C) Capital
D) Project
E) Operating
Penetration pricing doesn’t work if ________.
A) the company can’t sustain the low price levels profitably
B) there is some level of competition in the market
C) a company is entering a market that is totally new
D) the customers in a market are highly price sensitive
E) the product is characterized by high extent of price elasticity
The Occupational Safety and Health Act of 1970 set mandatory standards for safety and
health and established the Occupational Safety and Health Administration (OSHA) to
enforce them.
An embargo is a ________.
A) quantity restriction on the import of particular goods or services
B) surcharge imposed on import of certain products
C) subsidy offered to products exported from a country
D) complete ban on the import or export of certain products
E) form of financial assistance extended to domestic producers
________ is an agreement to use an asset in exchange for regular payment.
A) Credit card
B) Lease
C) Mortgage
D) Trade credit
E) Commercial paper
Short-term financing is used to cover ________ of a business.
A) current expenses
B) start-up costs
C) launch costs
D) fixed costs
E) capital expenses
Alvy Smith is the forensic accountant at KPM Financial Group, a company that
provides investment services. He is most likely to do which of the following activities?
A) establish the long-term financial goals and budgets of the firm
B) purchase supplies required for the upkeep of the office premises
C) determine the pricing of the services provided by the firm
D) investigate charges of falsification of financial statements against an employee of the
firm
E) build relationships with customers and help them make purchase decisions
Weaver & Sharpe, Inc., a firm that manufactures home and kitchen appliances, uses an
intensive distribution strategy. However, the firm finds that the retailers in the same
marketing area compete with each other for greater market share, which negatively
affects the sale of Weaver & Sharpe products. Which of the following can help Weaver
& Sharpe, Inc. to resolve the problem of channel conflict?
A) decentralization
B) disintermediation
C) centralization
D) diversification
E) product development
A supply chain ________.
A) cannot be distinct for different departments
B) is applicable for services rather than goods
C) has only two components
D) does not include end customers
E) coordinates the flow of goods and materials
Yummy Times, a canned soup manufacturing firm, uses advertisements that highlight
new ways in which their customers can use Yummy Times canned soups, such as in
casseroles or as sauces. The firm aims to get its existing customers to buy more of its
products. This strategy is known as ________.
A) product development
B) market development
C) diversification
D) benchmarking
E) market penetration
PetCare is a retail store based in New York that offers only pet supplies and pet
accessories. The shop stocks a limited number of product lines such as dog and cat
products (canned and dry food, and hard goods), and bird, fish and small animal
products (fish tanks, stands, aquarium decorations, cages, bowls, perches, etc.). The
shop stocks several brands of varying prices rages within these product lines. PetCare
can be classified as a(n) ________.
A) department store
B) manufacturers’ representative
C) supermarket
D) specialty store
E) convenience store
The process of examining an organization’s current marketing situation, assessing
opportunities and setting objectives, and then developing a marketing strategy to reach
those objectives is called ________.
A) stealth marketing
B) strategic marketing planning
C) marketing research
D) social commerce
E) marketing concept
________ is the process of arranging resources to carry out an organization’s plans. It is
one of the major functions of managers.
A) Planning
B) Directing
C) Organizing
D) Analyzing
E) Controlling
An advisory board differs from a corporate board of directors, because ________.
A) an advisory board has legal responsibilities
B) you don’t have to incorporate to establish an advisory board
C) you usually require high amounts of financial compensation to consult an advisory
board
D) members of an advisory board lack subject-area expertise
E) advisors are required to obtain certification from SBA
Albert is the financial manager of a manufacturing firm. Albert has been an integral part
of the firm ever since it started business in 2006. Albert’s job has transformed over the
years and every year he is responsible for creating a budget to identify all sources of
raising funds and coordinates the spending of those funds throughout the company. This
budget is an example of a(n) ________ budget.
A) start-up
B) capital
C) launch
D) project
E) operating
Forter Consultants is a firm that provides cloud computing and remote storage services
to firms in the United States. The company plans to buy more servers to increase its
operating and storing capacity. It also creates a budget for the purchase and it estimates
the total cost to be about $3 million. The budget created for this transaction is an
example of a(n) ________ budget.
A) operating
B) project
C) master
D) launch
E) capital
The LTV value of the home loans issued by a bank is 80 percent. This means that the
________.
A) borrowers must make a down payment of at least 20 percent
B) loan is offered at a low interest rate
C) loan is offered at prime rate to borrowers
D) interest charged on the loan amount is 8 percent
E) borrowers should provide a third-party guarantee for 80 percent of the loan amount
According to McGregor, Theory X-oriented managers believe that ________.
A) employees dislike work and can be motivated only by the fear of losing their jobs or
by extrinsic rewards
B) employees can be motivated by working for goals that promote creativity
C) physiological needs must be satisfied before an employee can consider higher-level
needs
D) employees work not just because they want to make money or impress others, but
because they feel their work is worthwhile and satisfying in itself
E) they need to remove dissatisfying elements and add satisfying elements-doing one or
the other is not enough
A management accountant is likely to be responsible for which of the following
activities?
A) purchasing raw material for production
B) assessing the manufacturing costs of new products
C) determining the prices of products
D) removing a distributor from the supply chain
E) determining the money allocated for marketing
In a(n) ________, two companies join to form a single entity either by pooling their
resources or by one company purchasing the assets of the other.
A) limited partnership
B) acquisition
C) merger
D) joint venture
E) strategic alliance