Which of the following is the formula for calculating owner’s return on equity (ROE)?
A. Net Income/Average Investment
B. Net Income/Owner’s Equity Investment
C. Total Liabilities/Total Owner’s Equity
D. Total Liabilities/Total Assets
Which of the following is a reason for a business to do accounting?
A. To make it difficult for information to be evaluated by others
B. To help managers bypass legal or contractual requirements
C. To produce information that is useful for managing a business
D. To make inaccurate information pass off as relevant and useful
Which of the following types of customers are likely to generate more potential
customers than any other type?
A. Loyal customers
B. Local customers
C. Passionate customers
D. Corporate customers
Which of the following is an advantage of corporations?
A. They tend to be personal in nature.
B. They incur the lowest incorporation fees and taxes.
C. They require the owner’s liability to exceed the owner’s investment.
D. They are better equipped in raising large amounts of money.
Alana, the owner of a small dress-making establishment called Mantua Fab, decides to
hire assistants for design, sewing, and other tailoring jobs. Alana asks one of her most
trusted employees, Sue, to suggest potential candidates who would be a good fit at
Mantua Fab. This is an example of:
A. outsourcing.
B. employee leasing.
C. networking.
D. employee referral.
Which of the following terms indicates that a product or service is being kept as a trade
secret or is protected legally using patents, trademarks, copyright, or service mark?
A. External legitimacy
B. Proprietary technology
C. Test marketing
D. Corporate veil
Which of the following is a major economic force, employing 58 percent of America’s
total workforce?
A. Public companies
B. Government enterprises
C. Family businesses
D. International assignments
Which of the following is a characteristic feature of a message for a target market?
A. It is repeated less often.
B. It must contain the elements of a product’s value proposition.
C. It must be abstract.
D. It must always be distinctive from target customers.
The most common form of employee collusion is:
A. selling trade secrets to competition.
B. theft of cash and inventory.
C. lying about work hours.
D. lying about absences.
Which of the following represents a disadvantage of the consignment approach?
A. Availability of different consignment stores and auctions
B. Long amount of time before payouts
C. Full-time sales with only a part-time involvement from the owner
D. High setup costs
Which of the following is true of managerial accounting?
A. It is used to produce tax returns and schedules.
B. It is a rule-based system intended primarily for absentee owners.
C. It is forward-looking in nature.
D. It is primarily for bankers, investors, and regulators.
Gifts of money made to a business for a specific purpose are referred to as _____.
A. equities
B. debts
C. tax credits
D. grants
In which of the following stages do sales level off, and profits follow suit?
A. Introduction stage
B. Growth stage
C. Maturity stage
D. Decline stage
What will be the average profit for four years if Jack decides to invest in the HY-200
saw?
A. $21,750
B. $24,750
C. $28,750
D. $31,750
Which of the following is true about business-to-business (B2B) transactions?
A. For most people, the B2B market is visible and overexposed.
B. An example of a B2B transaction would be an individual buying a cell phone.
C. B2B involves electronically-facilitated transactions between consumers through a
third party.
D. B2B e-commerce is larger than B2C e-commerce.