Capital structure is ________.
A) the original monetary value of an economic item
B) a statement of the financial position of a company
C) the summary of the financial balances of a business
D) a firm’s mix of debt and equity financing
E) a combination of operational expenses and capital expenses
Norman is working in a bottled water production unit. Norman’s company is unionized,
but he has not joined the union. However, every year he pays an amount equivalent to
the union’s annual fee. Norman’s company is using a(n) ________.
A) permanent shop
B) closed shop
C) agency shop
D) union shop
E) open shop
________ are the principles and standards of moral behavior that are accepted by
society as right versus wrong.
A) Mandates
B) Ethics
C) Business mindset
D) Etiquette
E) Philanthropy
A company has $20,000 cash and $100,000 worth of land. Other assets of the company
amount to $300,000. The firm has an outstanding loan of $200,000 and other liabilities
adding up to $25,000. What is the owner’s equity of the company?
A) $395,000
B) $95,000
C) $195,000
D) $175,000
E) $220,000
Assets – Liabilities = ________.
A) variable cost
B) fixed cost
C) liquidity
D) business cost
E) owner’s equity
The ________ concept played a huge role in risky and/or fraudulent subprime mortgage
loans because lenders could make such loans and then use credit default swaps to avoid
the consequences by passing the risk on to another party or institution.
A) frozen credit
B) moral hazard
C) discounted lending
D) economic transgeneration
E) negative amortization
Transferring net revenue and expense account balances to retained earnings for the
period is referred to as ________.
A) multiple-entry bookkeeping
B) matching the account
C) closing the books
D) single-entry bookkeeping
E) measuring current balance
A television commercial promoting a new range of naturally-flavored ice creams,
manufactured by Ice Fountain, an ice cream and candy manufacturing firm, is an
example of which of the following elements in the communication mix?
A) institutional advertising
B) sales promotion
C) social media
D) product advertising
E) personal selling
Which of the following statements is TRUE about the Service Corps of Retired
Executives (SCORE)?
A) It is a resource partner of the SBA.
B) It works on a contractual basis with large businesses.
C) It offers advice and one-to-one counseling to entrepreneurs, in return for company
shares.
D) It offers resources and programs to minority-owned businesses.
E) It hires retired executives to work as consultants for a nominal fee.
Doron is a manufacturer of plastic products. The company produces utensils and gift
items. Which of the following would appear as accounts payable in the company’s
balance sheet?
A) revenue obtained by selling assets to a supplier
B) funds obtained through issuing corporate bonds
C) a default payment made on a long-term loan
D) funds obtained through issuing preference shares
E) a bill that one of the suppliers has sent for a purchase
The study of a country’s larger economic issues, such as how firms compete, the effect
of government policies, and how an economy maintains and allocates its scarce
resources, is known as ________.
A) capitalism
B) entrepreneurship
C) microeconomics
D) socialism
E) macroeconomics
________ can be exchanged at the investor’s option for a certain number of shares of
the corporation’s common stock.
A) Collateralized bonds
B) Protected bonds
C) Bills of exchange
D) Debentures
E) Convertible bonds
Most services are consumed at the same time they are produced and cannot exist before
or after that time. This means that most services are ________.
A) separable
B) scalable
C) perishable
D) measurable
E) standardized
Population trends that change the composition of consumer markets and the workforce
are a part of a company’s ________ environment.
A) economic
B) regulatory
C) cultural
D) social
E) political
JSE Limited is a South African organization that facilitates exchange of equities
between investors. JSE Limited is a(n) ________.
A) financial broker
B) fund manager
C) treasury
D) stock exchange
E) underwriter firm
________ is the most important and pervasive interpersonal skill that managers use.
A) Communication
B) Evaluation
C) Analytic ability
D) Negotiation skill
E) Technical skill
If a company asks its customers or website visitors to opt-in to its mailing lists, it is
using ________.
A) stealth marketing
B) search engine marketing
C) targeted display advertising
D) permission-based marketing
E) remarketing
The ________ is a combination of intermediaries and channels that producers use to
reach its target customers.
A) marketing mix
B) trading channel
C) distribution mix
D) wheel of retailing
E) market segmentation
The ________ oversees GAAP in the United States.
A) Consumer Financial Protection Agency (CFP
A)
B) Financial Management Service (FMS)
C) Securities and Exchange Commission (SEC)
D) Financial Accounting Standards Board (FASB)
E) Office of Terrorism and Financial Intelligence (OTFI)
Which of the following is a defining characteristic of the storming stage of Bruce
Tuckman’s model of team development?
A) It is a period of orientation and ice-breaking.
B) It is the stage in which issues are wrapped up, and the team is dissolved.
C) It is the stage in which conflicts arise as members jockey for position or form
coalitions to promote their own perceptions of the team’s mission.
D) It is the stage in which members come to understand and accept one another, choose
their leader, and agree on member roles.
E) It is the stage when team members become acquainted with each other’s task
orientation.
Colonel’s Burgers sells 2500 of its flagship burger, Colonel’s Treat, each month at a
price of $10 each. The customers are willing to buy 2500 Colonel’s Treat burgers each
month at the same price. Hence, the price of $10 per burger is the ________.
A) sunk cost
B) break-even price
C) equilibrium price
D) opportunity cost
E) incremental cost