Archives: Quiz

Profit center managers are allocated decision rights for: A. input mix, product mix, and selling prices. B. selling prices and capital expenditures. C. product mix and selling price only. D. input mix and product mix only. When a firm purchases […]

As a firm moves from a competitive industry to a monopoly: A. its profits fall. B. average revenue falls and profits rise. C. marginal costs rise and profits fall. D. its profits rise. The curve showing all the combinations of […]

Elena, a proofreader, is checking if any information is missing from key locations or demographic areas before creating a visual for an annual report. Which of the guidelines for visual design is she following? A. Follow the conventions for designing […]

The planning process involves getting feedback, evaluating one’s work, and writing a formal draft. In the phase of formalization, the group finalizes its work. TRUE In the process of formalization, the group finalizes its work. The success of this phase […]

While dressing for an office interview, it is important to understand an organization’s office culture and dress accordingly. If a candidate is asked why there is a gap in his/her work history, it is important to answer elaborately and apologize […]

Workman, chairman, and airhostess are examples of neutral titles. An interview session is not necessarily a question and answer session. TRUE An interview session is not necessarily a question and answer session. Many employers use on-the-spot writing samples, critical thinking, […]

A summary abstract is used to present the most useful information in the least amount of space. In order to make writing easier to read, it is good to use familiar words or words that are a part of almost […]

The way people interpret a smile may depend on the purpose smiles serve in a particular culture. Marion is comparing the sales volume in her region to the sales volumes in seven other regions in the country. She could choose […]

When you use multiple-choice questions, the answer categories must be mutually exclusive and exhaustive. Situational interviews ask questions about the kinds of situations one had faced in the past jobs. FALSE Situational interviews place candidates in situations similar to one […]

Details that add nothing to the title and are less impressive than the title must be omitted. High-pitched voices are generally considered to be more authoritative and pleasant to listen to than low-pitched voices. FALSE Low pitched voices are usually […]

E-mails should be used when one does not want to create a paper trail. While apologizing in business communication, one should do so twice, i.e., once at the beginning of the message and another time at the end of the […]

Oral style uses more personal pronouns, less varied vocabulary, and more repetition than written styles. When writing a report, you should start writing your first draft only after all the research is completed. FALSE When writing your report, start writing […]

Rsums are skimmed by employers to determine whether to discard it or whether to further scan it electronically. Recommendation progress reports organize information under various tasks one has worked on during a project. FALSE Recommendation progress reports suggest action such […]

While using a pattern of organizing messages, one should realize that every message which uses the basic pattern will have all the elements listed. Conventions in business communication help people recognize, produce, and interpret different kinds of communications. TRUE Common […]

The role of restating major points and summarizing decisions helps the team achieve its task goals. Good writers are likely to use rules flexibly and break big tasks into small ones. TRUE No single writing process works for all writers […]

Most job openings – particularly those that are higher up the ladder – are advertised extensively in order to reach the most qualified candidates. Negative communications such as refusals, rejections, recalls, and apologies are difficult to compose. TRUE Negative communications […]

The first paragraph of an application essay should be a summary of the essay to provide a context for what is to come. It is recommended to triple-check numbers, headings, the first and last paragraphs, and the reader’s name. TRUE […]

A dinner party to recognize and motivate achievers in an organization is an example of an informative presentation. Successful interviewees give short answers of ten words or less and avoid elaborating on their answers. FALSE Unsuccessful interviewees give short answers […]

Job application letters are prepared and submitted in place of a rsum. A positive message is one where a receiver’s basic reaction to the message is neutral. FALSE When a receiver’s basic reaction to a message is neutral, the message […]

Convincing the audience of a message’s benefits involves two main steps of making sure that the benefit really will occur, and explaining it to the audience. If the problem is a large one, it is good to demonstrate you-attitude by […]

The common stock of Manchester & Moore is expected to earn 13 percent in a recession, 6 percent in a normal economy, and lose 4 percent in a booming economy. The probability of a boom is 5 percent while the […]

Which one of the following best describes the primary advantage of being a limited partner instead of a general partner? A. tax-free income B. active participation in the firm’s activities C. no potential financial loss D. greater control over the […]

Scenario analysis is best suited to accomplishing which one of the following when analyzing a project? A. determining how fixed costs affect NPV B. estimating the residual value of fixed assets C. identifying the potential range of reasonable outcomes D. […]

A firm is currently operating at full capacity. Net working capital, costs, and all assets vary directly with sales. The firm does not wish to obtain any additional equity financing. The dividend payout ratio is constant at 40 percent. If […]

The Mining Co. has 20,000 shares of stock outstanding. The current market value of the firm is $328,000. The company has retained earnings of $27,000, capital in excess of par value of $160,000, and a common stock account value of […]

Which of the following should help reduce the total collection time for a firm? I. opening a post office box so mail can be received earlier in the morning II. assigning additional staff in the morning to process incoming payments […]

Which of the following are associated with a restrictive short-term financial policy? I. little, if any, investment in marketable securities II. liberal credit terms for customers III. low cash balances IV. increasing inventory levels A. I and III only B. […]

Colors and More is considering replacing the equipment it uses to produce crayons. The equipment would cost $1.37 million, have a 12-year life, and lower manufacturing costs by an estimated $304,000 a year. The equipment will be depreciated using straight-line […]

A lockbox system: A. entails the use of a bank which is centrally located to collect payments on a nationwide basis. B. is designed to deposit a customer’s check into the firm’s bank account prior to recording the receipt of […]

The incremental cash flows of a merger can relate to changes in which of the following? I. revenue II. capital requirements III. operating costs IV. income taxes A. I and II only B. II, III, and IV only C. I, […]

A firm has annual sales of $320,000, a price-earnings ratio of 24, and a profit margin of 4.2 percent. There are 14,000 shares of stock outstanding. What is the price-sales ratio? A. 0.97 B. 1.01 C. 1.08 D. 1.15 E. […]

A payoff profile: A. determines the price of an option contract. B. determines whether a forward or a futures contract is needed. C. applies only to contract sellers. D. determines the price of a collar. E. illustrates potential gains and […]

Which type of analysis identifies the variable, or variables, that are most critical to the success of a particular project? A. leverage B. risk C. break-even D. sensitivity E. cash flow Assume the current spot rate is C$1.2103 and the […]

Which one of the following refers to the ability of shareholders to undo a firm’s dividend policy and create an alternative dividend policy by reinvesting dividends or selling shares of stock? A. perfect foresight model B. personalization C. recapitalization D. […]

Which one of the following statements is correct? A. Firms should accept low risk projects prior to funding high risk projects. B. Making subjective adjustments to a firm’s WACC when determining project discount rates unfairly punishes low-risk divisions within a […]

The tendency for a decision maker to search for confirmation that a recent decision he or she made was a good decision represents which one of the following characteristics? A. overconfidence B. overoptimism C. affect heuristic D. confirmation bias E. […]

A bond with 10 detachable warrants has just been offered for sale at $1,000. The bond matures in 15 years and has an annual coupon of $80. Each warrant gives the owner the right to purchase two shares of stock […]

The return earned in an average year over a multi-year period is called the _____ average return. A. arithmetic B. standard C. variant D. geometric E. real Combined Communications is a new firm in a rapidly growing industry. The company […]

Which of the following are examples of diversifiable risk? I. earthquake damages an entire town II. federal government imposes a $100 fee on all business entities III. employment taxes increase nationally IV. toymakers are required to improve their safety standards […]

Which one of the following is the financial statement that summarizes a firm’s revenue and expenses over a period of time? A. income statement B. balance sheet C. statement of cash flows D. tax reconciliation statement E. market value report […]

Which one of the following statements is correct? A. The credit period begins when the discount period ends. B. The discount period is the length of time granted to a customer to pay for a purchase. C. The credit period […]

Soup Galore is a partnership that was formed three years ago for the purpose of creating, producing, and distributing healthy soups in a dried form. The firm has been extremely successful thus far and has decided to incorporate and offer […]

Which one of the following categories of securities had the lowest average risk premium for the period 1926-2007? A. long-term government bonds B. small company stocks C. large company stocks D. long-term corporate bonds E. U.S. Treasury bills An account […]

A project will produce an operating cash flow of $14,600 a year for 8 years. The initial fixed asset investment in the project will be $48,900. The net aftertax salvage value is estimated at $11,000 and will be received during […]

The Wildcat Oil Company is trying to decide whether to lease or buy a new computer- assisted drilling system for its oil exploration business. Management has decided that it must use the system to stay competitive; it will provide $1.2 […]

What is the profitability index for an investment with the following cash flows given a 14.5 percent required return? A. 0.94 B. 0.98 C. 1.02 D. 1.06 E. 1.11 Which one of the following terms is used to describe a […]

You work for a nuclear research laboratory that is contemplating leasing a diagnostic scanner (leasing is a very common practice with expensive, high-tech equipment). The scanner costs $2 million and it would be depreciated straight-line to zero over 4 years. […]

Pearl, Inc. has offered $860 million cash for all of the common stock in Jam Corporation. Based on recent market information, Jam is worth $710 million as an independent operation. For the merger to make economic sense for Pearl, what […]

Bond S is a 4 percent coupon bond. Bond T is a 10 percent coupon bond. Both bonds have 11 years to maturity, make semiannual payments, and have a yield-to-maturity of 7 percent. If interest rates suddenly rise by 2 […]

The difference between the price that a dealer is willing to pay and the price at which he or she will sell is called the: A. equilibrium. B. premium. C. discount. D. call price. Parkway Express needs $318,000 a week […]