BUS 475 Final Exam
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1. The income statement and balance sheet columns of Pine Company’s worksheet reflects the following totals:
Income Statement Balance Sheet
Dr. Cr. Dr. Cr.
Totals $58,000 $48,000 $34,000 $44,000
The net income (or loss) for the period is __________.
2. The income statement and balance sheet columns of Pine Company’s worksheet reflects the following totals:
Income Statement Balance Sheet
Dr. Cr. Dr. Cr.
Totals $58,000 $48,000 $34,000 $44,000
To enter the net income (or loss) for the period into the above worksheet requires an entry to the __________.
3. These are selected account balances on December 31, 2008.
Land (location of the corporation’s office building) $100,000
Land (held for future use) 150,000
Corporate Office Building 600,000
Inventory 200,000
Equipment 450,000
Office Furniture 100,000
Accumulated Depreciation 300,000
What is the net amount of property, plant, and equipment that will appear on the balance sheet?
4. These are selected account balances on December 31, 2008.
Land (location of the corporation’s office building) $150,000
Land (held for future use) 225,000
Corporate Office Building 900,000
Inventory 300,000
Equipment 675,000
Office Furniture 150,000
Accumulated Depreciation 450,000
What is the net amount of property, plant, and equipment that will appear on the balance sheet?
5. If a company reports a net loss, it __________.
6. Which list below best describes the major services performed by public accountants?
7. What effect do current technology changes have on managerial accounting?
8. What exists when budgeted costs exceed actual results?
9. In what situations will a static budget be most effective in evaluating a manager’s effectiveness?
10. A company just starting in business purchased three merchandise inventory items at the following prices. First purchase $80; Second purchase $95; Third purchase $85. If the company sold two units for a total of $240 and used FIFO costing, the gross profit for the period would be _____.
11. Of the following companies, which one would not likely employ the specific identification method for inventory costing?
12. The major reporting standard for management accounts is __________.
13. As Plant Controller, you are trying to determine which costs over which you have the most control on a day to day basis. Your goal is to achieve better profitability. The Plant Operations Manager suggests that overhead is the easiest area to directly reduce costs. Which of the following items would be classified as manufacturing overhead
14. Multinational corporations __________.
15. A country’s consumption possibilities frontier can be outside its production possibilities frontier if __________.
16. A production possibilities frontier will be a straight line if __________.
17. A tax on an imported good is called a __________.
18. Institutions in the economy that help to match one person’s saving with another person’s investment are collectively called the __________.
19. When, in a particular market, the law of demand and the law of supply both apply, the imposition of a binding price ceiling in that market causes quantity demanded to be __________.
20. For a college student who wishes to calculate the true costs of going to college, the costs of room and board __________.
21. Assume oligopoly firms are profit maximizers, they do not form a cartel, and they take other firms’ production levels as given. Then in equilibrium the output effect __________.
22. Which of the following statements about GDP is correct?
23. The model of aggregate demand and aggregate supply explains the relationship between __________.
24. The Federal Reserve will tend to tighten monetary policy when __________.
25. The Federal Open Market Committee __________.
26. The open-economy macroeconomic model examines the determination of __________.
27. The part of the balance of payments account that records the amount of foreign currency the government buys or sells is the:
28. Which of these refers to the practices aimed at discovering and harnessing an organization’s intellectual resources?
29. __________ is the process of working with people and resources to accomplish organizational goals.
30. Building a dynamic organization is another way of describing which function of management?
31. A manager’s ability to stimulate people to be high performers is referred to as:
32. A series of quality standards developed by a committee working under the International Organization for Standardization to improve total quality in all businesses for the benefit of both producers and consumers is:
33. Which of these represent skills that managers need?
34. Listening to employee suggestions, gaining support for organizational objectives and fostering an atmosphere of teamwork are all considered:
35. Managers will utilize __________ skills with increasing frequency as they rise within an organization.
36. The term used to refer to all kinds of differences including religious affiliation, age, disability status, economic class and lifestyle in addition to gender, race, ethnicity and nationality is:
37. Which of the following has proven to be a particularly good predictor for jobs that require cognitive complexity
38. The best way for an employer to find out if a potential employee can do a job is by __________.
39. One study found that manufacturing labor costs about _____ an hour in China, compared to _____ dollars in the United States.
40. The pursuit of lucrative opportunities by enterprising individuals is called:
41. Your roommate is interested in starting a business and everybody has been giving him different information about being an entrepreneur. Since you have been studying about entrepreneurship and new ventures, which of these would you tell him is true?
42. Independent events A and B would be consistent with which of the following statements:
43. Which of the following statements is true?
44. Twelve randomly-chosen students were asked how many times they had missed class during a certain semester, with this result: 2, 1, 5, 1, 1, 3, 4, 3, 1, 1, 5, 18.
For this sample, which measure of central tendency is least representative of the “typical” student?
45. To estimate the average annual expenses of students on books and class materials a sample of size 36 is taken. The average is $850 and the standard deviation is $54. A 99% confidence interval for the population mean is __________.
46. Dullco Manufacturing claims that its alkaline batteries last forty hours on average in a certain type of portable CD player. Tests on a random sample of 18 batteries showed a mean battery life of 37.8 hours with a standard deviation of 5.4 hours.
In determining the p-value for reporting the study’s findings, which of the following is true?
47. William used a sample of 68 U.S. cities to estimate the relationship between Crime (annual property crimes per 100,000 persons) and Income (median income per capita). His estimated regression equation was Crime = 428 + .050 Income.
Assuming b1 is significant, if Income decreases by 1000 we would predict that Crime will __________.
48. In an activity-on-node [AON] network, the nodes represent ____________, whereas the arcs represent ____________.
49. In a network diagram, an activity:
50. Which one of the following statements concerning production and staffing plans is best?
51. Which one of the following statements concerning production and staffing plans is best?
52. Queuing models use an A/B/C notation. What do these variables represent?
53. The force behind globalization in _____ was the amount of muscle, horsepower, wind power, or steam power that a country could deploy.
54. Various organizations that promote fair and responsible use of information systems often develop __________.
55. It is very difficult to manage data for which of the following reasons?
56. Fundamental points about network computing in organizations include all of the following except:
57. Networks enable which of the following applications?
58. Geocoding is __________.
59. International Game Technology’s new ERP system produced all of the following benefits except:
60. Information-based industries are most susceptible to which one of Porter’s five forces?
61. Competitive advantage for an organization manifests as all of the following except:
62. _____ is the efficient and effective execution of specific tasks.
63. A machine costs $1,000, has a three-year life, and has an estimated salvage value of $100. It will generate after-tax annual cash flows (ACF) of $600 a year, starting next year. If your required rate of return for the project is 10%, what is the NPV of this investment? (Round your answerwer to the nearest $10.)
64. Suppose you determine that the NPV of a project is $1,525,855. What does that mean?
65. Disadvantages of using current liabilities as opposed to long-term debt include:
66. Which of the following represents an attempt to measure the earnings of the firm’s operations over a given time period?
67. Which of the following best represents operating income?
68. PepsiCo calculates unlevered betas for each peer group in order to:
69. Dublin International Corporation’s marginal tax rate is 40%. It can issue three-year bonds with a coupon rate of 8.5% and par value of $1,000. The bonds can be sold now at a price of $938.90 each. The underwriters will charge $23 per bond in flotation costs. Determine the approximate after-tax cost of debt for Dublin International to use in a capital budgeting analysis.
70. You hold a portfolio with the following securities:
Security Percent of Portfolio Beta Return
X Corporation 20% 1.35 14%
Y Corporation 35% .95 10%
Z Corporation 45% .75 8%
Compute the expected return and beta for the portfolio.
71. Bondholders have a priority claim on assets ahead of:
72. What is the yield to maturity of a nine-year bond that pays a coupon rate of 20% per year, has a $1,000 par value, and is currently priced at $1,407? Round your answer to the nearest whole percent and assume annual coupon payments.
73. Forward rates are quoted:
74. If the quote for a forward exchange contract is greater than the computed price, the forward contract is:
75. Exchange rate risk:
76. The managerial process of developing and maintaining a match between the resources of an organization and its market opportunities is called
77. “Marketing strategy planning” means:
78. __________ is a marketing management aid which refers to how customers think about proposed and/or present brands in a market.
79. When doing “positioning,” a marketing manager should:
80. “Positioning”:
81. The clustering techniques that can be used in segmenting:
82. Economists’ economic-buyer theory assumes that __________.
83. A firm’s “marketing mix” decision areas would NOT include:
84. When one considers the strategy decisions organized by the four Ps, branding is related to packaging as:
85. The difference between target marketing and mass marketing is that target marketing:
86. In comparison to the buying of final consumers, the purchasing of organizational buyers:
87. When evaluating macro-marketing:
88. Which article of the United States Constitution deals with the judicial power of the federal government?
89. Which of the following receives at least some protection under the U.S. Constitution?
90. Which of the following is correct about interpretive rules?
91. Which of the following is true about the power of administrative agencies to grant licenses?
92. Which of the following statements is not true under the Fair Labor Standards Act?
93. Generally, which of the following statements relating to contractual capacity is correct?
94. Generally speaking, the contract of a minor:
95. If a minor wishes to be bound to a contract after becoming an adult, she must:
96. What is the major convention that provides international protection to patents?
97. Which of the following statements is true regarding the relationship of law and ethics?
98. Which country does the text describe as becoming the largest producer and consumer of many of the world’s goods?
99. One study found that manufacturing labor costs about _____ an hour in China, compared to _____ dollars in the United States.
100. Although the U.S. has had a longstanding agreement with _____ after the passage of NAFTA, _____ became the United States’ second largest trading partner.
