BUS 475 Final Exam 7    PLEASE DOWNLOAD THE ANSWERS HERE!!!1) A well-designed activity-based costing system starts with___...
Dr. Cr. Dr. Cr.Totals $58,000 $48,000 $34,000 $44,000The net income (or loss) for the period is __________.A. $10,000 inco...
A. WineB. It should sell an equal quantity of bothC. Selling either results in the same additional income for the companyD...
11) Which list below best describes the major services performed bypublic accountants?A. Employee training, auditing, book...
A. $75B. $65C. $60D. $5015) Lucy starts her own psychiatric practice, but her expenditures toopen the practice exceed her ...
D. the principle of comparative advantage18) In computing GDP, market prices are used to value final goods andservices bec...
21) Resources are __________.A. plentiful for households but scarce for economiesB. scarce for households and scarce for e...
D. evaluates current production at current prices.25) The model of aggregate demand and aggregate supply explains therelat...
A. Producing an imitation of the new technology that utilizes lower-quality and lower-cost materialsB. Technology follower...
is:A. Just-in-time control (JIT)B. Customer-based integrationC. Computer-integrated manufacturing (CIM)D. Total quality ma...
their current strategies as compared to their competitors, determine goalsthat they will pursue and decide upon specific a...
37) Teams that work on long-term projects but disband once the work iscompleted are known as:A. Management teamsB. Traditi...
A. North America, Mexico and AsiaB. North America, South America and Western EuropeC. North America, Asia and AfricaD. Wes...
proportion that plan to specialize in family practice?A. ± .00329B. ± .07357C. ± .04472D. ± .0876544) William used a sampl...
D. ± .020746) Independent events A and B would be consistent with which of thefollowing statements:A. P (A) = .3, P (B) = ...
A. is the smallest unit of work effort consuming both time andresources that a project manager can schedule and control.B....
C. a poka-yoke device.D. a one-person production line.53) Zappos built the majority of its information systems using which...
56) The costs of delivering products in the _____ channel are muchhigher than delivering products in the _____ channel.A. ...
B. data miningC. structured query languageD. expert systemsE. neural networks60) Credit card companies would most likely u...
D. The company gained flexibility in manufacturing productsE. ERP system connected the companyТs global operations63) Disa...
E. dividends paid66) Dublin International CorporationТs marginal tax rate is 40%. It canissue three-year bonds with a coup...
what is the expected rate of return on this stock?A. 12.5%B. 8.0%C. 13.6%D. 36.13%70) Exchange rate risk:A. applies only t...
73) If the quote for a forward exchange contract is greater than thecomputed price, the forward contract is:A. undervalued...
D. buyers.E. users.77) "Marketing strategy planning" means:A. finding attractive opportunities and selecting a target mark...
E. exclusively use focus groups.80) Economists economic-buyer theory assumes that __________.A. buyers logically compare c...
system.83) "Positioning":A. helps strategy planners see how customers view competitorsofferings.B. eliminates the need for...
86) The basic objective of the U.S. market-directed economic system isto:A. satisfy consumer needs as they--the consumers-...
B. A valid, enforceable contract between the contracting parties.C. A new contract involving the third party who induced t...
was protected in the Greater New Orleans Broadcasting Association,Inc. v. United States case?A. Obscene speech.B. Informat...
B. Is typically used as a form of doing business by doctors and lawyers.C. Does not have shareholders.D. Is formed with th...
E. Less than $1; about 2599) Which country does the text describe as becoming the largestproducer and consumer of many of ...
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Bus 475 final exam 7

  1. 1. BUS 475 Final Exam 7 PLEASE DOWNLOAD THE ANSWERS HERE!!!1) A well-designed activity-based costing system starts with__________.A. computing the activity-based overhead rateB. assigning manufacturing overhead costs for each activity cost poolto productsC. analyzing the activities performed to manufacture a productD. identifying the activity-cost pools2) Managerial accounting __________.A. is governed by generally accepted accounting principlesB. pertains to the entity as a whole and is highly aggregatedC. places emphasis on special-purpose informationD. is concerned with costing products3) What effect do current technology changes have on managerialaccounting?A. Increase in product costsB. Reduction of emphasis on the value chainC. Reduction of reporting costs of managerial accounting informationD. Creation of the middleman4) The income statement and balance sheet columns of Pine Companysworksheet reflects the following totals:Income Statement Balance Sheet
  2. 2. Dr. Cr. Dr. Cr.Totals $58,000 $48,000 $34,000 $44,000The net income (or loss) for the period is __________.A. $10,000 incomeB. not determinableC. $10,000 lossD. $48,000 income5) "Generally accepted" in the phrase generally accepted accountingprinciples means that the principles __________.A. have substantial authoritative supportB. have been approved for use by the managements of business firmsC. have been approved by the Internal Revenue ServiceD. are proven theories of accounting6) If a company reports a net loss, it __________.A. will not be able to pay cash dividendsB. will not be able to make capital expendituresC. will not be able to get a loanD. may still have a net increase in cash7) H55 Company sells two products, beer and wine. Beer has a 10percent profit margin and wine has a 12 percent profit margin. Beer hasa 27 percent contribution margin and wine has a 25 percent contributionmargin. If other factors are equal, which product should H55 push tocustomers?
  3. 3. A. WineB. It should sell an equal quantity of bothC. Selling either results in the same additional income for the companyD. Beer8) The first step in activity-based costing is to __________.A. compute the activity-based overhead rate per cost driverB. identify the cost driver that has a strong correlation to the activitycost poolC. identify and classify the major activities involved in the manufactureof specific productsD. assign manufacturing overhead costs for each activity cost pool toproducts9) Which one of the following items is not generally used in preparing astatement of cash flows?A. Comparative balance sheetsB. Adjusted trial balanceC. Current income statementD. Additional information10) What exists when budgeted costs exceed actual results?A. A favorable differenceB. A budgeting errorC. An unfavorable differenceD. An excess profit
  4. 4. 11) Which list below best describes the major services performed bypublic accountants?A. Employee training, auditing, bookkeepingB. Bookkeeping, mergers, budgetsC. Auditing, taxation, management consultingD. Cost accounting, production scheduling, recruiting12) The cost of an asset and its fair market value are __________.A. the same when the asset is soldB. never the sameC. irrelevant when the asset is used by the business in its operationsD. the same on the date of acquisition13) Sams Used Cars uses the specific identification method of costinginventory. During March, Sam purchased three cars for $6,000, $7,500,and $9,750, respectively. During March, two cars are sold for $9,000each. Sam determines that at March 31, the $9,750 car is still on hand.What is SamТs gross profit for March?A. $4,500B. $5,250C. $750D. $8,25014) A company just starting in business purchased three merchandiseinventory items at the following prices. First purchase $80; Secondpurchase $95; Third purchase $85. If the company sold two units for atotal of $240 and used FIFO costing, the gross profit for the periodwould be _____.
  5. 5. A. $75B. $65C. $60D. $5015) Lucy starts her own psychiatric practice, but her expenditures toopen the practice exceed her income. Lucy is a __________.A. saver who supplies money to the financial systemB. saver who demands money from the financial systemC. borrower who demands money from the financial systemD. borrower who supplies money to the financial system16) Which of the following statements about GDP is correct?A. Money continuously flows from households to government and thenback to households, and GDP measures this flow of money.B. GDP measures two things at once: the total income of everyone inthe economy and the unemployment rate.C. GDP is to a nationТs economy as household income is to ahousehold.D. GDP increases if the total population increases.17) A logical starting point from which the study of international tradebegins is __________.A. the recognition that government intervention in markets sometimesenhances the economic welfare of the societyB. the recognition that not all markets are competitiveC. the principle of absolute advantage
  6. 6. D. the principle of comparative advantage18) In computing GDP, market prices are used to value final goods andservices because __________.A. market prices do not change much over time, so it is easy to makecomparisons between yearsB. market prices reflect the values of goods and servicesC. if market prices are out of line with how people value goods, thegovernment sets price ceilings and price floorsD. Market prices are not used in computing GDP19) Maurice receives $100 as a birthday gift. In deciding how to spendthe money, he narrows his options down to four choices: Option A,Option B, Option C, and Option D. Each option costs $100. Finally hedecides on Option B. The opportunity cost of this decision is__________.A. the value to Maurice of Options A, C and D combinedB. $100C. $300D. the value to Maurice of the option he would have chosen had OptionB not been available20) To move the allocation of resources closer to the social optimum,policymakers should typically try to induce firms in an oligopoly to__________.A. form various degrees of cartelsB. compete rather than cooperate with each otherC. cooperate rather than compete with each otherD. collude with each other
  7. 7. 21) Resources are __________.A. plentiful for households but scarce for economiesB. scarce for households and scarce for economiesC. plentiful for households and plentiful for economiesD. scarce for households but plentiful for economies22) Many U.S. business leaders argue that the current state of U.S. netexports is the result of __________.A. free trade policies of foreign governments.B. unproductive U.S. workers.C. unfair foreign competition.D. U.S. export subsidies.23) The balance of payment account is made up of:A. an import account and an export account.B. an investment account and a consumption account.C. a monetary account and a fiscal account.D. a current account and a financial and capital account.24) Real GDP __________.A. evaluates current production at the prices that prevailed in somespecific year in the past.B. is not a valid measure of the economys performance, since priceschange from year to year.C. is a measure of the value of goods only; it excludes the value ofservices.
  8. 8. D. evaluates current production at current prices.25) The model of aggregate demand and aggregate supply explains therelationship between __________.A. unemployment and outputB. wages and employmentC. real GDP and the price levelD. the price and quantity of a particular good26) Edward Prescott and Finn Kydland won the Nobel Prize inEconomics in 2004. One of their contributions was to argue that if acentral bank could convince people to expect zero inflation, then the Fedwould be tempted to raise output by increasing inflation. This possibilityis known as __________.A. the monetary policy reaction lagB. the sacrifice ratio dilemmaC. the time inconsistency of policyD. inflation targeting27) Over the past two decades, the United States has __________.A. had trade deficits in about as many years as it has trade surpluses.B. persistently had a trade surplus.C. persistently had a trade deficit.D. generally had, or been very near to a trade balance.28) ABC International carefully watches the actions of its mostinnovative competitor and learns from them. ABC can establish a low-cost position by:
  9. 9. A. Producing an imitation of the new technology that utilizes lower-quality and lower-cost materialsB. Technology followers are not successful at low-cost strategiesC. Mass-producing products that have an established market nicheD. Making subtle changes to the product, thereby avoiding patentrestrictionsE. Learning from the leader thereby avoiding the costs and risks oftechnology leadership29) A leader is:A. The top level manager in a firm or businessB. Someone well-respected by othersC. Someone who influences others to attain goalsD. Someone with authority over othersE. A strategic level manager30) The pursuit of lucrative opportunities by enterprising individuals iscalled:A. IndependenceB. Social experimentationC. EntrepreneurshipD. IntrapreneurshipE. Business incubating31) A series of quality standards developed by a committee workingunder the International Organization for Standardization to improve totalquality in all businesses for the benefit of both producers and consumers
  10. 10. is:A. Just-in-time control (JIT)B. Customer-based integrationC. Computer-integrated manufacturing (CIM)D. Total quality managementE. ISO 900032) A managers ability to stimulate people to be high performers isreferred to as:A. OrganizingB. PlanningC. LeadingD. ControllingE. Supervising33) An invisible barrier that makes it difficult for certain groups, such asminorities and women, to move beyond a certain level in theorganizational hierarchy is referred to as the:A. Glass ceilingB. Black box theoryC. Job enrichment theoryD. Job enlargement conceptE. Glass floor34) The Aquatic Center, Inc. periodically reviews the goals of thecompany. During the process, The Aquatic Center managers analyze
  11. 11. their current strategies as compared to their competitors, determine goalsthat they will pursue and decide upon specific actions for each area ofthe company to take in pursuit of these goals. The Aquatic Centermanagers have been engaged in the management function of:A. PlanningB. OrganizingC. Goal CoordinationD. ControllingE. Staffing35) Which of these refers to the practices aimed at discovering andharnessing an organizations intellectual resources?A. Knowledge managementB. InnovationC. CompetitivenessD. EffectivenessE. Collaboration36) Which of these represent skills that managers need?A. Technical, interpersonal & communication and conceptual &decision makingB. Professional, technical and interpersonal & communicationC. Conceptual & decision making, professional and technicalD. Interpersonal, quantitative, and professionalE. Interpersonal & communication, conceptual & decision making andprofessional
  12. 12. 37) Teams that work on long-term projects but disband once the work iscompleted are known as:A. Management teamsB. Traditional work groupsC. Project and development teamsD. Transnational teamsE. Parallel teams38) Building a dynamic organization is another way of describing whichfunction of management?A. OrganizingB. LeadingC. ControllingD. StaffingE. Planning39) When a company establishes technology leadership by pioneeringunique products or services that command premium prices, it hasbenefited from a:A. High-price strategyB. Low-cost strategyC. Diversification strategyD. Differentiation strategyE. High-cost strategy40) The most dominant areas in the global economy include:
  13. 13. A. North America, Mexico and AsiaB. North America, South America and Western EuropeC. North America, Asia and AfricaD. Western Europe, Asia and AfricaE. North America, Western Europe and Asia41) Listening to employee suggestions, gaining support fororganizational objectives and fostering an atmosphere of teamwork areall considered:A. Interpersonal/communication skillsB. Diagnostic skillsC. Professional skillsD. ConceptualE. Technical skills42) Twelve randomly-chosen students were asked how many times theyhad missed class during a certain semester, with this result: 2, 1, 5, 1, 1,3, 4, 3, 1, 1, 5, 18.For this sample, the median is _____.A. 3.5B. 3C. 2D. 2.543) A poll showed that 48 out of 120 randomly chosen graduates ofCalifornia medical schools last year intended to specialize in familypractice. What is the width of a 90% confidence interval for the
  14. 14. proportion that plan to specialize in family practice?A. ± .00329B. ± .07357C. ± .04472D. ± .0876544) William used a sample of 68 U.S. cities to estimate the relationshipbetween Crime (annual property crimes per 100,000 persons) andIncome (median income per capita). His estimated regression equationwas + .050 Income.Which outcomes would be likely in a bivariate regression on 45randomly chosen U.S. cities in 2005 withof robberies in each city (thousands of robberies) andof police force in each city (thousands of police)?A. Positive slope (due to city size).B. High R2 (due to city size).C. Autocorrelation.D. No correlation.45) In a random sample of 810 women employees, it is found that 81would prefer working for a female boss. The width of the 95%confidence interval for the proportion of women who prefer a femaleboss is _____.A. ± .0196B. ± .0105C. ± .0288
  15. 15. D. ± .020746) Independent events A and B would be consistent with which of thefollowing statements:A. P (A) = .3, P (B) = .5, P (A B) = .4B. P (A) = .4, P (B) = .3, P (A B) = .5C. P (A) = .5, P (B) = .4, P (A B) = .3D. P (A) = .4, P (B) = .5, P (A B) = .247) Twelve randomly-chosen students were asked how many times theyhad missed class during a certain semester, with this result: 2, 1, 5, 1, 1,3, 4, 3, 1, 1, 5, 18.For this sample, the standard deviation is approximately _____.A. 3.03B. 4.55C. 4.75D. 3.7548) In lean systems, if a defective product is found, which of thefollowing is generally NOT done?A. The defective unit is passed on to the next workstation.B. The defective unit is returned to the worker responsible for creatingthe defect.C. The production line is made aware of the problem without stoppingthe line.D. The production line is stopped.49) In a network diagram, an activity:
  16. 16. A. is the smallest unit of work effort consuming both time andresources that a project manager can schedule and control.B. must always have a single, precise estimate for the time duration.C. should always be something the company has had experience with.D. is the largest unit of work effort consuming both time and resourcesthat a project manager can schedule and control.50) Which is not a tool of statistical quality control?A. Pareto chartB. Deming chartC. Attribute control chartD. Fishbone diagram51) A computer analysis reveals that the best-fitting trend model is e0.987 t. The trend was fitted using year-end common stock prices forMelodic Kortholt Outlet for the last six years. The R2 is 0.8571.If we fit a linear trend to data that are growing exponentially__________.A. at the end of year 3 the stock price would be nearly $80B. the absolute annual growth (in dollars per share) is increasingC. few investments could match the astounding growth rateD. the stocks true intrinsic value is $4.1252) The one-worker, multiple machines approach functions as:A. a production bottleneck.B. a way to create uniform workstation loads.
  17. 17. C. a poka-yoke device.D. a one-person production line.53) Zappos built the majority of its information systems using which ofthe following?A. Proprietary softwareB. Free softwareC. ConsultantsD. Open source softwareE. Vendor software54) Search engines and metasearch engines are examples of whichnetwork application?A. CommunicationsB. Web servicesC. Local Area NetworkD. CollaborationE. Discovery55) In the _____ phase of the decision making process, managers testpotential solutions Уon paper.ФA. choiceB. considerationC. implementationD. intelligenceE. design
  18. 18. 56) The costs of delivering products in the _____ channel are muchhigher than delivering products in the _____ channel.A. digital, e-commerceB. physical, digitalC. e-commerce, digitalD. physical, financialE. digital, physical57) _____ is the integration of economic, social, cultural, and ecologicalfacets of life, enabled by information.A. nationalizationB. business environmentC. regionalizationD. globalization58) Which of the following are not provided by digital dashboards?A. Transaction processingB. Exception reportingC. Drill downD. Key performance indicatorsE. Status access59) A company wants to use data from past promotional mailings toidentify people who would likely respond favorably to future mailings.This company would most likely use _____.A. multidimensional data analysis
  19. 19. B. data miningC. structured query languageD. expert systemsE. neural networks60) Credit card companies would most likely use which of the followingto check for fraudulent credit card use?A. Data miningB. Expert systemsC. Neural networksD. Multidimensional data analysisE. Structured query language61) Computer support is greatest for which of the following problems?A. Unstructured and operational controlB. Structured and management controlC. Semistructured and strategic planningD. Semistructured and management controlE. Structured and operational control62) International Game TechnologyТs new ERP system produced all ofthe following benefits except:A. Company was able to maintain its original business processesB. Operations employees were able to access manufacturing processdetails at their workstationsC. Integrated the companyТs business functions
  20. 20. D. The company gained flexibility in manufacturing productsE. ERP system connected the companyТs global operations63) Disadvantages of using current liabilities as opposed to long-termdebt include:A. uncertainty of future liabilitiesB. greater risk of illiquidity, and uncertainty of interest costsC. decreased risk of liquidityD. higher cash flow exposureE. certainty of interest costs64) Suppose you determine that the NPV of a project is $1,525,855.What does that mean?A. The project would add value to the firm.B. In all cases, investing in this project would be better than investingin a project that has an NPV of $850,000.C. Under all conditions, the projectТs payback would be less than theprofitability index.D. The projectТs IRR would have to be less that the firmТs discountrate.65) An increase in future value can be caused by an increase in the__________.A. starting valueB. annual interest rate and number of compounding periodsC. rate of returnD. original amount invested
  21. 21. E. dividends paid66) Dublin International CorporationТs marginal tax rate is 40%. It canissue 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. Theunderwriters will charge $23 per bond in flotation costs. Determine theapproximate after-tax cost of debt for Dublin International to use in acapital budgeting analysis.A. 6.0%B. 5.1%C. 8.5%D. 9.2%67) A stock with a beta greater than 1.0 has returns that are _____volatile than the market, and a stock with a beta of less than 1.0 exhibitsreturns which are _____ volatile than those of the market portfolio.A. more, lessB. more, moreC. less, moreD. less, less68) At 8% compounded annually, how long will it take $750 to double?A. 48 monthsB. 6.5 yearsC. 9 yearsD. 12 years69) Petrified Forest Skin Care, Inc. pays an annual perpetual dividend of$1.70 per share. If the stock is currently selling for $21.25 per share,
  22. 22. what is the expected rate of return on this stock?A. 12.5%B. 8.0%C. 13.6%D. 36.13%70) Exchange rate risk:A. applies only to certain types of domestic businesses.B. has been phased out due to recent international legislation.C. doesnТt affect trades made in US Dollars.D. arises from the fact that the spot exchange rate on a future date is arandom variable.71) According to the hedging principle, permanent assets should befinanced with _____ liabilities.A. spontaneousB. currentC. fixedD. permanent72) PepsiCo calculates unlevered betas for each peer group in order to:A. eliminate competitive factors.B. eliminate judgment factors.C. eliminate different financial risks.D. eliminate different business risks.
  23. 23. 73) If the quote for a forward exchange contract is greater than thecomputed price, the forward contract is:A. undervalued.B. a good buy.C. at equilibrium.D. overvalued.74) Bondholders have a priority claim on assets ahead of:A. shareholders.B. investorsC. creditors.D. common and preferred stockholders.75) The common stockholders are most concerned with:A. the size of the firmТs beginning earnings per share.B. the risk of the investment.C. the spread between the return generated on new investments and theinvestorТs required rate of return.D. the percentage of profits retained.76) Regarding organizational buying, the people who have the power toselect or approve the supplier--especially for larger purchases--arecalled:A. deciders.B. gatekeepers.C. influencers.
  24. 24. D. buyers.E. users.77) "Marketing strategy planning" means:A. finding attractive opportunities and selecting a target market.B. selecting an attractive marketing mix.C. finding attractive opportunities and developing profitable marketingstrategies.D. selecting an attractive target market.E. selecting a target market and developing a marketing strategy.78) A cluster analysis of the "toothpaste market" would probably showthat:A. most consumers are mainly concerned about brightness of teeth.B. different market segments seek different product benefits.C. the broad product-market can be served effectively with onemarketing mix.D. factors such as taste, price, and "sex appeal" are not important.E. most consumers are concerned about cost.79) When doing "positioning," a marketing manager should:A. focus on specific product features of all generic competitors.B. plan physical product changes rather than image changes.C. avoid targeting strategies.D. rely on how customers think about proposed and/or existing brandsin a market.
  25. 25. E. exclusively use focus groups.80) Economists economic-buyer theory assumes that __________.A. buyers logically compare choices in order to maximize theirsatisfactionB. consumers always make rational decisionsC. demographic data are very useful for predicting consumer behaviorD. consumers should purchase only low-priced productsE. consumers only want the cheapest price81) The managerial process of developing and maintaining a matchbetween the resources of an organization and its market opportunities iscalled:A. marketing programming.B. strategic (management) planning.C. management by objective.D. marketing strategy planning.E. market planning.82) When evaluating macro-marketing:A. the best approach is to consider the profit generated by individualfirms within the overall system.B. one must consider the societyТs role in the marketing system.C. the evaluation is necessarily subjective.D. one must determine how efficiently the societys resources are used.E. one must consider each individual firms role in the marketing
  26. 26. system.83) "Positioning":A. helps strategy planners see how customers view competitorsofferings.B. eliminates the need for judgment in strategy planning.C. applies to new products--but not existing products.D. is concerned with obtaining the best shelf space in retail outlets.E. is useful for combining but not for segmenting.84) Coca-Cola is taking advantage of the new willingness of Chineseleaders to engage in international trade by marketing its soft drinks inChina. What type of opportunity is Coke pursuing?A. diversificationB. test marketingC. market developmentD. product developmentE. market penetration85) In comparison to the buying of final consumers, the purchasing oforganizational buyers:A. is always based on competitive bids from multiple suppliers.B. is always emotional.C. is strictly economic and not at all emotional.D. leans basically toward economy, quality, and dependability.E. is even less predictable.
  27. 27. 86) The basic objective of the U.S. market-directed economic system isto:A. satisfy consumer needs as they--the consumers--see them.B. minimize inflation.C. achieve an annual growth rate of at least 10 percent.D. provide each person with an equal share of the economic output.E. make the most efficient use of the countrys resources.87) The clustering techniques that can be used in segmenting:A. group people together into heterogeneous product-market segments.B. eliminate the need for management intuition and judgment.C. group people together based on age.D. try to find similar patterns within sets of data.E. looks for differences between groups of people.88) Which of the following terms need not be disclosed under Truth-in-Lending Act?A. The cash price of the product.B. The annual percentage rate (APR).C. The total finance charge.D. The terms available from competitors.E. Amount of payments.89) The tort of intentional interference with contractual relationsrequires the following except:A. Third-party knowledge of this contract.
  28. 28. B. A valid, enforceable contract between the contracting parties.C. A new contract involving the third party who induced the breach.D. Third-party inducement to breach the contract.90) Which of the following is correct about litigating commercialdisputes?A. Commercial disputes, because of their specialized nature, are firstheard at the appellate court level.B. Nearly all states have specialized trial courts that hear commercialdisputes.C. Businesses generally dislike the concept of specialized trail courtsfor commercial disputes because the large numbers of consumers whosue businesses in these courts have led the judges to become generallybiased against business.D. A few states have established specialized trial courts for commercialdisputes.E. In all states, commercial disputes must be heard in a limited-jurisdiction court.91) Which of the following activities by an administrative agencyrequires public notice and participation?A. Substantive rule making and interpretive rule making only.B. Substantive rule making only.C. Statements of policy only.D. Substantive rule making and statements of policy only.E. Substantive rule making, interpretive rule making, and statements ofpolicy.92) What type of commercial speech did the U.S. Supreme Court say
  29. 29. was protected in the Greater New Orleans Broadcasting Association,Inc. v. United States case?A. Obscene speech.B. Information on gambling and lotteries.C. Information on how to build a bomb.D. Information about child pornography.93) Which of the following lists, in descending priority, of sourcesconsidered by most courts in settling questions of international law?A. Treaties, customs, general principles of law, judicial decisions andteachingsB. Conventions, comity, customs, general principles of lawC. Treaties, customs, conventions, comityD. Conventions, treaties, comity, customsE. Treaties, customs, conventions, comity94) Information which comes to the knowledge of an agent is:A. Is imputed to the principal.B. Can be disclosed to the principal only with the third partyТsconsent.C. Will result in termination of the agency arrangement if it is notcommunicated to the principal.D. Required to be communicated to the principal in all circumstances.95) A professional corporation is one that:A. Has been in existence long enough to reasonably assure that it willbe profitable in the near future.
  30. 30. B. Is typically used as a form of doing business by doctors and lawyers.C. Does not have shareholders.D. Is formed with the assistance of a lawyer.96) What makes a publicly held corporation different from a publiccorporation?A. A publicly held corporation is entitled to limited liability, but apublic corporation is not.B. A publicly held corporation must have a charitable purpose, but apublic corporation need not have a charitable purpose.C. They are two terms that have the same meaning.D. A publicly held corporation has many shareholders rather than beinga corporation owned by a governmental entity.97) A Уclosely held corporationФ is a corporation that is owned by:A. The government.B. A few shareholders, usually family members.C. A nonprofit organization.D. A large number of members of the public.98) One study found that manufacturing labor costs about _____ an hourin China, compared to _____ dollars in the United States.A. About $2; about 15B. $2; about 25C. Less than $1; about 15D. Less than $1; about 40
  31. 31. E. Less than $1; about 2599) Which country does the text describe as becoming the largestproducer and consumer of many of the worlds goods?A. CanadaB. ChinaC. JapanD. EcuadorE. Mexico100) Although the U.S. has had a longstanding agreement with _____after the passage of NAFTA, _____ became the United States secondlargest trading partner.A. Canada, MexicoB. Mexico, VenezuelaC. Canada, VenezuelaD. Great Britain, ParaguayE. Mexico, Canada

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