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1. BUS 475 Final Exam Guide
4
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2. BUS 475 Final Exam Guide 4
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
To enter the net income (or loss) for the period into the above worksheet
requires an entry to the __________.
2) Multinational corporations __________.
3) Balance sheet accounts are considered to be __________.
4) What is value chain management best defined as?
5) The primary purpose of the statement of cash flows is to __________.
6) In what situations will a static budget be most effective in evaluating a
manager's effectiveness?
8) 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?
9) Of the following companies, which one would not likely employ the specific
identification method for inventory costing?
11) Disney’s variable costs are 30% of sales. The company is contemplating an
advertising campaign that will cost $22,000. If sales are expected to increase
$40,000, by how much will the company's net income increase?
12) The cost principle requires that when assets are acquired, they be recorded
at __________.
13) Which one of the following items is not generally used in preparing a
statement of cash flows?
14) Managerial accounting __________.
15) A logical starting point from which the study of international trade begins
is __________.
16) Without trade, __________.
17) 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 __________.
18) To move the allocation of resources closer to the social optimum,
policymakers should typically try to induce firms in an oligopoly to __________.
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) If a price ceiling is a binding constraint on the market, __________.
21) A tax on an imported good is called a __________.
22) The political business cycle refers to __________.
23) Real GDP __________.
24) The model of short-run economic fluctuations focuses on the price level and
__________.
25) In the market for foreign-currency exchange in the open economy
macroeconomic model, the amount of net capital outflow represents the quantity
of dollars __________.
26) The open-economy macroeconomic model examines the determination of
__________.
27) The balance of payment account is made up of:
28) To be competitive in a global economy, Europeans must increase their level
of:

3. 29) Which of these refers to the practices aimed at discovering and harnessing
an organization's intellectual resources?
30) ABC International carefully watches the actions of its most innovative
competitor and learns from them. ABC can establish a low-cost position by:
31) The best way for an employer to find out if a potential employee can do a
job is by __________.
32) A manager's ability to stimulate people to be high performers is referred to
as:
33) One of the most important contributors to total quality management has been
the introduction of statistical tools to analyze the causes of product defects
in an approach called:
34) The pursuit of lucrative opportunities by enterprising individuals is
called:
35) Listening to employee suggestions, gaining support for organizational
objectives and fostering an atmosphere of teamwork are all considered:
36) Managers will utilize __________ skills with increasing frequency as they
rise within an organization.
37) As related to managing of human resources, diversity refers to:
38) 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:
39) 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?
40) Which of these represent skills that managers need?
41) The basic components of an effective sexual harassment policy include the
following EXCEPT:
42) Which of the following statements is true?
43) 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 a left-tailed test at = .05 we would __________.
44) A poll showed that 48 out of 120 randomly chosen graduates of California
medical schools last year intended to specialize in family practice. What is the
width of a 90% confidence interval for the proportion that plan to specialize in
family practice? A. ± .07357
45) Use the following table to answer question:
P(S | W) is approximately _____.
46) 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?
47) In a right-tail test, a statistician came up with a z test statistic of
1.469. What is the p-value?
48) In lean systems, if a defective product is found, which of the following is
generally NOT done?
49) A computer analysis reveals that the best-fitting trend model is Yt = 4.12 e
0.987 t. The trend was fitted using year-end common stock prices for Melodic
Kortholt Outlet for the last six years. The R2 is 0.8571.
Which conclusion is not correct?
50) In statistical process control a p-chart could __________.
52) Which one of the following statements about managerial inputs to production
and staffing plans is best?
53) The costs of delivering products in the _____ channel are much higher than
delivering products in the _____ channel.
54) _____ is the integration of economic, social, cultural, and ecological
facets of life, enabled by information.
55) Which of the following statements is correct?
56) In the _____ phase of the decision making process, managers test potential
solutions “on paper.”
57) Which of the following is NOT an advantage of the buy option for acquiring
IS applications?
58) Which of the following is not a reason that managers need IT support?

4. 59) _____ is a process that helps organizations identify, select, organize,
disseminate, transfer, and apply expertise that are part of the organization’s
memory and typically reside inside the organization in an unstructured manner.
60) Information-based industries are most susceptible to which one of Porter’s
five forces?
61) _____ is the acquisition and efficient use of resources in accomplishing
organizational goals.
62) _____ is the efficient and effective execution of specific tasks.
63) Disadvantages of using current liabilities as opposed to long-term debt
include:
64) Bondholders have a priority claim on assets ahead of:
65) Which of the following best represents operating income?
66) Which of the following is most consistent with the hedging principle in
working capital management?
67) PepsiCo calculates unlevered betas for each peer group in order to:
68) 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 exhibits returns which
are _____ volatile than those of the market portfolio.
69) The common stockholders are most concerned with:
70) An increase in future value can be caused by an increase in the __________.
71) 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
72) 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, what is the
expected rate of return on this stock?
73) Exchange rate risk:
74) If the quote for a forward exchange contract is greater than the computed
price, the forward contract is:
75) Which of the following best represents the stream of income that is
available to common stockholders?
76) The statement, "Of course people will buy our product--each of its features
is better than the competition," most closely reflects which consumer behavior
concept?
77) A firm's "marketing mix" decision areas would NOT include:
78) Clustering techniques applied to segmenting markets __________.
79) The "four Ps" of a marketing mix are:
80) The managerial process of developing and maintaining a match between the
resources of an organization and its market opportunities is called:
81) The economists' view of buyers:
82) __________ is a marketing management aid which refers to how customers think
about proposed and/or present brands in a market.
83) In comparison to the buying of final consumers, the purchasing of
organizational buyers:
84) Regarding organizational buying, the people who have the power to select or
approve the supplier--especially for larger purchases--are called:
85) An Australian wine producer, facing declining sales at home, set up a new
channel of distribution to sell wine in the United States. This seems to be an
effort at:
86) The three basic tasks of ALL managers, according to the text, are:
87) The managerial process of developing and maintaining a match between the
resources of an organization and its market opportunities is called:
88) Which of the following is correct about interpretive rules?
89) To be guilty of monopolization, the defendant must:
90) The tort of intentional interference with contractual relations requires the
following except:
91) The tort of palming off involves:
92) Which of the following is correct about litigating commercial disputes?
93) An agent’s duty of notification can best be described as a duty to:
94) Which of the following statements is true regarding the relationship of law
and ethics?
95) Which of the following is true about “proof of claims?”
96) An agent’s obligation to perform in accordance with the terms of the agency
arrangement is the agent’s duty of:

5. 97) Which social responsibility theory has been advocated by Novel Prizewinning
economist Milton Friedman?
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.