Why I Hunt Stalking wild game in a rugged landscape brings one environmentalist closer to nature. by Rick Bass I was a hunter before I came far up into northwest Montana, but not to the degree I am now. It astounds me sometimes to step back, particularly at the end of autumn, the end of the hunting season, and take both mental and physical inventory of all that was hunted and all that was gathered from this life in the mountains. The woodshed groaning tight, full of firewood. The fruits and herbs and vegetables from the garden, canned or dried or frozen; the wild mushrooms, huckleberries, thimbleberries, and strawberries. And most precious of all, the flesh of the wild things that share with us these mountains and the plains to the east--the elk, the whitetail and mule deer; the ducks and geese, grouse and pheasant and Hungarian partridge and dove and chukar and wild turkey; the trout and whitefish. Each year the cumulative bounty seems unbelievable. What heaven is this into which we’ve fallen? How my wife and I got to this valley--the Yaak--15 years ago is a mystery, a move that I’ve only recently come to accept as having been inevitable. We got in the truck one day feeling strangely restless in Mississippi, and we drove. What did I know? Only that I missed the West’s terrain of space. Young and healthy, and not coincidentally new-in-love, we hit that huge and rugged landscape in full stride. We drove north until we ran out of country--until the road ended, and we reached Canada’s thick blue woods--and then we turned west and traveled until we ran almost out of mountains: the backside of the Rockies, to the wet, west-slope rainforest. We came over a little mountain pass--it was August and winter was already fast approaching--and looked down on the soft hills, the dense purples of the spruce and fir forests, the ivory crests of the ice-capped peaks, and the slender ribbons of gray thread rising from the chimneys of the few cabins nudged close to the winding river below, and we fell in love with the Yaak Valley and the hard-logged Kootenai National Forest--the way people in movies fall with each other, star and starlet, as if a trap door has been pulled out from beneath them: tumbling through the air, arms windmilling furiously, and suddenly no other world but each other, no other world but this one, and eyes for no one, or no place, else. Right from the beginning, I could see that there was extraordinary bounty in this low-elevation forest, resting as it does in a magical seam between the Pacific Northwest and the northern Rockies. Some landscapes these days have been reduced to nothing but dandelions and fire ants, knapweed and thistle, where the only remaining wildlife are sparrows, squirrels, and starlings. In the blessed Yaak, however, not a single mammal has gone extinct since the end of the Ice Age. This forest sustains more types of hunters--carnivores--than any valley in North America. It is a predator’s showcase, home not just to wo.

1. Why I Hunt
Stalking wild game in a rugged landscape brings one
environmentalist closer to nature.
by Rick Bass
I was a hunter before I came far up into northwest Montana, but
not to the degree I am now. It astounds me sometimes to step
back, particularly at the end of autumn, the end of the hunting
season, and take both mental and physical inventory of all that
was hunted and all that was gathered from this life in the
mountains. The woodshed groaning tight, full of firewood. The
fruits and herbs and vegetables from the garden, canned or dried
or frozen; the wild mushrooms, huckleberries, thimbleberries,
and strawberries. And most precious of all, the flesh of the wild
things that share with us these mountains and the plains to the
east--the elk, the whitetail and mule deer; the ducks and geese,
grouse and pheasant and Hungarian partridge and dove and
chukar and wild turkey; the trout and whitefish. Each year the
cumulative bounty seems unbelievable. What heaven is this into
which we’ve fallen?
How my wife and I got to this valley--the Yaak--15 years ago is
a mystery, a move that I’ve only recently come to accept as
having been inevitable. We got in the truck one day feeling
strangely restless in Mississippi, and we drove. What did I
know? Only that I missed the West’s terrain of space. Young
and healthy, and not coincidentally new-in-love, we hit that
huge and rugged landscape in full stride. We drove north until
we ran out of country--until the road ended, and we reached
Canada’s thick blue woods--and then we turned west and
traveled until we ran almost out of mountains: the backside of
the Rockies, to the wet, west-slope rainforest.
We came over a little mountain pass--it was August and winter
was already fast approaching--and looked down on the soft
hills, the dense purples of the spruce and fir forests, the ivory

2. crests of the ice-capped peaks, and the slender ribbons of gray
thread rising from the chimneys of the few cabins nudged close
to the winding river below, and we fell in love with the Yaak
Valley and the hard-logged Kootenai National Forest--the way
people in movies fall with each other, star and starlet, as if a
trap door has been pulled out from beneath them: tumbling
through the air, arms windmilling furiously, and suddenly no
other world but each other, no other world but this one, and
eyes for no one, or no place, else.
Right from the beginning, I could see that there was
extraordinary bounty in this low-elevation forest, resting as it
does in a magical seam between the Pacific Northwest and the
northern Rockies. Some landscapes these days have been
reduced to nothing but dandelions and fire ants, knapweed and
thistle, where the only remaining wildlife are sparrows,
squirrels, and starlings. In the blessed Yaak, however, not a
single mammal has gone extinct since the end of the Ice Age.
This forest sustains more types of hunters--carnivores--than any
valley in North America. It is a predator’s showcase, home not
just to wolves and grizzlies, but wolverines, lynx, bobcat,
marten, fisher, black bear, mountain lion, golden eagle, bald
eagle, coyote, fox, weasel. In the Yaak, everything is in motion,
either seeking its quarry, or seeking to avoid becoming quarry.
The people who have chosen to live in this remote valley--few
phones, very little electricity, and long, dark winters--possess a
hardness and a dreaminess both. They--we--can live a life of
deprivation, and yet are willing to enter the comfort of
daydreams and imagination.There is something mysterious
happening here between the landscape and the people, a thing
that stimulates our imagination, and causes many of us to set off
deep into the woods in search of the unknown, and sustenance--
not just metaphorical or spiritual sustenance, but the real thing.
Only about 5 percent of the nation and 15 to 20 percent of
Montanans are hunters. But in this one valley, almost everyone
is a hunter. It is not the peer pressure of the local culture that
recruits us into hunting, nor even necessarily the economic boon

3. of a few hundred pounds of meat in a cash-poor society. Rather,
it is the terrain itself, and one’s gradual integration into it, that
summons the hunter. Nearly everyone who has lived here for
any length of time has ended up--sometimes almost against
one’s conscious wishes--becoming a hunter. This wild and
powerful landscape sculpts us like clay. I don’t find such
sculpting an affront to the human spirit, but instead, wonderful
testimony to our pliability, our ability to adapt to a place.
I myself love to hunt the deer, the elk, and the grouse--to follow
them into the mouth of the forest, to disappear in their pursuit--
to get lost following their snowy tracks up one mountain and
down the next. One sets out after one’s quarry with senses fully
engaged, wildly alert: entranced, nearly hypnotized. The tiniest
of factors can possess the largest significance--the crack of a
twig, the shift of a breeze, a single stray hair caught on a piece
of bark, a fresh-bent blade of grass.
Each year during such pursuits, I am struck more and more by
the conceit that people in a hunter-gatherer culture might have
richer imaginations than those who dwell more fully in an
agricultural or even post-agricultural environment. What else is
the hunt but a stirring of the imagination, with the quarry, or
goal, or treasure lying just around the corner or over the next
rise? A hunter’s imagination has no choice but to become
deeply engaged, for it is never the hunter who is in control, but
always the hunted, in that the prey directs the predator’s
movements.
The hunted shapes the hunter; the pursuit and evasion of
predator and prey are but shadows of the same desire. The
thrush wants to remain a thrush. The goshawk wants to consume
the thrush and in doing so, partly become the thrush--to take its
flesh into its flesh. They weave through the tangled branches of
the forest, zigging and zagging, the goshawk right on the
thrush’s tail, like a shadow. Or perhaps it is the thrush that is
the shadow thrown by the light of the goshawk’s fiery desire.
Either way, the escape maneuvers of the thrush help carve and
shape and direct the muscles of the goshawk. Even when you

4. are walking through the woods seeing nothing but trees, you can
feel the unseen passage of pursuits that might have occurred
earlier that morning, precisely where you are standing--pursuits
that will doubtless, after you are gone, sweep right back across
that same spot again and again.
As does the goshawk, so too do human hunters imagine where
their prey might be, or where it might go. They follow tracks
hinting at not only distance and direction traveled, but also pace
and gait and the general state of mind of the animal that is
evading them. They plead to the mountain to deliver to them a
deer, an elk. They imagine and hope that they are moving
toward their goal of obtaining game.
When you plant a row of corn, there is not so much unknown.
You can be fairly sure that, if the rains come, the corn is going
to sprout. The corn is not seeking to elude you. But when you
step into the woods, looking for a deer--well, there’s nothing in
your mind, or in your blood, or in the world, but imagination.
Most Americans neither hunt nor gather nor even grow their
own food, nor make, with their own hands, any of their other
necessities. In this post-agricultural society, too often we
confuse anticipation with imagination. When we wander down
the aisle of the supermarket searching for a chunk of frozen
chicken, or cruise into Dillard’s department store looking for a
sweater, we can be fairly confident that grayish wad of chicken
or that sweater is going to be there, thanks to the vigor and
efficiency of a supply-and-demand marketplace. The
imagination never quite hits second gear. Does the imagination
atrophy, from such chronic inactivity? I suspect that it does.
All I know is that hunting--beyond being a thing I like to do--
helps keep my imagination vital. I would hope never to be so
blind as to offer it as prescription; I offer it only as testimony to
my love of the landscape where I live--a place that is still,
against all odds, its own place, quite unlike any other. I don’t
think I would be able to sustain myself as a dreamer in this
strange landscape if I did not take off three months each year to
wander the mountains in search of game; to hunt, stretching and

5. exercising not just my imagination, but my spirit. And to
wander the mountains, too, in all the other seasons. And to be
nourished by the river of spirit that flows, shifting and winding,
between me and the land.
Rick Bass is author of 16 books, including the novel Where the
Sea Used to Be and the essay collection The Book of Yaak.
Next spring Houghton Mifflin will publish a new volume of his
fiction, The Hermit’s Story. He is a member of the Yaak Valley
Forest Council, which seeks to protect the last roadless areas in
the Kootenai National Forest. For more information, contact the
group at 918 Idaho PMB #220, Libby, MT 59935; (406) 295-
9736.
BUS 475 Capstone Final Examination Part 2
1. Which of the following is the most important factor that
affects a firm's financing mix?
a) The predictability of cash flows
b) the number of shares that are outstanding
c) The amount of EPS
d) the amount of operating income
2. When an accountant makes an adjusting entry for accrued
expenses, which statement best reflects what the accounts look
like before the adjustment?
a) Assets overstated; expenses understated
b) Assets understated; revenues understated
c) Expenses understated; liabilities understated
d) Liabilities overstated; revenues understated
3. Which account will have a zero balance after a company has
journalized and posted closing entries?
a) Accumulated Depreciation
b) Prepaid Insurance
c) Service Revenue
d) Supplies
4. A __________ is an articulation of a simple criterion or

6. characterization of what the leader sees the company must
become to establish and sustain global leadership.
a) Mission
b) leader's principle
c) leader's vision
d) strategic intent
5. The market opportunities most relevant to a particular
company are those that
a) Offer the best growth and profitability.
b) Provide avenues for taking market share away from close
rivals.
c) Hold the most potential for product innovation.
d) Provide a strong defense against threats to the company's
profitability..
6. Internal control is used in a business to enhance the accuracy
and reliability of its accounting records and to
a) Analyze financial statements.
b) Create a system of audit review.
c) Safeguard its assets.
d) Protect investments by the public.
7. What principle dictates that efforts (expenses) be recorded
with results (revenues)?
a) Periodicity principle
b) Expense recognition principle
c) Cost principle
d) Revenue recognition principle
8. The Oviedo Thespians are planning to present performances
of their Florida Revue on two consecutive nights in January. It
will cost them $5,000 per night for theater rental, event
insurance, and professional musicians. The theater will also
take 10% of gross ticket sales. How many tickets must they sell
at $10.00 per ticket to break even?
a) 1,223 tickets
b) 1,112 tickets
c) 1000 tickets
d) There is not enough information.

7. 9. Which of the four basic financial statements adds net income
and subtracts dividends to arrive at its key data element at the
end of each period?
a) Balance Statement
b) Retained Earnings Statement
c) Income Statement
d) Statement of Cash Flows
10. H&R Block wants to analyze its clients’ tax returns over the
past 10 years for each of the client’s tax filings. The type of
data generated will be ______________.
a) time series data
b) observation data
c) meta data
d) cross-sectional data
11. A distribution center for a chain of electronics supply stores
fills and ships orders to retail outlets. A random sample of
orders is selected as they are received and the dollar amount of
the order (in thousands of dollars) is recorded, and then the time
(in hours) required to fill the order and have it ready for
shipping is determined. A scatterplot showing the times as the
response variable and the dollar amounts (in thousands of
dollars) as the predictor shows a linear trend. The least squares
regression line is determined to be: yˆ= 0.76 +1.8x. A plot of
the residuals versus the dollar amounts showed no pattern, and
the following values were reported: Correlation r + 0.90; R 2 =
0.81; standard deviation of the residuals is 0.48. What
percentage of the variation in the times required to prepare an
order for shipping is accounted for by the fitted line?
a) 48%
b) 81%
c) 90%
d) 76%
12. National Printing Equipment (NPE) produces equipment that
helps to print newspapers and magazines. The company sells
directly to printers and through wholesalers. Its salespeople
negotiate prices with individual customers and often have to

8. match competitors' prices. NPE has a new product, the
Gutenberg NP201, with some competitive advantages now, but
competitors are expected to follow quickly with similar
products. The new product is being introduced into a market
with elastic demand. In regard to freight charges for its
equipment, NPE's invoice reads, "Seller pays the cost of loading
equipment onto a common carrier. At the point of loading, title
to such products passes to the buyer, who assumes
responsibility for damage in transit, except as covered by the
transportation agency."
National Printing Equipment's new Gutenberg NP201 should
probably use ________________.
a) introductory pricing
b) price fixing
c) penetration pricing
d) skimming pricing
13. __________ is the intentional coordination of every
communication from a firm to a target customer to convey a
consistent and complete message.
a) Integrated marketing communications
b) Online marketing
c) Product positioning
d) Digital marketing
14. Identifying and assessing a company's resource strengths
and weaknesses and its external opportunities and threats is
called a __________________.
a) strategic resource assessment
b) competitive asset/liability analysis
c) SWOT analysis
d) competitive positioning analysis
15. Suppose Stock A has had a mean price of $6.58 per share
with a standard deviation of $1.88, while Stock B has had a
mean price of $10.57 per share with a standard deviation of
$3.02. Which stock shows a higher coefficient of variation or
volatility?
a) Stock B

9. b) Stock A
c) Both stocks have the same coefficient of variation.
d) The coefficients are incomparable.
16. Which of the following will decrease the nominal deficit?
a) An increase in the debt
b) An increase in interest rates
c) An increase in government expenditures
d) An increase in taxes
17. When predicting grade point average from the number of
hours spent studying per week, the equation for the best fit line
was found to be yˆ = 0.0855x + 0.944. What is the predicted
grade point average of a student that studies 26 hours per week?
a) 25
b) 2.99
c) 3.17
d) 24.63
18. The main reason that vertical marketing systems are
becoming more common is that
a) Firms increasingly understand that competition among
channel members is profitable.
b) It is easy for multiple firms to coordinate a single marketing
mix for a common target market.
c) Firms realize that working independently has advantages for
channel members.
d) Firms recognize that coordination among channel members
can increase sales for each channel member.
19. The appropriate alternative hypothesis for a two-tail test to
determine if mean body weight of all the men who have joined a
health club is the same as 185 pounds would be
a) Ho: µ = 185 lbs.
b) Ho: µ? 185 lbs.
c) Ho: µ > 185 lbs.
d) Ho: µ = 185 lbs.
20. Segmenting, in contrast to combining,
a) Usually means settling for a smaller sales potential.
b) Tends to focus more on customer similarities than on

10. differences.
c) Relies more on promotion appeals and minor product
differences to create general customer appeal among several
submarkets.
d) Tries to identify homogeneous submarkets and develop
different marketing mixes for each submarket.
21. Which of the following statements about ethical behavior in
business is true?
a) The legal environment sets the minimum standards of ethical
behavior.
b) The legal environment sets the highest standards of ethical
behavior.
c) The legal environment sets the maximum standards of ethical
behavior.
d) The legal environment sets the normative standards of ethical
behavior.
22. What is the present value of $12,500 to be received 10 years
from today? Assume a discount rate of 8% compounded
annually and round to the nearest $10.
a) $5,790
b) $17,010
c) $9,210
d) $11,574
23. The following is an example of an unethical action
committed by ABC, Inc.’s accountant, Fred Anderson.
a) Anderson records income using the cash basis of accounting,
contrary to GAAP.
b) Anderson causes $200 in ABC, Inc. merchandise to be
shipped to him for free.
c) Anderson’s recording of amortization is audited by an
independent auditor.
d) Anderson’s supervisor asks him to inflate income for the
current period to make the company appear more profitable.
24. A survey of 134 cell phone users yielded the data found in
the table below. The table compares gender and type of phone.
iPhone Non-iPhone Total

11. Male 57 23 80
Female 36 18 54
Total 93 41 134
If a customer is randomly selected based on this survey data,
what is the probability that the customer is a female with an
iPhone? (Round your answer to 3 decimal places).
a) 0.269
b) 0.481
c) 0.333
d) 0.387
25. The overriding goal of a control system is to enable the
__________ and __________ of the business.
a) process, development
b) survival, long-term success
c) invention, entrepreneurship
d) improvement, diversification
26. One reason for international investment is that
a) Raw materials are typically cheaper in other countries than in
the U.S.
b) The economies of many countries are growing faster than that
of the U.S.
c) Doing business in foreign countries is simpler than in the
U.S.
d) price-earnings (P/E) ratios are higher in foreign countries
27. If XYZ Co. had 100 units of beginning inventory valued at
$15 per unit in January, purchased an additional 100 units of
inventory in February at $16 per unit, and additional 100 units
of inventory in May at $19 per unit, what would the unit cost of
ending inventory be under each of the three inventory methods
(assuming that XYZ only sold 79 units during this time frame)?
a) $15 under FIFO, $19 under LIFO, $16.6 under average cost
b) $19 under FIFO, $15 under LIFO, $17 under average cost
c) $19 under FIFO, $15 under LIFO, $16.6 under average cost
d) $15 under FIFO, $19 under LIFO, $17 under average cost
28. P. Noel's Inc.'s current ratio is 2. Current liabilities are
$500,000. P. Noel's current assets equal __________ and net

12. working capital is __________.
a) $500,000 and $1,000,000
b) $1,000,000 and $500,000
c) $500,000 and $250,000
d) $500,000 and $500,000
29. The DMAIC (define, measure, analyze, improve, control)
process is relevant to
a) CCC21.
b) Six Sigma.
c) Balanced scorecard.
d) Strategic matrix analysis.
30. A correlation value of r = 0.5 between the x-variable and y-
variable means
a) There is no linear relationship between x and y.
b) There is a moderate positive linear relationship between x
and y.
c) There is a strong positive linear relationship between x and y.
d) There is no relationship between x and y.
31. Cargill, Inc. is finally earning a profit on the unique product
it introduced 6 months ago. Cargill's advertising is both
informative and persuasive. Much money is being spent on
place development. There is little price competition, although
several competitors have come out with reasonable imitations.
Total industry sales and profits are both rising. In which stage
of the product life cycle is Cargill operating?
a) Market introduction
b) Market maturity
c) Sales decline
d) Market growth
32. Under the percentage of receivables method, the allowance
for a doubtful accounts balance will occasionally have a debit
balance due to write-offs that occur during the year, which
exceed the previous provisions for bad debts. In such cases,
what must a company do to this account?
a) Make an adjusting entry by subtracting the debit balance
from the required balance.

13. b) Allow the debit balance to carry over to future periods.
c) Create a second allowance for doubtful accounts balance with
a credit balance.
d) Make an adjusting entry by adding the debit balance to the
required balance.
33. If a country's trade deficit increases, then
a) It must be buying more assets from foreigners.
b) Its consumption must be falling relative to its production.
c) It must be selling fewer assets to foreigners.
d) Its consumption must be rising relative to its production.
34. In horizontal analysis, each item is expressed as a
percentage of the following:
a) Net income amount
b) Total assets amount
c) Stockholders’ equity amount
d) Base year amount
35. Which of the following financial instruments entails the
most risk and potentially the highest returns for investors?
a) Preferred stock
b) Bonds
c) Debt with a maturity of less than 1 year
d) Common stock
36. Strategic management involves the _________, directing,
_________ and controlling of a company's strategy-related
decisions and actions.
a) marketing; planning
b) financing; marketing
c) planning; organizing
d) planning; financing
37. Mitch Company’s ending inventory is understated by
$4,000. The effects of this error on the current year’s cost of
goods sold and net income, respectively, are
a) Overstated and overstated.
b) Understated and understated.
c) Understated and overstated.
d) Overstated and understated.

14. 38. In the stockholders equity section of the balance sheet, the
cost of treasure stock is deducted from the following:
a) Total stockholders’ equity
b) Common stock in paid-in capital
c) Retained earnings
d) Total paid-in capital and retained earnings
39. Which of the following statements best describes the
modern view of marketing?
a) Marketing anticipates customer needs.
b) Marketing begins as soon as products are produced.
c) Marketing consists mainly of advertising and personal
selling.
d) Marketing is only necessary for profit-oriented firms.
40. Penn Corp. acquired a truck to haul widgets between its
manufacturing facility and its sales offices. Penn acquired the
truck for $55,000. Penn sold the truck years later for $15,000.
Before the year of the sale, Penn had depreciated the asset by
$32,000. Penn depreciated the truck by another $2,000 during
the year it was sold. Does Penn record gain or loss on the sale
and how much?
a) Loss of $19,000
b) Loss of $17,000
c) Gain of $8,000
d) Gain of $6,000
41. Organizational requirements to support and sustain
differentiation activities include which of the following:
a) frequent, detailed control reports
b) tradition of closeness to key customers
c) incentives based on meeting strict, quantitative targets
d) structured organization and responsibilities
42. In what situations are notes payable used in lieu of accounts
payable?
a) To provide short-term financing, for collection of debt
purposes, and to pay off the debt quicker
b) To create better credit, incur liability over a shorter time
frame, and acquire additional financing for different lines of

15. business
c) To give the lender formal proof of the obligation, for
collection of debt purposes, and to require the borrower to pay
interest
d) Because other financing is not available, to facilitate
business relationship with other companies, and to improve
goodwill
43. Metals Corp. has $2,575,000 of debt, $550,000 of preferred
stock, and $18,125,000 of common equity. Metals Corp.'s after-
tax cost of debt is 5.25%, preferred stock has a cost of 6.35%,
and newly issued common stock has a cost of 14.05%. What is
Metals Corp.'s weighted average cost of capital?
a) 8.32%
b) 12.78%
c) 10.84%
d) 6.56%
44. Ethnic markets are becoming more important to marketers
because
a) The median age of Asian, African, and Hispanic Americans is
much higher than that of White Americans.
b) The buying power of ethnic submarkets is decreasing.
c) The number of ethnic consumers is growing at a much faster
rate than the overall society
d) They make a clear segment with similar backgrounds and
common language, religion, and culture.
45. Woodstock Inc. expects to own a building for 5 years, and
then sell it for $1,500,000 net of taxes, sales commissions, and
other selling costs. Woodstock's cost of capital is 11%. How
much will the sale of the building contribute to the NPV of the
project?
a) $890,177
b) $1,500,000
c) $2,527,587
d) $1,351,351
46. To decrease the nation's money supply, the Fed can
a) Decrease reserve requirements.

16. b) Increase reserve requirement.
c) Buy government securities in the open market.
d) Decrease the discount rate.
47. To arrive at net cash provided by operating activities, the
statement of cash flows prepared by the indirect method starts
with net income and then adds or deducts various items. In
making this calculation, the following items are added to net
income under the indirect method:
a) Depreciation expense, gain on the sale of plant assets, and
increase in current liability account
b) Patent amortization expense, increase in current asset
account, and decease in current asset account
c) Gain on the sale of plant asset, increate in current asset
account, and decrease in current liability account
d) Depletion expense, loss on the sale of plant assets, and patent
amortization expense
48. Organizational requirements to support and sustain cost
leadership are
a) Tradition of closeness to key customers.
b) Some personnel skilled in sales and operations.
c) Frequent, detained control reports.
d) Subjective measurements and incentives.
49. A random sample of 81 team leaders and supervisors from
Fortune 500 companies revealed that on average a person spent
6.5 years on the job before being promoted. The standard
deviation of the sample was 1.7 years. Assuming that the
population standard deviation is unknown, the 99% confidence
interval within which the population mean lies is approximately
between ___________ and _________years.
a) 6 and 7
b) 5.5 and 6.5
c) 5.5 and 7.5
d) 5.5 and 6.5
50. In the long-run framework, budget surpluses
a) Should never be run since they crowd out investment in the
short run.

17. b) Should be run on a permanent basis since they boost saving
and investment and stimulate economic growth.
c) Should be run whenever output dips below potential output.
d) Are better than budget deficits over the long run because
unlike budget deficits, they increase saving and investment.
ANSWER
1. The predictability of cash flows
2. Assets overstated; expenses understated
3. Service Revenue
4. leader's vision
5. Offer the best growth and profitability
6. Safeguard its assets
7. Expense recognition principle
8. 1,112 tickets
9. Retained Earnings Statement
10. time series data
11. 81%
12. skimming pricing
13. Integrated marketing communications
14. SWOT analysis
15. Both stocks have the same coefficient of variation
16. An increase in taxes
17. 3.17
18. Firms recognize that coordination among channel members
can increase sales for each channel member
19. Ho: µ = 185 lbs
20. Tries to identify homogeneous submarkets and develop
different marketing mixes for each submarket
21. The legal environment sets the maximum standards of
ethical behaviour
22. $5,790
23. Anderson’s supervisor asks him to inflate income for the
current period to make the company appear more profitable.
24. 0.269

18. 25. survival, long-term success
26. The economies of many countries are growing faster than
that of the U.S
27. $15 under FIFO, $19 under LIFO, $16.6 under average cost
28. $1,000,000 and $500,000
29. Six Sigma
30. There is a moderate positive linear relationship between x
and y
31. Market growth
32. Make an adjusting entry by adding the debit balance to the
required balance
33. Its consumption must be rising relative to its production
34. Base year amount
35. Common stock
36. planning; organizing
37. Overstated and overstated
38. Total paid-in capital and retained earnings
39. Marketing anticipates customer needs
40. Gain of $6,000
41. tradition of closeness to key customers
42. To give the lender formal proof of the obligation, for
collection of debt purposes, and to require the borrower to pay
interest
43. 12.78%
44. They make a clear segment with similar backgrounds and
common language, religion, and culture
45. $890,177
46. Decrease the discount rate
47. Depletion expense, loss on the sale of plant assets, and
patent amortization expense
48. Frequent, detained control reports
49. 6 and 7
50. Are better than budget deficits over the long run because
unlike budget deficits, they increase saving and investment