Accounting 1) 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? A.  Cost of landscaping the corporate office B.  The western division’s vice president’s salary C.  General corporate liability insurance D.  Factory janitor 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 Closing entries are necessary for __________. A.  both permanent and temporary accounts B.  permanent or real accounts only C.  permanent accounts only D.  temporary accounts only 3) Hess, Inc. sells a single product with a contribution margin of $12 per unit and fixed costs of $74,400 and sales for the current year of $100,000. How much is Hess’s break even point? A.  6,200 units B.  2,133 units C.  4,600 units D.  $25,600 4) 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? A.  $12,000 B.  $6,000 C.  $18,000 D.  $28,000 5) "Generally accepted" in the phrase generally accepted accounting principles means that the principles __________. A.  have been approved by the Internal Revenue Service B.  have been approved for use by the managements of business firms C.  are proven theories of accounting D.  have substantial authoritative support 6) What is value chain management best defined as? A.  The incremental value of costs associated with hiring a new production floor leader B.  All activities associated with providing a product or service C.  A large chain that keeps the machines from falling on the production floor D.  Management decisions that affect how quickly the production run occurs 7) The major reporting standard for management accounts is __________. A.  relevance to decisions B.  generally accepted accounting principles C.  the Standards of Ethical Conduct for Practitioners of Management Accounting and Financial Management D.  the Sarbanes-Oxley Act of 2002 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? A.  $1,600,000 B.  $950,000 C.  $1,300,000 D.  $1,100,000 9) The cost principle is the basis for preparing financial statements because it is __________. A.  an intern.

1. Accounting
1) 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?
A. Cost of landscaping the corporate office
B. The western division’s vice president’s salary
C. General corporate liability insurance
D. Factory janitor
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

2. $58,000
$48,000
$34,000
$44,000
Closing entries are necessary for __________.
A. both permanent and temporary accounts
B. permanent or real accounts only
C. permanent accounts only
D. temporary accounts only
3) Hess, Inc. sells a single product with a contribution margin
of $12 per unit and fixed costs of $74,400 and sales for the
current year of $100,000. How much is Hess’s break even
point?
A. 6,200 units
B. 2,133 units
C. 4,600 units
D. $25,600

3. 4) 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?
A. $12,000
B. $6,000
C. $18,000
D. $28,000
5) "Generally accepted" in the phrase generally accepted
accounting principles means that the principles __________.
A. have been approved by the Internal Revenue Service
B. have been approved for use by the managements of business
firms
C. are proven theories of accounting
D. have substantial authoritative support
6) What is value chain management best defined as?

4. A. The incremental value of costs associated with hiring a new
production floor leader
B. All activities associated with providing a product or service
C. A large chain that keeps the machines from falling on the
production floor
D. Management decisions that affect how quickly the
production run occurs
7) The major reporting standard for management accounts is
__________.
A. relevance to decisions
B. generally accepted accounting principles
C. the Standards of Ethical Conduct for Practitioners of
Management Accounting and Financial Management
D. the Sarbanes-Oxley Act of 2002
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

5. 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?
A. $1,600,000
B. $950,000
C. $1,300,000
D. $1,100,000
9) The cost principle is the basis for preparing financial
statements because it is __________.
A. an international accounting standard
B. the most accurate measure of purchasing power
C. a conservative value

6. D. relevant and objectively measured, and verifiable
10) Multinational corporations __________.
A. are firms that conduct their operations in more than one
country through subsidiaries, divisions, or branches in foreign
countries
B. are U.S. companies that trade their securities on the
exchanges in other countries
C. are required to use international accounting standards
D. are U.S. companies that sell goods and services in other
countries
11) The standards and rules that are recognized as a general
guide for financial reporting are called __________.
A. operating guidelines
B. standards of financial reporting
C. generally accepted accounting standards
D. generally accepted accounting principles
12) A well-designed activity-based costing system starts with

7. __________.
A. assigning manufacturing overhead costs for each activity
cost pool to products
B. analyzing the activities performed to manufacture a product
C. identifying the activity-cost pools
D. computing the activity-based overhead rate
13) 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?

8. A. $2,400,000
B. $1,425,000
C. $1,950,000
D. $1,650,000
14) One of Astro Company's activity cost pools is machine
setups, with estimated overhead of $150,000. Astro produces
sparklers (400 setups) and lighters (600 setups). How much of
the machine setup cost pool should be assigned to sparklers?
A. $75,000
B. $90,000
C. $150,000
D. $60,000
15) Maurice receives $100 as a birthday gift. In deciding how to
spend the money, he narrows his options down to four choices:
Option A, Option B, Option C, and Option D. Each option costs
$100. Finally he decides on Option B. The opportunity cost of
this decision is __________.
A. $100
B. $300
C. the value to Maurice of Options A, C and D combined
D. the value to Maurice of the option he would have chosen had

9. Option B not been available
16) If a binding price ceiling were imposed in the computer
market, __________.
A. a shortage of computers would develop
B. the quality of computers would increase
C. the supply of computers would decrease
D. the demand for computers would increase
17) Which of the following statements about GDP is correct?
A. GDP is to a nation’s economy as household income is to a
household.
B. GDP increases if the total population increases.
C. Money continuously flows from households to government
and then back to households, and GDP measures this flow of
money.
D. GDP measures two things at once: the total income of
everyone in the economy and the unemployment rate.
18) The price of a good that prevails in a world market is called
the
A. comparative price.
B. world price.
C. relative price.
D. absolute price.
19) In economics, the cost of something is __________.
A. what you give up to get it
B. often impossible to quantify, even in principle
C. always measured in units of time given up to get it
D. the dollar amount of obtaining it

10. 20) Resources are __________.
A. scarce for households and scarce for economies
B. plentiful for households and plentiful for economies
C. plentiful for households but scarce for economies
D. scarce for households but plentiful for economies
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 __________.
A. must balance with the price effect
B. can be larger or smaller than the price effect
C. must be smaller than the price effect
D. must dominate the price effect
22) President George W. Bush and congress cut taxes and raised
government expenditures in 2003. Which of the following is not
correct?
A. In general monetary policy can be implemented faster than
fiscal policy.
B. In general it is easier to reverse monetary policy than to
reverse fiscal policy.
C. While there was subsequent improvement in economic
performance, it’s not entirely clear that this was due to the
policy.
D. At the time the economy was just moving into a recession.
23) Consider two items that might be included in GDP: (1) The
estimated rental value of owner-occupied housing; and (2)
purchases of newly-constructed homes. How are these two items
accounted for when GDP is calculated?
A. Item (1) is included in the investment component, while
item (2) is included in the consumption component.

11. B. Only item (2) is included in GDP and it is included in the
investment component.
C. Item (1) is included in the consumption component, while
item (2) is included in the investment component.
D. Both item (1) and item (2) are included in the consumption
component of GDP.
24) The part of the balance of payments account that lists all
long-term flows of payments is called the:
A. government financial account.
B. balance of trade.
C. financial and capital account.
D. current account.
25) The part of the balance of payments account that records the
amount of foreign currency the government buys or sells is the:
A. government financial account.
B. balance of trade.
C. financial and capital account.
D. current account.
26) Many U.S. business leaders argue that the current state of
U.S. net exports is the result of __________.
A. unproductive U.S. workers.
B. unfair foreign competition.
C. free trade policies of foreign governments.
D. U.S. export subsidies.
27) The model of short-run economic fluctuations focuses on
the price level and __________.
A. the neutrality of money
B. Net GDP

12. C. economic growth
D. real GDP
28) Managers will utilize __________ skills with increasing
frequency as they rise within an organization.
A. Professional
B. Technical
C. Interpersonal and communication
D. Conceptual and decision
E. Professional
29) Which of the following best describes a mental image of a
possible and desirable future state of the organization?
A. Vertical communication
B. Leadership
C. Vision
D. Mission
E. Horizontal communication
30) Teams that operate separately from the regular work
structure and exist temporarily are known as:
A. Self-managed teams
B. Self-designing teams
C. Parallel teams
D. Management teams
E. Transnational teams
31) Which of the following has proven to be a particularly good
predictor for jobs that require cognitive complexity?
A. aptitude tests
B. work sampling
C. integrity evaluations
D. intelligence tests

13. E. behavioral assessment
32) Which of the following statements does NOT support Total
Quality Management?
A. Use numerical quotas
B. Build long-term relationships instead of awarding business
on price tag alone
C. Break down barriers among departments
D. Strive for long-term improvement rather than short-term
profit
E. Creating silos between departments
33) Which of these refers to the practices aimed at discovering
and harnessing an organization's intellectual resources?
A. Competitiveness
B. Innovation
C. Knowledge management
D. Collaboration
E. Effectiveness
34) Which of these describes a vision, as it pertains to
leadership?
A. Likely to land you in a padded room
B. The method through which leaders achieve goals
C. A mental image of a future state of an organization
D. A long-term goal of an organization
E. A short-term goal of an organization
35) A leader is:
A. Someone who influences others to attain goals
B. A strategic level manager
C. The top level manager in a firm or business

14. D. Someone with authority over others
E. Someone well-respected by others
36) The most dominant areas in the global economy include:
A. North America, Asia and Africa
B. North America, South America and Western Europe
C. North America, Mexico and Asia
D. North America, Western Europe and Asia
E. Western Europe, Asia and Africa
37) As related to managing of human resources, diversity refers
to:
A. Differences in pay methods (such as hourly, salaried,
overtime, hazard-pay, commissioned, etc.)
B. Differences in demographics (such as age, race, gender,
disability status, lifestyle, veteran status, educational level,
etc.)
C. Differences in recruiting methods (such as newspapers,
schools, flyers, magazines, agencies, etc.)
D. Differences in employee benefit plans (such as pensions,
insurance, vacations, memberships, etc.)
E. Differences in retention strategies (such as training, hiring,
incentives, etc)
38) The pursuit of lucrative opportunities by enterprising
individuals is called:
A. Entrepreneurship
B. Business incubating
C. Independence
D. Intrapreneurship
E. Social experimentation
39) One study found that manufacturing labor costs about _____

15. an hour in China, compared to _____ dollars in the United
States.
A. $2; about 25
B. Less than $1; about 25
C. About $2; about 15
D. Less than $1; about 15
E. Less than $1; about 40
40) The Aquatic Center, Inc. periodically reviews the goals of
the company. During the process, The Aquatic Center managers
analyze their current strategies as compared to their
competitors, determine goals that they will pursue and decide
upon specific actions for each area of the company to take in
pursuit of these goals. The Aquatic Center managers have been
engaged in the management function of:
A. Controlling
B. Goal Coordination
C. Planning
D. Organizing
E. Staffing
41) Building a dynamic organization is another way of
describing which function of management?
A. Staffing
B. Leading
C. Controlling
D. Planning
E. Organizing
42) 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.

16. From this information, we can conclude that __________.
A. the slope is not significantly different from zero
B. wealthy individuals tend to commit more crimes
C. crime creates additional income in a city
D. none of these are correct
43) Use the following table to answer question:
P(MA) is approximately _____.
A. .25
B. .625
C. .50
D. .125
44) Sampling error can be reduced by __________.
A. none of the these affect sampling error
B. decreasing the sample size
C. utilizing simple random samples

17. D. increasing the sample size
45) In a right-tail test, a statistician came up with a z test
statistic of 1.469. What is the p-value?
A. .4292
B. .0874
C. .0708
D. .0301
46) Independent events A and B would be consistent with which
of the following statements:
A. P (A) = .5, P (B) = .4, P (A B) = .3
B. P (A) = .3, P (B) = .5, P (A B) = .4
C. P (A) = .4, P (B) = .3, P (A B) = .5
D. P (A) = .4, P (B) = .5, P (A B) = .2
47) 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.

18. In a left-tailed test at = .05 we would __________.
A. comfortably reject the claim
B. feel uncomfortable with either decision (too close)
C. comfortably accept the claim
D. switch to alpha of 0.01 for a more powerful test
48) 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. If we fit a linear trend to data
that are growing exponentially __________.
A. the absolute annual growth (in dollars per share) is
increasing
B. at the end of year 3 the stock price would be nearly $80
C. few investments could match the astounding growth rate
D. the stock's true intrinsic value is $4.12
49) A project has three paths. A–B–C has a length of 25 days.
A–D–C has a length of 15 days. Finally, A–E–C has a length of
20 days. Which one of the following statements is TRUE?
A. The expected duration of this project is 25 + 15 + 20 = 60
days.
B. A–B–C has the most slack.
C. The expected duration of this project is 25 days.
D. A–D–C is the critical path.
50) In an activity-on-node [AON] network, the nodes represent
____________, whereas the arcs represent ____________.

19. A. precedence relationships; time
B. activities; precedence relationships
C. events; activities
D. activities; time
51) Which one of the following statements concerning
production and staffing plans is best?
A. A master production schedule is a projected statement of
income, costs, and profits.
B. A staffing plan is the intermediate link between the business
plan and the master production schedule.
C. Production plans are based primarily on information from
the master production plan.
D. Aggregation can be performed along three dimensions:
product families, labor, and time.
52) Theoretically, service capacity must exceed demand, lest
queues become infinitely long. If capacity does not exceed
demand, what is likely to happen?
A. All of these
B. Servers will decrease time spent per customer, thereby
increasing capacity.
C. Servers will eliminate time-consuming portions of their
jobs, thereby increasing capacity.
D. Customers will renege or balk, thereby reducing demand.
Information Systems
53) Zappos built the majority of its information systems using
which of the following?
A. Consultants
B. Open source software

20. C. Free software
D. Vendor software
E. Proprietary software
54) When your purchases are swiped over the bar-code reader at
the point-of-sale terminals at Wal-Mart, a _____ records the
data.
A. office automation system
B. dashboard
C. functional area information system
D. transaction processing system
E. enterprise resource planning system
55) The Global, Web-Based Platform enables individuals to do
which of the following?
A. all of these are true
B. exchange knowledge
C. access information, services, and entertainment
D. connect, compute, communicate, collaborate, and compete
everywhere and all the time
E. produce and sell goods and services
56) Which of the following is not a source for external data?
A. government reports
B. sensors
C. corporate databases
D. commercial databases
E. satellites
57) Fundamental points about network computing in
organizations include all of the following except:
A. Networks support new ways of doing business

21. B. Networks can be of any size, from small to enormous
C. Computer data exchange provides significant advantages to
organizations
D. Computers constantly exchange data
E. Networks have had limited impact on organizational
productivity
58) A company wants to use data from past promotional
mailings to identify people who would likely respond favorably
to future mailings. This company would most likely use _____.
A. data mining
B. neural networks
C. multidimensional data analysis
D. structured query language
E. expert systems
59) Computer support is greatest for which of the following
problems?
A. Structured and management control
B. Structured and operational control
C. Unstructured and operational control
D. Semistructured and strategic planning
E. Semistructured and management control
60) _____ is the efficient and effective execution of specific
tasks.
A. Wisdom
B. Strategic planning
C. Management control
D. Operational control
E. Expertise
61) The management cockpit best exemplifies which type of

22. system?
A. Group decision support system
B. Digital dashboard
C. Expert system
D. Decision support system
E. Functional area information system
62) Which of the following statements about information
systems is not correct?
A. Managing information systems is difficult.
B. Information systems are based on the needs of employees.
C. Information systems tend to follow the structure of the
organization.
D. Information systems are concentrated in the IS Department.
E. Any information system can be strategic.
63) Bell Weather, Inc. has a beta of 1.25. The return on the
market portfolio is 12.5%, and the risk-free rate is 5%.
According to CAPM, what is the required return on this stock?
A. 15.62%
B. 9.37%
C. 20.62%
D. 14.37%
64) Bondholders have a priority claim on assets ahead of:
A. creditors.
B. shareholders.
C. common and preferred stockholders.
D. investors
65) Mortgage bonds:
A. can only be issued by financial institutions.

23. B. are secured by a lien on real property.
C. are a type of debenture.
D. usually pay little or no interest.
66) Given the following annual net cash flows, determine the
IRR to the nearest whole percent of a project with an initial
outlay of $1,520.
Year Net Cash Flow
1 $1,000
2 $1,500
3 $ 500
A. 48%
B. 32%
C. 40%
D. 28%
67) Disadvantages of using current liabilities as opposed to
long-term debt include:
A. greater risk of illiquidity, and uncertainty of interest costs
B. higher cash flow exposure
C. uncertainty of future liabilities
D. decreased risk of liquidity
E. certainty of interest costs
68) Forward rates are quoted:
A. in direct form and at a premium or discount
B. daily
C. in an indirect form
D. by the FDIC
E. on financial statements
69) Which of the following represents an attempt to measure the

24. earnings of the firm’s operations over a given time period?
A. Balance sheet
B. Income statement
C. Cash flow statement
D. Quarterly statement
70) According to the hedging principle, permanent assets should
be financed with _____ liabilities.
A. permanent
B. current
C. spontaneous
D. fixed
71) Which of the following is most consistent with the hedging
principle in working capital management?
A. Fixed assets should be financed with short-term notes
payable.
B. Inventory should be financed with preferred stock.
C. Accounts receivable should be financed with short-term
lines of credit.
D. Borrow on a floating rate basis to finance investments in
permanent assets.
72) Which of the following best represents operating income?
A. Income after financing activities
B. Income from capital gains
C. Earnings before interest and taxes
D. Income from discontinued operations
73) 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

25. stock?
A. 36.13%
B. 8.0%
C. 12.5%
D. 13.6%
74) Exchange rate risk:
A. arises from the fact that the spot exchange rate on a future
date is a random variable.
B. has been phased out due to recent international legislation.
C. applies only to certain types of domestic businesses.
D. doesn’t affect trades made in US Dollars.
75) PepsiCo calculates unlevered betas for each peer group in
order to:
A. eliminate different business risks.
B. eliminate judgment factors.
C. eliminate competitive factors.
D. eliminate different financial risks.
Marketing
76) The basic objective of the U.S. market-directed economic
system is to:
A. minimize inflation.
B. provide each person with an equal share of the economic
output.
C. satisfy consumer needs as they--the consumers--see them.
D. achieve an annual growth rate of at least 10 percent.
E. make the most efficient use of the country's resources.
77) __________ is a marketing management aid which refers to
how customers think about proposed and/or present brands in a

26. market.
A. Brand familiarity
B. Market scanning
C. Market segmentation
D. Positioning
E. Customer relationship management (CRM)
78) Economists' economic-buyer theory assumes that
__________.
A. demographic data are very useful for predicting consumer
behavior
B. consumers should purchase only low-priced products
C. consumers always make rational decisions
D. buyers logically compare choices in order to maximize their
satisfaction
E. consumers only want the cheapest price
79) A cluster analysis of the "toothpaste market" would
probably show that:
A. the broad product-market can be served effectively with one
marketing mix.
B. factors such as taste, price, and "sex appeal" are not
important.
C. different market segments seek different product benefits.
D. most consumers are mainly concerned about brightness of
teeth.
E. most consumers are concerned about cost.
80) Good marketing strategy planners know that:
A. firms like Nabisco and Wal-Mart are too large to aim at
clearly defined target markets.
B. mass marketing is often very desirable and effective.

27. C. the terms "mass marketing" and "mass marketer" mean
basically the same thing.
D. target marketing does not limit one to small market
segments.
E. target markets cannot be large and spread out.
81) In comparison to the buying of final consumers, the
purchasing of organizational buyers:
A. is strictly economic and not at all emotional.
B. leans basically toward economy, quality, and dependability.
C. is even less predictable.
D. is always based on competitive bids from multiple suppliers.
E. is always emotional.
82) 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:
A. market development.
B. market penetration.
C. product development.
D. diversification.
E. stratification.
83) Coca-Cola is taking advantage of the new willingness of
Chinese leaders to engage in international trade by marketing its
soft drinks in China. What type of opportunity is Coke
pursuing?
A. market development
B. product development
C. market penetration
D. diversification
E. test marketing

28. 84) Marketing:
A. creates materialistic values which did not exist before.
B. reflects existing social values in the short run--while
reinforcing these values in the long run.
C. is only propaganda.
D. turns consumers into puppets.
E. not important if you have a good product.
85) The clustering techniques that can be used in segmenting:
A. eliminate the need for management intuition and judgment.
B. try to find similar patterns within sets of data.
C. group people together based on age.
D. group people together into heterogeneous product-market
segments.
E. looks for differences between groups of people.
86) The difference between target marketing and mass
marketing is that target marketing:
A. means focusing on a small market.
B. focuses on specific customers, while mass marketing aims at
an entire market.
C. does not rely on e-commerce but mass marketing does.
D. focuses on short-run objectives, while mass marketing
focuses on long-run objectives.
E. aims at increased sales, while mass marketing focuses on
increased profits.
87) "Positioning":
A. applies to new products--but not existing products.
B. is concerned with obtaining the best shelf space in retail
outlets.
C. is useful for combining but not for segmenting.

29. D. helps strategy planners see how customers view competitors'
offerings.
E. eliminates the need for judgment in strategy planning.
Legal and Social Environment
88) What type of commercial speech did the U.S. Supreme
Court say was protected in the Greater New Orleans
Broadcasting Association, Inc. v. United States case?
A. Information on gambling and lotteries.
B. Information about child pornography.
C. Information on how to build a bomb.
D. Obscene speech.
89) In which of the following are these steps of a criminal case
listed in the correct order?
A. Arraignment, arrest, trial, indictment
B. Indictment, arraignment, arrest, trial
C. Arrest, arraignment, indictment, trial
D. Arrest, indictment, arraignment, trial
E. Arrest, indictment, trial, arraignment
90) Which of the following is correct about interpretive rules?
A. They require public notice and participation to create.
B. They must be accompanied by substantive rules.
C. They do not establish new law.
D. All federal administrative agencies have implied power to
make interpretive rules.
E. Interpretive rules are not subject to judicial review.
91) Overtime pay is required to be paid to nonexempt
employees who work:
A. Over 10 hours per day.
B. Over 12 hours per day.

30. C. Over 8 hours per day.
D. Over 40 hours per week.
E. Over 50 hours per week.
92) In responding to a constitutional challenge to the Computer
Decency Act, the U.S. Supreme Court ruled that:
A. The Act was constitutional because obscene speech receives
no protection.
B. Obscene materials could not be available between 6:00 a.m.
and 10:00 p.m. local time.
C. Computers and the Internet were not covered by the free
speech provisions of the U.S. Constitution because they did not
exist when the Constitution was drafted.
D. The Act was unconstitutional because its provisions were
too vague to define.
E. The Internet was similar to television and that restrictions
similar to those on television programming were appropriate.
93) What makes a publicly held corporation different from a
public corporation?
A. A publicly held corporation has many shareholders rather
than being a corporation owned by a governmental entity.
B. A publicly held corporation is entitled to limited liability,
but a public corporation is not.
C. A publicly held corporation must have a charitable purpose,
but a public corporation need not have a charitable purpose.
D. They are two terms that have the same meaning.
94) Which of the following terms is not required to be disclosed
under the Truth-in-Lending Act?
A. The date the finance charge begins to accrue.
B. The amount of attorneys fees to be charged if legal action is
needed to collect the debt.
C. The annual percentage rage of interest.

31. D. The number of payments.
E. The amount of late charges or delinquency penalties.
95) Information which comes to the knowledge of an agent is:
A. Required to be communicated to the principal in all
circumstances.
B. Is imputed to the principal.
C. Can be disclosed to the principal only with the third party’s
consent.
D. Will result in termination of the agency arrangement if it is
not communicated to the principal.
96) What is the major convention that provides international
protection to patents?
A. The Berne Convention of 1786.
B. The General Agreement on Tariffs and Trade (GATT).
C. The Paris Convention.
D. The Digital Millennium Treaty.
97) Which of the following is not one of the Caux Round Table
Principles for International Business?
A. Support for Multilateral Trade.
B. Promotion of Multiculturalism.
C. Avoidance of Illicit Operations.
D. Respect for the Environment.
E. Responsibility of Business Beyond Shareholders Toward
Stakeholders.
International Issues
98) Which country does the text describe as becoming the
largest producer and consumer of many of the world's goods?
A. Canada

32. B. Mexico
C. Japan
D. China
E. Ecuador
99) One study found that manufacturing labor costs about _____
an hour in China, compared to _____ dollars in the United
States.
A. About $2; about 15
B. Less than $1; about 25
C. Less than $1; about 15
D. $2; about 25
E. Less than $1; about 40
100) Although the U.S. has had a longstanding agreement with
_____ after the passage of NAFTA, _____ became the United
States' second largest trading partner.
A. Canada, Mexico
B. Mexico, Canada
C. Canada, Venezuela
D. Mexico, Venezuela
E. Great Britain, Paraguay