This document provides 100 multiple choice questions related to business topics including managerial accounting, economics, finance, marketing, management, statistics, information systems, and business law. The questions cover concepts like costing methods, budgets, international trade, market structures, opportunity costs, capital budgeting, portfolio management, and marketing strategy.

1. BUS 475 FINAL EXAMS
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1) A well-designed activity-based costing system starts with __________.
2) What effect do current technology changes have on managerial accounting?
3) A company just starting in business purchased three merchandise inventory items at the
following prices. First purchase $80; Second purchase $95; Third purchase $85. If the company
sold two units for a total of $240 and used FIFO costing, the gross profit for the period would be
_____.
3) A company just starting in business purchased three merchandise inventory items at the
following prices. First purchase $80; Second purchase $95; Third purchase $85. If the company
sold two units for a total of $240 and used FIFO costing, the gross profit for the period would be
_____.
4) The income statement and balance sheet columns of Pine Company's worksheet reflects the
following totals:
5) The income statement and balance sheet columns of Pine Company's worksheet reflects the
following totals:
6) Managerial accounting __________.
7) H55 Company sells two products, beer and wine. Beer has a 10 percent profit margin and
wine has a 12 percent profit margin. Beer has a 27 percent contribution margin and wine has a 25
percent contribution margin. If other factors are equal, which product should H55 push to
customers?
8) The cost principle requires that when assets are acquired, they be recorded at __________.
9) Which one of the following is a product cost?
10) What exists when budgeted costs exceed actual results?
11) The primary purpose of the statement of cash flows is to __________.
12) Multinational corporations __________.
13) Sam's Used Cars uses the specific identification method of costing inventory. During March,
Sam purchased three cars for $6,000, $7,500, and $9,750, respectively. During March, two cars
are sold for $9,000 each. Sam determines that at March 31, the $9,750 car is still on hand. What
is Sam’s gross profit for March?

2. 14) What exists when budgeted costs exceed actual results?
15) A logical starting point from which the study of international trade begins is __________.
16) Which of the following statements about GDP is correct?
17) In economics, the cost of something is __________.
18) One characteristic of an oligopoly market structure is:
19) 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 __________.
20) The price of a good that prevails in a world market is called the
21) A rational decision maker __________.
22) Many U.S. business leaders argue that the current state of U.S. net exports is the result of
__________.
23) The political business cycle refers to __________.
24) The part of the balance of payments account that lists all long-term flows of payments is
called the:
25) The model of aggregate demand and aggregate supply explains the relationship between
__________.
26) The part of the balance of payments account that lists all long-term flows of payments is
called the:
27) Most economists use the aggregate demand and aggregate supply model primarily to analyze
__________.
28) ABC International carefully watches the actions of its most innovative competitor and learns
from them. ABC can establish a low-cost position by:
29) Which of the following statements does NOT support Total Quality Management?
30) As related to managing of human resources, diversity refers to:

3. 31) A series of quality standards developed by a committee working under the International
Organization for Standardization to improve total quality in all businesses for the benefit of both
producers and consumers is:
32) Japanese manufacturers' kaizen (continuous improvement) programs enable them to
maintain:
33) Teams that operate separately from the regular work structure and exist temporarily are
known as:
34) 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:
35) Building a dynamic organization is another way of describing which function of
management?
36) The pursuit of lucrative opportunities by enterprising individuals is called:
37) Teams that work on long-term projects but disband once the work is completed are known
as:
38) Which of these represent skills that managers need?
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) The most dominant areas in the global economy include
41) Your roommate is interested in starting a business and everybody has been giving him
different information about being an entrepreneur. Since you have been studying about
entrepreneurship and new ventures, which of these would you tell him is true?
42) 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.
43) From its 32 regions, the Federal Aviation Administration selects 5 regions, and then
randomly audits 20 departing commercial flights in each region for compliance with legal fuel
and weight requirements. This is __________.

4. 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?
45) A financial institution wishes to estimate the mean balances owed by its credit card
customers. The population standard deviation is estimated to be $300. If a 98 percent confidence
interval is used and an interval of ±$75 is desired, how many cardholders should be sampled?
46) Independent events A and B would be consistent with which of the following statements:
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.
48) Which one of the following statements concerning production and staffing plans is best?
49) In a network diagram, an activity:
50) While glancing over the sensitivity report, you note that the stitching labor has a shadow
price of $10 and a lower limit of 24 hours with an upper limit of 36 hours. If your original right
hand value for stitching labor was 30 hours, you know that:
50) While glancing over the sensitivity report, you note that the stitching labor has a shadow
price of $10 and a lower limit of 24 hours with an upper limit of 36 hours. If your original right
hand value for stitching labor was 30 hours, you know that:
51) Which one of the following statements concerning production and staffing plans is best?
52) The one-worker, multiple machines approach functions as:
53) Success in the _____ phase of the decision making process results in resolving the original
problem, and failure leads to a return to previous phases.
54) Networks enable which of the following applications?
55) In the _____ phase of the decision making process, managers test potential solutions “on
paper.”
56) Zappos built the majority of its information systems using which of the following?
57) When customers access a Web site and make purchases, they generate __________.
58) Which of the following are not provided by digital dashboards?
59) 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 _____.

5. 60) Credit card companies would most likely use which of the following to check for fraudulent
credit card use?
61) Which of the following statements about information systems is not correct?
62) Competitive advantage for an organization manifests as all of the following except:
63) Disadvantages of using current liabilities as opposed to long-term debt include:
64) Which of the following best represents the stream of income that is available to common
stockholders?
65) You hold a portfolio with the following securities:
66) Dublin International Corporation’s marginal tax rate is 40%. It can issue three-year bonds
with a coupon rate of 8.5% and par value of $1,000. The bonds can be sold now at a price of
$938.90 each. The underwriters will charge $23 per bond in flotation costs. Determine the
approximate after-tax cost of debt for Dublin International to use in a capital budgeting analysis.
67) What is the yield to maturity of a nine-year bond that pays a coupon rate of 20% per year,
has a $1,000 par value, and is currently priced at $1,407? Round your answer to the nearest
whole percent and assume annual coupon payments.
68) At 8% compounded annually, how long will it take $750 to double?
69) Which of the following represents an attempt to measure the earnings of the firm’s
operations over a given time period?
70) 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.
71) According to the hedging principle, permanent assets should be financed with _____
liabilities.
72) 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.
73) A machine costs $1,000, has a three-year life, and has an estimated salvage value of $100. It
will generate after-tax annual cash flows (ACF) of $600 a year, starting next year. If your
required rate of return for the project is 10%, what is the NPV of this investment? (Round your
answerer to the nearest $10.)
74) Bondholders have a priority claim on assets ahead of:

6. 75) 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?
76) 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?
77) "Marketing strategy planning" means:
78) The economists' view of buyers:
79) Analysis of demographic dimensions:
80) Economists' economic-buyer theory assumes that __________.
81) The "four Ps" of a marketing mix are:
82) The managerial process of developing and maintaining a match between the resources of an
organization and its market opportunities is called:
83) "Positioning":
84) The basic objective of the U.S. market-directed economic system is to:
85) In comparison to the buying of final consumers, the purchasing of organizational buyers:
86) 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?
87) Which of the following is a business or organizational customer?
88) Which of the following terms need not be disclosed under Truth-in-Lending Act?
89) Which of the following is true about the power of administrative agencies to grant licenses?
90) In a criminal proceeding, what is the difference between an indictment and an information?
91) Which of the following activities by an administrative agency requires public notice and
participation?
92) Product disparagement differs from defamation of a nonpublic figure in that:
93) Which of the following is correct with regard to the relationship between law and ethics?
94) Information which comes to the knowledge of an agent is:

7. 95) Which of the following terms is not required to be disclosed under the Truth-in-Lending
Act?
96) The Houston-based energy company that filed for Chapter 11 bankruptcy and whose
business conduct is one of the grossest examples of corporate greed and fraud in America was:
97) A “closely held corporation” is a corporation that is owned by:
98) Which country does the text describe as becoming the largest producer and consumer of
many of the world's goods?
99) Which country does the text describe as becoming the largest producer and consumer of
many of the world's goods?
100) One study found that manufacturing labor costs about _____ an hour in China, compared to
_____ dollars in the United States.