The document presents a series of multiple-choice questions related to financial and managerial accounting concepts, including the conceptual framework, manufacturing overhead, services performed by public accountants, budgets, cash flows, and costs. Additionally, it covers broader economic principles such as GDP, trade, and management strategies within organizations. Each question provides references for further reading and understanding of the topics discussed.

1. BUS/475 Guide 1
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1) The conceptual framework developed by the Financial Accounting Standards Board
__________.
A. are rules that all accountants must follow
B. was approved by a vote of all accountants
C. is legally binding on all accountants
D. is viewed as providing a constitution for setting accounting standards for financial
reporting
Read more: http://www.investopedia.com/terms/f/fasb.asp
2) 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. General corporate liability insurance
B. Factory janitor
C. The western division’s vice president’s salary
D. Cost of landscaping the corporate office
Read more: http://www.investorwords.com/2942/manufacturing_overhead.html
3) Which list below best describes the major services performed by public accountants?
A. Employee training, auditing, bookkeeping
B. Bookkeeping, mergers, budgets
C. Cost accounting, production scheduling, recruiting

2. D. Auditing, taxation, management consulting
Read more:
http://www.collegeboard.com/csearch/majors_careers/profiles/careers/106541.html
4) The conceptual framework developed by the Financial Accounting Standards Board
__________.
A. are rules that all accountants must follow
B. was approved by a vote of all accountants
C. is legally binding on all accountants
D. is viewed as providing a constitution for setting accounting standards for financial
reporting
Read more: http://www.investopedia.com/terms/f/fasb.asp
5) In what situations will a static budget be most effective in evaluating a manager's
effectiveness?
A. The company has substantial variable costs.
B. The company has substantial fixed costs.
C. The company has no fixed costs.
D. The planned activity levels match actual activity levels.
Read more: http://blog.accountingcoach.com/what-is-a-static-budget/
http://businessmanagement.suite101.com/article.cfm/what_is_management_effectiveness
6) Which one of the following items is not generally used in preparing a statement of cash
flows?
A. Comparative balance sheets
B. Adjusted trial balance

3. C. Additional information
D. Current income statement
Read more: http://www.accountingcoach.com/online-accounting-course/06Xpg01.html
7) 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?
A .$1,425,000
B. $1,650,000
C. $2,400,000
D. $1,950,000
8) A well-designed activity-based costing system starts with __________.
A. analyzing the activities performed to manufacture a product
B. computing the activity-based overhead rate
C. assigning manufacturing overhead costs for each activity cost pool to products
D. identifying the activity-cost pools
Read more: http://www.valuebasedmanagement.net/methods_abc.html

4. 9) The cost principle is the basis for preparing financial statements because it is __________.
A. the most accurate measure of purchasing power
B. relevant and objectively measured, and verifiable
C. an international accounting standard
D. a conservative value
Read more: http://www.accountingcoach.com/terms/C/cost-principle.html
10) Which one of the following is a product cost?
A. Advertising costs
B. Office salaries
C. Sales person’s salaries
D. Indirect labor
Read more: http://www.ider.herts.ac.uk/school/courseware/costs/product_costs.html
11) If a company reports a net loss, it __________.
A. will not be able to make capital expenditures
B. will not be able to pay cash dividends
C. will not be able to get a loan
D. may still have a net increase in cash
Read more: http://www.wisegeek.com/what-is-net-loss.htm
12) The primary purpose of the statement of cash flows is to __________.
A. prove that revenues exceed expenses if there is a net income
B. provide information about the investing and financing activities during a period
C. facilitate banking relationships
D. provide information about the cash receipts and cash payments during a period

5. 13) The major reporting standard for management accounts is __________.
A. the Sarbanes-Oxley Act of 2002
B. the Standards of Ethical Conduct for Practitioners of Management Accounting and
Financial Management
C. generally accepted accounting principles
D. relevance to decisions
Read more: http://www.investopedia.com/articles/04/033104.asp
14) 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. $28,000
B. $18,000
C. $6,000
D. $12,00
15) The price of a good that prevails in a world market is called the
A. relative price.
B. absolute price.
C. world price.
D. comparative price.
16) A country's consumption possibilities frontier can be outside its production possibilities
frontier if __________.
A. the citizens of the country have a greater desire to consume goods and services than do the
citizens of other countries
B. the country’s technology is superior to the technologies of other countries
C. the country imports more than it exports

6. D. the country engages in trade
17) The general term for market structures that fall somewhere in-between monopoly and
perfect competition is __________.
A. monopolistically competitive markets
B. imperfectly competitive markets
C. incomplete markets
D. oligopoly markets
Read more: http://www.amosweb.com/cgi-
bin/awb_nav.pl?s=wpd&c=dsp&k=imperfect+competition
18) For a college student who wishes to calculate the true costs of going to college, the costs
of room and board __________.
A. plus the cost of tuition, equals the opportunity cost of going to college
B. should be counted only to the extent that they are more expensive at college than
elsewhere
C. should be counted in full, regardless of the costs of eating and sleeping elsewhere
D. usually exceed the opportunity cost of going to college
19) A tax on an imported good is called a __________.
A. trade tax
B. tariff
C. quota
D. supply tax
Read more: http://mw4.m-w.com/dictionary/tariff

7. 20) Without trade, __________.
A. interdependence is more extensive than it would be with trade
B. a country's production possibilities frontier is also its consumption possibilities frontier
C. a country is better off because it will have to learn to be self-sufficient without trade
D. a country can still benefit from international specialization
21) Which of the following statements about GDP is correct?
A. GDP increases if the total population increases.
B. Money continuously flows from households to government and then back to households,
and GDP measures this flow of money.
C. GDP measures two things at once: the total income of everyone in the economy and the
unemployment rate.
D. GDP is to a nation’s economy as household income is to a household.
Read more: http://www.investorwords.com/2153/GDP.html
http://en.wikipedia.org/wiki/Gross_domestic_product
22) The political business cycle refers to __________.
A. the potential for a central bank to increase the money supply and therefore real GDP to
help the incumbent get re-elected
B. changes in output created by the monetary rule the Fed must follow
C. the fact that about every four years some politician advocates greater government control
of the Fed
D. the part of the business cycle caused by the reluctance of politicians to smooth the
business cycle
Read more: http://www.businessdictionary.com/definition/political-business-cycle.html
http://www.jstor.org/pss/2296528
23) The open-economy macroeconomic model examines the determination of __________.
A. unemployment and the exchange rate

8. B. the trade balance and the exchange rate
C. the output growth rate and the real interest rate
D. the output growth rate and the inflation rate
Read more: http://www.angelfire.com/id/SergioDaSilva/open.html
http://economics.about.com/cs/openeconomy/
24) The model of short-run economic fluctuations focuses on the price level and __________.
A. economic growth
B. Net GDP
C. real GDP
D. the neutrality of money
Read more: http://www.pages.drexel.edu/~jdh56/ADAS%20lecture%20notes.pdf
http://flashcarddb.com/cardset/17942-short-run-economic-fluctuations-flashcards
25) Which of the following statements about GDP is correct?
A. Nominal GDP values production at constant prices, whereas real GDP values production
at current prices.
B. Nominal GDP consistently underestimates the value of production, whereas real GDP
consistently overestimates the value of production.
C. Nominal GDP values production at current prices, whereas real GDP values production at
constant prices.
D. Nominal GDP values production at market prices, whereas real GDP values production at
the cost of the resources used in the production process.
26) Real GDP __________.
A. evaluates current production at the prices that prevailed in some specific year in the past.
B. is a measure of the value of goods only; it excludes the value of services.
C. evaluates current production at current prices.

9. D. is not a valid measure of the economy's performance, since prices change from year to
year.
27) The balance of payment account is made up of:
A. an import account and an export account.
B. a monetary account and a fiscal account.
C. a current account and a financial and capital account.
D. an investment account and a consumption account.
Read more: http://internationalecon.com/Finance/Fch5/F5-5.php
http://www.investopedia.com/articles/03/060403.asp
28) Which of the following best describes a mental image of a possible and desirable future
state of the organization?
A. Horizontal communication
B. Vision
C. Mission
D. Vertical communication
E. Leadership
Read more: http://sbinfocanada.about.com/od/businessplanning/g/visionstatement.htm
29) Which of these refers to the practices aimed at discovering and harnessing an
organization's intellectual resources?
A. Effectiveness
B. Knowledge management
C. Collaboration

10. D. Competitiveness
E. Innovation
Read more: http://www.systems-thinking.org/kmgmt/kmgmt.htm
http://en.wikipedia.org/wiki/Knowledge_management
30) As related to managing of human resources, diversity refers to:
A. Differences in retention strategies (such as training, hiring, incentives, etc)
B. Differences in recruiting methods (such as newspapers, schools, flyers, magazines,
agencies, etc.)
C. Differences in employee benefit plans (such as pensions, insurance, vacations,
memberships, etc.)
D. Differences in pay methods (such as hourly, salaried, overtime, hazard-pay,
commissioned, etc.)
E. Differences in demographics (such as age, race, gender, disability status, lifestyle, veteran
status, educational level, etc.)
Read more: http://humanresources.about.com/od/glossarym/g/manage_humans.htm
http://managementhelp.org/hr_mgmnt/hr_mgmnt.htm
31) When a company establishes technology leadership by pioneering unique products or
services that command premium prices, it has benefited from a:
A. Differentiation strategy
B. High-price strategy
C. High-cost strategy
D. Diversification strategy
E. Low-cost strategy
Read more: http://www.businessdictionary.com/definition/high-price-strategy.html
32) Teams that operate separately from the regular work structure and exist temporarily are
known as:
A. Transnational teams

11. B. Parallel teams
C. Management teams
D. Self-managed teams
E. Self-designing teams
Read more: http://www.super-business.net/Knowledge-Management/811.html
33) Which of these represent skills that managers need?
A. Interpersonal, quantitative, and professional
B. Technical, interpersonal & communication and conceptual & decision making
C. Interpersonal & communication, conceptual & decision making and professional
D. Conceptual & decision making, professional and technical
E. Professional, technical and interpersonal & communication
Read more: http://management.about.com/od/managementskills/Management_Skills.htm
http://managementhelp.org/fp_progs/mng_mod/mng_ldr.htm
34) Having individuals actually do the job they are applying for as a test to see if they can do
it is __________.
A. an approach with high face validity
B. a formal means of screening candidates
C. an approach with low reliability
D. an approach with high reliability
E. an informal means of screening candidates
35) A manager's ability to stimulate people to be high performers is referred to as:
A. Organizing
B. Staffing
C. Planning
D. Controlling

12. E. Leading
Read more: http://www.thefreedictionary.com/leading
36) The most dominant areas in the global economy include:
A. North America, Mexico and Asia
B. Western Europe, Asia and Africa
C. North America, Western Europe and Asia
D. North America, Asia and Africa
E. North America, South America and Western Europe
Read more:
http://web.worldbank.org/WBSITE/EXTERNAL/EXTDEC/EXTDECPROSPECTS/EXTGB
LPROSPECTSAPRIL/0,,menuPK:659178~pagePK:64218926~piPK:64218953~theSitePK:6
59149,00.html http://en.wikipedia.org/wiki/World_economy
37) An organization that is managed aggressively and has growth and high profits as primary
objectives may be considered a(n):
A. Large corporation
B. Online Business
C. Multinational corporation
D. Entrepreneurship venture
E. Small business
Read more: http://www.corporatehx.com/
38) __________ is the process of working with people and resources to accomplish
organizational goals.

13. A. Management
B. Supervising
C. Planning
D. Decision making
E. Controlling
Read more: http://en.wikipedia.org/wiki/Management
http://www.leadership501.com/definition-of-management/21/
39) Building a dynamic organization is another way of describing which function of
management?
A. Controlling
B. Organizing
C. Planning
D. Leading
E. Staffing
Read more: http://managementhelp.org/org_thry/org_defn.htm
40) One study found that manufacturing labor costs about _____ an hour in China, compared
to _____ dollars in the United States.
A. $2; about 25
B. About $2; about 15
C. Less than $1; about 15
D. Less than $1; about 25
E. Less than $1; about 40 (Check your textbook!!!)
41) ABC International carefully watches the actions of its most innovative competitor and
learns from them. ABC can establish a low-cost position by:

14. A. Mass-producing products that have an established market niche
B. Producing an imitation of the new technology that utilizes lower-quality and lower-cost
materials
C. Making subtle changes to the product, thereby avoiding patent restrictions
D. Learning from the leader thereby avoiding the costs and risks of technology leadership
E. Technology followers are not successful at low-cost strategies
42) Use the following table to answer question:
P(M A) is approximately _____.
A. .25
B. .125
C. .625
D. .50 (Check your textbook!!!)
43) Which of the following statements is true?
A. If A and B are independent events, the P(B) = P(A) P(B).
B. If event (A) occurs, then its complement (A') will also occur.
C. The probability of A and its complement (A') will always sum to one.
D. The sum of two mutually exclusive events is one.
44) Use the following table to answer question:
Are Service provider and county independent events?
A. Insufficient information to determine
B. Yes

15. C. No (Check your textbook!!!)
45) Use the following table to answer question:
P(S | W) is approximately _____.
A. .58
B. .12
C. 30
D. .40 (Check your textbook!!!)
46) 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.
Which outcomes would be likely in a bivariate regression on 45 randomly chosen U.S. cities
in 2005 with
Y = number of robberies in each city (thousands of robberies) and
X = size of police force in each city (thousands of police)?
A. No correlation.
B. Autocorrelation.
C. Positive slope (due to city size).
D. High R2 (due to city size).
Read more: http://geography.uoregon.edu/geogr/topics/regression01.htm
47) Thirty patients are selected from a filing cabinet containing 812 patient folders by
choosing every 27th patient folder. Which sampling method is this?

16. A. Cluster sample
B. Simple random sample
C. Stratified sample
D. Systematic sample
48) Suppose that the optimal values of the decision variables to a two-variable linear
programming problem remain the same as long as the slope of the objective function lies
between the slopes of the following two constraints:
2X1 + 3X2 26
2X1 + 2X2 20
The current objective function is:
8X1 + 9X2 = Z
Which of the following statements about the range of optimality on c1 is TRUE?
A. 0 c1 2
B. 9 c1 12
C. 2 c1 6
D. 6 c1 9
49) Which one of the following statements concerning production and staffing plans is best?
A. Aggregation can be performed along three dimensions: product families, labor, and time.
B. A master production schedule is a projected statement of income, costs, and profits.
C. A staffing plan is the intermediate link between the business plan and the master
production schedule.

17. D. Production plans are based primarily on information from the master production plan.
Read more: http://asumag.com/mag/university_building_staffing_plan/
http://www.lotsofessays.com/viewpaper/1712622.html
50) Which one of the following statements concerning production and staffing plans is best?
A. When production and staffing plans are made, aggregation can be performed only along
two dimensions: products and time.
B. Production and staffing plans specify production rates, workforce levels, and inventory
holdings, but do not account for capacity limitations because they are aggregated.
C. Production and staffing plans attempt to achieve several objectives, all of which must be
consistent with one another.
D. The impact of production and staffing plans cuts across several functional areas of the
firm.
51) Queuing models use an A/B/C notation. What do these variables represent?
A. maximum time between arrivals/maximum allowable service time/maximum number of
parallel servers
B. distribution of time between arrivals/distribution of service times/number of parallel
servers
C. average time between arrivals/average service time/number of parallel servers
D. minimum time between arrivals/minimum allowable service time/minimum number of
parallel servers
Read more: http://en.wikipedia.org/wiki/Queueing_model
http://it.toolbox.com/blogs/enterprise-solutions/queuing-theory-models-14995
52) Which is not a tool of statistical quality control?
A. Attribute control chart
B. Fishbone diagram
C. Pareto chart
D. Deming chart

18. Read more: http://www.britannica.com/EBchecked/topic/564167/statistical-quality-control
http://www.itl.nist.gov/div898/handbook/pmc/section1/pmc11.htm
http://www.vertex42.com/ExcelTemplates/fishbone-diagram.html
53) Fundamental points about network computing in organizations include all of the
following except:
A. Networks have had limited impact on organizational productivity
B. Computers constantly exchange data
C. Computer data exchange provides significant advantages to organizations
D. Networks can be of any size, from small to enormous
E. Networks support new ways of doing business
Read more: http://www.opengroup.org/onlinepubs/7619899/toc.htm
54) When customers access a Web site and make purchases, they generate __________.
A. Web data
B. Tracking cookies
C. Information
D. Clickstream data
E. Hyperlink data
Read more: http://en.wikipedia.org/wiki/HTTP_cookie
http://chris.pirillo.com/what-is-a-tracking-cookie/
55) When your purchases are swiped over the bar-code reader at the point-of-sale terminals at
Wal-Mart, a _____ records the data.
A. transaction processing system
B. enterprise resource planning system

19. C. functional area information system
D. dashboard
E. office automation system
Read more: http://en.wikipedia.org/wiki/Transaction_processing_system
http://www.bestpricecomputers.co.uk/glossary/transaction-processing-systems.htm
56) Which of the following is not a source for external data?
A. commercial databases
B. satellites
C. corporate databases
D. sensors
E. government reports
Read more: http://spireproject.com/database.htm
57) Which of the following statements is correct?
A. An individual’s right to privacy is absolute
B. Advances in information technologies have not affected individual privacy
C. It is difficult to determine and enforce privacy regulations
D. An individual’s right to privacy supersedes the needs of society
E. The Internet has increased individuals’ privacy
Read more: http://en.wikipedia.org/wiki/Privacy
http://www.escapefromamerica.com/2010/08/have-american-citizens-lost-their-right-to-
privacy/
58) The management cockpit best exemplifies which type of system?
A. Decision support system
B. Functional area information system

20. C. Expert system
D. Digital dashboard
E. Group decision support system
Read more: http://www.ap.atosorigin.com/en-
us/services/solutions/consulting/management_consulting/management_cockpit/default.htm
59) Information-based industries are most susceptible to which one of Porter’s five forces?
A. bargaining power of suppliers
B. rivalry among existing firms in an industry
C. bargaining power of customers
D. threat of substitute products
Read more: http://www.quickmba.com/strategy/porter.shtml
http://en.wikipedia.org/wiki/Porter_five_forces_analysis
60) International Game Technology’s new ERP system produced all of the following benefits
except:
A. The company gained flexibility in manufacturing products
B. Integrated the company’s business functions
C. Company was able to maintain its original business processes
D. ERP system connected the company’s global operations
E. Operations employees were able to access manufacturing process details at their
workstations
61) Which of the following is not a reason that managers need IT support?
A. Need to access remote information sources
B. Number of alternatives are decreasing
C. Decisions must typically be made under time pressure
D. Decisions are becoming more complex

21. E. Decision makers are often in different locations
62) Which of the following are not provided by digital dashboards?
A. Key performance indicators
B. Drill down
C. Transaction processing
D. Status access
E. Exception reporting
Read more:
http://en.wikipedia.org/wiki/Dashboards_%28management_information_systems%29
http://www.infovis.net/printMag.php?num=143&lang=2
63) Which of the following best represents operating income?
A. Income from capital gains
B. Income after financing activities
C. Earnings before interest and taxes
D. Income from discontinued operations
Read more: http://www.investorwords.com/3460/operating_income.html
64) 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.

22. D. Borrow on a floating rate basis to finance investments in permanent assets.
Read more: http://www.forex-currency-trading-tips.com/tag/definition-of-hedging-principle
65) Exchange rate risk:
A. has been phased out due to recent international legislation.
B. arises from the fact that the spot exchange rate on a future date is a random variable.
C. applies only to certain types of domestic businesses.
D. doesn’t affect trades made in US Dollars.
Read more: http://www.investorwords.com/1808/exchange_rate_risk.html
http://moneyterms.co.uk/exchange-rate-risk/
66) 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 answerwer to the nearest $10.)
A. $900
B. $490
C. $570
D. -$150
67) At 8% compounded annually, how long will it take $750 to double?
A. 6.5 years
B. 9 years
C. 48 months
D. 12 years

23. 68) If the quote for a forward exchange contract is greater than the computed price, the
forward contract is:
A. overvalued.
B. a good buy.
C. undervalued.
D. at equilibrium.
Read more: http://www.arabbank.com.au/trade-finance/forward-exchange-contracts
http://www.businessdictionary.com/definition/forward-exchange-contract.html
69) Forward rates are quoted:
A. in direct form and at a premium or discount
B. by the FDIC
C. in an indirect form
D. on financial statements
E. daily
Read more:
http://businesslink.gov.uk/bdotg/action/detail?itemId=1074298651&type=RESOURCES
http://www.lloydstsbbusiness.com/internationalservices/forwardexchangecontracts.asp
70) You hold a portfolio with the following securities:
Security Percent of Portfolio Beta Return
X Corporation 20% 1.35 14%
Y Corporation 35% .95 10%
Z Corporation 45% .75 8%
Compute the expected return and beta for the portfolio.

24. A. 10.67%, 1.02
B. 34.4%, .94
C. 9.9%, 1.02
D. 9.9%, .94
71) 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.
A. more, more
B. less, more
C. more, less
D. less, less
Read more: http://stocks.about.com/od/evaluatingstocks/a/beta120904.htm
http://finance.mapsofworld.com/portfolio/investment/stock.html
72) Mortgage bonds:
A. are a type of debenture.
B. usually pay little or no interest.
C. are secured by a lien on real property.
D. can only be issued by financial institutions.
Read more: http://www.investorwords.com/3129/mortgage_bond.html
http://www.wisegeek.com/what-is-a-mortgage-bond.htm
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
stock?
A. 8.0%
B. 36.13%

25. C. 12.5%
D. 13.6%
74) Suppose you determine that the NPV of a project is $1,525,855. What does that mean?
A. Under all conditions, the project’s payback would be less than the profitability index.
B. In all cases, investing in this project would be better than investing in a project that has an
NPV of $850,000.
C. The project would add value to the firm.
D. The project’s IRR would have to be less that the firm’s discount rate.
75) At what rate must $400 be compounded annually for it to grow to $716.40 in 10 years?
A. 7%
B. 6%
C. 5%
D. 8%
76) "Positioning":
A. is useful for combining but not for segmenting.
B. applies to new products--but not existing products.
C. helps strategy planners see how customers view competitors' offerings.
D. eliminates the need for judgment in strategy planning.
E. is concerned with obtaining the best shelf space in retail outlets.
Read more: http://en.wikipedia.org/wiki/Positioning_%28marketing%29
http://www.marketingteacher.com/lesson-store/lesson-positioning.html
77) Good marketing strategy planners know that:

26. A. the terms "mass marketing" and "mass marketer" mean basically the same thing.
B. firms like Nabisco and Wal-Mart are too large to aim at clearly defined target markets.
C. target marketing does not limit one to small market segments.
D. target markets cannot be large and spread out.
E. mass marketing is often very desirable and effective.
Read more: http://en.wikipedia.org/wiki/Marketing_strategy
http://www.quickmba.com/MarketingStrat.shtml
http://www.wisegeek.com/what-is-mass-marketing.htm
78) In an effort to increase its total sales, Champion has started exporting its spark plugs for
use by several German auto producers. Champion is pursuing a _____ opportunity.
A. mass marketing
B. diversification
C. market penetration
D. market development
E. product development
Read more: http://www.businessdictionary.com/definition/market-penetration.html
http://moneyterms.co.uk/market_penetration/
79) The three basic tasks of ALL managers, according to the text, are:
A. planning, staffing, and evaluating.
B. hiring, training, and compensating.
C. marketing, production, and finance.
D. planning, implementation, and control.
E. execution, feedback, and control.
Read more: http://hubpages.com/hub/The-3-Basic-Tasks-of-a-Manager-that-You-Do-Not-
Always-See

27. 80) Analysis of demographic dimensions:
A. is the most important step to successful segmentation.
B. can be used along with analysis of other dimensions to identify attractive target markets.
C. considers income and sex, but not age.
D. only considers age.
E. is the most effective way to identify unmet consumer needs.
Read more: http://www.tetrad.com/demographics/usa/ags/agsdemogdim.html
http://en.wikipedia.org/wiki/Market_segment
http://www.marketingteacher.com/lesson-store/lesson-segmentation.html
81) The basic objective of the U.S. market-directed economic system is to:
A. minimize inflation.
B. achieve an annual growth rate of at least 10 percent.
C. satisfy consumer needs as they--the consumers--see them.
D. make the most efficient use of the country's resources.
E. provide each person with an equal share of the economic output.
82) The managerial process of developing and maintaining a match between the resources of
an organization and its market opportunities is called:
A. management by objective.
B. strategic (management) planning.
C. marketing programming.
D. market planning.
E. marketing strategy planning.
Read more: http://en.wikipedia.org/wiki/Strategic_management

28. 83) When evaluating macro-marketing:
A. one must determine how efficiently the society's resources are used.
B. the evaluation is necessarily subjective.
C. one must consider each individual firm's role in the marketing system.
D. one must consider the society’s role in the marketing system.
E. the best approach is to consider the profit generated by individual firms within the overall
system.
Read more: http://marketing.about.com/od/marketingglossary/g/macromktgdef.htm
http://en.wikipedia.org/wiki/Macromarketing
84) In comparison to the buying of final consumers, the purchasing of organizational buyers:
A. leans basically toward economy, quality, and dependability.
B. is strictly economic and not at all emotional.
C. is even less predictable.
D. is always emotional.
E. is always based on competitive bids from multiple suppliers.
Read more: http://www.consumerpsychologist.com/cb_Organizational_Buyers.html
http://knol.google.com/k/organizational-buying-processes-and-buying-behavior#
85) When one considers the strategy decisions organized by the four Ps, branding is related to
packaging as:
A. store location is to sales force selection.
B. branding is to pricing.
C. personal selling is to mass selling.
D. pricing is to promotion.
E. production is to marketing.
Read more: http://marketing.about.com/cs/brandmktg/a/whatisbranding.htm
http://www.scribd.com/doc/15233856/Branding-and-Packaging

29. 86) The managerial process of developing and maintaining a match between the resources of
an organization and its market opportunities is called:
A. marketing strategy planning.
B. management by objective.
C. strategic (management) planning.
D. market planning.
E. marketing programming.
Read more: http://www.pim.com.pk/faq.htm#Str%20Planning
87) When looking at demographic dimensions, marketers should:
A. recognize that demographics can be very useful for estimating the market potential of
possible target markets.
B. know that it is illegal to segment markets based on membership in some racial or ethnic
group.
C. understand that ethnic groups are generally homogeneous within.
D. always consider external influences.
E. know that demographics are especially helpful in explaining why specific people buy
specific brands.
88) Which of the following receives at least some protection under the U.S. Constitution?
A. Both obscene speech and offensive speech
B. Obscene speech
C. Offensive speech
D. Neither obscene speech nor offensive speech
Read more: http://en.wikipedia.org/wiki/United_States_Constitution
89) Which article of the United States Constitution deals with the judicial power of the
federal government?

30. A. Article I.
B. Article III.
C. Article IV.
D. Article V.
E. Article II.
Read more: http://www.house.gov/house/Constitution/Constitution.html
90) Which of the following activities by an administrative agency requires public notice and
participation?
A. Substantive rule making only.
B. Substantive rule making and statements of policy only.
C. Statements of policy only.
D. Substantive rule making, interpretive rule making, and statements of policy.
E. Substantive rule making and interpretive rule making only.
Read more: http://legal-dictionary.thefreedictionary.com/Administrative+Agency
http://www.yourdictionary.com/law/administrative-agency
91) Which of the following is correct about interpretive rules?
A. They do not establish new law.
B. They must be accompanied by substantive rules.
C. All federal administrative agencies have implied power to make interpretive rules.
D. Interpretive rules are not subject to judicial review.
E. They require public notice and participation to create.
Read more: http://dictionary.reference.com/browse/interpretive+rule
92) 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?

31. A. Information on gambling and lotteries.
B. Information about child pornography.
C. Obscene speech.
D. Information on how to build a bomb.
Read more: http://www.law.cornell.edu/supct/html/98-387.ZS.html
93) A professional corporation is one that:
A. Is formed with the assistance of a lawyer.
B. Is typically used as a form of doing business by doctors and lawyers.
C. Has been in existence long enough to reasonably assure that it will be profitable in the near
future.
D. Does not have shareholders.
Read more: http://en.wikipedia.org/wiki/Professional_corporation
http://biztaxlaw.about.com/od/glossaryp/g/professcorp.htm
94) What makes a publicly held corporation different from a public corporation?
A. A publicly held corporation must have a charitable purpose, but a public corporation need
not have a charitable purpose.
B. They are two terms that have the same meaning.
C. A publicly held corporation has many shareholders rather than being a corporation owned
by a governmental entity.
D. A publicly held corporation is entitled to limited liability, but a public corporation is not.
Read more: http://financial-dictionary.thefreedictionary.com/Publicly+held+corporation
95) Generally, which of the following statements relating to contractual capacity is correct?
A. People with no competence make voidable contracts.
B. People who have been adjudicated insane make voidable contracts.
C. People with limited competence make void contracts.

32. D. Persons with full competence make enforceable contracts.
E. Minors make void contracts.
Read more: http://law.jrank.org/pages/12504/Contract-Law.html
96) Which social responsibility theory has been advocated by Novel Prizewinning economist
Milton Friedman?
A. Stakeholder interest.
B. Corporate social audit.
C. Moral minimum.
D. Maximizing profits.
E. Corporate citizenship.
Read more: http://www.econlib.org/library/Enc/bios/Friedman.html
97) If a minor wishes to be bound to a contract after becoming an adult, she must:
A. Give back the goods or services received as a minor.
B. Bring an action to verify the contract.
C. Ratify the contract.
D. Disaffirm the contract.
Read more: http://www.lawhandbook.sa.gov.au/print/ch08s02.php
98) What exists when budgeted costs exceed actual results?
A. A budgeting error
B. A favorable difference
C. An unfavorable difference
D. An excess profit
99) Balance sheet accounts are considered to be __________.

33. A. temporary stockholders' accounts
B. permanent accounts
C. capital accounts
D. nominal accounts
Read more: http://www.finance-lib.com/financial-term-permanent-accounts.html
100) 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. $150,000
B. $60,000
C. $75,000
D. $90,000
101) 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
The net income (or loss) for the period is __________.
A. not determinable
B. $48,000 income
C. $10,000 income
D. $10,000 loss

34. Grading Summary Grading Summary Grading Summary Grading Summary