DMACC Review. Spring 2013

Transcription

1 DMACC Review Spring 2013

2 Question 1 Often in business the greater the risk, the: A. greater the potential reward. B. lower the expected revenues. C. lower the value provided to society. D. greater the number of stakeholders.

3 Question 2 High tax rates tend to: A. promote economic development. B. make a nation's currency tradable. C. discourage entrepreneurship. D. reduce the amount of money created by the government.

4 Question 3 The presence of competition in free markets: A. is undesirable because it results in unnecessary duplication of efforts. B. typically results in better quality and lower prices. C. is rare, since most markets eventually evolve into monopolies. D. is undesirable, because one big firm can usually produce goods more efficiently than a large number of small firms.

5 Question 4 Three of the major indicators of the economic condition of the United States are the gross domestic product (GDP), the price indices, and the: A. debt to equity ratio (DER). B. gross resource utilization index (GRUI). C. unemployment rate. D. index of capital formation.

6 Question 5 A nation has a in the production of a good if it can produce that good more effectively or efficiently than it can produce other goods. A. supreme advantage B. primary efficiency C. qualified advantage D. comparative advantage

7 Question 6 A favorable balance of trade occurs when the value of: A. imports equals the value of exports. B. the cash inflows equal the value of the cash outflows. C. imports is less than the value of exports. D. the value of the dollar is greater than the value of the euro.

8 Question 7 Which of the following describes charitable donations by corporations to nonprofit organizations? A. corporate philanthropy B. corporate responsibility C. corporate strategy D. structural commitment

9 Question 8 Organizational ethics are learned by: A. attending corporate responsibility seminars. B. tracking the failures of those who are caught in business scandals. C. listening to what the firm leadership is saying. D. observing the actions of others.

10 Question 9 A significant disadvantage of owning a sole proprietorship is the: A. possibility of limited liability. B. heavy tax liability that must be assumed. C. overwhelming time commitment often required of the owner. D. lack of incentives to motivate the owner.

11 Question 10 A franchise can be formed: A. only as a general partnership. B. only as a corporation. C. as either a corporation or partnership, but not as a sole proprietorship. D. as a corporation, partnership or sole proprietorship.

12 Question 11 An entrepreneur: A. manages businesses for others. B. has a controlling interest in the ownership of a corporation. C. manages businesses that operate in multiple countries. D. accepts the risk of starting and running a business.

13 Question 12 Which of the following piece of advice would an experienced business owner offer to help someone who is thinking about starting a business venture? A. Avoid the temptation of buying an existing firm. Build your own reputation and make your own mistakes. B. Gain experience by working for a successful businessperson. C. Postpone consulting with an accountant or lawyer until you can afford their services. D. Jump in quickly, before the market conditions change and opportunities are lost.

14 Question 13 When managers determine that an organization is not making sufficient progress toward achieving its goals and objectives and they develop corrective measures, they are involved in: A. controlling. B. planning. C. directing. D. accounting.

15 Question 14 One difference between managers and leaders is that: A. managers are found in businesses while leaders operate in nonprofit organizations. B. mangers work to achieve stability while leaders embrace change. C. managers use an autocratic approach while leaders embrace a democratic style. D. all employees can manage, but only top managers can lead.

16 Question 15 Sarah has been working for a small sheet metal shop for a few weeks. Tom and Bill are the two foremen that supervise activities in the shop. Both Tom and Bill give Sarah orders from time to time, and the two sometimes give her conflicting instructions about what she should do. Sarah doesn't want to make either Tom or Bill mad, but she is confused and frustrated by these conflicting assignments. This type of situation represents a violation of Fayol's principle. A. division of labor B. clarity of objective C. priority of assignment D. unity of command

17 Question 16 Given the current business environment, managing has become a critical managerial function. A. consumer demand B. international markets C. change D. negative spiritual issue

18 Question 17 Which of the following statements is most consistent with today's views on marketing? A. "There's a sucker born every minute." B. "Find out what your competition does and do it better." C. "A good promotional campaign can sell anything." D. "Learn about your customers and exceed their expectations."

19 Question 18 A firm's marketing mix refers to the combination of: A. goods the firm offers to different market segments. B. advertising media the firm utilizes to promote its products. C. strategies regarding product, price, place, and promotion. D. people directly involved in making marketing decisions.

20 Question 19 Which of the following are products consumers buy after comparing quality, price, and style from a variety of sellers? A. shopping goods B. specialty goods C. convenience goods D. unsought goods

21 Question 20 The trend away from personal salespeople to self-service in many retail outlets has caused firms to: A. reduce their advertising promotional budgets. B. rely more on personal sales efforts. C. place a greater promotional importance on packaging. D. decrease expenditures on interactive Web pages.

22 Question 21 The traditional promotion mix for a firm consists of the: A. strategic mix of price, product, place and advertising. B. various types of advertising media the firm selects to reach each specific target market. C. marketing intermediaries employed by the firm to create a supply value chain. D. advertising, personal selling, public relations, and sales promotion used to reach a target market.

23 Question 22 refers to any paid, nonpersonal communication through various media by organizations and individuals who are in some way identified in the message. A. Publicity B. Promotion C. Public relations D. Advertising

24 Question 23 A major purpose of all of accounting is to: A. provide financial information that is useful to decision makers. B. meet the legal requirements of the Financial Accounting Standards Board (FASB). C. allow the government to track business activity levels. D. compute the profit or loss of a business firm.

25 Question 24 A comparison of bookkeeping and accounting indicates that: A. the two are virtually the same in practice. B. Bookkeeping involves recording financial information, while accounting is concerned with classifying, summarizing, and interpreting this information. C. bookkeeping is more useful for small businesses while accounting is more useful for large businesses. D. accounting is a subsystem of the process of bookkeeping.

26 Question 25 Which business function involves credit management/collecting funds from customers? A. accounting B. production C. marketing D. finance

27 Question 26 A(n) allocates dollars to various costs and expenses needed to operate a business at an estimated level of sales revenue. A. forecast B. balance sheet C. budget D. income statement

28 Question 27 The redesign and new colors added to U.S. paper money is intended to: A. make the currency more difficult to counterfeit. B. increase the use of the barter system. C. improve the durability of our monetary system. D. increase the portability of our money.

29 Question 28 The organization responsible for conducting monetary policy in the United States is the: A. Federal Trade Commission. B. Council of Economic Advisors. C. Federal Reserve System. D. Federal Monetary Control Authority.