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78 Cards in this Set
- Front
- Back
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Which of the following is a similarity between business and nonprofit organizations? |
Both of them in engage managment activites |
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Which of the following is a force within an organization's control that has an impact on the business's daily operations? |
Employees |
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Among the major activities of business, which of the following is an element of management? |
Acquiring resources |
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Which of the following is true of the people involved in a business? A. The finance department is concerned with acquiring, developing and using human resources effectively and efficiently. B. The marketing team handles all activities concerned with obtaining money for the firm and using it effectively. C. The managers of nonprofit organizations conduct all kinds of business operations except collecting funds. D. The senior management is not involved in the day-to-day functions of production and manufacturing. E. The primary responsibility of providing financial resources for the operation of the business lies with the business owners. |
The primary responsibility of providing financial resources for the operation of the business lies with the business owners. |
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An entrepreneur has been primarily associated with the willingness to: A. change employers frequently B. work under authority. C. be conservative. D. possess a government job. E. take risks. |
take risks. |
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The principles and standards that determine acceptable conduct in business organizations are referred to as: A. social responsibility. B. business strategies. C. business ethics. D. business stances. E. corporate citizenship. |
business ethics. |
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Which of the following statements is true? A. All actions deemed unethical by society are also illegal. B. The concerns of what is legal and ethical do not change over time. C. The terms social responsibility and ethics should be used interchangeably. D. Companies can be both profitable and socially responsible. E. Businesses whose sole objective is to earn profit may not consider their social responsibility. |
Companies can be both profitable and socially responsible. |
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One of the most difficult things for a business to restore after an ethics scandal is. A. regulations. B. ethics training programs. C. trust. D. codes of conduct. E. morale. |
trust. |
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Studies have found a direct link between social responsibility and _____ in business. A. profitability B. ethics C. declining stock process D. happiness of stakeholders E. global warming |
profitability |
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Studies appear to show that while there are plenty of people unemployed, approximately _____ percent of companies cite employees' lack of experience as to why there are so many unfilled positions. A. 3 B. 11 C. 66 D. 51 E. 35 |
35 |
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A(n)___exists when a country is the only source or producer of an item. A. comparative advantage B. comparative disadvantage C. absolute advantage D. abosolute disadvantage E. domestic advantage |
absolute advantage |
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Which is one of the implications of trade deficits? A. The success of businesses B. The import of more products C. The loss of jobs. D. The export of more services E. A higher standard of living |
The loss of jobs |
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When a country devalues its currency, it causes an increase in: A. its imports. B. it's exports. C. the sale of international goods in the domestic market. D. the sale of international services in the domestic market. E. the cost of American goods abroad. |
the sale of international goods in the domestic market. |
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Which of the following is a true statement about barriers to international business? A. Devaluation discourages the sale of domestic goods and tourism. B. Revaluations occur daily because of the daily changes in the exchange rates. C. Legal and ethical requirements for successful business are decreasing globally. D. Many of the legal rights that Americans take for granted do not exist in other countries. E. The Webb-Pomerene Export Trade Act of 1918 allows selected U.S. firms to limit free trade within the United States. |
Many of the legal rights that Americans take for granted do not exist in other countries. |
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A fixed tariff differs from an ad valorem tariff because an ad valorem tariff: A. is a specific amount of money levied on each unit of a product sold by a country. B. is a specific amount of money levied on each unit of a product brought into a country. C. is based on the value of an item. D. prohibits trade in a particular product. E. limits the number of units of a particular product that can be imported into a country. |
is based on the value of an item. |
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Judy has realized that she does not like working for others. She wants to open a business in which she will have maximum control and the least interference from government regulations. Which of the following forms of businessis best suited for Judy'sneeds?
A. A joint venture B. An S corporation C. A sole proprietorship D. A partnership E. A C corporation |
A sole proprietorship |
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The income earned in sole proprietorships is:
A. taxed twice. B. exempted from tax. C. taxed as personal income. D. quasi-taxable. E. taxed as business income. |
taxed as personal income. |
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Which of the following forms of businessownership requires owners to perform many functions and possess diverse skills to make decisions?
A. An S corporation B. A C corporation C. A joint venture D. A cooperative E. A sole proprietorship |
A sole proprietorship |
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Which of the following is a difference between partnerships and sole proprietorships?
A. Partnerships have better accessto diverse skills when comparedto sole proprietorships.
B. Partnerships are subjected to fewer government regulations than sole proprietorships.
C. Partnerships make possible the greatest degree of secrecy,whereas sole proprietorships do not.
D. In sole proprietorships, the owners have access to more funds and resources than in partnerships.
E. In partnerships, the owners have complete controlof the business, whereas in sole proprietorships they do not. |
Partnerships have better access to diverse skills when compared to sole proprietorships. |
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Which of the following is true of limited liability companies?
A. They are taxed like a C corporation. B. They are very complex and difficult to run.C. They require membersto regularly hold meetings. D. They are established for a specific project or for a limited time. E. They protect the members' person alassets in case of lawsuits. |
They protect the members' personal assets in case of lawsuits. |
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Megha is a taekwondo expert who starts her own martial arts training academy. She conducts taekwondo classes for women and teaches them the art of self-defense. Megha can be regarded as a(n): A. shareholder. B. entrepreneur. C. investor. D. intrapreneur. E. inventor. |
entrepreneur. |
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Salma owns a Lebanese restaurant that employs around 25 people. She is solely responsible for the management of the restaurant. Her business has to compete with a larger chain of restau rants that offer the same cuisine. Salma's restaurant can be classified as a: A. multinational corporation. B. conglomerate. C. franchise. D. public sector holding. E. small business. |
small business. |
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Which of the following traits will help entrepreneurs succeed?
A. Risk aversion B. Intolerance C. Frugality D. Impulsive E. Neuroticism |
Frugality |
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Which of the following is a reason behind the failure of small businesses?
A. Overcapitalization B. Reputation C. Managerial experience D. Poor business concept E. High costs of start-up |
Poor business concept |
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The principal immediate threats to small and mid-sized businesses include:
A. rapidly advancingtechnology. B. rising entrepreneurial spirit. C. reducing imports. D. escalating costs. E. increasing exports. |
escalating costs. |
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If a manager is concerned about doing the work in such a manner that it yields the desired result, then his or her primary managerial concern is:
A. efficiency. B. effectiveness. C. standardization. D. innovation. E. expertise. |
effectiveness. |
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Which of the following is the first function of management?
A. Planning B. Crowd sourcing C. Staffing D. Factoring E. Directing |
Planning |
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Before an organization can plan a course of action, it must first: A. take corrective action. B. develop a blueprint of the plan. C. decide on the people to be involved in the plan. D. determine what it wants to achieve. E. allocateand organize the required resources. |
determine what it wants to achieve. |
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Which of the followingquestions does the mission statement of an organization seek to answer?
A. What business are we in? B. How do we expandour business? C. What are our staffingrequirements? D. Why are we not cost effective? E. How do we meet the annualsales target?
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What business are we in? |
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Growth objectives essentially relate to:
A. making the best use of an organization's resources. B. coordinating an organization's resources smoothly. C. focusing on profit as the sole indicator of growth. D. adapting and releasing new products in the market. E. building an organization's ability to promote diversity.
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adapting and releasing new products in the market. |
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Identify a true statement about organizational culture?
A. It is absent in small organizations. B. It can only be communicated formally. C. It can only be seen in nonprofit organizations. D. It is reflected in an organization's relationships with stakeholders. E. It does not encompass employee behavior and ways of dealing with problems. |
It is reflected in an organization's relationships with stakeholders. |
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Which of the following is an advantage of job specialization?
A. It allows workers to specialize in a variety of skills. B. It enables workers to perform their work more quickly and efficiently. C. It can never lead to dissatisfaction and boredom among employees. D. It completely eliminates the need for departmentalization within an organization. E. It requires employees to perform more than one task within a firm. |
It enables workers to perform their work more quickly and efficiently. |
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Which of the following is a similarity between customer departmentalization and geographical departmentalization?
A. They both prohibit specialization. B. They both group jobs accordingto a customer's geographic location. C. They both do not focus on an organization as a whole. D. They both require minimal administrative staff to coordinateoperations. E. They both cannot be used in large organizations. |
They both do not focus on an organization as a whole. |
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Which of the following is a disadvantage of geographical departmentalization?
A. It focuses on an organization as a whole rather than emphasizing on departmental units. B. It prohibits specialization among employees. C. It results in duplication of tasks. D. It is limited to small organizations. E. It is inefficient when businesses want to quicklyrespond to regional customers. |
It results in duplication of tasks. |
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Which of the following is true of decentralization?
A. It concentrates the decision-making authority at the top. B. It is highly effective for businesses where risky decisions are to be made. C. It reduces an organization's ability to react to changes quickly. D. It isolates lower-level managers from decisionmaking. E. It is characteristic of organizations that operate in complex environments. |
It is characteristic of organizations that operate in complex environments. |
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Operations management has the primary responsibility of: A. securing funds for the activities of an organization. B. conducting research on consumer behavior. C. creating goods and services that satisfy customers. D. developing only intangible products. E. replacing quality with productivity in the manufacturing of goods. |
creating goods and services that satisfy customers. |
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Which of the following accurately describes the difference between the terms operations and production? A. Operations is the first step in manufacturing, whereas production is the last step. B. Operations is simply an analysis of inputs and outputs, whereas production includes a wide range of organizational activities and situations. C. Operations includes processes used in the making of both tangible and intangible products, whereas production is related only to tangible products. D. Operations focuses solely on quality, whereas the primary focus of production is productivity. E. Operations is restricted to small businesses, whereas production occurs in both small and large businesses. |
Operations includes processes used in the making of both tangible and intangible products, whereas production is related only to tangible products. |
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From the perspective of operations, the money used to purchase a carpenter's tools and the electricity used to run his power saw are: A. processes. B. outputs. C. stocks. D. inputs. E. inventories. |
inputs |
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For most organizations, the ultimate objective is: A. to replace quality with productivity in the transformation process. B. to create intangible outputs using tangible inputs. C. for operations to be replaced by production and manufacturing. D. for the produced outputs to be worth more than the cost of inputs. E. to completely eliminate the transformation process in operations management. |
for the produced outputs to be worth more than the cost of inputs. |
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Zedpro Computer Company is determining the demand for a new product and how much consumers are willing to pay for it. For this, Zedpro should best rely on: A. case studies. B. marketing research. C. trial and error. D. successful past experiences. E. intuition. |
marketing research. |
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What motivates employees to perform on the job is the focus of _______, which is the study of the behavior of individuals and groups in organizational settings. A. work ethics B. human resources C. business strategies D. human relations E. organizational structure |
human relations |
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Which of the following statements is true of motivation?
A. It is an external force that influences people. B. A motivating goal is the difference between a desired state and an actual state. C. Needs can be motivating. D. Goals need to be set by an external agent to be motivating. E. A motivating need is the satisfaction of some goal. |
A motivating need is the satisfaction of some goal. |
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Low morale is likely to result in ______.
A. high productivity B. low turnover C. absenteeism D. high motivation E. loyalty |
absenteeism |
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In the United States, workers' ______ , as defined by Maslow, have largely been met by minimum-wage laws and federal occupational safety standards. A. physiological and security needs B. security and social needs C. social and esteem needs D. esteem and self-actualization needs E. physiological and esteem needs |
physiological and security needs |
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According to managers who adopt McGregor's Theory X: A. people enjoy work. B. work is as natural as play or rest. C. people will seek and accept responsibility. D. workers must be forced to do their jobs. E. the average worker does not like to be directed. |
workers must be forced to do their jobs. |
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A human resources manager deciding how many new employees a company will need to fill vacant positions in the near future is engaging in the activity of __________. A. recruiting B. planning C. training D. selling E. compensating |
planning |
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Zen W Inc., a publication house, has posted an advertisement inviting applicants for the post of a graphic designer. They have specified that the job would involve illustration of content by designing aesthetically tasteful layouts. This specification is an example of: A. job appraisal. B. a job description. C. job inquiry. D. job analysis. E. a job specification. |
a job description. |
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Which of the following functions of human resources management includes testing?
A. Planning B. Assessing C.Selection D. Training E. Compensating |
Selection |
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The________ is a federal agency established by the Civil Rights Act of 1964 and dedicated to increasing job opportunities for women and minorities and eliminating job discrimination based on race, religion, color, sex, national origin,or disability. A. National Center for Civil and Human RightsB. United States Commission on Civil Rights C. Equal Employment Opportunity Commission D. Pension Benefit GuarantyCorporation E. National Association for the Advancement of Colored People |
Equal Employment Opportunity Commission |
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A______is a performance appraisal method that provides feedback from a panel that typically includes superiors, peers, and subordinates.
A. ranking procedure B. grade assignment C. polygraph test D. 360-degree feedbacksystem E. behavioral checklist |
360-degree feedback system |
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_______is best described as a group of activities designed to expedite transactions by creating, distributing, pricing, and promoting goods, services, and ideas.
A. Auditing B. Marketing C. Recruiting D. Bootstrapping E. Brainstorming
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Marketing |
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49. When a packer in the frozen foods sectionof a grocery store labels a meat steak with little or no fat as "AA" and another meat steak with more fat as "AB," the packer is primarily engaging in the marketing function of
A. buying B. grading C. scoring D. storing E. financing |
grading |
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__________is the chance of loss associated with marketing decisions.
A. Value B. Utility C. Liability D. Risk E. Cost
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Risk |
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In the context of the evolution of the marketing concept, the era of production orientation was characterized by________.
A. the development of new technologies that made it possible to manufacture goods with ever increasing efficiency B. a belief that sales were the primary means of increasing profits C. the view adoptedby businesspeople that advertising and personal sellingwere the primary means of increasingprofits D. the realization of entrepreneurs that they must first determinewhat customers want and then produce it E. a belief that it was more effective to retain existing customers than it was to find new ones |
the development of new technologies that made it possible to manufacture goods with ever increasing efficiency |
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The first step in developing a marketing strategy is:
A. cultivating effectivecustomer relationships. B. attracting new customers. C. selecting a target market. D. developing an appropriate marketing mix. E. conducting a SWOT analysis. |
selecting a target market. |
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Which is the stage in the product development process where most new product ideas are rejected because they seem inappropriate for an organization?
A. Idea development B. Business analysis C. Test marketing D. Product development E. Idea screening |
Idea screening |
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Sun Dane Inc., a tire manufacturing company, is in the processof developing a new product.Its R&D team has shortlisted the idea of a tire fitted with a sheet to keep off dirt. It is in the process of transforming the idea into an actual model.Sun Dane is currently in the_____________stage.
A. idea development B. business analysis C. test marketing D. commercialization E. product development |
product development |
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Magazines located next to the checkout counter at a grocery store would probably be classified as: A. shopping products. B. convenience products. C. processed materials. D. specialty products. E. accessory equipment. |
convenience products. |
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A ______is all the products offered by an organization.
A. product line B. product group C. product mix D. product width E. product list
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product mix |
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The ______reflects the degree to which a good, service,or idea meets the demands and requirements of customers. A. brand name B. product packaging C. product labeling D. product quality E. brand mark |
product quality |
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In the context of digital communication,_______is the ability of a marketer to identify customers before they make a purchase.
A. control B. interactivity C. connectivity D. addressability E. accessibility |
addressability |
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__________in the context of digital communication, refers to the ability of customers to express their needs and wants directly to the firm in response to its marketing communications. A. Addressability B. Accessibility C. Connectivity D. Interactivity E. Control |
Interactivity |
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A successful digital marketing strategy focuses: A. on creating products that customers need. B. on creating products that marketers want. C. exclusively on developing a brand name or label. D. on reducing costs of online transaction. E. exclusively on giving discounts for products. |
on creating products that customers need. |
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Marketers' ability to process orders electronically and increase the speed of communications, thereby reducing costs, inefficiencies, and redundancies most likely relates to the________ element of the marketing mix. A. pricing B. promotion C. distribution D. communication E. advertising |
distribution |
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Which of the following is a drawback associated with biogs? A. Blogs once written cannot be removed. B. Blogs are highly regulated and companies are not allowed to make any tall claims. C. Bloggers charge companies for writing reviews of products. D. Consumers can write bad reviews of products in their blogs, which leads to negative publicity. E. Companies are not allowed to write positive reviews of their products on their blogs. |
Consumers can write bad reviews of products in their blogs, which leads to negative publicity. |
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A Certified Public Accountant has the right to:
A. express, officially, an unbiased opinion regarding the accuracy of a client's financial statements. B. publicly express a biased opinion about the accuracy of a firm's financial statements. C. express his or her personalopinion in all financial matters. D. handle every firm's reports by different rules. E. limit the types of assets commercial banks can buy.
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express, officially, an unbiased opinion regarding the accuracy of a client's financial statements. |
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The limits the types of assets commercial banks can buy; the amount of capital they must maintain; and the use of derivativeinstruments such as options, futures, and structuredinvestment products.
A. Sarbanes-Oxley Act B. Dodd-Frank Act C. Glass-SteagallAct D. Gramm-Leach-Bliley Act E. Celler-KefauverAct
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Dodd-Frank Act |
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_________is the movement of money through an organization over a daily, weekly, monthly, or yearly basis.
A. Expenses trajectory B. Income trajectory C. Assets flow D. Liabilities E. Cash flow |
Cash flow |
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The single most important component of an annual report is the:
A. balance sheet. B. income statement. C. cash flow statement. D. signature of a Certified Public Accountant. E. signature of the firm's owners or stakeholders.
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signature of a Certified Public Accountant. |
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A company's assets that are used or converted into cash within the course of a calendar year are called:
A. fixed assets. B. long-term assets. C. equity. D. current assets. E. current liabilities. |
current assets. |
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A person swaps a bag of fruits for some meat. In this case, money functionsas a: A. standard of value. B. store of value. C. measure of value. D. medium of exchange. E. counterfeit deterrent. |
medium of exchange. |
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Ryan traded his tablet PC for a cellphone. Since both were of the same value, there was no exchange of money. Which of the following concepts does this scenario illustrate? A. Discounting B. Checking C. Bartering D. Accruing E. Devaluing |
Bartering |
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This card left intentionally blank. |
This card left intentionally blank. |
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Savings accounts are also known as:
A. interest deposits. B. term deposits. C. demand deposits. D. time deposits. E. certificates of deposit. |
time deposits |
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A checking account at a credit union is commonly referred to as a(n)___________. A. share draft account B. savings account C. share account D. negotiable order of withdrawal account E. individual retirement account |
share draft account |
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Working capital management refers to________.
A. managing long-term liabilities B. managing long-term assets C. managing short-term assets and liabilities D. financing internal projects E. financing small business enterprises |
managing short-term assets and liabilities |
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As idle cash does not make money, a manager may choose to invest this extra cash in temporary investmentscalled: A. junk bonds. B. long-term assets. C. transaction balances. D. marketable securities. E. secured bonds. |
marketable securities. |
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Which of the following is true of commercial paper?
A. It is the most popularlong-term investment for small businesses. B. It acts as a verbal promise to pay a specific amount of money. C. It is backed only by the name and reputation of the issuing company. D. It is only sold to sole proprietors and small businesses. E. It is only sold for durations of two years or more.
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It is backed only by the name and reputation of the issuing company. |
