The Ultimate Test On Business Studies

164 Questions | Total Attempts: 1605

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The Ultimate Test On Business Studies

Questions and Answers
  • 1. 
    When an organization sets a level of standards and then evaluates a  manager’s activities to determine if organizational goals are being met, this  function of business management is being performed:
    • A. 

      Planning.

    • B. 

      Organizing.

    • C. 

      Directing.

    • D. 

      Controlling.

  • 2. 
     What is the segment of a business plan that lays out the methods and  activities that will be used to reach revenue goals, specifies sales programs,  and projects revenue outcomes? 
    • A. 

      Financial Plan.

    • B. 

      Sales and Marketing Plan.

    • C. 

      Executive Summary.

    • D. 

      Description of Products and Services.

  • 3. 
    The financial plan aspect of a business plan accomplishes all of the  following except:
    • A. 

      Establishing a system of financial controls.

    • B. 

      Estimates cost of labor and materials.

    • C. 

      Market research to support sales projections.

    • D. 

      Monthly revenue projections for the first two years.

  • 4. 
    Gross Domestic Product (GDP) is different from Gross National Product  (GNP) because GDP does not include the following financial measurement:
    • A. 

      Net exports.

    • B. 

      Government purchases

    • C. 

      Quarterly products of goods and services

    • D. 

      Net income from foreign sources.

  • 5. 
    Which of the following is not a goal of labor management?
    • A. 

      Increase commission-based compensation.

    • B. 

      Improve productivity.

    • C. 

      Get new workers trained and “up to speed” more quickly.

    • D. 

      Increase employee retention.

  • 6. 
    Which of the following equations is used to determine Return on Equity  (ROE)?
    • A. 

      ROE = Net income/ Sales

    • B. 

      ROE= Gross profit/ Net equity

    • C. 

      ROE= Net income/ Average equity

    • D. 

      ROE= Net equity/ Net income

  • 7. 
    Profitability can be measured through  the following ways, except:
    • A. 

      Gross profit on sales.

    • B. 

      Return on equity.

    • C. 

      Earning per share.

    • D. 

      Net present value.

  • 8. 
    • A. 

      The amount of capital that will make up debt.

    • B. 

      The possibility of financial difficulty in the future.

    • C. 

      The amount of future inventory to be sold.

    • D. 

      The possibility of interest rate movement in the future.

  • 9. 
    Which of the following interest rates are both used for long-term  investments? 
    • A. 

      Prime rate, discount rate.

    • B. 

      Commercial paper rate, treasury bill rate.

    • C. 

      Treasury bond rate, corporate bond rate.

    • D. 

      Corporate bond rate, treasury bill rate.

  • 10. 
    The process of recording, reporting, and evaluating economic events and  transactions that affect business enterprise is called:   
    • A. 

      Marketing.

    • B. 

      Accounting.

    • C. 

      Trend analysis.

    • D. 

      Financial reliability.

  • 11. 
    Which aspect of change theory deals with developing awareness for the  need to change? 
    • A. 

      Precontemplation.

    • B. 

      Contemplation.

    • C. 

      Planning.

    • D. 

      Maintenance.

  • 12. 
    12. Within organizational cultures, open systems allow new employees to:
    • A. 

      A) Come and go until a permanent schedule is assigned.

    • B. 

      B) Work without a contract.

    • C. 

      C) Mesh easily within communication and social culture.

    • D. 

      D) Advance within the company based upon performance, not seniority.

  • 13. 
    13. Informal organizations are responsible for all of the following except:
    • A. 

      A) Pressuring group members to conform to the status quo.

    • B. 

      B) Spreading of information, true or false, from employee to employee.

    • C. 

      C) Providing support to management.

    • D. 

      D) Voting on dress codes, status symbols, and other informalities on the job.

  • 14. 
    14. The primary purpose of the Equal Employment Opportunity Commission  in regulating human resource management within a business  organization is to ensure that: 
    • A. 

      A) Work history, indebtedness, race, and gender have no bearing on an applicant vying for a job.

    • B. 

      B) Recruitment efforts are not targeted toward groups already financially established.

    • C. 

      C) Underrepresented groups within the local population are proportionally represented among the organization’s employees.

    • D. 

      D) All decisions about hiring, discipline, and termination are based on objective, job-related criteria.

  • 15. 
    16. An accountant that takes a correct trial balance at the end of an  accounting period can establish with certainty that:   
    • A. 

      The total debits recorded during the accounting period equal the total credits recorded during the period.

    • B. 

      Every transaction that occurred during the accounting period has been recorded appropriately.

    • C. 

      Every transaction that occurred during the accounting period has been posted to the correct debit and credit accounts in the ledger.

    • D. 

      All accounts have been debited or credited appropriately for each transaction that occurred during the accounting period.

  • 16. 
    17. Which of the following roles in the buying center is incorrect?
    • A. 

      Users are the people in the organization who actually use the product or service, such as an account manager who uses a computer.

    • B. 

      Influencers affect the buying decision by helping define the specifications for what is bought. An information system manager would influence the decision to purchase a new mainframe computer.

    • C. 

      Buyers have formal authority and responsibility to select the supplier and negotiate terms of the contract.

    • D. 

      Deciders control the flow of information in the buying center. Purchasing personnel and technical experts belong to this group.

  • 17. 
    Compared with the first in, first out (FIFO) method of inventory  accounting, the last in, first out (LIFO) method of inventory accounting has which of the following characteristics? 
    • A. 

      The cost of goods sold tends to magnify net income.

    • B. 

      Balance sheet figures provide a more accurate assessment of inventory value.

    • C. 

      The cost of goods sold is lower in times of rising prices.

    • D. 

      The cost of goods sold is closer to prices at the time of sale.

  • 18. 
    A primary characteristic of a computer’s dynamic RAM (random-access  memory) is that it:
    • A. 

      Stores information or instructions that do not change.

    • B. 

      Contains the command necessary to boot the computer.

    • C. 

      Uses an area called firmware to store its instructions.

    • D. 

      Erases programs and stored data when the computer is shut off.

  • 19. 
    Managers at a company determine that they could improve productivity if  their accounting department had access to information stored by their  shipping department.  Which of the following is the most appropriate  solution to this problem? 
    • A. 

      Link the computers via a local area network (LAN).

    • B. 

      Load the same software applications on the computers of the two departments.

    • C. 

      Link the computers via modems and phone lines.

    • D. 

      Link the computers to a CD-ROM file server.

  • 20. 
    Which of the following is not a function of telecommunications?
    • A. 

      Establish interface between sender and receiver.

    • B. 

      Perform editorial tasks on data.

    • C. 

      Release control of information flows.

    • D. 

      Convert flow of information.

  • 21. 
    In general, which of the following resultsa tariff on an imported product? 
    • A. 

      Foreign producers of the product increase supply to stimulate demand.

    • B. 

      Domestic producers of the product increase their prices.

    • C. 

      Foreign producers of the product gain a comparative advantage.

    • D. 

      Domestic producers of the product become more efficient.

  • 22. 
    Which of the following actions by the Federal Reserve System would be  most likely to increase consumer spending?
    • A. 

      Increasing reserve requirements for member banks.

    • B. 

      Increasing the discount rate to member banks.

    • C. 

      Decreasing the discount rate to member banks.

    • D. 

      Selling large amounts of government securities.

    • E. 

      Keeping reserve requirements of member banks constant.

  • 23. 
    In information processing, a byte is: 
    • A. 

      A unit of power.

    • B. 

      A machine for inputting data.

    • C. 

      A unit of information.

    • D. 

      An on or off switch.

  • 24. 
    An account payable entry appears in the:
    • A. 

      Asset section of the balance sheet.

    • B. 

      Liability section of the balance sheet.

    • C. 

      Capital section of the balance sheet.

    • D. 

      Cost of goods sold section of the income statement.

    • E. 

      Operating expense section of the income statement.

  • 25. 
    The federal act that declared the closed shop to be illegal is the:
    • A. 

      Landrum-Griffin Act

    • B. 

      Norris-La Guardia Act

    • C. 

      Taft-Hartley Act

    • D. 

      Wagner Act

    • E. 

      Robinson-Patman Act