FINAL EXAMS FINAL ANSWERS FINAL QUESTIONS

1. BUS 475 FINAL EXAMS
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1).These are selected account balances on December 31, 2008. What is the net amount of
property, plant, and equipment that will appear on the balance sheet?
2) Which list below best describes the major services performed by public accountants?
3) The conceptual framework developed by the Financial Accounting Standards Board
4) In what situations will a static budget be most effective in evaluating a manager's
effectiveness?
5) The major reporting standard for management accounts is __________.
6) 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?
7) The income statement and balance sheet columns of Pine Company's worksheet reflects the
following totals:
8) What exists when budgeted costs exceed actual results?
9) The income statement and balance sheet columns of Pine Company's worksheet reflects the
following totals: The net income (or loss) for the period is __________.
10) Of the following companies, which one would not likely employ the specific identification
method for inventory costing?
11) These are selected account balances on December 31, 2008.
What is the net amount of property, plant, and equipment that will appear on the balance sheet?
12) 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?
13) The cost of an asset and its fair market value are __________.
14) Which one of the following items is not generally used in preparing a statement of cash
flows?

2. 15) In economics, the cost of something is __________.
16) If a binding price ceiling were imposed in the computer market, __________.
17) Without trade, __________.
18) A country's consumption possibilities frontier can be outside its production possibilities
frontier if __________.
19) In order to be successful, a cartel must __________.
20) The general term for market structures that fall somewhere in-between monopoly and perfect
competition is __________.
21) A production possibilities frontier will be a straight line if __________.
22) President George W. Bush and congress cut taxes and raised government expenditures in
2003. Which of the following is not correct?
23) The open-economy macroeconomic model includes __________.
24) In the open-economy macroeconomic model, other things the same, a decrease in the interest
rate shifts __________.
25) The balance of payment account is made up of:
26) The open-economy macroeconomic model examines the determination of __________.
27) The Federal Reserve will tend to tighten monetary policy when __________.
28) Managers will utilize __________ skills with increasing frequency as they rise within an
organization.
29) Which of the following has proven to be a particularly good predictor for jobs that require
cognitive complexity?
30) Teams that work on long-term projects but disband once the work is completed are known
as:
31) The most dominant areas in the global economy include
32) __________ is the process of working with people and resources to accomplish
organizational goals.
33) ABC International carefully watches the actions of its most innovative competitor and learns
from them. ABC can establish a low-cost position by:

3. 34) To be competitive in a global economy, Europeans must increase their level of:
35) An organization that is managed aggressively and has growth and high profits as primary
objectives may be considered a(n):
36) A manager's ability to stimulate people to be high performers is referred to as:
37) When a company establishes technology leadership by pioneering unique products or
services that command premium prices, it has benefited from a:
38) The term used to refer to all kinds of differences including religious affiliation, age,
disability status, economic class and lifestyle in addition to gender, race, ethnicity and nationality
is:
39) Building a dynamic organization is another way of describing which function of
management?
40) The best way for an employer to find out if a potential employee can do a job is by
__________.
41) Which of these represent skills that managers need?
42) Use the following table to answer question:
43) 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.
44) 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?
45) 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. Assuming b1 is significant, if Income
decreases by 1000 we would predict that Crime will
46) Twelve randomly-chosen students were asked how many times they had missed class during
a certain semester, with this result: 2, 1, 5, 1, 1, 3, 4, 3, 1, 1, 5, 18.

4. For this sample, the standard deviation is approximately _____.
47) In a random sample of 810 women employees, it is found that 81 would prefer working for a
female boss. The width of the 95% confidence interval for the proportion of women who prefer a
female boss is _____.
48) In statistical process control a p-chart could __________.
49) Companies using lean systems generally have:
50) Theoretically, service capacity must exceed demand, lest queues become infinitely long. If
capacity does not exceed demand, what is likely to happen?
51) The one-worker, multiple machines approach functions as:
52) A computer analysis reveals that the best-fitting trend model is Yt = 4.12 e 0.987 t. The trend
was fitted using year-end common stock prices for Melodic Kortholt Outlet for the last six years.
The R2 is 0.8571. If we fit a linear trend to data that are growing exponentially __________.
53) Zappos built the majority of its information systems using which of the following?
54) When customers access a Web site and make purchases, they generate __________.
55) The force behind globalization in _____ was the amount of muscle, horsepower, wind
power, or steam power that a country could deploy.
56) Fundamental points about network computing in organizations include all of the following
except:
57) Which of the following statements is correct?
58) 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 _____.
59) Computer support is greatest for which of the following problems?
60) _____ is a process that helps organizations identify, select, organize, disseminate, transfer,
and apply expertise that are part of the organization’s memory and typically reside inside the
organization in an unstructured manner.
61) _____ provides users with a view of what is happening, where _____ addresses why it is
happening.
62) Geocoding is __________.
63) 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

5. $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.
64) Mortgage bonds:
65) At 8% compounded annually, how long will it take $750 to double?
66) If the quote for a forward exchange contract is greater than the computed price, the forward
contract is:
67) At what rate must $400 be compounded annually for it to grow to $716.40 in 10 years?
68) Your company is considering an investment in a project which would require an initial
outlay of $300,000 and produce expected cash flows in Years 1 through 5 of $87,385 per year.
You have determined that the current after-tax cost of the firm’s capital (required rate of return)
for each source of financing is as follows: Long-term debt currently makes up 20% of the capital
structure, preferred stock 10%, and common stock 70%. What is the net present value of this
project?
69) Disadvantages of using current liabilities as opposed to long-term debt include:
70) An increase in future value can be caused by an increase in the __________.
71) 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.)
72) The common stockholders are most concerned with:
73) Which of the following best represents the stream of income that is available to common
stockholders?
74) Which of the following is most consistent with the hedging principle in working capital
management?
75) You hold a portfolio with the following securities: Compute the expected return and beta for
the portfolio.
76) The economists' view of buyers:
77) 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?
78) Marketing:

6. 79) 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.
80) Regarding organizational buying, the people who have the power to select or approve the
supplier--especially for larger purchases--are called:
81) "Positioning":
82) When looking at demographic dimensions, marketers should:
83) Clustering techniques applied to segmenting markets __________.
84) Which of the following is a business or organizational customer?
85) "Marketing strategy planning" means:
86) The managerial process of developing and maintaining a match between the resources of an
organization and its market opportunities is called:
87) The basic objective of the U.S. market-directed economic system is to:
88) Which of the following terms need not be disclosed under Truth-in-Lending Act?
89) Under Section 2 of the Sherman Act, rather than making a presumption whether monopoly
power exists, the courts will examine all the facts and circumstances to determine whether
monopoly power exists when the defendant holds between _____ percent and _____ percent of
the relevant market:
90) The tort of palming off involves:
91) Minimum wages, hours of employment, and child labor are regulated by the:
92) In a criminal proceeding, what is the difference between an indictment and an information?
93) Which social responsibility theory has been advocated by Novel Prizewinning economist
Milton Friedman?
94) Generally speaking, the contract of a minor:
95) A “closely held corporation” is a corporation that is owned by:
96) If the value of the collateral is less than the debt owed to the secured party, then:
97) Generally, which of the following statements relating to contractual capacity is correct?
98) Which country does the text describe as becoming the largest producer and consumer of
many of the world's goods?

7. 99) Although the U.S. has had a longstanding agreement with _____ after the passage of
NAFTA, _____ became the United States' second largest trading partner.
100) One study found that manufacturing labour costs about _____ an hour in China, compared
to _____ dollars in the United States.