1. BUS 475 FINAL EXAMS
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
3) The conceptual framework developed by the Financial Accounting Standards
4) In what situations will a static budget be most effective in evaluating a
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
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.
2. What is the net amount of property, plant, and equipment that will appear on the
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?
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:
3. 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:
34) To be competitive in a global economy, Europeans must increase their level
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
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:
4. 39) Building a dynamic organization is another way of describing which function
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
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
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,
For this sample, the standard deviation is approximately _____.
5. 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
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?
6. 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 $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
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
70) An increase in future value can be caused by an increase in the __________.
7. 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?
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
80) Regarding organizational buying, the people who have the power to select or
approve the supplier--especially for larger purchases--are called:
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?
8. 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
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
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,
97) Generally, which of the following statements relating to contractual capacity
98) Which country does the text describe as becoming the largest producer and
consumer of many of the world's goods?
9. 99) Although the U.S. has had a longstanding agreement with _____ after the
passage of NAFTA, _____ became the United States' second largest trading
100) One study found that manufacturing labour costs about _____ an hour in
China compared to _____ dollars in the United States.