Assignment
Question 1
A controllable variable is also called a:
parameter.
decision variable.
mathematical model.
measurable quantity.
none of the above
Question 2
Data for a particular subdivision near downtown Houston indicate that the average price per square foot for a home is $100 with a standard deviation of $5 (normally distributed). What is the probability that the average price per square foot for a home is greater than $110?
0
0.841
None of the above
0.977
0.023
Question 3
Below is a payoff table giving profits for various situations. What decision would a pessimist make?
Alternative 2
State of Nature A
Alternative 3
Do Nothing
Alternative 1
Question 4
Which of the following is part of the determination of EOQ?
Total revenue
Annual demand
Cost of production labor
Cost of stockouts
Purchase cost
Question 5
Mark Achin sells 3,600 electric motors each year. The cost of these is $200 each, and demand is constant throughout the year. The cost of placing an order is $40, while the holding cost is $20 per unit per year. There are 360 working days per year and the lead-time is 5 days. If Mark orders 200 units each time he places an order, what would his average inventory be (in units)?
60
120
None of the above
100
200
Question 6
Consider the following linear programming problem below. What is the optimum solution to this problem (X,Y)?
None of the above
(0,0)
(0,100)
(50,0)
(400,0)
Question 7
Given the following small project, the critical path is __________ days.
20
16
14
10
None of the above
Question 8
A suburban specialty restaurant has developed a single drive-thru window. Customers order, pay, and pick up their food at the same window. Arrivals follow a Poisson distribution while service times follow an exponential distribution. If the average number of arrivals is 6 per hour and the service rate is 2 every 15 minutes, how much time will elapse (in hours) from the time a customer enters the line until he/she leaves the restaurant?
0.25
3.00
2.25
0.75
0.50
Question 9
Which of the following is not a popular definition of quality?
Quality is the degree to which a product conforms to design or specification.
Even though quality cannot be defined, you know what it is.
Quality is fitness for use.
Quality is the totality of features and characteristics of a product or service that bears on its ability to satisfy stated or implied needs.
Quality is defined as a competitively priced product that surpasses customer needs.
Question 10
-charts indicate changes in:
natural variations.
variation.
none of the above
central tendency.
numbers of defects.
________________________________________
Question 11
JoAnn Fabrics, Inc. has created a new combination of colors and fabric types. The firm wants to know how consumers will perceive the new product. The firm is concerned with the product ____________.
image
idea
placement
activation
displacement
Question 12
Tristan and Juliet, a newly-married couple who intend to go to Egypt for their honeymoon, bought a Europe travel package on Jizo Inc., an online travel site. As they have never seen Europe or used the services of Jizo before, they were largely dependent on other customers' feedback and signals for service quality. Which of the following characteristics of service is highlighted in this instance?
service distinction
service intangibility
service inseparability
service perishability
service variability
Question 13
An organization that understands and anticipates customer needs even better than customers do and creates products and services to meet current and future needs is said to practice ____________ marketing.
customer-driven
ambush
societal
customer-driving
affinity
Question 14
Taking advantage of the trend in multi-generational housing, Madison Builders is aggressively marketing its "home within a home" concept, which features a grandparents' mini-home incorporated into a large single-family house. Which environmental force is Madison Builders counting on for its future home sales?
Competition
Technological
Political
Economic
Social
Question 15
John assured his venture capitalists of a 25 percent return on equity when he began his IT start-up. In order to achieve this result, he will most likely use which of the following pricing approaches?
EDLP
Target return pricing
Customer-based pricing
Value-based pricing
Markup pricing
Question 16
Which of the following is the first step in the marketing research process?
Developing the research plan
Developing a marketing information system
Interpreting and reporting the findings
Implementing the research plan
Defining the problem and objectives of the study
Question 17
Which of the following marketing orientations holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do?
The marketing concept
The production concept
The societal marketing concept
The product concept
The selling concept
Question 18
A particular automobile company works to keep its customers happy after each sale, aiming to delight each one of them in order to increase their customer lifetime value. Which of the following steps of the buyer decision process does the company exemplify?
Question 18 options:
Information search
Postpurchase behavior
Evaluation of alternatives
Purchase decision
Need recognition
Question 19
Infectious Websites, e-mail messages, or other marketing events, such that customers/viewers want to pass news of them along to friends, is/are known as __________.
integrated direct marketing
web communities
spam
viral marketing
Question 20
Which of the following is true of market-penetration pricing?
It results in drawing in large numbers of buyers quickly, winning a large market share.
It should be used when the product's quality and image support a high price.
It results in the company making fewer and less profitable sales.
It is best used in conjunction with a market-skimming pricing strategy.
It involves setting a high price for a new product to appeal to the elite in society.
Question 21
Which of the following sections from the statement of cash flows includes activities that affect net income on the income statement?
Activities that affect net income on the income statement are included in the financing section.
Activities that affect net income on the income statement are included in the investing section.
Activities that affect net income on the income statement are not included in any of the above-mentioned sections.
Activities that affect net income on the income statement are included in the operating section.
Question 22
Which of the following accounts decreases with a debit?
Cash
Prepaid insurance
Interest payable
Both A and B
Question 23
A company uses the indirect method to prepare the statement of cash flows. Which of the following items would be subtracted from net income in determining the net cash flow from operating activities?
A loss on the sale of equipment would be subtracted from net income.
Amortization of a premium on bonds payable would be subtracted from net income.
Depreciation expense would be subtracted from net income.
An increase in dividends payable would be subtracted from net income.
Question 24
What is the title of the form that foreign companies have used to reconcile their financial statements to U.S. GAAP?
Form 10-K
Form20-F
Form SX
Form 10-Q
Question 25
What do flexible budgets help measure?
The amount by which standard and expected prices differ
The sales volume variance
The amount by which standard and expected quantities differ
The efficiency of operations at the actual activity levels
Question 26
Which of the following is most likely to be the cost driver for the packaging and shipping activity?
Number of setups
Number of orders
Hours of testing
Number of components
Question 27
Which costing system would better account for a unique individual product?
Variable costing system
Product costing system
Process costing system
Job order costing system
Question 28
Lowwater Sailmakers manufactures sails for sailboats. The company has the capacity to produce 25,000 sails per year and is currently producing and selling 20,000 sails per year. If a special sales order is accepted for 5,000 sails at a price of $125 per unit, and fixed costs remain unchanged, what is the change in operating income?
Operating income decreases $5,000.
Operating income increases $225,000.
Operating income increases $190,000.
Operating income decreases $125,000.
Question 29
Western Outfitters Mountain Sports projected 2008 sales of 75,000 units at a unit sale price of $12.00. Actual 2008 sales were 72,000 units at $14.00 per unit. Actual variable costs, budgeted at $4.00 per unit, totaled $4.75 per unit. Budgeted fixed costs totaled $375,000, while actual fixed costs amounted to $400,000. What is the sales volume variance for total revenue?
$108,000 favorable
$42,000 unfavorable
$36,000 unfavorable
$144,000 favorable
Static Budget Sales Volume - Flexible Budget Sales Volume = (75000-72000)=$36,000U
Question 30
Which of the following statements is correct with respect to variable cost per unit, within the relevant range?
They will decrease as production increases.
They will decrease as production decreases.
They will remain the same as production levels change.
They will increase as production decreases.
Question 31
To prevent the dollar from depreciating, the U.S. central bank that tries to fix the currency value of the dollar can:
abandon the U.S. dollar and use another country's currency as its legal currency.
sell U.S. dollars in the foreign exchange market.
buy foreign currencies in the foreign exchange market.
buy U.S. dollars in the foreign exchange market.
Question 32
Which of the following statements is true about the long-run and short-run aggregate supply curve in the classical model?
The long-run and short-run curves start out horizontal and eventually become vertical.
The long-run aggregate supply curve is not defined, and the short run curve is vertical.
The long-run aggregate supply curve is vertical, and the short-run curve is horizontal.
The long-run curve is vertical, and there is no short-run curve since all adjustments occur quickly.
Question 33
Refer to the above figure. Between points f and g, the opportunity cost of producing 75 more bushels of wheat is:
25 bushels of beans.
1 bushel of beans.
100 bushels of beans.
4 bushels of beans.
Question 34
The Consumer Price Index measures:
the average of the prices of all goods produced in a country and goods imported from other countries.
the level of prices with respect to goods and services purchased by a typical consumer in urban areas.
hourly wage rates of manufacturing workers.
the average of raw material prices paid by producing firms.
Question 35
Suppose that the income elasticity of demand for peanut butter is 0.75. Which of the following is true?
Peanut butter is an inferior good, because income elasticity is less than 1.
Peanut butter is a normal good, because income elasticity is less than 1.
Peanut butter is an inferior good, because income elasticity is positive.
Peanut butter is a normal good, because income elasticity is positive.
Question 36
What is the type of economic system that relies on one central authority to make economic decisions?
Command and control
Price system
Mixed economic system
Free market
Question 37
A firm will not hire additional workers once:
it earns accounting profits.
the company reaches its breakeven output level.
total product is rising.
the additional cost of a worker equals the additional revenue from the worker.
Question 38
In the below table, the balance on the current account for Country X is __________ billion dollars.
-85
-150
+75
-200
Question 39
On a hot summer day, a construction worker enters a McDonald's fast-food restaurant. He orders the first Big Mac. He consumes it within 3 minutes. He then orders a second Big Mac and consumes it in 10 minutes. He eats only half of the third one in 18 minutes and throws away the rest. The store manager offers him the fourth for free. The construction worker says: "No thanks." Why?
For the construction worker, total utility increased at an increasing rate.
Marginal utility increased at an increasing rate.
The law of diminishing marginal utility does not apply to consumption of Big Macs.
Marginal utility declined as he consumed additional Big Macs.
Question 40
Economic growth causes the:
production possibilities curve to shift leftward and the long-run aggregate supply curve to shift leftward.
production possibilities curve to shift rightward and the long-run aggregate supply curve to shift rightward.
production possibilities curve to shift rightward and the long-run aggregate supply curve to shift leftward.
production possibilities curve to shift leftward and the long-run aggregate supply curve to shift rightward.
________________________________________
Question 41
The __________ summarizes a firm's revenues, expenses, and profit during a specific period.
retained earnings statement
income statement
statement of cash flows
balance sheet
Question 42
What should be the primary goal of a financial manager?
Maximizing shareholder wealth
Maximizing earnings
Minimizing risk
Maximizing cash flow
Question 43
The portfolio that maximizes return for a given level of risk or minimizes risk for a given level of return is called the __________ portfolio.
efficient
frontier
investment banker
risk-free
Question 44
Estimate the required rate of return on a company's stock given a stock price of $20 per share, an expected dividend of $2 per share at the end of the year, and a 3% dividend growth rate.
7 percent
3 percent
13 percent
10 percent
Question 45
$100 is deposited today, $200 is deposited in one year, and $300 is deposited in two years. These deposits earn 8%. What is their combined value at the end of three years?
$ 644
$782
$585
$ 683
Question 46
Working capital is:
current assets minus current liabilities.
cash on hand.
money invested in short-term projects.
property, plant, and equipment.
Question 47
What entities are typically net demanders of funds in the U.S. economy?
Individuals and businesses
Businesses and government
Individuals, government, and businesses
Individuals and government
Question 48
In the U.S., who owns a corporation?
Employees
Stockholders
Board of directors
U.S. government
Question 49
Managerial restrictions that limit the level of capital project investments is called:
equity constraints.
value investing.
limited liability.
capital rationing.
Question 50
What type of bond pays no interest?
Debenture
Speculative
Zero coupon
Secured
Question 51
Susan is a candidate for mayor. Sarah tells the local newspaper that Susan is a drug addict. If the newspaper publishes this information and it is untrue, then it is:
intentional malice.
slander.
privileged communication.
libel.
Question 52
Samantha agrees to sell Sally one lot next to her store. She gives Sally a legal description of the lot. Sally gives Samantha an unsigned copy of the contract terms. Samantha then sends a signed letter that mentions a legal description. Sally sends back a final unsigned contract with her deposit check attached to it.
They have not satisfied the Statute of Frauds.
None of the above.
The handwritten legal description and unsigned draft contract satisfy the Statute of Frauds.
The handwritten legal description, unsigned draft contract, the signed letter, and the final unsigned contract with the deposit check have satisfied the Statute of Frauds.
Question 53
Ralph Travelor, a U.S. businessperson, owns a gold mine in Brazil. The government of Brazil seizes the mine and asserts that his previous profits are just compensation.
Brazil will not be protected under the doctrine of sovereign immunity.
Under the act of state doctrine, Ralph may have little or no protection against the loss of his property.
None of the above.
Ralph will be protected under the act of state doctrine.
Question 54
Real property is:
movable.
immovable.
either A or B.
none of the above.
Question 55
If an offeree dies before the offer has been accepted, the offer:
may be accepted by the surviving spouse of the offeree.
is automatically revoked by the death of the offeree.
may be accepted by the guardian appointed for any minor children of the offeree.
may be rejected by the surviving spouse of the offeree.
Question 56
The supremacy clause within the U.S Constitution:
establishes the Constitution as the only law of the land.
establishes the Constitution and the treaties of the U.S. as the supreme law of the land.
establishes the Constitution as the supreme law of the land.
none of the above.
Question 57
Which of the statements is true?
A storeowner has a duty to exercise reasonable care to protect customers.
A storeowner has a duty to warn customers against all risks in his/her store.
A storeowner need not warn a customer not to pull heavy items off high shelves.
All of the above.
Question 58
A portable trailer is an example of:
real property.
personal property.
subsurface property right.
none of the above.
Question 59
When an anticipatory repudiation of a contract occurs, the injured party may:
immediately declare breach of contract.
do nothing and wait for performance per the contract.
consider the contract canceled.
all of the above.
Question 60
Billy has an online business selling wine. One of his disgruntled customers sets up a website using his company name and adds the word "thief" to it. Billy will most likely:
prevail in court.
not prevail in court.
could defend his company by buying the offensive Internet domain.
both B and C.
Question 61
The basic belief of the quantitative approach is that:
there is "one best way" to make an organization effective and efficient.
you should reward employees on a variable ratio schedule.
you should apply statistical models and computer simulations to managerial activities.
you should reward employees on a fixed ratio schedule.
Question 62
Where is motivation derived from, according to the expectancy theory?
Intrinsic pride
Monetary compensation
The performance of others
Social recognition
Promised rewards
Question 63
Employment planning involves __________.
addition of staff, reduction of staff, motivation of staff, and selection
addition of staff only
addition of staff, reduction of staff, and selection only
addition of staff and reduction of staff only
Question 64
The last steps of the HRM process deal with __________.
compensation only
training and compensation
performance and compensation
skills
Question 65
The most successful early trait theories focused on __________.
traits that distinguish leaders from non-leaders
traits of followers
traits associated with leadership
traits of famous leaders
Question 66
When does a company achieve a sustainable competitive advantage?
When buyers prefer its products over competitors' in the long term
When it has greatest market share
When it has lowest producer costs
When it has unique access to resources
Question 67
Organizational design requires a manager to __________.
change or develop the structure of an organization
change the culture of an organization
organize groups within an organization
change the logo of an organization
Question 68
Which step immediately follows the identification of a problem in the decision-making process?
Selecting an option
Developing alternatives
Implementing a decision
Weighing decision criteria
Selecting decision criteria
Question 69
Which effect does an increase in team size have on project groups?
Faster work progress
Decreased management role
More individualized tasks
More social loafing
Greater cohesiveness
Question 70
The basic belief of the systems approach is that:
organizations are interrelated interdependent parts arranged to produce a unified whole.
you should reward employees based on a fixed ratio schedule.
you should apply statistical models and computer simulations to managerial activities.
there is "one best way" to make an organization effective and efficient.
Question 71
The suite of communications protocols used in the Internet is called:
URL.
TCP/IP.
HTML.
none of the above.
Question 72
A program written in a high-level programming language is called:
compiler program.
assembly program.
source code.
object code.
Question 73
A wide-area network (WAN) is more than one __________ connected together.
PAN
LAN
workstation
WLAN
Question 74
Sending a message by e-mail is an example of __________ communications.
synchronous
bisynchronous
asynchronous
none of the above
Question 75
__________ is a network that can be especially useful in buildings with no wired local area networks.
PAN
Bluetooth
IEEE
WiFi
Question 76
A(n) __________ server is a computer responsible for directing internet traffic.
ISP
Web
Protocol
DNS
Question 77
What would be a realistic use for the type of computers called supercomputers?
Sending e-mail
Creating a spreadsheet
Predicting weather
Creating a database
Question 78
An MIS does not help managers to gain:
market niche.
operational efficiency.
competitiveness.
none of the above.
Question 79
Bits are grouped into 8-bit chunks called __________.
nibbles
bytes
switches
strings
Question 80
The physical components of a computer are referred to as __________.
software
specifications
configurations
hardware.