17. In a period of rising prices, which inventory valuation method would generally yield both the lowest ending inventory value and the lowest net income figure?
(A) First in, first out (FIFO) (B) Last in, first out (LIFO) (C) Weighted average (D) Standard cost
18. In the statement of cash flows, the section for cash flows from operating activities will include which of the following?
(A) Dividends paid (B) Issuance of common stock (C) A decrease in accounts payable (D) Purchase of a building financed entirely by a mortgage
19.
Net income $100,000
Depreciation expense $10,000
Net increase in accounts receivable $5,000
Net increase in accounts payable $3,000
On the basis of the information provided in the table above for a corporation, the corporation's net cash flow from operating activities for the current year is (A) $98,000 (B) $102,000 (C) $108,000 (D) $118,000
20. All of the following are true regarding a seller's rights to reduce legal liability in the sale of non- consumer goods EXCEPT:
(A) The seller can disclaim consequential damages if it is done clearly and conspicuously. (B) The seller can limit the remedy available to the buyer if he or she does so clearly and fairly. (C) The seller can place reasonable conditions on the warranty coverage and a shorter time limit of warranty coverage. (D) The seller can disclaim all implied warranties by simply stating that there are no implied warranties.
21. Green desires to form a new company to manufacture lawn mowers. Green is concerned about having his personal assets exposed to liability for the new company's contracts and torts. Furthermore, he wants to retain control over the company's operations and growth for the next few years. He will need an infusion of equity capital to begin operations. He hopes to take the company public in about five years if it is advantageous to do so at the time. Which of the following types of business associations would be best for Green's new company?
(A) Corporation (B) General partnership (C) Limited partnership (D) Member-managed limited-liability company
22. A small number of people with complementary skills who are committed to a common purpose, a set of performance goals, and an approach for which they hold themselves mutually accountable is referred to as a (A) committee (B) task force (C) group (D) team
23. A department manager telephoned two managers in other departments to discuss a cost savings idea that would benefit their departments as well as her own. Which of the following most accurately defines the communication channel that the manager was using?
(A) Upward (B) Lateral (C) Downward (D) Hierarchical
24. Based on his scientific management theory, Frederick Taylor developed what pay principle?
(A) Hourly pay (B) Incentive pay (C) Profit sharing (D) Monthly salary with bonus
25. When a domestic firm permits a foreign company to manufacture and sell its product in exchange for a fee or royalty, the process is termed
(A) importing (B) exporting (C) licensing (D) countertrading
26. An information system that enables all business departments in the same firm to share relevant information and data is called
(A) an enterprise resource planning (ERP) system (B) a material requirements planning (MRP) system (C) a decision support system (DSS) (D) a point-of-sale (POS) system
27. The central processing unit (CPU) in a personal computer contains the
(A) control unit and primary memory (B) control unit and arithmetic/logic unit (C) arithmetic/logic unit and bus (D) arithmetic/logic unit only
28. Web 2.0 is best represented by which of the following phenomena? (A) Social networking sites (B) Word processing (C) Internet browsers (D) Text messaging
29. Family branding refers to a group of
(A) similar brands of products from different makers (B) different brands of products from different makers within the same industry (C) different products marketed under a single brand name (D) similar products sold by small, family-owned firms
30. Saint Martin Hospital boasts one of the world's leading medical imaging programs. Its radiology department specializes in the early detection of particularly serious forms of stomach, intestinal, and colon cancer. The hospital plans to invest in a new system of digital medical imaging and image transmission technologies that will enable its radiologists to view and evaluate intestinal scan results from anywhere in the world.
With this investment, the hospital is attempting to overcome which of the constraints of services marketing?
(A) Inventory (B) Intangibility (C) Inconsistency (D) Inseparability
31. In a large firm, the pool of applicants for the positions of sales manager and sales associate consists of three men and three women. If each candidate has an equal chance of being selected, what is the probability that both positions will be filled by men? (A) 0.20 (B) 0.25 (C) 0.33 (D) 0.50
Questions 32 - 34 refer to the information below.
Priceless Treasures is an antique jewelry retailer. Priceless Treasures' owner, Sally Thornton, wishes to replace the printed catalog with an online catalog.
Ms. Thornton decides to conduct a market research project to explore how Priceless Treasures' target
customers would respond to the online catalog approach.
32. From data collected by the retail jewelers' trade association, Ms. Thornton learns that sales of antique jewelry are rising and that the most common purchasers are older, upper-income couples. Though initially reluctant to purchase online, these customers are beginning to overcome their concerns. From United States Census Bureau data, she learns that this population segment is growing in number and will continue to do so throughout the next two decades. At this point what should Ms. Thornton do?
(A) Summarize the research findings and recommend implementing the online catalog as the firm's market is clearly growing. (B) Collect primary data to determine whether these trends and preferences are reflected in Priceless Treasures' customer base. (C) Collect primary data on competitors to determine whether the online market for antique jewelry is saturated. (D) End the study and retain the current system as the major customer segment is clearly skeptical of online retailers.
33. Ms. Thornton plans to conduct an online survey of her customers. What is the most significant problem with using this survey method rather than a traditional mail approach?
(A) Respondents may not answer the survey truthfully. (B) Customers who do not use the Internet will not be in the sample. (C) Respondents will not be able to see the entire survey and thus may answer only part of it. (D) Online surveys cannot prevent multiple or inappropriate responses to complex questions.
34. Because pictures of products, either in print or on the Internet, can differ from the actual appearance of a piece of jewelry, Priceless Treasures' customers are sometimes disappointed by items they have purchased. To reduce customer dissatisfaction, the firm's customer service representatives call customers to answer any questions they have, confirm their satisfaction with the purchase, and communicate the firm's refund/return policies. The firm is seeking to influence the customers' purchase decision process by
(A) stimulating customers to recognize a need of which they were previously unaware (B) facilitating an information search by providing new information (C) influencing alternative assessment by emphasizing the value of the purchased item (D) reducing cognitive dissonance through the reassurance of personal contact