Assignment:
Q1. What does a company need to operate so that it has total control over its communications without dependence on other companies?
a. Web site
b. VSAT system
c. extranet
d. groupware site
e. enterprise planning
Q2. Searching, sifting, and reorganizing pools of data to uncover useful information is called.
a. data warehousing
b. data access
c. data tapping
d. data cleaning
e. data mining
Q3. What is the major limitation of Wi-Fi?
a. high cost
b. privacy concerns
c. productivity
d. short range of distance
e. installation challenges
Q4. Electronic conferencing is popular because it reduces travel expenses and saves money.
a. True
b. False
Q5. System software tells the computer's hardware how to interact with the software, what resources to use, and how to use them.
a. True
b. False
Q6. Which of the following best describes information?
a. the useful interpretation of facts and figures
b. a list of company names provided by the local Chamber of Commerce
c. the collection of raw facts and figures
d. controlled flow of words for a useful purpose
e. databases and flowcharts
Q7. A cell phone store manager needs to forecast sales for the upcoming Black Friday sales weekend. Which information would be MOST helpful?
a. the store with the least sales of all store locations for the past five years
b. the store with the highest sales of all store locations for the past five years
c. the cell phone model which earned the most revenue in all store locations for the past five years
d. the total amount spent per customer in each cell phone store for all locations for the past five years
e. the number of customers who entered the cell phone store for all locations
Q8. Trojan horses are malicious programs that replicate themselves like viruses.
a. True
b. False
Q9. Which type of IT threat can spread without a computer user needing to open any software?
a. worms
b. Trojan horses
c. spam
d. spyware
e. computer viruses
Q10. What is a particularly sinister quality of spyware?
a. It replicates itself, using up valuable computer memory.
b. It often disguises itself as helpful software.
c. It consumes bandwidth by flooding user inboxes with junk e-mail.
d. It often leads to wireless mooching.
e. It is completely legal.
Q11. The M-2 money supply includes everything that is in the M-1 money supply.
a. True
b. False
Q12. When buying from a supplier in France, LTD, based in Cleveland, Ohio, has arranged for its bank to pay the supplier the cost of the desired material when it has passed customs in the United States. Which of the following terms is this type of bank promise called?
a. banker's acceptance
b. bank trust service
c. certified check
d. letter of credit
e. currency exchange agreement
Q13. Banks are subject to prosecution when they fail to maintain systems for identifying and reporting suspicious activities.
a. True
b. False
Q14. Which of the following laws has had significant effects in maintaining bank identity records?
a. the Check Clearing for the 21st Century Act
b. the USA Patriot Act
c. the Bank Secrecy Act
d. the Federal Reserve Act
e. the Emergency Economic Stabilization Act
Q15. Which of the following is the main justification for the World Bank to fund national improvements by making loans to build roads and hospitals?
a. The resulting improvements will help stabilize the political situation, and hence the international trade, of certain developing countries.
b. The resulting improvements will help increase the productive capacity, and hence the international trade, of certain developing countries.
c. The resulting improvements will help increase the population morale, and hence the international trade, of certain developing countries.
d. The resulting improvements will help increase the overall quality of life, and hence the international trade, of certain developing countries.
e. The resulting improvements will help increase the value of the currency, and hence the international trade, of certain developing countries.
Q16. The reason why a savings account is not considered a component of the M-1 money supply is that it bears interest.
a. True
b. False
Q17. Which of the following affects the value of money?
a. how much currency is in circulation
b. how many units the currency can be divided into
c. how portable the form of currency is
d. how durable the form of currency is
e. how much currency has been saved
Q18. Which of the following indices indicates the relative strength of the currencies of two countries?
a. trade rate
b. exchange rate
c. trade balance
d. relative gross national products
e. international loan rate
Q19. Which of the following statements best describes why U.S. Treasury securities have always been considered risk-free investments?
a. They are backed by the U.S. government.
b. They have a guaranteed rate of return.
c. They are easily sold.
d. They are readily available for purchase.
e. They earn a great profit on the international money market.
Q20. As the government's bank, the Fed produces the nation's paper currency and lends money to the government.
a. True
b. False
Q21. A bond is said to be in default if the borrower fails to make payment when due to lenders.
a. True
b. False
Q22. What is the term for the proportion of funds invested in each of several investment alternatives?
a. spreading
b. shorting
c. margin buying
d. asset allocation
e. diversification
Q23. The market in which mutual funds are sold are called securities markets.
a. True
b. False
Q24. Which of the following statements is true about common stocks as investments?
a. Stocks are among the riskiest of all investments.
b. Stocks are most suitable for investors who seek security.
c. Stocks will never become worth less than their purchase price.
d. Stock prices reflect only government action.
e. Stock prices are easily manipulated.
Q25. The stock of Simonsen, Inc. is being bought up by an individual who intends to take over Simonsen and sell off its assets for a profit. What is the individual in this scenario called?
a. angel investor
b. corporate raider
c. inside trader
d. stock broker
e. bondholder
Q26. The profit realized when the market value of an investment increases is known as which of the following?
a. capital gains
b. asset allocation
c. diversification
d. price appreciation
e. profiteering
Q27. While it's invested, money grows by earning interest or yielding some other form of return. What is this known as?
a. compound growth
b. dividend
c. capital gains
d. security
e. diversity
Q28. Which of the following is an advantage of ETFs over mutual funds?
a. ETFs can be traded throughout the day like a stock.
b. ETFs have high operating expenses.
c. ETFs require high initial investments.
d. ETFs are not regulated by the government.
e. ETFs are difficult to sell in a timely manner.
Q29. Municipal bonds may be issued by federal, state, or local governments.
a. True
b. False
Q30. Dynamo Motors has begun to sell corporate securities. Dynamo is required by law to offer future investors the opportunity to read a document that contains complete information on both the new issue and the corporation itself. What is that required document called?
a. book report
b. affidavit
c. prospectus
d. order blank
e. corporate profile
Q31. A company has an assets-to-liabilities ratio of 3:2 and total assets worth $6 million. What is its owners' equity?
a. $1 million
b. $2 million
c. $3 million
d. $9 million
e. $12 million
Q32. Which of the following statements best describes the difference between current and long-term liabilities?
a. Current liabilities are debts that need to be paid immediately, whereas long-term liabilities do not.
b. Current liabilities are those which will cost more in debt interest than long-term liabilities.
c. Current liabilities are debts that are settled sooner than long-term debts.
d. Current liabilities are debts on tangible assets, whereas long-term liabilities are debts on intangible assets.
e. Current liabilities are debts on current assets, whereas long-term liabilities are debts on fixed and intangible assets.
Q33. What distinguishes the two most commonly used categories of owners' equity?
a. the amount of equity within each type of asset?current versus fixed and intangible
b. the financial form of the equity?cash investments versus stock and bond investments
c. the source of the equity?investments versus earnings
d. the use of the equity?invested versus saved
e. the age of the equity?older investments and earnings versus newer investments and earnings
Q34. An audit examines whether a firm's financial statement conforms to generally accepted accounting principles.
a. True
b. False
Q35. ABC Company has a net income of $5 million. ABC's number of outstanding shares of stock is 3,870,000 shares. What is the company's earnings per share?
a. $1.29
b. $.77
c. $1.25
d. $.80
e. $18.75
Q36. Which of the following bodies enforces accounting and auditing rules and procedures?
a. Accounting Disclosure Board
b. Financial Accounting Standards Board
c. Association of Certified Fraud Examiners
d. Securities and Exchange Commission
e. American Institute of Certified Public Accountants
Q37. A company ended the year with $4.5 million in cash. During this year, it had earned $2.4 million in operating and financing activities. Which of the following statements is necessarily true?
a. The company started the year with less than $2.1 million.
b. The company started the year with more than $2.1 million.
c. The company started the year with $2.1 million minus the amount of investing activities during the year.
d. The company started the year with $2.1 million plus the amount of investing activities during the year.
e. The company started the year with $4.5 million in cash.
Q38. Which of the following describes assets such as land, building, and equipment?
a. liquid assets
b. fixed assets
c. intangible assets
d. current assets
e. limited assets
Q39. Bookkeeping is a comprehensive system for collecting, analyzing, and communicating financial information.
a. True
b. False
Q40. Which of the following best describes depreciation?
a. the process of the decreasing value of fixed assets due to use
b. the process of deducting operating expenses from the value of fixed assets
c. the process of reducing the value of fixed assets equally over time
d. the process of distributing the cost of liabilities equally over time
e. the process of distributing the cost of intangible assets equally over time