BEC V BLAKE CPA

Question 1

Cross Elasticity of Demand Supply

Answer 1

> 0 Substitute Good
<0 Complementary Good
=0 No Relationship

Question 2

Law of Supply & Demand

Answer 2

If Price increases Supply Increases & Demand Decreases

If Price decreases Supply Decreases and Demand increases

Question 3

The demand curve for a product reflects which of the following?

Answer 3

The impact that price has on the amount of a product purchased

Question 4

Factors that impact supply

Answer 4

Changes in production costs
Change in manufacturing methods
Change in price or demand of related goods
Forecasted changes in supply
Changes in regulation - Changes in Gov’t subsidies

Question 5

Factors Impacting Demand

Answer 5

of buyers in the market

Price Change of related Goods (Complementary products)
# of buyers in the market
changes in the wealth or income level
Consumer trends or preferences
Consumer expectations

Question 6

If the demand for a normal good is inelastic, then the sales price of the product would increase following:

Answer 6

Decrease in the supply of the product

If Demand stayed the same while supply curve shifted left it will create a new market equilibrium resulting in a higher price

Question 7

What type is method of international trade or business when a international companies use the comparative advantages of each other to succeed in the market

Answer 7

Joint Ventures

We will bring the bread - Germany

We’ve got the Distributions - United states

Question 8

Licensing

Answer 8

Is when the firms receive fees in exchange for their process or technologies

USA: “We will license you our technology for a % of your revenue.”

Bermuda: “Deal”

Question 9

International Trade

Answer 9

The exporation and imporation of products and services

Question 10

Four Primary Emerging Economies

Answer 10

Russia, China, India, Brazil

Question 11

Cross Currency Method

One Euro will buy U.S. $1.48, & a british pound will buy U.S. $2.06. What is the cross rate of euros per pound?

Answer 11

Step 1) Setup the “ABC” method

A) U.S. Dollar = $1.00
B) 1 Euro = $1.48
C) 1 Pound = $2.06

Step 2) Divide C by B

$2.06/$1.48 = 1.39 Euros per Pound

Question 12

Factors that drive globalization

Answer 12

Improvements
1) Technological enhancements
2) Transportation improvements
3) Lower wages & Raw materials
4) Less Regulation

Question 13

What is a Primary Key

Answer 13

Unique identifier. ex: customer number in a customer data base

no duplicates or null values for a primary key

Question 14

Foreign Key

Answer 14

links the data between two different tables.

set of attributes in a table that refers to the primary key of another table.

Question 15

Secondary Key

Answer 15

close rival to a primary key, did not make the cut as primary key

Null values NO Unique ID

ex: Customer address, people living in same address

Question 16

Schema

Answer 16

describes the strucutre & organization of data

Defines what is the primary key, secondary key ect.

Question 17

Information Systems Steering Committee (project steering committees)

Answer 17

responsible for planning, overseeing, & guiding information systems functionality and complexities

“Coach on the sideline”

Question 18

Customer RElationship MGT systems (CRM)

Answer 18

Idea is to apply data analytics to manage & analyze interactions with its former, current and prospective customers.

Drives growth, customer satisfaction & sale force

Applied to meet the needs of the organizations customers

Question 19

What type of chart should be used that shows the timing & duration of each activity using a data visualization chart?

Answer 19

Gantt Chart aka The “Project Management” Chart

Question 20

Data Warehouse

Answer 20

System that pulls together data from many different sources within an organization for reporting & analysis

Data is continually stored in a data warehouse

Question 21

Data mining

Answer 21

refers to the process of sifting through large amounts (BIG) of data, impossible to analyze by individuals, to search for relationships amongst various data as a means for achieving strategic or competitive advantage

Processes data and voncerts it into constructive new information

Question 22

EDI

Answer 22

How information is transferred between businesses or systems

Computer-to computer exchange of business transaction documents

Not a tool used specifically for collaboration between humans

Question 23

Five Domains of IT Governance

Answer 23

1. Strategic Alignment
2. Value Delivery
3. Resource Management
4. Risk Management
5. Performance Measures

Question 24

Predictive Analytics

Answer 24

Statisitcal technique & Forecasting models to predict future outcomes

ex: Spending patterns

Question 25

Descriptive analytics

Answer 25

Learn from what happened in the past ex: Financial reports, reviewing J/E for proper approval

Question 26

Value Delivery

Answer 26

ensures that the IT department performs what is necessary to deliver the benefits that were promised at the beginning of a specific project or an investment Make Sure to deliver value.

Question 27

Supply Chain Management System

Answer 27

Takes a Holisitc approach on choosing a vendor. Four Key throughts for SCM : 1)What is being sold? 2)Where is it being sold? 3)When is it being sold? 4)How much is being sold?

Question 28

Entity level controls

Answer 28

Impact entire organization

Question 29

Transactions level controls

Answer 29

Focus on just one specific activity of the organization ex: Technology development policies & procedures

Question 30

What is the overall objective to IT governance & COBIT framework?

Answer 30

to ensure that risk is adequately balanced within an organization to information processes