exam 2

Question 1

Job selection

Answer 1

the process of collecting info about applicants using information to make hiring decisions.

Question 2

Questions that employers can’t ask

Answer 2

age, race, martial status, religion, disability status, sexual orientation

Question 3

Who investigates complaints of employment discrimination?

Answer 3

EEOC (equal employment opportunity commission)

Question 4

Title VII of the Civil Rights Act (1964)

Answer 4

prohibits discrimination in employment on the basis of RACE, COLOR, RELIGION, SEX, or NATIONAL ORIGIN

Question 5

when are wage differences acceptable

Answer 5

when they are attributed to seniority, performance, or qualifications

Question 6

What established minimum wage, record keeping, and child labor standards affecting full-time and part time workers

Answer 6

The Fair Labor Standards Act (FLSA)

Question 7

What agency investigates claims that overtime is not being paid?

Answer 7

The U.S. Department of Labor’s Wage and Hour Division (WDH)

Question 8

Main goal of marketing concept

Answer 8

customer satisfaction; business must find out what customers need and want and then develop the good, service, or idea, that fulfills their needs or wants

Question 9

Two steps in developing marketing strategies

Answer 9

identifying the target market and crafting the marketing mix

Question 10

marketing mix

Answer 10

product, price, place, and promotion

Question 11

Most flexible element of marketing mix

Answer 11

PRICE

Question 12

Convenience product

Answer 12

purchased frequently and easily, widely available, inexpensive. ex; candy, milk, bread

Question 13

specialty product

Answer 13

high-priced good that consumers are willing to make a special effort to buy due to its unique attributes. ex, luxury cars, designers, rare collectibles.

Question 14

shopping product

Answer 14

goods that require customers to actively compare and evaluate different brands & prices, ex. clothes, electronics

Question 15

product life cycle

Answer 15

introduction, growth, maturity, decline

Question 16

price skimming

Answer 16

product is initially priced high, then gradually lowered as competition enters the market or demand shifts.

Question 17

test marketing

Answer 17

introducing a new product, service, or marketing campaign to a limited market segment to gauge customer response before a full scale launch

Question 18

channels of distribution

Answer 18

(a) direct
(B) producer to retailer,
(C) producer to wholesale to retailer
(D) producer to agent to reseller
(E) producer to agent to wholesaler to retailer

Question 19

promotional mix

Answer 19

advertising, sales promotion, public relations, personal selling, direct marketing

Question 20

CPA

Answer 20

right to express, officially, unbiased opinion regarding the accuracy of the client’s financial statements

Question 21

forensic accounting

Answer 21

involves analyzing financial documents in search of fraudulent entries or financial misconduct

Question 22

current asset

Answer 22

can be quickly converted into cash; cash, marketable securities, accounts receivable, prepaid expenses

Question 23

fixed assets

Answer 23

assets that will be held or used for a period longer than one year ; land, buildings, equipment

Question 24

intangible assets

Answer 24

do not exist physically but have value based on rights/privileges: patents, copyrights, trademarks, franchise rights, goodwill

Question 25

income statement

Answer 25

shows a company's profitability (how much $ in profit, not just sales revenue) shows revenue, expenses, COGs

Question 26

balance sheet

Answer 26

shows a company's solvency (ability to meet financial obligations; debts) - a snapshot of a the financial position - Assets on left, liabilities on right (or assets on top followed by liabilities)

Question 27

statement of cash flows

Answer 27

-ability to meet short term financial obligations as they come due (cash in/out) -explains how company's cash changed from beginning of the period to the end -cash from operating, investing, and financing

Question 28

gross income

Answer 28

revenue - cogs (income available after paying expenses of production)

Question 29

cash from operating

Answer 29

combining changes in revenue, expenses, current assets, and current liability accounts

Question 30

cash from investing

Answer 30

calculated from changes in the long-term or fixed asset accounts

Question 31

cash from financing activities

Answer 31

calculated from changes in long-term liability accounts and the contributed capital accounts in owner's equity

Question 32

bottom line of income statement

Answer 32

net income/profit

Question 33

owner's equity

Answer 33

owner's contributions to the organization, income earned by the organization retained to finance continued growth and development

Question 34

sarbanes oxley act

Answer 34

required firms to be more rigorous in their accounting and reporting practices

Question 35

profit margin

Answer 35

net income/sales tax (x100)

Question 36

return on assets

Answer 36

net income/assets (x100)

Question 37

return on equity

Answer 37

net income/divided by owner's equity x 100

Question 38

What is an outcome of the Federal Reserve Board decreasing the reserve requirements?

Answer 38

banks need to hold less of their deposits in reserve (thus making more money available for lending)

Question 39

FDIC federal deposit insurance corporation

Answer 39

created to maintain stability and public confidence in the nation's financial system during the great depression

Question 40

FDIC insurance limit, how is it funded?

Answer 40

$250,000 per depositor, per insured bank. funded primarily through premiums paid by member banks and interest earned on its investments in US government obligations

Question 41

trade credit

Answer 41

financing agreement where a supplier allows a buyer to purchase a good or service on credit

Question 42

why is trade credit desirable

Answer 42

allows business to improve cash flow, manage inventory effectively, and potentially boost sales