Practice exam

Question 1

Financial-information management
In the lean approach to accounting, inventory is treated as a(n):
a)revenue
b)liability
c)asset
d)equity

Answer 1

b)liability

Question 2

Risk management
Which of the following is an impact of introducing compliance technology into a business:
a)it identifies patterns and trends in a company
b)it increases the likelihood of a data breach
c)it replaces living specialists from a company
d)it reduced a company’s overall risk efficiency

Answer 2

a)it identifies patterns and trends in a company

Question 3

Customer relations
A financial advisor should try to:
a)demonstrate wealth in an overt, flashy way
b)hide gaps in knowledge with confidence
c)talk about products more than they listen
d)explain the reasoning for any changes

Answer 3

d)explain the reasoning for any changes

Question 4

Economics
Which of the following situations would cause prices to rise:
a)a newspaper article describes poor service provided by a hotel
b)insects destroy a large cotton crop
c)the corn crop is unusually large one summer
d)animal rights activists march in front of a fur store

Answer 4

b)insects destroy a large cotton crop

Question 5

Financial Analysis
Which of the following is a way in which managerial accountants can help a company’s management:
a)Accumulating data on costs and profits
b)Hiring and training new employees
c)Releasing financial information to the public
d)Setting competitive product or service prices

Answer 5

a)Accumulating data on costs and profits

Question 6

Professional Development
Tanya recently enrolled in night classes to learn how to code. She knows that her new skills will help her perform her current job more effectively–and perhaps even earn her a promotion. Tanya understands:
a)that her employer will fire her if she doesn’t learn to code.
b)the need for ongoing education as a worker.
c)that younger employees are less qualified than her.
d)the push for employees to work longer hours.

Answer 6

b)the need for ongoing education as a worker.

Question 7

Financial Analysis
Financial markets promote long-term economic development by:
a)directing the flow of investment to encourage production.
b)reducing liquidity.
c)providing indicators of economic health.
d)limiting information available to market participants.

Answer 7

a)directing the flow of investment to encourage production.

Question 8

Financial Analysis
How do finance companies commonly raise capital?:
a)Investing deposits from savers
b)Issuing notes, bonds, and other obligations
c)Establishing mutual funds and investment banks
d)Investing funds from premium payments

Answer 8

b)Issuing notes, bonds, and other obligations

Question 9

Professional Development
What is a potential negative consequence to a business that fails to manage risk by implementing an ethics training program for employees?:
a)Damaged reputation
b)Decreased conflict
c)Inflated profit margins
d)Increased credit rating

Answer 9

a)Damaged reputation

Question 10

Risk Management
Financial globalization tends to cause an increase in:
a)taxes on international transactions.
b)herd behavior among investors.
c)limits on foreigners’ access to domestic markets.
d)investors’ exposure to business cycle risks.

Answer 10

b)herd behavior among investors.

Question 11

In corporate governance, oversight of management, segregation of control, and policy development are all examples of:
a) transparency management
b)external control mechanisms
c) internal control mechanisms
d)tasks of the board of directors

Answer 11

b)external control mechanisms

Question 12

Companies that effectively allocate costs:
a) increase profits and expenses
b)improve short-term and hurt long-term decision-making
c)spread costs among departments
d)determine one department to cover all costs

Answer 12

c)spread costs among departments

Question 13

Which of the following actions is most likely to lead to a serious legal penalty:
a)possession of legal medication without a prescription
b)missing a couple of days of school due to a family vacation
c)refusing to speak when a police officer questions you
d)being noisy with your friends at an amusement park

Answer 13

a)possession of legal medication without a prescription

Question 14

If a company pays more in dividends than it receives in net income, the statement of changes in equity will show that retained earnings will be:
a) the same as the previous period
b)zero
c)lower than the previous period
d)higher than the previous period

Answer 14

c)lower than the previous period

Question 15

consensus building is a process that often enables a group to:
a) reach an agreement
b)express an attitude
c)create a stalemate
d)define a philosophy

Answer 15

a)reach an agreement

Question 16

Which aspects of a companys financial statements can provide information about its bottom line?
a)cash flow trends
b)earnings and revenue growth
c)dividends paid
d)liabilities

Answer 16

b)earnings and revenue growth

Question 17

an organization with a strong culture typically has
a)weak managers
b)clear values
c)unclear values
d)no rules

Answer 17

b)clear values

Question 18

Hank would like to meet regularly in person with other financial planners in his geographic area to discuss trends and issues impacting their profession. Which of the following professional organizations would best meet Hanks needs
a)international financial planning association
b)local society of financial planning professionals
c)federal organization of financial planners
d)national association of professional financial advisors

Answer 18

b)local society of financial planning professionals

Question 19

Which of the following are common categories of commodities
a)metals, grains, and consumer goods
b)energy, grains, and consumer goods
c)energy, metals, and consumer goods
d)energy, metals, and grains

Answer 19

d)energy, metals, and grains

Question 20

An example of an association rule is:”if a customer at XYZ Grocery store purchases peanut butter they are 70% likely to also purchase jelly” In this example the antecedent is ____ and the consequent is ____
a)being a customer at the store; buying jelly
b)buying jelly; being a customer at the store
c)buying jelly; buying peanut butter
d)buying peanut butter;buying jelly

Answer 20

d)buying peanut butter; buying jelly

Question 21

Which of the following is an example of a long-term business goal
a)develop departmental budgets
b)expand into new markets
c)hire an accountant
d)create a sales presentation

Answer 21

b)expand into new markets

Question 22

which of the following is a tool that can be used to carry out scanning activities
a)manufacturing equipment
b)market research studies
c)personnel records
d)budgeting software

Answer 22

b)market research studies

Question 23

why do many people pursue finance careers
a)careers in finance are typically easier than other careers
b)there is a positive outlook for finance careers
c)finance careers generally have small salaries
d)finance careers do not require much education or training

Answer 23

b)there is a positive outlook for finance careers

Question 24

which of the following situations is an example of using marginal analysis to make a segment profitability decision
a)a furniture company must decide whether to sell its pieces assembled or unassembled
b)a company must decide whether to use an outside marketing firm or hire someone internally
c)a clothing retailer must decide how many units of each product to sell
d) a restaurant chain manager must decide whether to keep a certain franchise open

Answer 24

d) a restaurant chain manager must decide whether to keep a certain franchise open

Question 24

The two main divisions of the trade industry are a)producers and retailers b)wholesalers and producers c)wholesalers and retailers d)manufacturers and wholesalers

Answer 24

d)manufacturers and wholesalers

Question 25

Whether prices go up or down the relationship between relative prices does not change if the ______ remains the same a)value b)resource c)ratio d)market

Answer 25

c)ratio

Question 26

capital gains taxes may be imposed on a)stocks, real estate, and financial gifts b)stocks, bonds, and financial gifts c)bonds, real estate, and financial gifts d)stocks, bonds, and real estate

Answer 26

d)stocks, bonds, and real estate

Question 27

which of the following is the formula used to calculate retained earnings a)operating cash flow-capital expenditures+net income(or loss) b)capital expenditures+net income(or loss)-net dividends c)beginning period retained earnings-net income(or loss)+net dividends d)Beginning period retained earnings+net income(or loss)-net dividends

Answer 27

d)Beginning period retained earnings+net income(or loss)-net dividends

Question 28

one of the most important benefits of setting goals is: a)achieving success in life b)learning how to lead others c)becoming a good example d)avoiding everyday problems

Answer 28

a)achieving success in life

Question 28

which of the following factors has increased financial globalization and made it easier to communicate across country borders a)deregulation b)technology c)exchange rates d)competition

Answer 28

b)technology

Question 29

Lean operations focus on increasing efficiency by reducing ______ while six sigma focuses on continuously improving ______ throughout the business a)wages;automation b)standards;waste c)automation;standards d)waste;quality

Answer 29

d)waste;quality

Question 30

Comparing the prices offered by different vendors for the same goods and services is what part of the purchasing process a)receipt of goods b)bid analysis c)invoice payment d)price fixing

Answer 30

b)bid analysis

Question 31

You want to take a vacation day next week at first your manager doesnt think you should but you are able to change their attitude and convince them by using ______ a)bullying b)intimidation c)threats d)persuasion

Answer 31

d)persuasion

Question 31

michelle is a small business owner who has outdated customer information in her computer files. what type of application should michelle use to update her database a)environmental scanning b)customer relationship management c)tabulation analysis d)application programming interface

Answer 31

b)customer relationship management

Question 32

one factor that has stimulated financial globalization is an increase in a)foreign regulation b)domestic investment preferences c)protectionism d)domestic competition

Answer 32

b)domestic investment preferences

Question 33

how does a student with initiative handle a situation that increases their workload a)asks their teacher how to handle it b)waits until their teacher notices c)asks other students to assist them d)finds ways to adjust to the situation

Answer 33

d)finds ways to adjust to the situation

Question 34

which of the following budgeting software applications tracks a businesses cash, interest, and dividends a)revenue recognition b)capital expenses c)workflow management d)inventory planning

Answer 34

b)capital expenses

Question 35

The primary responsibility of all financial-services providers is: a) improving the community's standard of living. b) lobbying the government on behalf of the industry. c)purchasing and selling securities. d) growing and protecting their clients' wealth.

Answer 35

d) growing and protecting their clients' wealth.

Question 36

Aria must obtain certain data and information from Mateo before she can enter a customer's insurance claim in the computer. To process the customer's insurance claim, Aría and Mateo must: a)coordinate their work activities. b) develop departmental goals. c) obtain management's approval. d) improve their communication.

Answer 36

a)coordinate their work activities.

Question 37

Which of the following is an example of a cost-of-goods expense a business may pay? a) Wages for its employees b) Electricity for its building c) Rent for its land/property d) Raw materials for its products

Answer 37

d) Raw materials for its products

Question 38

Which of the following is most likely to incur a luxury tax? a)Wool coat with faux fur collar b) Five-carat diamond ring c) Laptop computer d) Used minivan with leather interior

Answer 38

b) Five-carat diamond ring

Question 39

If Danita invests $6,000 at a simple annual interest rate of 5%, the future value of her investment at the end of a 5-year period will be: a) $1,200.00 b) $1,650.00 c) $1,500.00 d) S4,500.00

Answer 39

c) $1,500.00

Question 40

What is a good source of information for a managerial accountant whose company needs to determine how much money is available for a marketing campaign? a) Sales forecast b) Variance analysis c) Budget d) Cost-benefit analysis

Answer 40

c) Budget

Question 41

The 52-week high and low numbers are a good indicator of the stock's: a) net change b) volatility c) yield d) volume

Answer 41

b) volatility

Question 42

Which of the following is a function of financial markets? a) Customer service b) Borrowing and lending c) Auctions d)Productivity

Answer 42

b) Borrowing and lending

Question 43

How do employees benefit from being involved in achieving governance objectives? a) Limited union support b) Reduced communication c) Greater profits d) Increased job satisfaction

Answer 43

d) Increased job satisfaction

Question 44

Sierra is a woman who enjoys watching football. However, the commercials she sees on TV always seem to portray men as the only demographic that enjoys sports. The idea that only men watch football is an example of a(n): a) unconscious bias b) prejudice c) discriminatory statement d) stereotype

Answer 44

d) stereotype

Question 45

What is the key distinction between a word processor and a text editor? a) A text editor is a simplified type of word processor. b) A text editor is more focused on the visual formatting elements of a document. c) A text editor offers users more control over layout and colors. d) A text editor is a more advanced word processor.

Answer 45

a) A text editor is a simplified type of word processor.

Question 46

Stacy, a poodle owner, chose her dog's groomer based on the friendliness and attentiveness of the staff. Even though the prices are higher than other groomers, Stacy would never consider going somewhere else. This example demonstrates the importance of: a) building and maintaining customer relationships. b) setting prices higher to create an image of luxury. c) out pricing the competition through sales and giveaways. d) earning new customers rather than focusing on current ones.

Answer 46

a) building and maintaining customer relationships.

Question 47

What type of economic indicator are stock market returns commonly considered to a) Lagging b) Exploratory c) Coincident d) Leading

Answer 47

d) Leading

Question 48

What form of communication is best for a manager to use to obtain immediate feedback from employees and gauge their nonverbal cues? a. Phone call b. Instant messaging c. Face-to-face meeting d. Email

Answer 48

c. Face-to-face meeting

Question 49

When your parents tell you to vacuum the living room, you are receiving. directions. a. social b. written c. oral d. nonverbal

Answer 49

c. oral

Question 50

The primary force influencing corporate governance is a company's a. independent directors. b. chief executive officer. c. board of directors. d. shareholders.

Answer 50

c. board of directors.

Question 51

The balance sheet has a close relationship with the company's a. fair market value. b. statement of financial position. c. income statement. d. mortgage.

Answer 51

b. statement of financial position.

Question 52

A bank local bank has gone into a partnership with a life insurance company, As a result, the bank will sell the company's insurance to its clients. This partnership is an example of a. consolidation. b. amalgamation. c. bancassurance. d. market extension.

Answer 52

c. bancassurance.

Question 53

Which of the following is the most effective way to avoid excessive credit card debt? a. Pay off your balance each month. b. Use credit card cash advances to pay debt. c. Choose a credit card with a high limit. d. Pay off low-interest credit cards first.

Answer 53

a. Pay off your balance each month.

Question 54

How can the stock market affect the economy? a. Rising stock markets cause consumer prices to decrease. b. The stock market performs better during long-term stagnation. c. Interest rates are lower when the economy is in recession. d. Declines in stock markets decrease consumer confidence.

Answer 54

d. Declines in stock markets decrease consumer confidence.

Question 55

What is a primary responsibility of an investment bank? a. Use funds from premiums to offer loans b. Pool contributions and invest for them for employees c. Help firms raise funds by issuing securities d. Accept deposits from individual savers

Answer 55

c. Help firms raise funds by issuing securities

Question 56

A guideline for writing effective business letters is that each letter should a. entertain the reader. b. display the writer's vocabulary. c. have a clear purpose. d. contain indirect questions.

Answer 56

c. have a clear purpose.

Question 57

Ann-Marie is preparing an annual report. While many people might look at the report, Ann-Marie needs to remember that this report's main audience is a. shareholders. b. the CEO. c. customers d. possible employees.

Answer 57

a. shareholders.

Question 58

Lawrence's manager asked him to prepare a visual representation of key performance company's analytic software to create a(n) indicators, including cash flow, liquidity, profitability, and liability. Lawrence should use his a. operating agreement. b. financial scorecard. c. cost standard. d. profit-and-loss statement.

Answer 58

b. financial scorecard.

Question 59

ABC Education Company wants to compare its business practices and performance to that of other organizations within its industry. Which of the following financial analysis tools would be most helpful for this purpose? a. Benchmarking b. Trending c. Forecasting d. Ratio analysis

Answer 59

a. Benchmarking

Question 60

Like food service is just one segment of the hospitality and tourism industry, _____ is one component of a. risk control; risk management b. risk management; risk control c. internal risk; external risk d. external risk; internal risk

Answer 60

a. risk control; risk management

Question 61

Which of the following is an example of a routine decision? a. Choosing a career to pursue b. Picking a new roommate c. Selecting which car to buy d. Ordering pizza for dinner

Answer 61

d. Ordering pizza for dinner

Question 62

To reduce the risk of unauthorized access to confidential data, businesses use security software to protect their: a. corporate policies. b. intranet systems. c. intercom systems. d. spam email.

Answer 62

b. intranet systems.

Question 63

What type of insurance company serves as a financial intermediary? a. Liability b. Health c. Property d. Life

Answer 63

d. Life

Question 64

Isaac, who has $10,000 to invest, wants to determine how much money he could accrue over 1 year if he invests the full amount. To calculate that future value, what pieces of information does Isaac need? a. Past value and principal b. Income and interest rate c. Present value and discount rate d. Past value and present value

Answer 64

b. Income and interest rate

Question 65

When you know what your values are and align your behavior with them, you will: a. be able to set priorities and goals easily. b. feel conflicted in your decision-making. c. never again struggle with an ethical dilemma. d. find fulfillment in career but not personal life.

Answer 65

a. be able to set priorities and goals easily.

Question 66

Firewalls, intrusion detection systems, and encryption are all methods used by companies to: a. protect and secure financial information. b. screen qualified job applicants. c. sort and organize customer data. d. ensure the security of their office buildings.

Answer 66

a. protect and secure financial information.

Question 67

Risk should be managed: a. as a part of business strategy. b. on a case-by-case basis. c. through the purchase of insurance. d. after an incident has occurred.

Answer 67

a. as a part of business strategy.

Question 68

Jerry is very angry because Greg dented his employer's delivery truck and blamed the supervisor yells at Jerry for damaging the truck? dent on Jerry. Which of the following is the most appropriate thing for Jerry to do when the a. Accept responsibility. b. Maintain self-control. c. Blame someone else. d. Get even with Greg.

Answer 68

b. Maintain self-control.

Question 69

In which stage of project management does risk analysis take place? a. Closing b. Execution c. Planning d. Initiation

Answer 69

c. Planning

Question 70

Duncan works for a marketing firm but has decided to take a second job doing marketing for a local business. What is a potential ethical issue that could cause risks associated with this decision? a. Conflict of interest b. Lack of accountability c. Misuse of resources d. Product liability

Answer 70

a. Conflict of interest

Question 71

Matthew received a loan for $20,000 from a financial institution to help pay for his college education. The loan is helping him cover tuition while he is in school, and when he graduates, he will repay the financial institution. This is an example of which form of financial exchange? a. Bitcoin b. Debit c. Cash d. Credit

Answer 71

d. Credit

Question 72

Which of the following is a good source of detailed information about specific career opportunities in business? a. Community-college student centers b. Professional organization websites c. Classified ads in urban newspapers d. Corporate human-resource departments

Answer 72

b. Professional organization websites

Question 73

Building professional, long-term relationships with others in the financial industry a. membership in unrelated trade organizations. b. a detached attitude. c. consistent communication.

Answer 73

c. consistent communication.

Question 74

Tiana is responsible for receiving all shipments for the Castle of Chocolate. She fails to most likely to notice that several items that her business ordered and paid for were not shipped. Her error is most likely to a. create unhappy customers. b. decrease inventory cost. c. increase inventory cost. d. increase shipping costs.

Answer 74

b. decrease inventory cost.

Question 75

If a company requests that managers monitor and verify the accuracy of their departments' income and expenses as reported by the accountant each month, it is creating a corporate governance structure that uses a. external control mechanism. b. unethical method of monitoring. c. internal independent audit. d. external independent audit.

Answer 75

c. internal independent audit.

Question 76

Data normalization involves creating a(n) ____ for all data within an organization. a. anomaly set b. search query c. group command d. standard format.

Answer 76

d. standard format.

Question 77

To endorse a check, the payee must sign their name on the a. check's memo line. b. back of the check. c. check's "Pay to the order of" section. d. signature block of the check.

Answer 77

b. back of the check.

Question 78

Which of the following is an example of an employee behaving ethically at work: a. Performing work-related tasks in efficient ways. b. Making social plans with friends on company time. c. Using office supplies for personal business. d. Accepting credit for a project that a coworker completed.

Answer 78

a. Performing work-related tasks in efficient ways.

Question 79

What are the basic components of a business budget? a. Inventory, variable costs, and profits. b. Fixed costs, variable costs, and semi-variable costs. c. Fixed assets, inventory, and investments. (Correct Answer) d. Total revenues, total costs, and profit.

Answer 79

b. Fixed costs, variable costs, and semi-variable costs.

Question 80

Which of the following types of data Should be maintained in an effective financial-information management system? a. Reports on the effectiveness of ad campaigns b. Data on current customer trends c. Statistics on demographic shifts d. Information on external market conditions

Answer 80

b. Data on current customer trends

Question 81

Emi wants to better understand her company's financial performance over several years. To best compare historical data over a number of accounting periods, Emi should use ____ analysis. a. horizontal b. SWOT c. vertical d. break-even

Answer 81

a. horizontal

Question 82

Which of the following statements about effective business writing is true? a. It is direct, clear, and simple. b. It uses complex terms and language. c. It doesn't keep the audience in mind. d. It is designed to be read slowly.

Answer 82

a. It is direct, clear, and simple.

Question 83

Casey's Tree Removal Services has a set of rules, practices, and processes by which the organization is controlled. Because of the company's strict adherence to these rules and processes, it has never had any major problems with unethical behavior or mismanagement. Instead, the company enjoys a positive relationship with its customers, employees, and the public. This example demonstrates the benefits of a. good corporate governance. b. setting SMART goals. c. ethics training in the workplace. d. public relations initiatives.

Answer 83

a. good corporate governance.

Question 84

What can a business do if it is exposed to risks that commercial insurance companies do not cover? a. Acquire a professional association b. Create a trade union c. Form a captive insurance company d. Establish a risk management committee

Answer 84

c. Form a captive insurance company

Question 85

A financial institution fails to comply with an important government regulation. The financial institution will most likely a. avoid an audit. b. pay a fine. c. get a better reputation. d. gain new business.

Answer 85

b. pay a fine.

Question 86

Why do some companies decide against using variance analysis? a. Real causes cannot be correctly identified. b. Horizontal analysis requires much less time. c. Variance analysis is not based on real, tangible data. d. Variance analysis involves too much of a time delay.

Answer 86

d. Variance analysis involves too much of a time delay.

Question 87

Which of the following involves obtaining and evaluating data for the purpose of helping businesses make long-term decisions? a. Applied research b. Communications networks c. Information management d. Organizational development

Answer 87

c. Information management

Question 88

While making a sale, an employee decides to keep the customer's money rather than ringing up the sale. This is an example of business risk caused by ____ human behavior. a. careless b. dishonest c. incompetent d. ethical

Answer 88

b. dishonest

Question 89

A primary reason why businesses implement financial audit trails is to a. reduce risks associated with intentional data tampering. b. monitor the daily activities of the securities exchanges. c. ensure that financial reports are prepared quickly. d. evaluate their profitability ratios.

Answer 89

a. reduce risks associated with intentional data tampering.

Question 90

Which of the following is an example of job loss due to cyclical unemployment: a. Ryan recently lost his job in the construction industry during a time of economic contraction. b. Tristan lost his management job when the coal supply had been depleted at the mine where he worked. c. Lizzy's temporary job at a gourmet food company ended in January after the holiday rush. d. Hannah left her position as a human resources manager so she could attend graduate school.

Answer 90

a. Ryan recently lost his job in the construction industry during a time of economic contraction.

Question 91

Which of the following is the first step a financial planner typically takes when meeting a new client: a. Recommend steps to eliminate debt b. Determine client's tolerance for risk c. Create long-term financial goals d. Assess current financial situation

Answer 91

d. Assess current financial situation

Question 92

Which of the following most likely led to a greater emphasis on governance structures in recent years: a. Competitor saturation b. Stock market crash c. Accounting fraud d. New technology in the industry

Answer 92

c. Accounting fraud

Question 93

Which of the following statements most accurately describes the financial-services industry today: a.Banks, insurance companies, securities firms, and other financial institutions are sometimes owned by a single large firm offering a complete range of financial services. b. The financial-services industry is largely unregulated, with little federal oversight. c. The only place to pursue a career as a securities broker is a traditional financial securities firm on Wall Street. d. It is highly segmented, with separate businesses for separate services.

Answer 93

a.Banks, insurance companies, securities firms, and other financial institutions are sometimes owned by a single large firm offering a complete range of financial services.

Question 94

A manager must decide whether to make products in-house or outsource manufacturing in this scenario the companys committed costs are likely to be a. cash inflows. b. irrelevant costs. c. relevant costs. d. cash receipts.

Answer 94

c. relevant costs.

Question 95

Which of the following is the best example of misusing company resources: a. Juan takes notepads from the supply closet. b. Nate flies first class when he travels for work. c. Yazmin often leaves her shift early without clocking out. d. Ashley pays for a business lunch with a company credit card.

Answer 95

a. Juan takes notepads from the supply closet.

Question 96

Which type of risk is easier to reduce because it can be forecasted? a. External b. Economic c. Natural d. Internal

Answer 96

d. Internal

Question 97

Virtual audits are different than traditional audits in that virtual audits a. don't rely on technology. b. must offer printed copies of data. c. cannot be done remotely. d. involve sharing documents online.

Answer 97

d. involve sharing documents online.

Question 98

A business determines how much it costs to make a product and then adds a predetermined markup to set its selling price. This is an example of a. price-based costing. b. economies of scale. c. cost-based pricing. d. gross profit.

Answer 98

c. cost-based pricing.

Question 99

Marcus is one of the earliest investors for a new teeth-whitening kit. Since then, he has convinced several other people to invest in the kit, allowing him and other early backers to profit from their investments. What type of investment scan is this scenario describing a. Ponzi scheme b. Viatical investment scam c. Boiler room d. Predatory lending

Answer 99

a. Ponzi scheme

Question 100

When a large bank acquires or merges with another ban, it a the pray o a. instantly gain many new customers. b. avoid or eliminate federal banking regulations. c. transfer financial risk to the newly acquired bank. d. decrease the federal interest rate.

Answer 100

a. instantly gain many new customers.

Question 101

An important purpose of full-disclosure laws and regulations is to a. provide information to investors so they can make informed decisions. b. prevent a stock's par value from dropping below its market value. c. require companies to disclose all information about their operations. d. allow company employees to use inside information for personal gain.

Answer 101

a. provide information to investors so they can make informed decisions.

Question 102

The way you follow up with a customer when showing a customer service mindset will vary according to a. the customer's level of frustration. b. the type of service you have provided the customer. c. how far away the customer is located. d. how much attention your supervisor paid to the customer.

Answer 102

b. the type of service you have provided the customer.

Question 103

Which of the following is a function of cost accounting budgets: a. Understanding profitability b. Controlling finances c. Analyzing sources of income d. Determining cash flow

Answer 103

b. Controlling finances

Question 104

When employees have the ability to retrieve only the computer data that are important for them to perform their job, the business is applying the a. principle of least authority. b. doctrine of organizational structure. c. law of diminishing capacity. d. concept of intrusion prevention.

Answer 104

a. principle of least authority.

Question 105

If you are taking out a mortgage loan on a new home, which of the following is most likely to be used as collateral: a. Cash in your savings account b. Your car c. The new home d. Future paychecks

Answer 105

c. The new home

Question 106

Which of the following best represents the correct order for organizing a job that must be completed: a. Identify, classify, prioritize, schedule, perform b. Classify, identify, prioritize, perform, schedule c. Identify, prioritize, classify, schedule, perform d. Prioritize, identify, classify, perform, schedule

Answer 106

a. Identify, classify, prioritize, schedule, perform

Question 107

If all individuals who own a business share unlimited liability for the business's losses, these individuals are part of a(n) a. private corporation. b. "C" corporation. c. "S" corporation. d. general partnership.

Answer 107

d. general partnership.