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Flashcards in Practice Exam Deck (30)
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1

T/F

The audit committee is a monitoring device for effective corporate governance

TRUE

2

T/F

The CFO is a monitoring device for effective corporate governance

FALSE

It is top management that is monitored by corporate governance devices; therefore, it wouldn't make sense for the CFO to be monitoring himself

3

T/F

The SEC is a monitoring device for effective corporate governance

TRUE

4

T/F

The External Auditors are a monitoring device for effective corporate governance

TRUE

5

What makes up the Central Processing Unit (3 things)?

An arithmetic/logic unit, primary memory, and a control unit

6

What does RAID stand for?

Redundant array of independent disks

7

What is RAID?

A way of storing the same data redundantly on multiple magnetic disks

8

T/F

A system that stores transactions in a single database, but processes them at various sites, is referred to as a centralized system

FALSE

9

T/F

A system that stores transactions in a single database, but processes them at various sites, is referred to as a decentralized system

FALSE

10

T/F

A system that stores transactions in a single database, but processes them at various sites, is referred to as a distributed system

TRUE

11

An ____ (increase/decrease) in the cost of a financing source ____ (increases/decreases) the marginal cost of capital

Increase
Increase

12

T/F

The exercise price is a determinant in valuing a call option

TRUE

13

T/F

The expiration date is a determinant in valuing a call option

TRUE

14

T/F

The forward contract price is a determinant in valuing a call option

FALSE

15

T/F

The interest rate is a determinant in valuing a call option

TRUE

16

____ involves categorizing tasks based on urgency

ABC Analysis

17

What is an advantage of a sophisticated multiuser database?

Information may be retrieved quickly

18

It is generally agreed that business cycles are caused by changes in____

aggregate economic output (expenditures)

19

T/F

Quality risk is a risk of outsourcing a process to foreign operations

TRUE

20

T/F

Language risk is a risk of outsourcing a process to foreign operations

TRUE

21

T/F

Core Competency risk is a risk of outsourcing a process to foreign operations

FALSE

22

T/F

Public Opinion Risk is a risk of outsourcing a process to foreign operations

TRUE

23

T/F

Objective setting is a component of the COSO's Integrated ERM Framework

TRUE

24

T/F

Risk Response is a component of the COSO's Integrated ERM Framework

TRUE

25

T/F

Risk Assessment is a component of the COSO's Integrated ERM Framework

TRUE

26

T/F

Strategy Mapping is a component of the COSO's Integrated ERM Framework

FALSE

This does not deal with RISK (Enterprise Risk Management Framework)

27

____ is a combination of hardware and software that links to different types of networks

Gateway

28

Which department would normally have the responsibility for a "help desk"

Operations Department

29

This is a commercial disaster recovery service that allows a business to continue computer operations in the event of a computer disaster

hot site

30

What's the formula for CAPM?

Risk Free Rate +

(Expected Return - Risk Free Rate)/Beta