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Frequently Asked Questions
Question # 1
Synergy means that the whole is greater than the sum of its parts.
A. True
B. False
Question # 2
The final activities and steps needs to place merchandise made elsewhere into the handsof the consumer or to provide services to the customer is called retaining.
A. True
B. False
Question # 3
What is based on the presumption that it is determined by what a customer wants?
A. Property
B. Trait
C. Superiority
D. Quality
Question # 4
A learning cycle has which of the following four stages?
A. Planning, Organizing, Measurement, Revision
B. Planning, Implementation, Assessment, Adjustment
C. Planning, Execution, Assessment, Revision
D. Planning, Execution, Evaluation, Improvement
Question # 5
A total or near-total ban or trade with a particular country sometimes enforced by militaryaction and usually imposed for a political purpose is called:
A. block
B. embargo
C. impediment
D. prohibition
Question # 6
The ratios that are much higher than the market averages are generally associated withcompanies with fast-growing profits are called:
A. Price-earnings ratios
B. Emerging ratios
C. Capital ratio
D. Dividend charges
Question # 7
A leader who clarifies subordinates’ role and task requirements, initiates structure, providerewards, and displays consideration for subordinates is known as:
A. Change leader
B. Transactional leader
C. Charismatic leader
D. Visionary leader
Question # 8
The relationship between credit sales and accounts receivable may be stated as:
A. quick account analysis
B. account payable turnover
C. account receivable turnover
D. None of the above
Question # 9
The formula to calculate the return on quality is:
A. ROQ = (NPV of benefits / NPV of costs) – 1.00 * 365
B. ROQ = (NPV of benefits / NPV of costs) – 0.05
C. ROQ = (NPV of benefits / NPV of costs) – 1.00
D. ROQ = (NPV of benefits / NPV of costs) – 0.05 * 365 NPV = net present value
Question # 10
The formula used to calculate the Contribution Margin Ratio is:
A. Contribution Margin Ratio = (purchases – fixed costs) / sales
B. Contribution Margin Ratio = (purchases – variable costs) / sales
C. Contribution Margin Ratio = (sales – fixed costs) / sales
D. Contribution Margin Ratio = (sales – variable costs) / sales
Question # 11
A system that interacts with the external environment is called Open system.
A. True
B. False
Question # 12
In _____________ leadership, the leader consults with his or her subordinates aboutdecisions.
A. Supportive leadership
B. Directive leadership
C. Participative leadership
D. Achievement-oriented leadership
Question # 13
Product decisions, distribution decisions, and promotion decisions are all the element of:
A. Product activities
B. Internal marketing
C. Marketing mix
D. Technological developments
Question # 14
A cash management arrangement used to mobilize funds from decentralized receivinglocations, whether they are decentralized company locations, into one or more central cashpools is known as:
A. Payable Concentration
B. Concentration banking
C. Marketable Concentration
D. None of the above
Question # 15
If subsidiaries are granted a high degree of autonomy, the system is called:
A. Coordination
B. Incorporation
C. Centralization
D. Decentralization
Question # 16
An organization that is committed to total quality must apply it at which level?
A. organizational level
B. process level
C. job level
D. All of the above
Question # 17
Pricing is a static element.
A. True
B. False
Question # 18
The marketing concept consists of the following fundamental principle?
A. the organization exists to identify and to satisfy the needs and wants of its potential andexisting customers
B. Satisfying customer needs is accomplished through an integrated effort throughout theorganization
C. the organizational focus should be long-term cooperative trading relationships withcustomers as opposed to short-term exploitation of customers
D. All of the above
Question # 19
A management perspective that suggests jobs should be designed to meet higher-levelneeds by allowing workers to use their full potential is known as:
A. Human relations movement
B. Humanistic perspective
C. Human resource viewpoint
D. Human resource perspective
Question # 20
Strategy of pricing the new product at a relatively high level and then gradually reducingit over time is known as:
A. Product skimming
B. Consumer skimming
C. Floating Market concept
D. Market skimming
Question # 21
The ratio of variable assets to long-term liabilities is a solvency measure that indicates themargin of safety of the note-holders or bondholders.
A. True
B. False
Question # 22
Costs that are associated with efforts to ensure conformance to requirements, generallythrough measurement and analysis of data to detect non-conformances are called:
A. Appraisal costs
B. Prevention cost
C. Internal cost
D. Training cost
Question # 23
All of the above the underwritten expectations employees and employers have about thenature of their work relationships is known as:
A. Fairness contract
B. Psychological contract
C. Loyalty contract
D. None of the above
Question # 24
A group of services provided to displace employees to give them support and assistance isknown as:
A. Outplacement
B. Backing-up
C. Assistance
D. Referral workshops
Question # 25
A contingency approach to leadership that links leader’s behavioral style with the taskreadiness of subordinates is known as:
A. Contingency theory
B. Situational theory
C. Assignment theory
D. None of the above
Question # 26
In which phase, the builders create the files from transactional databases and save themon the server that will hold the data warehouse?
A. Extraction phase
B. Cleansing phase
C. Loading phase
D. Execution phase
Question # 27
What refers to combination in one organization of successive stages of production; eachstage of production uses as its inputs the production of the preceding stage and producesinputs for the following stage?
A. reconciling technology
B. chain of support technology
C. long-linked technology
D. shackling technology
Question # 28
Which account makes sure that the balance of payments actually balances?
A. Equivalence account
B. Net errors and omissions account
C. Official reserves account
D. Balance account
Question # 29
Banks sometimes require borrowers to maintain an average demand deposit balance equalto from 10 percent to 20 percent of the amount borrowed, this is called:
A. line of credit
B. compensating balance
C. commitment fee
D. revolving credit agreement
Question # 30
An organization that produces non-physical outputs that require customer involvement andcannot be stored in inventory is called:
A. Service organization
B. Routine organization
C. Involuntary organization
D. Overhaul organization
Question # 31
A special type of data collection forms in which the results may be interpreted on the formdirectly without additional processing is called:
A. Mark sheets
B. Processing sheets
C. Check sheets
D. Restraint sheets
Question # 32
The percentage analysis of increases and decreases in related items in comparativefinancial statements is called:
A. Parallel analysis
B. Reciprocal analysis
C. Horizontal analysis
D. Vertical analysis
Question # 33
An unincorporated business association of two or more persons to carry on as co-ownersof a business for profit is called:
A. General partnership
B. Limited partnership
C. Limited Liability partnership
D. Limited Liability Limited partnership
Question # 34
The heart of the organization’s production of its product or service is:
A. Centralized planning
B. Control processes
C. Technical core
D. Structural design
Question # 35
What pertains to the availability, production, and distribution of resources in a society?
A. Social forces
B. Political forces
C. Economic forces
D. Cost-effective forces
Question # 36
What occurs when too many requests are received to log on to a website’s pages?
A. Denial of services
B. Loads of requests
C. Masses services
D. Brokers services
Question # 37
A small or medium sized automated production line that can be adopted to produce morethan one product line is known as:
A. Variable manufacturing system
B. Flexible manufacturing system
C. Accommodating manufacturing system
D. Open manufacturing system
Question # 38
Which of the following is NOT the type of turnover?
A. Involuntary turnover
B. Functional turnover
C. Faulty turnover
D. Controllable turnover
Question # 39
Effective leadership requires which core leadership skills?
A. vision, empowerment, intuition, self-understanding, and value congruence
B. vision, mission, intuition, process-control, and value congruence
C. mission, empowerment, perception, self-understanding, and value congruence
D. mission, presentiment, intuition, self-understanding, and correspondence
Question # 40
What refers to both incremental improvements that are small and gradual as well as breakthrough, and large and rapid, improvement?
A. Continuous improvement
B. Re-growth
C. Streamlined improvement
D. Rationalized improvement
Question # 41
What is speaks as offensively rather than defensively oriented, and opportunity-seekingrather than problem solving?
A. Event marketing relations
B. Cause-related marketing
C. Proactive marketing public relations
D. None of the above
Question # 42
What provides a separate record for the cost of each quantity of product that passesthrough the factory?
A. job order cost system
B. factory labor cost system
C. product manufacturing cost system
D. None of the above
Question # 43
_____________ requires an analysis of the number of suppliers required currently and inthe future for each purchased item.
A. Optimization
B. Neutralization
C. Balancing
D. Counterbalance
Question # 44
The formula to calculate Rate of return in investment (ROI) is:
A. Rate of return in investment (ROI) = Profit margin * Investment turnover
B. Rate of return in investment (ROI) = Profit margin + Investment turnover
C. Rate of return in investment (ROI) = Profit margin - Investment turnover
D. Rate of return in investment (ROI) = Profit margin / Investment turnover
Question # 45
Minimum number necessary to be present at a meeting in order to transact business iscalled:
A. Quota
B. Quorum
C. Voting trust
D. Determination
Question # 46
A line graph in which data are plotted over time is known as:
A. run chart
B. flowchart
C. streamline chart
D. horizontal chart
Question # 47
What provides for global coordination and at the same time it allows local autonomy?
A. Tactical strategy
B. International strategy
C. Transnational strategy
D. Global strategy
Question # 48
Which of the following is NOT the type of debt securities?
A. Authority bonds
B. Equity bonds
C. Participating bonds
D. Callable bonds
Question # 49
Which of the following is NOT the market that comprises the e-market landscape?
A. Business-to-Business
B. Business-to-Government
C. Government -to-Consumer
D. Consumer -to-Market
Question # 50
In which theory, mangers take a negative view and assume that most employees do notlike work and try to avoid it?
A. U Theory
B. V Theory
C. X Theory
D. Y Theory
Question # 51
What is made up of transfers if financial assets and the acquisition and disposal ofnonproduced / nonfinancial assets?
A. Capital account
B. Financial account
C. Portfolio account
D. Direct Investment account
Question # 52
What is used to designate any debt sold in a country other than the one in whose currencythe debt is denominated?
A. Euro-debt
B. Foreign debt
C. Bell debt
D. Exotic debt
Question # 53
What assess effectiveness by observing the beginning of the process and evaluatingwhether the organization effectively obtains means necessary for high performance?
A. Goal approach
B. Internal process approach
C. Resource-based approach
D. Stakeholder approach
Question # 54
A huge collection of data that supports management decision making and maintainssnapshots of business conditions at predetermined points in time is called:
A. Data store
B. Data warehouse
C. Data storehouse
D. Data depot
Question # 55
The average length of time between the purchase of raw materials and labor and thepayment of cash for them is called:
A. Accounts payable period
B. Capital investment cycle
C. Payable deferral period
D. Purchase goods duration
Question # 56
If received an asset and incurred a liability to pay a future bill, this type of transaction iscalled:
A. payable on account
B. supplies on account
C. sale on account
D. purchase on account
Question # 57
Which of the following are the characteristics of useful information?
A. Time, data, form
B. Knowledge, content, scope
C. Time, scope, performance
D. Time, content, form
Question # 58
Retailers purchase enough products during a manufacturer’s off-invoice allowance periodto carry the retailers over until the manufacturer’s net regularly scheduled deal is called:
A. Forward buying
B. Backward buying
C. Diverting
D. Forward rewards
Question # 59
A separateness of corporation gives it which of the following advantages?
A. A corporation can continue after its original owners and managers are deceased.
B. Ownership interests can be divided into shares of stock.
C. A corporation offers its owners limited liability.
D. All of the above
Question # 60
________________ is not a separate taxable entity and only the single owner is taxed.
A. Sole stakeholder
B. Sole proprietorships
C. Sole possessor
D. Sole vendor
Question # 61
The number of employees reporting to a supervisor is called:
A. Span of control
B. Line authority
C. Staff reporting
D. Whirlpool
Question # 62
A network of organizations that creates time, place, and possession utilities for consumersand business users is known as:
A. Marketing channel
B. Volkswagen strategy
C. Federal Express channel
D. Inventory level strategy
Question # 63
Financial management decisions can be divided into the management of assets andliabilities in:
A. long term
B. short term
C. Both A and B
D. Neither A nor B
Question # 64
The relationship between the volume of goods sold and inventory may be stated asinventory turnover.
A. True
B. False
Question # 65
______________ pertains to the acquisition of needed material and financial means fromthe environment.
A. Market
B. Resources
C. Innovation and change
D. Employee development
Question # 66
Design for manufacturability and assembly collaborate on achieving which of the followingobjectives of product design?
A. Producibility
B. Cost
C. Quality
D. All of the above
Question # 67
What provides products or services that link clients from the external environment, and indoping so, allows each department to work independently in known as:
A. Mediating technology
B. Pooled interdependence
C. Sequential technology
D. None of the above
Question # 68
The purchasing of supplies, services and raw materials for use in the production process,known as:
A. Procurement
B. Disbursement
C. Foot-holding
D. Leveraging
Question # 69
An organization’s mission describes what the organization stands for and its reason forexistence is called:
A. Source of motivation
B. Legitimacy
C. Rationale for decisions
D. Standard of performance
Question # 70
Leaves the cost and responsibility at transportation to the customer is called:
A. live pricing
B. Free on board pricing
C. couponing pricing
D. customer pricing
Question # 71
Who is a country organization with a distinctive competence, such as product developmentand increasingly, country organizations are the source of new products?
A. contributor
B. leader
C. implementer
D. supplier
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