CBK Pre-test Exam Questions 100% Correct Solutions 2024 Update

CBK Pre-test Exam Questions 100% Correct Solutions 2024 Update Hale's TV Production is considering producing a pilot for a comedy series for a major television network. The network may reject the pilot and the series, but it may also purchase the program for 1 or 2 years. Hale may decide to produce the pilot or transfer the rights for the series to a competitor for $100,000. Hale's profits are summarized in the following profit (in thousands of dollars) payoff table. Based on the information above, the optimistic approach is D2, S3 at 100. - Answer -False Book value is the difference between: - Answer -Historic cost and accumulated depreciation, and it is reported on the balance sheet. A period cost is: - Answer -Expensed in the period in which it is incurred. Which type of center has the responsibility for generating revenue as well as controlling costs? - Answer -Profit center The balance in the prepaid rent account before adjustment at the end of the year is $24,000, which represents four months' rent paid on December 1. The adjusting entry required on December 31 is: - Answer -debit Rent Expense, $6,000; credit Prepaid Rent, $6,000 When price rises, quantity supplied increases, and vice versa. This statement is known in economics as: - Answer -the Law of Supply Which of the following statements is NOT correct? - Answer -Taxing a good which for which demand is relatively elastic will generate more revenue than would taxing a good for which demand is relatively inelastic. The official unemployment rate is the number of people: - Answer -Looking for a job divided by the labor force Significant Barriers to Entry may be present in which of the following market structures? - Answer -oligopoly and monopoly Economies of Scale will cause: - Answer -long run average cost to decrease Suppose it is very difficult for a firm to find a close substitute for a specific input. As a result, the firm's demand for that input will be: - Answer -less elastic Tariffs allow: - Answer -domestic producers to receive a higher price Suppose total deposits in the First Bank of Commerce are $100,000 and required reserves are $10,000. Based on this information, the required reserve ratio is: - Answer -0.10 If the risk-free rate, estimated using the Treasury Bill rate, is 6%, the stock market's average return on stock is 16%, and firm A has a beta of 1.2, what is the estimated return expected on firm A's stock? - Answer -18% Assume stock A has a standard deviation of 0.21, while stock B has a standard deviation of 0.10. We can conclude: - Answer -Stock A has higher total risk. All of the following theories show why it is beneficial for a country to engage in international trade even for products it is able to produce for itself, except - Answer -Mercantilism. The rise in FDI in the services sector is a result of all of the following, except: - Answer -Accelerating regulations of services The emphasis on local responsiveness in firms pursuing a local responsiveness strategy creates strong pressures for: - Answer -Decentralizing operating decisions to foreign subsidiaries This is a loan between a parent and its subsidiary channeled through a financial intermediary, usually a large international bank. - Answer -Fronting loan In a unilateral contract, the consideration is: - Answer -the doing of the act called for by the promisor. Federal regulation of the sale of securities is based on the: - Answer -Securities Act of 1933 and the Securities Exchange Act of 1934. SEC Rule lOb-5: - Answer -applies to unregistered securities that make use of the mails; is the principal antifraud rule relating to the secondary of securities; imposes sanctions for trading on insider information. A group of investors seeking control of another corporation by offering cash for all of its shares made available for sale is known as a: - Answer -cash tender offer. What is the primary federal law regulating equal employment? - Answer -Title VII of the Civil Rights Act of 1964