MBAX 4990 Business Essentials (WU) Midterms Qns & And 2025.MBAX 4990 Business Essentials (WU) Midterms Qns & And 2025.MBAX 4990 Business Essentials (WU) Midterms Qns & And 2025.
1. Which of the following best describes the concept of
"corporate governance"?
- A) The process of managing day-to-day operations
- B) The system by which companies are directed and controlled
- C) The development of marketing strategies
- D) The analysis of financial performance
- ANS: B) The system by which companies are directed and
controlled
- Rationale: Corporate governance involves the structures and
processes for the direction and control of companies.
,2. What is the primary purpose of financial accounting?
- A) To provide information for internal decision-making
- B) To prepare financial statements for external stakeholders
- C) To manage day-to-day operations
- D) To develop marketing strategies
- ANS: B) To prepare financial statements for external
stakeholders
- Rationale: Financial accounting focuses on preparing
financial statements for external stakeholders such as investors,
creditors, and regulators.
3. Which of the following is a key characteristic of a successful
business strategy?
- A) Focus on short-term profits
- B) Alignment with the company's mission and vision
- C) Reliance on traditional methods
- D) Avoidance of risk
- ANS: B) Alignment with the company's mission and vision
- Rationale: A successful business strategy aligns with the
company's mission and vision, guiding long-term goals and
decision-making.
, 4. What is the primary difference between managerial
accounting and financial accounting?
- A) Managerial accounting focuses on external reporting, while
financial accounting focuses on internal reporting
- B) Managerial accounting focuses on internal reporting, while
financial accounting focuses on external reporting
- C) Managerial accounting is only used by large corporations,
while financial accounting is used by small businesses
- D) Managerial accounting involves auditing, while financial
accounting does not
- ANS: B) Managerial accounting focuses on internal
reporting, while financial accounting focuses on external
reporting
- Rationale: Managerial accounting provides information for
internal decision-making, while financial accounting prepares
financial statements for external stakeholders.
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