BEC 2024 Test Questions & Answers 100% CORRECT
monopolistic competition - ANSWERSA market structure in which barriers to entry are low and many firms compete by selling similar, but not identical, products (differentiated). Distinguished by it's larger variety in projects and higher price per ...
monopolistic competition - ANSWERSA market structure in which barriers to entry are low and many
firms compete by selling similar, but not identical, products (differentiated). Distinguished by it's larger
variety in projects and higher price per unit as compared to pure competition.
Inventory Turnover - ANSWERScost of goods sold/average inventory
Ending Inventory= Beg Inv+ Purchases-COGS
multiplier formula with MPC - ANSWERS1/(1-MPC)
how much should the gov spend to get a specified amount? - ANSWERSamount desired/multiplier
=amount gov should spend
Enterprise Risk Management - ANSWERSthe culture, capabilities, and practices, integrated with strategy
setting and performance, that organizations rely on to manage risk in creating, preserving, and realizing
value.
Prototyping - ANSWERSinvolves creating a working model of the system requested, demonstrating it for
the user, obtaining feedback, and making changes to the underlying code. This process repeats through
several iterations until the user is satisfied with the system's functionality. Formerly, this approach was
derided as being wasteful of resources and tending to produce unstable systems, but with vastly
increased processing power and high-productivity development tools, prototyping can, in some cases, be
an efficient means of systems development.
System Development Life Cycle (SDLC) - ANSWERSThe traditional methodology used to develop,
maintain, and replace information systems.It is appropriate for highly structured operational applications
whose requirements can be defined in advance. Thus, it is not suitable for the bank's application.
disposable income equation - ANSWERSpersonal income - personal taxes
,National Income (NI) - ANSWERSGDP-Depreciation-Indirect Business Taxes
Personal Income - ANSWERSNational Income - Social Security Contributions - Corporate Income Taxes -
Undistributed Corporate Profits +Transfer Payments
Regression Analysis - ANSWERSRegression analysis is used to find an equation for the linear relationship
among variables. The behavior of the dependent variable is explained in terms of one or more
independent variables. Regression analysis is often used to estimate a dependent variable (such as cost)
given a known independent variable (such as production).
government borrowing to finance large deficits has which of the following effects? - ANSWERSAn
increase in demand results in an increase in price. Interest rates reflect the price of lendable funds (i.e.,
the cost of borrowing). Thus, in addition to increasing demand for lendable funds, government
borrowing puts upward pressure on interest rates.
how do you know if another country's dollar has gained purchasing power as compared to another
currency? - ANSWERSIf the yen's spot rate has just fallen, more yen are required to buy a single dollar.
The yen has therefore depreciated, i.e., lost purchasing power. At the same time, the dollar has gained
purchasing power.
Monopoly - ANSWERSIn a monopoly, barriers to entry are high and potentially insurmountable.
Monopolies also can control prices due to the inelasticity of demand for the product. The expected price
increase is 16.7% [($350 - $300) ÷ $300], but the expected decrease in demand is only 2%. Accordingly,
demand is inelastic (less than one), and the monopolist can strongly influence price and net output at
the profit-maximizing level.
A natural monopoly exists when economic or technical conditions permit only one efficient supplier. Very
large operations are needed to achieve low unit costs and prices (economies of scale are great). Thus,
the long-term average cost of meeting demand is minimized when the industry has one firm. Examples
are utilities, such as electricity and gas distribution.
How to effectively halt inflation - ANSWERSWhen inflation is high, a government will use monetary policy
to reduce the money supply growth. Increasing interest rates reduces borrowing and the money supply
and effectively halts a period of inflation.
, separation - ANSWERSSeparation occurs when the members of the acquired company try to maintain
their own culture and resist adopting the acquirer's culture.
Deculturation - ANSWERSacquiring firm imposes its culture on unwilling acquired firm
Assimilation - ANSWERSAssimilation occurs when the members of the acquired firm do not value
preservation of their own culture and perceive the acquirer's culture as attractive.
Integration - ANSWERSIntegration occurs when the members of the acquired firm highly value
preservation of their own culture and perceive the acquirer's culture as attractive.
Consumer Price Index - ANSWERSThe key measure of inflation- the change in the cost of buying a fixed
basket of goods and services.
multiple regression analysis - ANSWERSMultiple regression analysis involves the use of a linear equation.
This equation consists of one dependent variable and more than one independent variable. Accordingly,
estimating inventory warehouse costs involves both a dependent variable and independent variables.
Hence, multiple regression should be used to estimate these costs.
Investment rate of return - ANSWERSreturn/investment
Management Judgement for Estimates - ANSWERSManagement judgment is the basis for accounting
estimates and includes the knowledge of and experience gained during current and past events, but not
pre-specifications of future events. If they were pre-specified and known, they would not be estimates.
beta coefficient - ANSWERSA relative measure of nondiversifiable risk. An index of the degree of
movement of an asset's return in response to a change in the market return. The required rate of return
on equity capital in the capital asset pricing model is the risk-free rate (determined by government
securities), plus the product of the market risk premium times the beta coefficient (beta measures the
firm's risk). The market risk premium is the amount above the risk-free rate that will induce investment
in the market. The beta coefficient of an individual stock is the correlation between the volatility (price
variation) of the stock market and that of the price of the individual stock.
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