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BUSINESS EDUCATION MEGA TEST
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BUSINESS EDUCATION MEGA TEST
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BUSINESS EDUCATION MEGA TESTManagers who follow McGregor's Theory Y management style are more likely than
Theory X managers to: - Answers -give subordinates more freedom and responsibility in
their work
Which of the following is one advantage of a business relying on long-term debt to fund
its expansion rather than raising the money by issuing common stock? - Answers -
Interest paid on long-term debt is tax deductible, while dividends paid to stockholders
are not.
A cosmetics company has decided to change its product line and marketing to appeal to
a niche rather than a general market. This decision represents a change in the
company's: - Answers -Strategy
Economies of scale associated with increased production are likely to be greatest for a
company when: - Answers -fixed cost do not change regardless of how many units are
produced.
A company employs a skilled labor force in its prodcution facility, which is currently
operating a cloase to full capacity. Comany managers expect a rapid, but temporary,
increase in demand for the cmopanuy's product inthe coming year. Which of the
following is likely to be the most effective way for the company to respond to this
expected development? - Answers -Outsourcing a portion of production to qualified
independent vendors.
Which of the following is one advantage of replacing a "tall" organizational structure
containing multiple management levels with a "flat" strucure in which the number of
management levels has been reduced? - Answers -The speed at which decisions can
be made and implemented can be increased.
The diagram above best illustrates which of the following types of organizational
structure? (shows different divisions) - Answers -division
In an accounting firm, the tasks that employees are required to perform can change
frequently depending on the time of year and the demands of particular projects. Which
of the following strategies by the human resource managers of the firm is likely to most
increase the flexibility of the labor force in adjusting to the changing needs of the firm? -
Answers -cross-training some or all of the firm's employees
Which of the following small business activites will create an increase in owner's equity?
- Answers -The business realizes a net profit at the end of a given period
Which of the following small business activities will create an increase in owner's
equity? - Answers -The business realizes a net profit at the end of a given period.
, When posting transactions from the journal, an accountant should first - Answers -
Separate the entries into appropriate accounts.
The statement of operations of a small business primarily provides which of the
following information - Answers -the business's net profit or net loss for a given period
The price of a small business's primary raw material has risen significantly durning the
second half of a given year of operation. If the small business uses the last in, first out
(LIFO) inventory costing method, which of the following is likely to be a direst result of
this rise in price? - Answers -Cost of inputs will increase, resulting in a possible
decrease in gross profit.
Which of the following businesses would most likely favor a process costing system
over a job order costing system for tracking costs of production? - Answers -A laundry
detergent manufacturer
Which of the following is one advatage of a 401(k) retirement plan compared with Social
Security and employee pension plans? - Answers -Individuals can determine how their
funds are to be invested in the 401k plan
An individual has $20,000 to invest. Which of the follwing investment mixes of
certificates of deposit (CDs), goverment bonds and growth stocks is likely to involove
the least amount of risk of losing some portion of the $20,000 principal? - Answers -15%
CDs, 40% Gov bonds, 45% stocks
Which of the following most accurately describes one effect of high inflation on debt? -
Answers -Dollars used to pay off debt during a period of high inflation will be worth less
in real terms than they were when the debt was incurred.
When applying for a mortgage for the purchase of property, the collateral used to
secure the loan is generally the: - Answers -Property being purchased
The liability coverage in a homeowner's insurance policy would liekly require the
insurance company to pay fo: - Answers -treating a guest of the homeowner at a local
hospital after he tripped on a child's bicycle left in the driveway.
In which of the following cases would it be most advantageous for a policy holder to
cancel the collision coverage of his or her auto insurance? - Answers -The car covered
by the policy is old, or in need of repairs, and is not worth very much.
A shopper who makes out a grocery list before going to the supermarket to purchase
groceries is likely to - Answers -spend less on impulse purchases
A retailer receives a shipment of electrical fans at the beginning of the summer. The
wholesale price of each fan is $29. The retailer marks up the fans by 31% and sells
many of them over the course of the summer. At the end of the season, the retailer
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