Question 1 What is an asset?
Anything owned that has value or earning power
A distribution of earnings to shareholders
Refers to the amount earned resulting from the delivery or manufacture of a product or from the rendering of a service
Refers to the costs incurred in operating and maintaining a business
Question 2 What occurs when businesses sell products or services for more than they cost to produce?
Expense
Loss
Revenue
Profit
Question 3 What is the function of the marketing department?
The function of selling a good or service and focuses on increasing customer sales, which increases company revenues
Deals with the strategic financial issues associated with increasing the value of the business while observing applicable laws and social responsibilities
Includes the policies, plans, and procedures for the effective management of employees
The process associated with promoting the sale of goods or services. The marketing department supports the sales department by creating promotions that help sell the company's products
Question 4 What involves analyzing business operations for internal decision making and does not have to follow any rules issued by standard-setting bodies such as GAAP?
Financial accounting
Managerial accounting
Bookkeeping
Accounting
Question 5 What reports operating results (revenues minus expenses) for a given time period ending at a specified date?
Income statement
Balance sheet
Statement of cash flows
Statement of owner's equity
Question 6 What is the function of the sales department?
The function of selling a good or service and focuses on increasing customer sales, which increases company revenues
Deals with the strategic financial issues associated with increasing the value of the business while observing applicable laws and social responsibilities
Includes the policies, plans, and procedures for the effective management of employees
The process associated with promoting the sale of goods or services. The marketing department supports the sales department by creating promotions that help sell the company's products
Question 7 What describes the basic transaction data such as its date, purpose, and amount and includes cash receipts, canceled checks, invoices, customer refunds, employee time sheet, etc?
Source document
Financial statement
Balance sheet
Transaction
Question 8 Partnership agreements typically include all of the following, except:
Expectations for sharing profits and losses
Partner's salary requirements
Shareholder's expectations for a successful business
Methods for conflict resolution
Question 9 What is a hybrid entity that has the legal protections of a corporation and the ability to be taxed (one time) as a partnership?
Limited liability Corporation
Limited partnership
Limited proprietorship
Limited shareholder
Question 10 What is the rate at which the net present value of an investment equals zero?
Break-even analysis
Return on investment (ROI)
Cash flow analysis
Internal rate of return (IRR)
Question 11 Break-even analysis is the point at which revenues equal costs.
True
False
Question 12 What refers to the amount earned resulting from the delivery or manufacture of a product or from the rendering of a service?
Profit
Expense
Revenue
Loss
Question 13 What is calculated by dividing the firm's sales by the total market sales for the entire industry?
Break-even point
Market share
Income statement
IRR
Question 14 A net gain occurs when businesses sell products or services for less then they cost to produce.
True
False
Question 15 Which of the following represents geographic segmentation?
Based on variables such as usage rate, usage patterns, price sensitivity, and brand loyalty
Based on variables such as age, gender, ethnicity, education, occupation, income, and family status
Based on variables such as values, attitudes, and lifestyles
Based on regional variables such as region, climate, population density, and population growth rate
Question 16 Which of the following is not one of the four phases in the product life cycle?
Decline
Growth
Introduction
Place
Question 17 What involves preparing financial reports that provide information about the business's performance to external parties such as investors, creditors, and tax authorities?
Managerial accounting
Bookkeeping
Accounting
Financial accounting
Question 18 What is a dividend?
Anything owned that has value or earning power
Refers to the amount earned resulting from the delivery or manufacture of a product or from the rendering of a service
A distribution of earnings to shareholders
Refer to the costs incurred in operating and maintaining a business
Question 19 What analyzes the transactional information of the business so the owners and investors can make sound economic decisions?
Financial Accounting
Managerial Accounting
Bookkeeping
Accounting
Question 20 For profit corporations primarily focus on making money and all profits and losses are shared by the business owners.
True
False
Question 21 Which of the following financial statements gives an accounting picture of property owned by a company and of claims against the property on a specific date?
Balance sheet
Income statement
Statement of cash flows
Statement of owner's equity
Question 22 What is a means to conduct a periodic check on the company's financial health?
Return on investment (ROI)
Break-even analysis
Internal rate of return (IRR)
Cash flow analysis
Question 23 Which of the following represents psychographic segmentation?
Based on variables such as age, gender, ethnicity, education, occupation, income, and family status
Based on variables such as values, attitudes, and lifestyles
Based on regional variables such as region, climate, population density, and population growth rate
Based on variables such as usage rate, usage patterns, price sensitivity, and brand loyalty
Question 24 What is the division of a market into similar groups of customers?
Market communications
Market mix
Market management
Market segmentation
Question 25 Human resources management includes the policies, plans, and procedures for the effective management of employees ('human resources').
True
False
Question 26 Which of the following is not a reason to increase market share?
Increased bargaining power
Nearing production capacity
Reputation
Economies of scale
Question 27 A loss occurs when businesses sell products or services for less then they cost to produce.
True
False
Question 28 Introduction, growth, maturity, and decline represent the product life cycle.
True
False
Question 29 What tracks and communicates changes in the shareholder's earnings?
Income statement
Balance sheet
Statement of owner's equity
Statement of cash flows
Question 30 What is operations management?
The management of systems or processes that convert or transforms resources into goods and services
The function that plans for, develops, implements, and maintains IT hardware, software, and the portfolio of applications that people use to support the goals of an organization
A field concerned with the use of technology in managing and processing information
The function of selling a good or service and focuses on increasing customer sales, which increases company revenues
Question 31 Match the following organizational forms with their definition.
1. Sole Proprietorship = A business form in which a single person is the sole owner and is personally responsible for all the profits and losses of the business
2. Partnership = A legal structure that allows for more than one owner but each owner is personally responsible for all the profits and losses of the business
3. Limited Partnership = An owner's legal liability in the business is limited to the amount of his or her investment
4. Corporation = An artificially created legal entity that exists separate and apart from those individuals who created it and carry on its operations
5. Limited Liability Corporation = A hybrid entity that has the legal protections of a corporation and the ability to be taxed (one time) as a partnership.
