Assume you have a normal distribution representing the likelihood of completion times. The mean of this distribution is 10, and the standard deviation is 3. The probability of completing the project in 7 or fewer days is the same as the probability of completing the project in 13 days or more.
Question 2. Question :
The difference in decision making under risk and decision making under uncertainty is that under risk, we think we know the probabilities of the states of nature, while under uncertainty we do not know the probabilities of the states of nature.
Question 3. Question :
An air conditioning and heating repair firm conducted a study to determine if the average outside temperature could be used to predict the cost of an electric bill for homes during the winter months in Houston, Texas. The resulting regression equation was:
Y = 227.19 - 1.45X, where Y = monthly cost, X = average outside air temperature
If the temperature averaged 38 degrees during January, what is the forecasted cost of January's electric bill?
None of the above
Question 4. Question :
As one increases the number of periods used in the calculation of a moving average,
one is usually looking for a long-term prediction.
less emphasis is placed on more recent data.
the emphasis placed on more recent data remains the same.
greater emphasis is placed on more recent data.
it requires a computer to automate the calculations.
Question 5. Question :
Andre Candess manages an office supply store. One product in the store is computer paper. Andre knows that 10,000 boxes will be sold this year at a constant rate throughout the year. There are 250 working days per year and the lead-time is 3 days. The cost of placing an order is $30, while the holding cost is $15 per box per year. How many units should Andre order each time?
None of the above
Question 6. Question :
Which of the following is not a property of all linear programming problems?
A computer program
The presence of restrictions
Optimization of some objective
Usage of only linear equations and inequalities
Alternate courses of action to choose from
Question 7. Question :
Given the following small project, the critical path is __________ days.
None of the above
Question 8. Question :
In queuing theory, the calling population is another name for __________.
the market researchers
the service rate
the queue size
Question 9. Question :
The equation-chart would be useful when we:
found the fraction of the production lot defective.
took a number of measurements and computed the average.
found the number of defective items in a production lot.
took a number of measurements and computed the ranges.
none of the above
Question 10. Question :
A transportation problem:
requires the same assumptions that are required for linear programming problems.
can be solved by linear programming but is solved more efficiently by a special-purpose algorithm.
is a special case of the linear programming problem.
may give an initial feasible solution rather than the optimal solution.
all of the above
Question 11. Question :
Which of the following appeals is based on the idea that consumers often feel before they think?
Question 12. Question :
A message showing a product's quality, economy, value, or performance is an example of a(n) __________ appeal.
Question 13. Question :
The final step in the marketing process is ____________.
capturing value from customers
creating customer delight
creating customer lifetime value
understanding the marketplace
designing a customer-driven marketing strategy
Question 14. Question :
____________ segmentation divides buyers into segments based on their knowledge, attitudes, uses, or responses concerning a product.
Age and life-cycle
Question 15. Question :
Kathy Champe, a public relations specialist for a regional chain of pharmacies, regularly contacts members of the local and state-wide media with information about community events and charity fundraisers sponsored by her company. This is an example of the __________ function of public relations.
Question 16. Question :
FlashFlix, a streaming movie service, created a blog to help parents on budget plan "movie at home" parties for their kids and their friends, offering prizes to the best blog story about how the family was coping with a tight budget. To which environmental force is FlashFlix reacting?
Question 17. Question :
JoAnn Fabrics, Inc. has created a new combination of colors and fabric types. The firm wants to know how consumers will perceive the new product. The firm is concerned with the product ____________.
Question 18. Question :
The managers of Arrow, an American retail chain, are currently reviewing new demographic markets to sell the firm's current products. This is an example of ____________.
Question 19. Question :
__________ involves sending an offer, announcement, reminder, or other item to a person at a particular address.
Question 20. Question :
Describing available services and support is most likely a goal of __________ advertising.
Question 21. Question :
Lincoln Company produces a part that is used in the manufacture of one of its products. The unit manufacturing costs of this part, assuming a production level of 5,000 units, are as follows:
Erickson Company has offered to sell 5,000 units of the same part to Lincoln Company for $13 per unit. Assuming the company has no other use for its facilities and that the fixed manufacturing costs are unavoidable, what should Lincoln Company do?
Make the part and save $1 per unit
Buy from Erickson and save $1 per unit
Make the part and save $3 per unit
Buy from Erickson and save $3 per unit
Question 22. Question :
What is the current acronym for the body most responsible for issuing international accounting standards?
Question 23. Question :
Which of the following statements is correct with respect to variable cost per unit, within the relevant range?
They will decrease as production decreases.
They will remain the same as production levels change.
They will decrease as production increases.
They will increase as production decreases.
Question 24. Question :
The principles called GAAP are established by the:
Question 25. Question :
A company uses the indirect method to prepare the statement of cash flows. It sold a piece of equipment at a loss of $3,600. The equipment was purchased several years ago for $70,500 and had accumulated depreciation of $52,900. What is reported under the operating activities section on the statement of cash flows?
Cash proceeds of $14,000 are subtracted from net income.
The loss of $3,600 is added to net income.
The loss of $3,600 is subtracted from net income.
Cash proceeds of $14,000 are added to net income.
Question 26. Question :
Under which of the following categories would Buildings appear?
Question 27. Question :
How many members serve on the IASB?
Question 28. Question :
Which costing system would better account for a unique individual product?
Job order costing system
Variable costing system
Product costing system
Process costing system
Question 29. Question :
What is the last step in developing an activity-based costing system?
Allocate costs to the cost object
Identify the activities
Estimate the total quantity of the cost driver
Estimate the total indirect costs of each activity
Question 30. Question :
Which of the following is an asset that is expected to be converted to cash, sold, or consumed during the next year (or normal operating cycle if longer)?
Question 31. Question :
To prevent the dollar from depreciating, the U.S. central bank that tries to fix the currency value of the dollar can:
buy U.S. dollars in the foreign exchange market.
sell U.S. dollars in the foreign exchange market.
abandon the U.S. dollar and use another country's currency as its legal currency.
buy foreign currencies in the foreign exchange market.
Question 32. Question :
Which of the following best represents the law of demand?
As the price of a good decreases, the demand for the good increases.
As the price of a good increases, the quantity demanded of that good decreases.
As the demand for a good increases, the price of that good increases.
As the price of a good decreases, the demand curve for that good shifts to the right.
Question 33. Question :
An example of a transaction that will be a surplus item on the U.S. balance of payments is:
a U.S. resident purchasing French wine.
a French subsidiary's plant in New Jersey purchasing parts from the main plant in Paris.
a gift of wheat from the U.S. government to India.
a tourist from Germany buying a ticket to fly from New York to Chicago on American Airlines.
Question 34. Question :
If firms in a monopolistically competitive industry are operating with economic losses, over time we would see:
firms alter their advertising rates until they made at least normal profits.
some firms exiting the industry, causing the market supply curve to shift to the left, raising price.
some firms exiting the industry, causing the demand curves of the remaining firms to shift to the right.
the firms working together to increase price and everyone's profitability.
Question 35. Question :
If a bond dealer sells a government bond to the Fed for $100,000, and the reserve ratio is 10 percent, then the bank that receives a $100,000 deposit from the dealer can expand its loans by __________, and the money supply can increase by as much as __________.
Question 36. Question :
If the economy is experiencing an inflationary gap and the government wants to accelerate the adjustment to the long-run equilibrium through fiscal policy, it should:
reduce aggregate demand by cutting government spending or raising taxes.
reduce aggregate demand by increasing government spending or cutting taxes.
increase aggregate supply by cutting government spending or raising taxes.
increase aggregate supply by increasing government spending or lowering taxes.
Question 37. Question :
In order to maximize utility, a consumer should allocate money income so that:
the marginal utility of the last unit of each product consumed is greater than the total utility of each product consumed.
the total utility derived from each product consumed is the same.
the marginal utility obtained from the last dollar spent on each product is the same.
the elasticity of demand on all products purchased is the same.
Question 38. Question :
If an economy is at long-run equilibrium, and consumers' confidence in the economy rises:
aggregate demand will shift leftward and the price level will rise.
aggregate demand will shift leftward and the price level will fall.
aggregate demand will shift rightward and the price level will rise.
aggregate demand will shift rightward and the price level will fall.
Question 39. Question :
Strategic behavior and game theory are features of which market structure?
Question 40. Question :
Stephanie has decided to eat lunch between classes. She has ranked her choices, from highest to lowest as, 1) turkey sandwich, 2) tuna sandwich, 3) slice of cheese pizza, 4) cheeseburger. The opportunity cost of the eating turkey sandwich is:
the combined value of the tuna sandwich, slice of cheese pizza, and cheeseburger.
the value of tuna sandwich, the next best choice.
the value of the cheeseburger.
zero, since she has satisfied a want.
Question 41. Question :
If a firm's degree of operating leverage (DOL) is 2, how will a 6% increase in sales affect its earnings before interest and taxes (EBIT)?
EBIT will rise 4%.
EBIT will rise 8%.
EBIT will rise 12%.
DOL does not affect this relationship.
Question 42. Question :
The amount of time it takes from the cash outlay for a purchase of raw materials to the cash inflow for the sale of a finished product is called the:
days inventory outstanding.
cash conversion cycle.
Question 43. Question :
If fewer yen are needed to buy a dollar, what has the yen done in relation to the dollar?
Question 44. Question :
Estimate the required rate of return on a company's stock given the firm's beta of 1.5, a market return of 10%, and a risk-free rate of 4%.
Question 45. Question :
According to the constant growth valuation (Gordon) model, the value of a share of common stock is equal to the:
future stock price discounted at the cost of equity.
assets minus debts.
present value of all future cash flows.
present value of all expected future dividends.
Question 46. Question :
Which of the following combinations reduces risk the most (all else being equal)?
Question 47. Question :
Which of the following capital budgeting techniques ignores the time value of money?
Question 48. Question :
2/10 net 30 means:
2% payment due in 10 days and balance in 30 days.
10% payment due in 2 days and balance in 30 days.
2% discount if paid in 10 days; otherwise, pay in 30 days..
10% discount if paid in 2 days; otherwise, pay in 30 days.
Question 49. Question :
The rate of interest actually paid or earned that includes compounded interest is called the ____________ rate.
Question 50. Question :
A firm has fixed costs of $10,000, variable costs of $5, and a price per unit of $15. What is the firm's breakeven sales level in units?
Question 51. Question :
Farida tells Jose that her boss, Marco, takes illegal drugs at the office. Marco does not take illegal drugs.
This is slander whether it is true or not.
This is slander only because it is untrue.
This is an intentional tort.
This is malice.
Question 52. Question :
A person that breaks a contract will be required to pay damages to the other party to compensate for:
losses that could have been avoided by hiring someone else to perform the contract.
emotional disturbance caused by the breach.
a heart attack induced by the emotional disturbance caused by the breach.
damages resulting necessarily and directly from the breach of the contract.
Question 53. Question :
The Tenth Amendment to the U.S. Constitution provides that all powers not delegated to the national government are reserved to the:
none of the above.
Question 54. Question :
As a director of a large corporation, Paul will most likely ask:
is the proposed action legal?
is the proposed action profitable?
is the proposed action ethical?
all of the above.
Question 55. Question :
A portable trailer is an example of:
subsurface property right.
none of the above.
Question 56. Question :
Samantha agrees to sell Sally one lot next to her store. She gives Sally a legal description of the lot. Sally gives Samantha an unsigned copy of the contract terms. Samantha then sends a signed letter that mentions a legal description. Sally sends back a final unsigned contract with her deposit check attached to it.
The handwritten legal description and unsigned draft contract satisfy the Statute of Frauds
The handwritten legal description, unsigned draft contract, the signed letter, and the final unsigned contract with the deposit check have satisfied the Statute of Frauds.
They have not satisfied the Statute of Frauds.
None of the above.
Question 57. Question :
A duty to pay the reasonable value rendered when there is no actual contract would be called:
Question 58. Question :
Which of the following is false?
As a general rule, most contracts should be in writing even when they Fall outside the Statute of frauds
Businesspersons frequently make oral contracts over the telephone particularly with parties they have done business with in the past.
Any time an oral contract is made, it is advisable for one of the parties to send a written communication to the other party.
A fax or e-mail does not constitute a written communication memorializing an oral contract.
Question 59. Question :
Damages in case of default that are specified in a contract are called:
Question 60. Question :
All personal property existing at the time of the transaction but cannot be actually touched directly are:
Tangible personal property.
intangible personal property.
Question 61. Question :
Fredrick Taylor is known as the father of:
Question 62. Question :
The basic belief of scientific management is that:
you should apply statistical models and computer simulations to managerial activities.
organizations are interrelated and interdependent parts arranged to produce a unified whole.
if certain factors occur, there is "one best way" to manage.
there is no "one best way" to make an organization effective and efficient.
Question 63. Question :
Which theory is built around the idea of the goal of self-actualization?
Hierarchy of needs
Job characteristics model
Question 64. Question :
Which effect does an increase in team size have on project groups?
More social loafing
Faster work progress
Decreased management role
More individualized tasks
Question 65. Question :
Where is motivation derived from, according to the expectancy theory?
The performance of others
Question 66. Question :
Performance-based pay is also known as __________.
Question 67. Question :
What final step must occur before the process of decision making can be completed?
The statement of a problem
The implementation of an alternative
The establishment of criteria
The evaluation of the decision
Question 68. Question :
Human resource management involves training, motivating, and retaining competent employees.
Question 69. Question :
Line authority gives a manager the ability to direct the work of __________.
any employee in the firm
only subordinates one level down
any subordinate, after consulting with the next higher level
Question 70. Question :
Which of the following identifies the best way to estimate the risk of a new venture?
Question 71. Question :
A __________ is a collection of data items in a relational database.
Question 72. Question :
The suite of communications protocols used in the Internet is called:
none of the above.
Question 73. Question :
__________ is a network that can be especially useful in buildings with no wired local area networks.
Question 74. Question :
A(n) __________ is a computer program that senses when another computer is attempting to scan the disk or otherwise access a computer.
intrusion detection system
access control system
Question 75. Question :
A(n) __________ is a place on a Web page that is programmed to link to other files or documents.
Question 76. Question :
The use of outside companies to provide, support, and maintain information systems is known as:
enterprise resource planning.
none of the above.
Question 77. Question :
Virtualization is the process by which __________.
a single server is used to host the operations of a workstation
many computers are used to control a server
one computer hosts the appearance of many computers
a single operating system is licensed for multiple computers
Question 78. Question :
What name best describes a semiconducting device that contains all of the components of a CPU?
Question 79. Question :
A __________ is a person or an organization that seeks to obtain or alter data or other IS assets illegally without the owner's permission and often without the owner's knowledge.
Question 80. Question :
Which one of the following is not a connecting device?