BUS/599 BUS599 BUS 599 WEEK 9 EXAM 2

BUS 599 WEEK 9 EXAM 2

BUS599 strategic Management Comprehensive Exam

QUES 1 Legal environment of Business – Regulation and Control

Before the federal trade commission (FTC) act the _________ was used to control anticompetitive practices and tendencies in the American economy.

The Clayton Act.

The web- Pomerania act.

The Sherman act.

The commerce clause.

Ques 2. Legal environment of Business – Legal agreement and documents.

This true of the Inter- American convention against corruption ___________

It was initiated by the united nations.

It criminalizes translational bribery in the western hemisphere

It prohibits the courtroom admission of evidence obtained in all illegal search

It was signed by 25 members of the organisation of American states(OAS)

Ques 3. Legal environment of Business – Regulation and Control

All the following are racketeering activities except__________

Arson

Bribery

Securities fraud

Extortion

Ques 4. Legal environment of Business – Regulation and Control

To assume the risk of a danger the plaintiff must _______

Engage in a per se negligent act

Have been unaware of the risk

Have involuntarily exposed himself to an unknown danger

Fully understand the nature and extent of the risk

Ques 5. Legal environment of Business – Regulation and Control

Under a pure competitive negligence system plaintiffs _______

Who failed to exercise reasonable care are not able to recover

Are able to recover the portion of their losses nor attributable to their fault

Are barred from recovery if they are as much or more at fault for their injuries as the defendant

Are able to recover for the full extent of losses from the defendant even if the plaintiff was also negligent

Ques 6. Legal environment of Business – Regulation and Control

Which of the following is true of the taking clause?

It is triggered by the power of eminent domain.

It requires the government not to pay private property owner any compensation

It is triggered by the power of just domain

It requires the government to buy private property for private developers

Ques 7. Legal environment of Business – Regulation and Control

 

Today you might be buying from a regulated natural monopoly when you purchase:

A house, a condominium or a plot of land

Natural gas or electricity

A computer, a phone or a camera.

A car, a truck or a bicycle.

Ques 8.Legal environment of Business – tariffs and taxes

The _______ provides for temporary relief to domestic industries to seriously injured by increasing imports regardless of whether unfair practices are involved.

Fair trade law

Export relief law

Duty free zone

Foreign trade zone

Ques9. Economics: Macroeconomics – pricing and pricing indexing

The consumer price index (CPI) in September 2007 was 208.3 and it was 211.2 in December 2007. The annualized growth rate between September and December was:

1.38 percent.

2.44 percent.

3.84 percent.

5.53 percent.

Ques10. Economics: Macroeconomics – Income, debt and investment.

When economists refers to “investment” they are describing a situation where _______

People are buying shares of corporate stock

Resources are devoted to increasing future output.

Money is saved in bank account.

Financial assets are purchased in the hope of a monetary gain.

Ques 11. Economics: Macroeconomics – pricing and price index.

The consumer price index (CPI) was 180 for 2002 when using 1983 as the base year (1983-100). Now suppose we switch and use 2002 as the base year (2002= 100). What is the CPI for 1983 with the new base year?

18.0.

55.6.

80.0.

111.2.

Ques 12. Economics: Macroeconomics – Income, debt and investment.

By ________ economists refer to an unanticipated inflation that reduces the real value of outstanding government debt:

Seignior age

The inflation tax.

Cost of inflation.

Unanticipated default.

Ques 13. Economics: Macroeconomics – Employment and unemployment.

Economists argue that efficiency wages:

Reduce labour force participation rates.

Reduce the natural rate of unemployment.

Reduce the incentive to shirk.

Increase worker turnover.

Ques 14. Economics: Macroeconomics – pricing

At college X students play less than the equilibrium tuition. At college Y students also play less than the equilibrium tuition. If the supply is the same at each college it follows that the shortages will be greater at_______

College X than college y

College x than the surplus at college y

College y than the surplus at college x

College x than college y if the demand is greater at college x

There is not enough information to answer this question.

Ques 15. Economics: Macroeconomics – Elasticity

The price elasticity of supply measures how _______

Easily labour and capital can be substituted for another in the production process.

Responsive the quantity supplied of x is to changes in the price of x

Responsive the quantity supplied of y is to changes in the price of y

Responsive the quantity supplied is to change in incomes

Ques 16. Economics: Macroeconomics – pricing

Suppose that as the price of y falls from $2.00 to $ 1.90 the quantity of y demanded increases from 110 to 118. The price elasticity of demand is than ______

4.

2.09.

1.37.

3.94.

Ques 17. Economics: Macroeconomics – pricing

If demand increases by a lesser amount than supply decreases then equilibrium price _________ and equilibrium quantity ________

Rise ; falls

Falls; falls

Rises ; rises

Falls ; rises

Ques 18. At a price above the equilibrium price there is ______

A shortage

A surplus

Excess demand

Super – equilibrium

None of the above

Ques 19.Business integration and strategic management – marketing strategy and market positioning.

Advantage endures for a long time.

Firm is able to spread the advantage to all of its business units

Advantage is very large.

Advantage was gained at a low cost.

Managers who developed the advantage are still employed at the firm.

Ques 20.Business integration and strategic management – mission and vision.

Well point health networks states: “ well point will redefine our industry through a new generation of consumer – friendly products that put individuals back in control of their future. This is an example of a:

Strategic objective

Vision statement

Vague statement of direction

Line managers individual goal.

Ques 21.Business integration and strategic management- corporate structure and governance.

The view that see profit maximisation as the main objective is known as:

Shareholders theory

Principal – agent problem

Stakeholder theory.

Corporation theory.

Ques 22.Business integration and strategic management- shareholder value and return

 Which of the following is an example of an internal control mechanism used to ensure that  management acts in shareholder interests?

Shareholder activism.

Market for corporate control.

Managerial labour market. 

Threat of takeover by private equity investors

Audited financial statements.

Ques 23.Business integration and strategic management-strategic planning and decision-marketing

The first step in the strategic management process is:

Defining the mission and major goals of the organization.

Analysing the macro environment.

Analysing the industry environment.

Determining the firm’s strengths and weaknesses.

Deciding on a fit between the organization’s strengths and weaknesses and the environment’s opportunities and threats.

Ques 24.  Business integration and strategic management-shareholder value and return

Strategic groups consist of:

A group of top executives who make strategies for a company.

A group of firms within an industry that follow similar strategies.

A group of executives drawn from different companies within an industry that makes decisions on industry standards.

A group of firms within an industry that decide to collude rather compete with each other so that they can increase their profits.

Ques 25.  Business integration and strategic management-corporate structure and governance

The term “asymmetry of information” means information in a corporation is:

Transferable to all stakeholders.

not transferable to all stakeholder.

Not equally transparent to all stakeholder.

Equally transparent to all stakeholders.

Ques 26. Business integration and strategic management-strategic planning and decision-making

The following are examples of socially complex organizational phenomena except:

A firm’s culture.

Interpersonal relations among a firm’s mangers.

Complex physical technology.

Leadership and trust.

Ques 27. Business finance - financial ratios

All of the following statements are true regarding ratios that measure a company’s ability to pay current liabilities except:

In most industries, a current ratio of 2.0 is considered adequate.

Working capital = current assets – current liabilities.

A higher current ratio is always preferred to a lower current ratio.

Inventory and prepaid expense are included in the numerator of the current ratio, but not in the numerator of the acid-test ratio.

Ques 28.  Business finance-financing, forecasting, and planning

Most pro forma statements begin with a sales forecast. One approach to deriving a sales forecast is the top-down approach. Top-down sales forecasts rely heavily on:

Macroeconomic and industry forecasts.

Customer input.

Forecasts from the sales force.

Board of directors input.

The sales figure from the previous year coming from the top of the income statement

Ques 29.Business finance – financial ratios.

When a firm has no “other income,” its operating profit and _________are qual.

Net income

Net profit after taxes

Earning per share

Earnings before interest and taxes

Earnings after taxes

Ques 30. Business finance –financing, forecasting, and planning

A speedup in ________should _________ a firm’s financing needs; whereas, a slowdown in _______should_______ financing needs for a firm.

Collections; decrease; payments; increase

Payments; increase; collections; decrease

Collections; increase; collections; increase

Payments; increase; collections; increase

Collections; increase; collections; decrease

Ques 31. Business finance –financial ratios.

From a cash flow position, which one of the following ratios best measures a firm’s ability to pay the interest  on its debts?

Times interest earned ratio

Cash coverage ratio

Cash ratio

Quick ratio

Ques 32. Business finance –balance sheets and financial statements

A company’s balance sheet shows the value of assets, liabilities, and stockholders ‘equity:

at the end of the fiscal year.

for any given period of time.

at a specific point in time.

over an annual period.

at the end of the calendar year

Ques 33. Business finance –financing, forecasting, and planning

A firm that employs an aggressive strategy to finance assets:

will have enough long-term financing to cover both its permanent investment in fixed  and current assets and the additional seasonal investments in current assets.

Will employ riskier borrowing techniques to finance its short-term assets.

Will finance a portion of long-term (permanent) growth in assets with short-term financing.

Will finance long-term assets with long-term financing and short-term assets with short-term financing.

Will necessarily have a lower rate of return.

Ques 34.Business finance –financing, forecasting, and planning

The m.w. firm wants to raise $10 million to expand its business. To accomplish this, it plans to sell 30-yr, $1,000 face value zero-coupon bonds. The bonds will be priced to yield 6%. What is the minimum number of bonds it must sell?

47,411

52,667

57,435

60,000

Ques 35. Management: organizational behaviour- organizational strategies

Organizational that have successfully used a low-cost strategy include all of the following except______,

Lowe’s

Wal-mart

Tune hotels

Macy’s

Ques 36. Management: organizational behaviour – career planning and employee development

The_______ competency can be thought of as the circulatory system that nourishes other competencies.

Change

Communication

Diversity

Self

Ques 37. Management: organizational behaviour –organizational design and structure

The term _______ refers to the process of selecting a structure for tasks, responsibilities, and authority relationships within organizations.

Strategic choice

Differentiation

Organization design

Network organization

Ques 38.  Management: organizational behaviour –organizational design and structure

_______is the individual’s choice of occupation, organization, and career path.

Career development

A career plan

A career

Risk taking

Ques 39.  Management: organizational behaviour –employee values, motivations, and characteristics

_______ can lead to thinking of individuals or groups in a particular society in simple terms and thus glossing over the nuances and complexities of a culture

Multiculturalism

Diversity

Stereotyping

A global-mindset

Ques 40.  Management: organizational behaviour – career planning and employee development

All of the following are among the needs that organization design should meet except______ ,

 Ease the flow of information and decision making

Create the desired levels of  integration between jobs, teams, departments, and divisions

Define authority and responsibility in jobs, teams, departments, and divisions

Increase the ability of the organization to adapt to cost of capital changes

Ques 41. Management: organizational behaviour – career planning and employee development

The natural aptitudes and learned capabilities required to successfully complete a task are referred to as:

talent.

ability.

motivation.

antecedents.

Ques 42.  Management: organizational behaviour – organizational culture, ethics, and valuers

Specific profession-relevant directives or guidelines that reflect the best ethical practice of professionals are:

ethical standards.

Principle ethics.

virtue ethics.

privacy.

Ques 43.  Management: organizational behaviour – organizational design and structure

Departmentalization is a (n):

from of informal communication.

Element of organizational structure.

Type of formalization.

Element of standardization.

Ques 44. Management: organizational behaviour – organizational design and structure

The _______ design organizes tasks into divisions on the basis of the product or geographic markets in which their goods or services are sold.

Multidivisional

Place

Product

Network

Ques 45. Quantitative research techniques and statistics – descriptive statistics

In a hearing test, subjects estimate the loudness (in decibels) of sound and the results are: 68, 67, 70, 71, 68, 75, 68, 62, 80, 73, and 68. What is the mean?

70

75

68

71

80

Ques 46.Quantitative research techniques and statistics – significance levels

If a test of hypothesis has a type I error probability of .05, this means that _________,

If the null hypothesis is true, we don’t reject it 5% of the time

If the null hypothesis is true, we reject it 5% of the time

If the null hypothesis is false, we don’t reject it 5% of the time

If the null hypothesis is false, we reject it 5% of the time

Ques 47. Quantitative research techniques and statistics – inferential statistics

When using the Chebyshev’s theorem to obtain the bounds for a 99,73 percent of the values in a population, the interval generally will be _____ the interval obtained for the same percentage if normal distribution is assumed (empirical rule).

Shorter than

Wider than

The same as

Longer than

Ques 48.  Quantitative research techniques and statistics – hypothesis testing

Which of the following p-values will lead us to reject the null hypothesis if  the level of significance equlas 0.05?

0.150

0.100

0.051

0.025

Ques 49. Quantitative research techniques and statistics – type 1and 2nd errors

In a criminal trial, a type 1st error is made when ________,

a guilty defendant is acquitted

an innocent person is convicted

a guilty defendant is convicted

an innocent person is acquitted

Ques 50.  Quantitative research techniques and statistics – sampling methods and research design

In sampling, a population is ________ .

the set of all humans

the set of all members about which a study intends to make inferences

any group of test subjects

a random group of individuals, households, cities or countries

Ques 51. Quantitative research techniques and statistics – sampling methods and research design

Which one of the following would be considered a state of nature for a business firm?

Inventory levels.

Salaries for employees.

Site for a new plant.

Worker safety laws.

Ques 52. Quantitative research techniques and statistics – sampling methods and research design

In an experimental design, the dependent variable is:

the one that is not manipulated and in which any changes are observed.

the  one that is manipulated in order to observe any effects on the other.

a measure of the extent to which personal values affect research.

an  ambiguous concept whose meaning depends on how it is defined.

Ques 53.  Business ethics – individual and corporate ethics and culture

The defence of paying bribes and other questionable practices in other countries is called:

relativism.

Corporate relativism.

Cultural relativism.

Adaptability.

Cultural malaise.

Ques 54. Business ethics – discrimination

When a firm changes different prices to different groups of customers, it may be accused of:

Cultural relativism.

Money laundering.

Facilitating payments.

Price discrimination.

Ques 55.  Business ethics – ethical decision-making

Traditionally safe and adequately tested products may still harm consumers and thus create ethical issues because:

they discriminate against some types of customers.

of illiteracy, unsanitary conditions, or cultural values.

of chemical reactions with local water supplies.

of improper advertising and sales promotion.

rhea may boost a nation’s military advantage.

Ques 56.  Business ethics – discrimination

The social economy partnership philosophy emphasizes:

co-operation and assistance.

Profit maximization.

Competition.

Restricting resources and support.

Ques 57.  Business ethics – individual and corporate ethics and culture

A company that complies with the laws and regulations set by the government is:

Meeting the minimum level of social responsibility expected by the public.

Meeting the maximum level of social responsibility expected by the public.

Not meeting government expectation.

Following a practice of enlightened self-interest.

Ques 58. Business ethics – individual and corporate ethics and culture

________helps us explain why many employees resolve business ethics issues by simply following the directives of a superior.

Externals locus of control

Obedience to authority

Moral intensity

Work experience

Gender

Ques 59.  Business ethics – corporate social responsibility

In the context of social responsibility, atmospheric issues include all of the following except:

Acid rain.

Global warming.

Air pollution.

Water quantity.

Ques 60.Business ethics – international ethical standards

Which one of the following prohibits u. s. companies from offering or providing payments to officials of foreign governments for the purpose for obtaining or retaining business abroad?

Sullivan act

Eckhart amendment

Omnibus trade and competitiveness act

Foreign corrupt practices act

Sarbanes- oxley act

Ques 61.  Business ethics – individual and corporate ethics and culture

Select the question that is most likely never relevant to the examination of business’ responsibility for its products:

What caused an event to happen?

Who is to blame for any harm caused, who is liable?

What was the agent’s motive?

Who was responsible for “caring for” a situation, accountable without any suggestion of culpability, fault, or blame?

Ques 62. Marketing – marketplace and market share

The concept where teams manage several brands, with specialists handling advertising, sales promotion, line extensions, packaging, and customizing each category’s product mix, merchandising and promotions on a store-by-store basis is called:

Portfolio planning.

Category management.

Brand management.

Market-cantered management.

Ques 63 marketing – marketing defined

Which of the following is defined to be an exchange between a firm and its customers?

Advertidising.

Consumer behaviour.

Marketing.

Distribution.

Ques 64.marketing – marketing research

A cluster analysis helps identify:

Techniques.

Segments.

Prices.

Competition.

Ques 65.marketing – marketing strategy

Brand X is not performing well (I.e., low market share ) in a high growth industry. Brand X is a:

Question mark.

Star.

Cash cow.

Dog.

Ques 66.Marketing – marketing defined

____________ competition is when the manufacture competes with its partners.

Vertical

Horizontal

Direct

Straight

Ques 67.  Marketing – market segment

A popular tool for segmenting that uses psychographic data , and that is based on the belief that one’s attitudes and value system determine one ‘s orientation to certain products and/or brands is called:

Experian.

Vals.

Mals.

Prizm.

Ques 68.  Marketing – marketing strategy

There are two primary considerations in marketing strategy. Which is not one of the two considerations?

Where are we?

Where do we want to go?

What are we going to do?

None are considerations.

Ques 69. Marketing – marketing research

What order is correct for a marketing situation analysis?

5Cs, 4Ps, STP.

4Ps, 5Cs, STP.

5Cs, STP, 4Ps.

STP, 5Cs, 4Ps.

Ques 70.  Marketing – market segment

The terms manufacturer, service provider, government agency, and wholesaler are designations used to segment business and organizational market according to:

The type of customer.

Demographics.

Product use.

Buying situations.

Ques 71.   Marketing – marketplace and market share

All of the following may be considered part of the class known as “question marks” EXCEPT:

Products in development.

Products in uncertain markets.

New technologies.

Products with a small share in a non-growing market.

Ques 72. Accounting – audits, auditing, and Balance Sheets

Which of the following is not a transaction to be recorded in the accounting records of an entity?

Investment of cash by the owners.

Sale of product to customers.

Receipt of a plaque recognizing the firm’s encouragement of employee participation in the united way fund drive.

Receipt of services from a “quick-print” shop in exchange for the promise to provide advertising design services of equivalent value.

Ques 73. Accounting – net present value

 Which of the following is a present value method of analysing capital investment proposals?

Average rate of return.

Cash payback method.

Accounting rate of return.

Net present value.

Ques 74. Accounting – capital investments

Additional paid-in-capital represents:

The difference between the total amounts invested by the owners and the par or stated value of the stock.

Distributions of earnings that have been made to the owners.

Distributions of earnings that have not been made to the owners.

The summation of the total amount invested by the owners and the par or stated value of the stock.

Ques 75. Accounting – credits and debits

A debit entry will:

Decrease an asset account.

Increase a liability account.

Increase paid-in capital.

Increase an expense account.

Ques 76. Accounting -  audits, auditing. And balance sheets

Trading and available-for-sale securities are reported on the balance sheet at:

Net realizable value.

Historical cost.

Weighted average cost.

Market value.

Ques 78. Accounting – audits, auditing, and balance sheets

Profitability refers to the ability of the business to:

Earn a reasonable amount of income.

Provide owners with dividends.

Pay its current and noncurrent liabilities.

Manage its accounts receivable and inventory.

Ques79. Accounting – audits,  auditing, and balance sheets

An acceleration in the collection of receivables will tend to cause the accounts receivable turnover to:

Decrease.

Remain the same.

Either increase or decrease.

Increase.

Ques 80. Accounting – assets and liabilities

Deferred tax assets:

Represent a reduction in  the income tax liability of a future year when an expense will become deductible for income tax purposes.

Are always classified as current assets.

Arise when the company makes a prepayment of its income taxes.

Are less likely to be reported than deferred tax liabilities for most firms.

Ques 81.Accounting – audits, auditing, and balance sheets

Which of the following accounting methods accomplishes much of the matching of revenues and expenses?

Match accounting.

Cash accounting.

Accrual accounting.

Real time accounting.

Ques 82.Accounting – audits, auditing, and balance sheets

An organization’s system of internal control is designed primarily to:

Ensure that no employees steal the organization’s property.

Increase efficiency by letting one employee handle all aspects of a transaction from beginning to end.

Ensure that the organization’s balance sheet will always balance.

Provide an operating framework for all employees as they work to achieve the organization’s goals.

Ques83. Legal environment of business – Regulation and control

If the government action has a reasonable relationship to the achievement of legitimate purpose it is declared constitutional under ________

Strict security analysis

Intermediate security analysis

Rational basis analysis

Suspect classification

Ques 84. Business integration and strategic management – strategic analysis tools

The experience curve refers to the:

Learning by doing technique

Company’s overall experience in a particular industry

Systematic lowering of the cost structure and unit cost reduction.

Diseconomies of scale caused by inexperienced workers.

Increase in unit costs experienced overtime.

 

Oues 85. Business Ethics – Individual and corporate ethics and culture

When a counsellor or therapist  is capable of performing a  minimum quality of service and that service is clearly within the limits of the counsellor’s training and practice as defined in professional standard or regulatory statues this is:

Unethical practice.

Professional service.

Counsellor competence.

Specialized credentialing.