Transcript
Business 165 Brazie Fall 2008 Name___________________________________MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
1)
The ________ represents a “snapshot” of a business, showing an estimate of its value on a given date, while the ________ is a “moving picture” of the firm’s profitability over time.
1)
_______ A)
balance sheet; income statement B)
balance sheet; statement of cash flows C)
statement of cash flows; income statement D)
income statement; balance sheet
2)
________ are those items of value the business owns; ________ are those things the business owes.
2) _____ __
Liabilities; assets
B) Eq uiti iabilities
Assets; liabilities
D) Ra tios
3)
Which of the following items would not be listed as a current asset in a company’s financial reports?
3) _____ __
Fixtures
B) Ac cou eceivable
Inventory
D) Ca sh
4)
The statement of cash flows:
4) _____ __ shows what assets the business owns an
d what claims creditors and owners have against those assets.
is built on
the basic accounting equation: Assets = Liabilities + Capital.
compares costs and expenses against firm’s net profits. D)
shows changes in working capital by listing sources and uses of funds.
5)
Creating projected (pro forma) financial statements would allow a business owner to answer which of the following questions?
5) _____ __ What profit can my
business expect to achieve?
What fixed an
d variable expenses can my business expect to incur at our targeted sales level?
What sales level must my business reach if our targeted profit is X dollars? D)
All of the above 6)
A business should provide the owner with a reasonable rate of return based upon:
6) _____ __ the capital bo
rrowed from the bank.
in dustry averages.
an acceptable annual salary. D)
the time and money invested in the business.
7)
________ ratios tell whether or not the small company will be able to meet its short-term obligations.
7) _____ __
Profitability
B)D) Le ver D) Operating
Liquidity
Refer to the following information to answer questions regarding Anita Lupino’s toy and game shop:Anita Lupino is planning to open her own toy and game shop. She has conducted a great deal of research at the local library, contacted the industry trade association, and has set up a meeting with a consultant at the SBDC next week. Before she goes to the SBDC, she wants to sketch out an estimated income statement. She reviews the following data from RMA’s Annual Statement Studies:
Costs of goods sold 57.3 percent of net sales
Operating expenses
32.9 percent of net sales
Gross profit42.7 percent of
net sales
8)
If Anita’s research suggests that she can expect net sales of $475,000, what net profit could she expect?
8) _____ __
$202,825
B)
$46,550
C)
$156,275
D) $693
9)
________ ratios measure the extent to which an entrepreneur relies on debt capital rather than equity capital to finance a business.
9) _____ __
Leverage
B) Liq uidi
Profitability
D) Op era
0)
________ ratios help a business owner evaluate the company’s performance and indicate how effectively the business employs its resources.
10) _____ _
Profitability
B) Op era
Liquidity
D) Le ver
1)
You are provided this information about a retail store called “BoardSports:”
BoardSports
Industry Mean
Current Ratio
1.5 : 1
2: 1
Quick ratio
.75 : 1
1 : 1
Debt ratio
0.87 : 1
0.75 : 1
Average collection ratio
46 days
33 days
Net profit on sales ratio
5.5%
8.2%
Net profit to equity ratio
7.7% 13.2%
What can you reasonably assess about the current financial status of this company?
11) _____ _ The company is in resp
ectable financial condition with no changes required.
The com
pany is in poor financial condition with significant changes required.
The company is in excellent financial condition with no changes required. D)
The company is in questionable financial condition with minor changes required.
12)
The breakeven point:
12) _____ _ occurs where a comp
any’s total revenue equals its total expenses.
tells a bus
iness owner the minimum level of activity needed to keep her company in operation.
is the point at which a company neither earns a profit nor incurs a loss. D)
All of the above
Regarding Gunther’s Emporium, refer to the following to answer the questions below :Gunther’s Emporium expects net sales of $2,396,919 for the upcoming year, with variable expenses totaling $1,813,443 and fixed expenses of $412,190.
13)
Gunther’s Emporium expects net sales of $2,396,919 for the upcoming year, with variable expenses totaling $1,813,443 and fixed expenses of $412,190.What is Gunther’s breakeven point?
13) _____ _ $1,6
93,276
$ 1,876,324
$5,667,009 D)
Insufficient information given to determine
14)
Which of the following statements concerning cash management is false?
14) _____ _ Young companies tend to
be “cash sponges,” soaking up every available dollar of cash.
Cash managem
ent involves forecasting, collecting, disbursing, investing, and planning for a company’s cash needs.
Fast-growing businesses are least likely to experience shortages. D)
Cash is the most important yet least productive asset a small business owns.
15)
The first step in managing cash more effectively is:
15) _____ _ having an adequate
cash reserve for emergency expenditures.
unde
rstanding the company’s cash flow cycle.
speeding up payment of accounts receivable. D)
rapid payment of accounts payable.
16)
________ typically lead(s) sales; ________ typically lag(s) sales.
16) _____ _
Purchases; collections
B) Pr od eceivables
Collections; purchases
D) Re cei roduction
7)
Jane is arguing with Joan about how much cash their small retail outlet needs as they prepare their cash budget. Jane feels that with the Christmas season coming, their busiest time, they need more cash available while Joan feels they do not because their sales volume will be up significantly. Jane and Joan are discussing which step of the cash budgeting process?
17) _____ _ Determining an
adequate minimum cash balance
Fore
casting cash disbursements
Forecasting sales D)
Forecasting cash receipts
18)
A cash budget is only as accurate as the ________ forecast from which it is derived.
18) _____ _
income
B) sal es
receivables
D) pr ofit
When a firm sells goods or services on credit, the owner needs to remember that for cash budgeting purposes:
19) _____ _ such a transact
ion counts as a cash disbursement.
the sale
may be immediately posted as if it has been collected.
she must account for a delay between the sale and the actual collection of the proceeds. D)
the sale should be recorded in the month it was made.
20)
The “big three” of cash management include:
20) _____ _ accounts rece
ivable, overhead, and inventory.
accou
nts receivable, accounts payable, and inventory.
accounts payable, accounts receivable, and taxes. D)
accounts receivable, prices, and expenses.
21)
When a small business is writing off more than ________ of its sales as bad debts, it needs to tighten its credit and collection policies.
21) _____ _
5 percent
B) 25 per
10 percent
D) 3 per
2)
A small business owner could accelerate accounts receivable by:
22) _____ _ slowing the
ir own accounts payable.
depositin
g customer checks and credit card receipts weekly.
having customers mail printed orders to him. D)
emailing or faxing invoices the day of shipment.
23)
Patel Industries recently filled an order from one of its customers, Oxmoor Gardens, a small garden supply store. Oxmoor’s owner recently received an invoice from Patel for $1,278.64 with selling terms of “2/10, net 30.” Therefore:
23) _____ _ the selling terms are offering Oxmoor a 2
percent discount if the bill is paid within 10 days; otherwise the full amount of the invoice is due in 30 days.
the selling te
rms indicate that Oxmoor must pay 2 percent of the invoice by the 10th
day of the month with the balance due in 30 days.
the selling terms
indicate that Oxmoor has not yet qualified for a quantity discount and must pay the full amount of the invoice within 30 days.
D)
the selling terms
indicate that the full amount of the invoice is due within 30 days and Oxmoor will be subject to a 2 percent finance charge for every 10 days that the bill is past due.
24)
The real benefit of barter for the entrepreneur is that:
24) _____ _ it is considered a dep
reciable item for tax purposes rather than as income.
it is es
sentially without cost to the business owner.
it saves the small business owner between $100,000 and $150,000 a year on the average. D)
it is “paid” for at the wholesale cost of doing business, yet it is credited at the retail price.
25)
Entrepreneurs needing between $100,000 and $3 million in the current financial environment will likely find that acquiring financing to be:
25) _____ _
easy.
B) ch alle
attainable.
D) co nfu
6)
________ capital is used to purchase a company’s permanent assets such as land, buildings, and equipment.
26) _____ _
Growth
B)
Fixed
C)
Stable
D) Wori g
27)
Susan borrows money from a bank to build up her inventory supply for the upcoming season, her busiest of the year. At the end of the season, she repays the money she borrowed. This entrepreneur was using ________ capital.
27) _____ _
working
B)
robust
C)
growth
D) f ix
28)
The primary advantage of equity capital is:
28) _____ _ that it does n
ot have to be repaid like a loan does.
that it
does not appear on a company’s balance sheet.
its lower interest rate. D)
that it is readily available to a large number of entrepreneurs from a variety of lenders.
29)
The primary disadvantage of equity capital is that the entrepreneur:
29) _____ _ experiences the disadvanta
ge of the risk/return tradeoff in the form of higher interest rates.
must
repay it at some point with interest.
must give up someperhaps mostof the ownership in the business to outsiders. D)
B and C above
30)
The first place an entrepreneur should look for startup capital is:
30) _____ _ a bank.
the
Small Business Administration.
a venture capitalist. D)
his own savings.
31)
The largest single source of external equity capital for small businesses is:
31) _____ _ the stock m
arket; i.e., “going public.”
an gels.
Small Business Administration loans. D)
venture capitalists.
32)
A/An ________ is a private, for-profit organization that purchases equity positions in young businesses that will potentially produce returns of 300 to 500 percent over five to seven years.
32) _____ _
angel
B) co m ank
SB-1 filing
D) ve ntu ompany
To the entrepreneur who founded the company, the biggest disadvantage of making a public stock offering is the:
33) _____ _ diminish
ed corporate image.
reportin
g to the Securities and Exchange Commission.
loss of key employees to competitors. D)
dilution of her ownership interest and potential for loss of control.
34)
In an initial public offering, the underwriter, or investment banker, serves to:
34) _____ _ determine the pri
ce of the shares issued in the offering.
advise and
help prepare the company’s registration statement for the SEC.
sell the company’s stock through an underwriting syndicate of other investment bankers it develops. D)
All of the above
35)
The goal of the SEC’s Regulation S-B is:
35) _____ _ to discourage sm
all companies from trying to “go public.”
to make
the standards for making a public stock offering more stringent.
to open the doors to
capital markets to smaller companies by cutting the paperwork and the costs normally required to make a public offering.
D)
to make it easier for the SEC to detect companies whose stock would be bad investments for consumers.
36)
Because of the risk/return tradeoff, small businesses that borrow money repay it with interest at the:
36) _____ _ prime
interest rate.
len
der’s cost of capital.
prime interest rate plus a few percentage points. D)
prime interest rate minus a few percentage points.
37)
Studies suggest that ________ banks are most likely to lend money to small businesses.
37) _____ _
very large national
B) s ma
large regional
D) for eig
8)
A ________ is an agreement with a bank that allows a small business to borrow up to a predetermined specified amount during the year without making an application each time.
38) _____ _
factor
B) ter m
line of credit
D) flo or
9)
________ is the process of influencing and inspiring others to work to achieve a common goal and then giving them the power and the freedom to achieve it.
39) _____ _
Leadership
B) Or ga
Management
D) Co ord
One of the best sources for prospects for new positions may come from:
40) _____ _ curren
t employees.
th e Internet.
employment advertisements. D)
colleges and universities.
41)
A ________ is the process by which a company determines the duties and the nature of the jobs to be filled and the skills and experience required of the people who are to fill them.
41) _____ _
job specification
B) jo b
job description
D) m an udit
2)
A ________ identifies the duties and responsibilities of a position and its working conditions, while a ________ identifies the qualifications required of the job candidate in terms of skills, education, and experience needed.
42) _____ _ job spec
ification; job description
job
analysis; job description
job analysis; job specification D)
job description; job specification
43)
Effective interviewers spend about ________ percent of the interview talking and ________ percent listening.
43) _____ _
90; 10
B)
75; 25
C)
50; 50
D) 25;5
44)
According to the Society for Human Resource Management, more than ________ of candidates either exaggerated or falsified information about their previous employment on their resumes.
44) _____ _
two-thirds
B) on e-
half
D) thr ee-
5)
________ is the distinctive, unwritten code of conduct that governs the behavior, attitudes, relationships, and style of an organization.
45) _____ _
Hierarchy of command
B) Or ga tructure
Company culture
D) Fo rm rganization
6)
The ________ design strategy involves building motivators into a job by increasing the planning, decision-making, organizing, and controlling functions workers perform.
46) _____ _
job enrichment
B) jo b
job simplification
D) jo b
7)
In job enrichment, ________ is the degree to which a job allows a worker to complete a whole or identifiable piece of work.
47) _____ _
skill variety
B) ta sk
autonomy
D) ta sk
8)
In job enrichment, ________ is the degree to which a job substantially influences the lives or work of othersemployees or final customers.
48) _____ _
autonomy
B) ta sk
task identity
D) ski ll
9)
In job enrichment, ________ is the degree to which a job requires a variety of different skills, talents, and activities from the worker.
49) _____ _
task identity
B) ta sk
skill variety
D) au ton
0)
The type of job design that breaks work down into its simplest form and standardizes tasks is known as:
50) _____ _
job enlargement.
B) ho rizo oading.
job rotation.
D) jo b
From the video: Pike Place Fish
1). What is the difference between coaching and making wrong?
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
2.) What was their Wild Hairy Assed Goal?
__________________________________________________________________
3.) What type of management did the consultant mention as the type used by Pike Place Fish?
__________________________________________________________________
4.) According to Le Boeuf, what is the Greatest Management Principal?
__________________________________________________________________
5. According to the handout Recognition: Making Heroes, What is the difference between pay and rewards?
__________________________________________________________________
__________________________________________________________________
__________________________________________
________________________
__________________________________________________________________
top related