Chapter6
1.
_____ are objectives that a business hopes (and plans) to achieve.
Goals
2.
Each business unit in an organization will develop a _____ strategy that focuses on how it will achieve corporate goals.
functional
3.
When Kodak adopts a goal of increasing its share of the 35mm film market by 10 percent during the next eight years, it is setting a(n) _____.
long-term goal
4.
_____ is the identification and analysis of organizational strengths and weaknesses and environmental opportunities and threats as a part of strategy formulation.
SWOT analysis
5.
_____ are plans that typically involve upper and middle management and are shorter-range for implementing a specific aspect of the company's strategic plans
Tactical plans
6.
The management function of _____ involves guiding and motivating employees to meet the firm's objectives.
directing
7.
Amy Madison has been tracking product sales for McCoy Industries. She notices that sales of surgical supplies have fallen off in the past six months and she is considering strategies to reverse this trend. This is an example of the _____ management function.
Controlling
8.
_____ are responsible for the overall performance and effectiveness of the firm.
Top managers
9.
Which of the following statements about technical skills is most correct?
Technical skills are most important to first-line managers
.
10.
The shared experiences, stories, beliefs, and norms that characterize an organization are called _____.
corporate culture
This activity contains 10 questions.
_____ are objectives that a business hopes (and plans) to achieve.
Tactics
Strategies
Actions
Implementation steps
Goals
Each business unit in an organization will develop a _____ strategy that focuses on how it will achieve corporate goals.
functional
business
corporate
mission
fundamental
When Kodak adopts a goal of increasing its share of the 35mm film market by 10 percent during the next eight years, it is setting a(n) _____.
short-term goal
intermediate-term goal
long-term goal
tactic
mistake
_____ is the identification and analysis of organizational strengths and weaknesses and environmental opportunities and threats as a part of strategy formulation.
Planning
COPD analysis
Competition
SWOT analysis
Scanning
_____ are plans that typically involve upper and middle management and are shorter-range for implementing a specific aspect of the company's strategic plans
Strategic goals
Tactical plans
Tactical strategies
Operational plans
Operational tactics
The management function of _____ involves guiding and motivating employees to meet the firm's objectives.
directing
controlling
planning
organizing
producing
Amy Madison has been tracking product sales for McCoy Industries. She notices that sales of surgical supplies have fallen off in the past six months and she is considering strategies to reverse this trend. This is an example of the _____ management function.
planning
production
directing
controlling
organizing
_____ are responsible for the overall performance and effectiveness of the firm.
Top managers
First-line supervisors
Middle managers
Operations managers
Plant managers
Which of the following statements about technical skills is most correct?
Technical skills are most important to first-line managers.
Technical skills are most important to middle managers
Technical skills are most important to top managers
Technical skills are equally important at all levels of management
Technical skills are rarely needed by managers
The shared experiences, stories, beliefs, and norms that characterize an organization are called _____.
human resources management
its production philosophy
a mission statement
corporate culture
None of the above.
Chapter7
1.
The _____ refers to reporting relationships within the company.
chain of command
2.
In a Disney animated feature, the job of one cartoonist may be to draw the face of a single character throughout the feature. This is an example of ____.
job specialization
3.
When a firm has one division for the United States, one for Europe, and another for Asia, the firm is departmentalized according to ____.
geography
4.
_____ is the duty to perform an assigned task.
Responsibility.
5.
After a task is delegated, _____ falls to the subordinate.
accountability
6.
Which of the following best describes a centralized organization?
an organization in which most decision-making authority is held by upper-level management
7.
When employees perform either the same simple task or a group of interrelated tasks, the span of control is often ____.
wide
8.
In a _____ organization, corporate divisions operate as autonomous businesses under the larger corporate umbrella.
divisional
9.
The _____ organization is the network within which people do their jobs in different ways and interact with other people in ways that do not follow formal lines of communication.
informal
10.
Creating and maintaining the innovation and flexibility of a small business environment within the confines of a large, bureaucratic structure is referred to as ____.
Intrapreneuring
The _____ refers to reporting relationships within the company.
mission statement
chain of command
lines of responsibility
grapevine
informal organization
In a Disney animated feature, the job of one cartoonist may be to draw the face of a single character throughout the feature. This is an example of ____.
departmentalization
job specialization
group tasks
segmentation
mission enhancement
When a firm has one division for the United States, one for Europe, and another for Asia, the firm is departmentalized according to ____.
customer
process
geography
function
product
_____ is the duty to perform an assigned task.
Delegation
Authority
Responsibility.
Accountability
Centralization
After a task is delegated, _____ falls to the subordinate.
authority
centralization
accountability
span of control
departmentalization
Which of the following best describes a centralized organization?
a form of organization in which authority is determined by the relationships between group functions and activities
authority based on expertise that usually involves advising line managers
an organization in which most decision-making authority is held by upper-level management
authority that flows up and down the chain of command
an organization in which most decision-making authority is delegated to lower levels of management
When employees perform either the same simple task or a group of interrelated tasks, the span of control is often ____.
short
tall
wide
deep
narrow
In a _____ organization, corporate divisions operate as autonomous businesses under the larger corporate umbrella.
matrix
functional
divisional
international
production
The _____ organization is the network within which people do their jobs in different ways and interact with other people in ways that do not follow formal lines of communication.
matrix
informal
rational
international
divisional
Creating and maintaining the innovation and flexibility of a small business environment within the confines of a large, bureaucratic structure is referred to as ____.
basic structuring
process organization
intrapreneuring
extrapolating
None of the above.
Chapter8
1.
_____ is the evaluation of the duties required by a particular job and the qualities required to perform it.
Job analysis
2.
Cindy Stevens has identified the knowledge, skills, and abilities necessary for a database administrator in her organization. She will record this information in a(n) _____.
job specification
3.
Which selection technique is most likely to introduce bias?
interviews
4.
When Greyhound trains bus drivers on a simulator, they are employing _____ training.
vestbule
5.
An executive who is paid $2.5 million to achieve results, even if that means working 5 hours one day and 15 the next, is typically paid a(n) _____.
salary
6.
Compensation, other than wages and salaries, offered by a firm to its workers is referred to as _____.
benefits
7.
A(n) _____ is a set of individuals who, by nature of one or more common characteristics, are protected from discrimination on the basis of that characteristic.
protected class
8.
Computer scientists, engineers, and physical scientists may all be examples of _____, employees who are of value because of the knowledge they possess.
knowledge workers
9.
_____ is the process of dealing with employees who are represented by a union.
Labor relations
10.
In a(n) _____ strike, a union strikes in response to the labor dispute of another union.
sympathy
_____ is the evaluation of the duties required by a particular job and the qualities required to perform it.
Staffing
Advertising
Promotion
Job analysis
Training
Cindy Stevens has identified the knowledge, skills, and abilities necessary for a database administrator in her organization. She will record this information in a(n) _____.
staffing survey
advertising budget
job specification
employee analysis
on-the-job training agreement
Which selection technique is most likely to introduce bias?
interviews
application forms
drug testing
aptitude tests
polygraph tests
When Greyhound trains bus drivers on a simulator, they are employing _____ training.
on-the-job
vestibule
merit
performance
substitute
An executive who is paid $2.5 million to achieve results, even if that means working 5 hours one day and 15 the next, is typically paid a(n) _____.
wage
incentive
salary
stock option
fringe benefit
Compensation, other than wages and salaries, offered by a firm to its workers is referred to as _____.
profit-sharing
gainsharing
benefits
a retirement plan
pay-for-knowledge
A(n) _____ is a set of individuals who, by nature of one or more common characteristics, are protected from discrimination on the basis of that characteristic.
protected class
bargaining unit
union
worker's consortium
affirmative action
Computer scientists, engineers, and physical scientists may all be examples of _____, employees who are of value because of the knowledge they possess.
technical experts
knowledge workers
contingent workers
temporary workers
shop stewards
_____ is the process of dealing with employees who are represented by a union.
Labor relations
Human resource management
Negotiation
Management
Arbitration
In a(n) _____ strike, a union strikes in response to the labor dispute of another union.
wildcat
sympathy
wage
economic
contingent
Chapter9
1.
A(n) _____ is the set of expectations held by employees concerning what they will contribute to an organization and what the organization will provide in return.
psychological contract
2.
The percentage of an organization's workforce who leaves and must be replaced is referred to as _____.
turnover
3.
According to _____ theory, workers are solely motivated by money.
classical
4.
According to _____, a firm that analyzes jobs and finds better ways to perform them should be able to produce goods more cheaply, make higher profits, and thus pay and motivate workers more than its competitors.
scientific management
5.
Estelle believes that her employees are lazy and will only be productive under the threat of punishment. Estelle is a(n) _____ manager.
two-factor theory
6.
Stability and a pension plan can meet the _____ needs level in the hierarchy of needs model.
security
7.
When a company pays piecework rewards, it is using _____ theory as a basis of motivation.
reinforcement
8.
At Adam Hat Company, workers who previously had to report all product defects to supervisors now have the freedom to correct problems themselves or return products to the workers who are responsible for them. Adam Hat Company uses _____ to increase job satisfaction.
participation and empowerment
9.
Which of the following best describes leadership?
the process of motivating others to work to meet specific objectives
10.
Managers who adopt the ______ style typically serve as advisers to subordinates who are allowed to make decisions.
free-rein
A(n) _____ is the set of expectations held by employees concerning what they will contribute to an organization and what the organization will provide in return.
psychological contract
employee contract
inducement
satisfaction agreement
contribution
The percentage of an organization's workforce who leaves and must be replaced is referred to as _____.
absenteeism
productivity
turnover
return of investment
sales per employee
According to _____ theory, workers are solely motivated by money.
behavior
human relations
two-factor
classical
expectancy
According to _____, a firm that analyzes jobs and finds better ways to perform them should be able to produce goods more cheaply, make higher profits, and thus pay and motivate workers more than its competitors.
Theory X
the Hawthorne effect
scientific management
the hierarchy of human needs
expectancy theory
Estelle believes that her employees are lazy and will only be productive under the threat of punishment. Estelle is a(n) _____ manager.
two-factor theory
Theory Y
Theory X
Theory Z
equity theory
Stability and a pension plan can meet the _____ needs level in the hierarchy of needs model.
social
self-actualization
physiological
esteem
security
When a company pays piecework rewards, it is using _____ theory as a basis of motivation.
punishment
reinforcement
piecemeal
two-factor theory
equity theory
At Adam Hat Company, workers who previously had to report all product defects to supervisors now have the freedom to correct problems themselves or return products to the workers who are responsible for them. Adam Hat Company uses _____ to increase job satisfaction.
management by objectives
job redesign
flextime
participation and empowerment
team management
Which of the following best describes leadership?
a method of increasing job satisfaction by designing a more satisfactory fit between workers and their jobs
determining how best to arrange an organization's resources into a coherent structure
the process of motivating others to work to meet specific objectives
determining what an organization needs to do and how best to get it done
monitoring an organization's performance to ensure that it is meeting its goals
Managers who adopt the ______ style typically serve as advisers to subordinates who are allowed to make decisions.
autocratic
free-rein
democratic
dictatorial
editorial
Chapter14
1.
Employment in the service sector accounts for approximately _____ of jobs in the United States.
83 percent
2.
_____ refers to a product's ability to satisfy a human want.
Utility
3.
Tyson reduces whole chickens into packaged parts through a(n) _____ process.
analytic
4.
In a _____ system, the customer need not be an active part of the service process.
low-contact
5.
You have gone to the doctor to check out some recent pains. The quality of his/her expertise to find and diagnose the problem is an illustration of the unique service characteristic of _____.
intangibility
6.
In a custom cake bakery, blending of ingredients is done in the mixing area, baking occurs in the oven area, and decorations are applied in the finishing area. This is an example of a _____ layout.
process
7.
Using a _____ chart, managers list all the activities needed to complete a job, estimate the time required for each step, and check the progress of the project against the chart.
Gantt
8.
_____ reduces inventory costs by stocking uniform components for multiple products.
Standardization
9.
_____ costs are the costs of keeping extra supplies or inventory on hand.
Holding
10.
_____ is a production method that brings together all materials and parts needed at each production stage at the precise moment at which they are required.
Just-in-time production
Employment in the service sector accounts for approximately _____ of jobs in the United States.
23 percent
43 percent
63 percent
73 percent
83 percent
_____ refers to a product's ability to satisfy a human want.
Marketability
Utility
Demand
Customer satisfaction
Value
Tyson reduces whole chickens into packaged parts through a(n) _____ process.
analytic
assembly
chemical
synthetic
fabrication
In a _____ system, the customer need not be an active part of the service process.
passive
high-contact
low-contact
high-interaction
low-interaction
You have gone to the doctor to check out some recent pains. The quality of his/her expertise to find and diagnose the problem is an illustration of the unique service characteristic of _____.
intangibility
warrantees
customization
unstorability
past experience
In a custom cake bakery, blending of ingredients is done in the mixing area, baking occurs in the oven area, and decorations are applied in the finishing area. This is an example of a _____ layout.
process
customer
product
cellular
fixed-position
Using a _____ chart, managers list all the activities needed to complete a job, estimate the time required for each step, and check the progress of the project against the chart.
lead time
Simon
MRP II
PERT
Gantt
_____ reduces inventory costs by stocking uniform components for multiple products.
Uniform component control
Standardization
Component optimization
Optimized inventory control
Component management
_____ costs are the costs of keeping extra supplies or inventory on hand.
Fixed
Lead
Holding
Variable
Supply
_____ is a production method that brings together all materials and parts needed at each production stage at the precise moment at which they are required.
Master production scheduling
Inventory control
Warehousing
Just-in-time production
Material requirements planning
Chapter15
1.
_____ is a measure of economic performance that compares how much a system produces with the resources needed to produce it.
Productivity
2.
_____ includes all activities involved in getting quality products into the marketplace.
Total quality management
3.
_____ is the process by which a company analyzes a competitor's product to identify desirable improvements in its own.
Competitive product analysis
4.
_____ allows managers to analyze variations in a company's production activities to determine when adjustments are needed.
Statistical process control
5.
_____ identifies a firm's current costs and reveals areas with the greatest cost-savings potential.
Quality/cost studies
6.
A(n) _____ team is a group of employees from various work areas who define, analyze, and solve common production problems.
quality improvement
7.
When the I.R.S. studied American Express's billing procedures in an effort to improve its own, it was using _____.
external benchmarking
8.
_____ is a program certifying that a factory, laboratory, or office has met the quality management standards of the International Organization for Standardization.
ISO 9000
9.
Which of the following best describes business process reengineering?
the redesigning of business processes to improve performance, quality, and productivity
10.
_____ is an ongoing commitment to improving products and processes in the pursuit of ever-increasing customer satisfaction.
Continuous improvement
_____ is a measure of economic performance that compares how much a system produces with the resources needed to produce it.
Efficiency
Effectiveness
Quality
Productivity
Profit
_____ includes all activities involved in getting quality products into the marketplace.
Quality control
Quality reliability
Quality circles
Total quality management
Performance quality
_____ is the process by which a company analyzes a competitor's product to identify desirable improvements in its own.
Competitive product analysis
Benchmarking
Quality/cost studies
Performance quality analysis
Quality reliability analysis
_____ allows managers to analyze variations in a company's production activities to determine when adjustments are needed.
Upper/lower control limit analysis
Quality/cost study
Statistical process control
Internal failure analysis
A quality circle
_____ identifies a firm's current costs and reveals areas with the greatest cost-savings potential.
Benchmarking
Quality/cost studies
Statistical process control
Internal failure analysis
Quality circles
A(n) _____ team is a group of employees from various work areas who define, analyze, and solve common production problems.
materials management
quality improvement
inventory control
operations control
methods planning
When the I.R.S. studied American Express's billing procedures in an effort to improve its own, it was using _____.
competitive product analysis
external benchmarking
quality/cost studies
internal benchmarking
quality reliability analysis
_____ is a program certifying that a factory, laboratory, or office has met the quality management standards of the International Organization for Standardization.
ISO 9000
ISO 14000
QC 2000
TQM 2001
IQS 8000
Which of the following best describes business process reengineering?
the concept that all employees are valuable contributors to a firm's business, and should be entrusted with decisions regarding their work
the redesigning of business processes to improve performance, quality, and productivity
a program certifying that a factory, laboratory, or office has met the quality management standards of the International Organization for Standardization
the principle of looking at the supply chain as a whole in order to improve the overall flow through the system
a certification program attesting to the fact that a factory, laboratory, or office has improved environmental performance.
_____ is an ongoing commitment to improving products and processes in the pursuit of ever-increasing customer satisfaction.
Distribution chain management
Supply chain management
Continuous improvement
Supply network exchanges
Value chain decentralization
Chapter16
1.
Which of the following best describes data?
raw facts and figures
2.
George is leading a project team with members in New York, Seattle, and New Orleans. Using _____, members of the team can work simultaneously on one document.
dataconferencing
3.
_____ software enables users to access information on the Web.
Browser
4.
A(n) _____ is a private network of internal Web sites and other sources of information available to a company's employees.
intranet
5.
_____ is a flexible production process that generates customized products in high volumes at low costs.
Mass-customization
6.
_____ systems identify the status of any order and trace its progress from order entry through customer delivery and receipt of payment.
Enterprise resource planning
7.
Susan Jobs is an IS knowledge worker. She meets with users to identify their requirements and design a system to meet their needs. Susan is most likely a _____.
systems analyst
8.
Products ranging from cell phones to auto parts are created using _____ software because it allows faster designs at lower costs compared to manual modeling methods.
computer-aided design
9.
Dr. Strangelove is dealing with a very unusual medical case. He consults a very high tech artificial intelligence program to help him make the diagnosis. Dr. Strangelove is probably using a(n) _____.
expert system
10.
_____ is the use of secret numerical codes to scramble messages.
Encryption
Which of the following best describes data?
the useful interpretation of facts and figures
names and numbers from a large phonebook
raw facts and figures
conclusions made from information
controlled flow of words for a useful purpose
George is leading a project team with members in New York, Seattle, and New Orleans. Using _____, members of the team can work simultaneously on one document.
videoconferencing
voice mail
dataconferencing
digital information service
an Internet service provider
_____ software enables users to access information on the Web.
Data communication
Web link
Browser
Web server
Connection
A(n) _____ is a private network of internal Web sites and other sources of information available to a company's employees.
intranet
firewall
extranet
index
directory
_____ is a flexible production process that generates customized products in high volumes at low costs.
Mass production
Unit production
Process management
Mass-customization
Production management
_____ systems identify the status of any order and trace its progress from order entry through customer delivery and receipt of payment.
Outsourcing
Business process management
Enterprise resource planning
Vertical integration
Viral marketing
Susan Jobs is an IS knowledge worker. She meets with users to identify their requirements and design a system to meet their needs. Susan is most likely a _____.
systems analyst
Web master
application programmer
computer geek
systems programmer
Products ranging from cell phones to auto parts are created using _____ software because it allows faster designs at lower costs compared to manual modeling methods.
application
operations
computer-aided manufacturing
computer-aided design
computer-aided simulation
Dr. Strangelove is dealing with a very unusual medical case. He consults a very high tech artificial intelligence program to help him make the diagnosis. Dr. Strangelove is probably using a(n) _____.
application system
decision support system
executive support system
expert system
simulator
_____ is the use of secret numerical codes to scramble messages.
Encryption
Graphics
Automation
Auditing
Conversion
Chapter17
1.
_____ is concerned with reporting the operations of the company as a whole to shareholders and the public.
Financial accounting
2.
A(n) _____ is a salaried accountant hired by a business to carry out its day-to-day financial activities.
private accountant
3.
Which of the following was NOT a major recommendation of the CPA Vision Project?
The profession must actively seek diversity among practitioners.
4.
A(n) _____ is an economic resource that is expected to benefit a firm or individual who owns it.
asset
5.
To record the dual effects of financial transactions, accountants use _____.
double-entry accounting
6.
Current assets are listed in order of _____ on the balance sheet.
liquidity
7.
The process of distributing the cost of an asset over its life is known as _____.
depreciation
8.
The income statement is divided into three major categories. What are these categories?
revenues, cost of goods sold, and operating expenses
9.
Cash transactions involved in buying and selling goods and services would be classified as cash flows from _____ on the statement of cash flows.
operations
10.
_____ allows financial statement users to see how much net gain results from the assets that had to be given up in order to generate revenues during a given period.
Matching
_____ is concerned with reporting the operations of the company as a whole to shareholders and the public.
Managerial accounting
Government accounting
Minor accounting
Financial accounting
Stock market accounting
A(n) _____ is a salaried accountant hired by a business to carry out its day-to-day financial activities.
public accountant
advisor
private accountant
controller
auditor
Which of the following was NOT a major recommendation of the CPA Vision Project?
CPA education must be revitalized to meet the demands of the future.
The profession should adopt a broader focus beyond numbers that includes strategic thinking.
The profession must actively seek diversity among practitioners.
The profession should provide more value to society by expanding knowledge, education, and experience.
To attract qualified members, the profession must increase opportunities for advancement, rewards, and lifestyle preferences.
A(n) _____ is an economic resource that is expected to benefit a firm or individual who owns it.
asset
liability
equity
account
none of the above
To record the dual effects of financial transactions, accountants use _____.
liabilities and equities
debits and debts
automated calculators
double-entry accounting
All of the above.
Current assets are listed in order of _____ on the balance sheet.
age
the alphabet
liquidity
dollar value
cost
The process of distributing the cost of an asset over its life is known as _____.
prepaid expenses
subtracting methods
depreciation
licensing
All of the above.
The income statement is divided into three major categories. What are these categories?
top line, middle line, and the bottom line
early sales, middle sales, and late sales
revenues, sales, and winnings
assets, liabilities, and owners' equity
revenues, cost of goods sold, and operating expenses
Cash transactions involved in buying and selling goods and services would be classified as cash flows from _____ on the statement of cash flows.
operations
budgeting
investing
planning
financing
_____ allows financial statement users to see how much net gain results from the assets that had to be given up in order to generate revenues during a given period.
Full disclosure
Revenue recognition
Compliance
Matching
Materiality
Chapter18
1.
Modern currency is light and easy to handle, thus meeting the criteria of _____.
portability
2.
Money frees society from a system of barter. In so doing, money is performing which of the following functions?
medium of exchange
3.
The term _____ is another name for checking accounts.
demand deposit
4.
Credit card companies typically charge merchants fees of _____ of sales.
2 to 5 percent
5.
At _____, deposits are only accepted from members who meet specific qualifications, usually working for a specific employer.
credit unions
6.
A(n) _____ is a tax-deferred pension fund, with which wage earners supplement other retirement funds.
individual retirement account
7.
The FDIC guarantees, through its Bank Insurance Fund (BIF), the safety of all deposits up to the current maximum (per deposit) of _____ per account.
$100,000
8.
Which of the following best describe the reserve requirement?
the percentage of a its deposits that a bank must hold in cash or on deposit with the Federal Reserve
9.
The economy is slowing down, unemployment is high. Which of the following is the Federal Reserve most likely to do?
Buy government securities
10.
A government may _____ its currency to correct its balance-of-payments conditions.
devalue
This activity contains 10 questions.
Modern currency is light and easy to handle, thus meeting the criteria of _____.
portability
divisibility
stability
durability
value
Money frees society from a system of barter. In so doing, money is performing which of the following functions?
store of value
unit of account
determination factor
monetary flagging
medium of exchange
The term _____ is another name for checking accounts.
currency
time deposit
demand deposit
bond
certificate of deposit
Credit card companies typically charge merchants fees of _____ of sales.
2 to 5 percent
7 to 12 percent
9 to 14 percent
11 to 16 percent
11 to 20 percent
At _____, deposits are only accepted from members who meet specific qualifications, usually working for a specific employer.
mutual savings banks
savings and loan associations
commercial banks
major New York banks
credit unions
A(n) _____ is a tax-deferred pension fund, with which wage earners supplement other retirement funds.
letter of credit
individual retirement account
banker's acceptance
electronic funds transfer
mutual fund
The FDIC guarantees, through its Bank Insurance Fund (BIF), the safety of all deposits up to the current maximum (per deposit) of _____ per account.
$10,000
$50,000
$100,000
$200,000
$250,000
Which of the following best describe the reserve requirement?
a measure of the money supply that include all the components of M-1 plus the forms of money that can be easily converted into spendable forms
the percentage of a its deposits that a bank must hold in cash or on deposit with the Federal Reserve
a measure of the money supply that includes only the most liquid forms of money
the interest rate at which member banks can borrow money from the Federal Reserve
the Federal Reserve authority to set both margin requirements for consumer stock purchases and credit rules for other consumer purchases
The economy is slowing down, unemployment is high. Which of the following is the Federal Reserve most likely to do?
Print more money
Raise the discount rate
Increase the reserve requirements
Buy government securities
Raise the securities margin requirements
A government may _____ its currency to correct its balance-of-payments conditions.
reconvert
devalue
recenter
interpolate
regulate
Chapter19
1.
_____ are stocks and bonds representing secured or asset-based claims by investors against issuers.
Securities
2.
The stock prices on the stock pages in The Wall Street Journal reflect _____ values.
market
3.
Owners of _____ stock have priority over common stockholders when dividends are distributed.
preferred
4.
A(n) _____ is an individual or organization that receives and executes buy and sell orders on behalf of other people in return for commissions.
broker
5.
One of the safest investments available is a bond issued by _____.
the U.S. Government
6.
Issuers of _____ bonds reduce the risk to bondholders by pledging certain assets in case of default.
secured
7.
_____ are companies that pool investments from individuals and organizations to purchase a portfolio of stocks, bonds, and other securities.
Mutual funds
8.
Through _____, the risk of loss is reduced by spreading the total investment across more stocks.
diversification
9.
A _____ is an order to buy or sell a security at the market price prevailing at the time the order is placed.
market order
10.
A(n) _____ is a stock transaction in which an investor borrows securities from a broker to be sold and then replaced at a specified future date.
short sale
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Chapter 19
Chapter Quiz
Chapter Quiz
This activity contains 10 questions.
_____ are stocks and bonds representing secured or asset-based claims by investors against issuers.
Private placements
Securities
Exchanges
IPO's
Commodities
The stock prices on the stock pages in The Wall Street Journal reflect _____ values.
par
market
book
conglomerate
reapportioned
Owners of _____ stock have priority over common stockholders when dividends are distributed.
common
corporate
debenture
preferred
derivative
A(n) _____ is an individual or organization that receives and executes buy and sell orders on behalf of other people in return for commissions.
stock exchange
broker
investment bank
commodities market
agent
One of the safest investments available is a bond issued by _____.
public corporations
private corporations
municipalities
not-for-profit organizations
the U.S. Government
Issuers of _____ bonds reduce the risk to bondholders by pledging certain assets in case of default.
bearer
secured
registered
debenture
callable
_____ are companies that pool investments from individuals and organizations to purchase a portfolio of stocks, bonds, and other securities.
Stock companies
Mutual funds
Stock exchangers
Brokers
Portfolios
Through _____, the risk of loss is reduced by spreading the total investment across more stocks.
spreading
shorting
margin buying
asset allocation
diversification
A _____ is an order to buy or sell a security at the market price prevailing at the time the order is placed.
sell order
market order
stop order
prevailing order
release order
A(n) _____ is a stock transaction in which an investor borrows securities from a broker to be sold and then replaced at a specified future date.
short sale
long sale
futures sale
insider trade
program trade
Capter20
1.
Through _____, companies can generate interest income by investing idle funds.
cash-flow management
2.
_____ are funds due from customers who have bought on credit.
Accounts receivable
3.
When buyers receive merchandise along with invoices stating credit terms, they have most likely received _____.
open-book credit
4.
_____ is a short-term security, or note, containing a borrower's promise to pay.
Commercial paper
5.
The _____ is the contract that describes the terms of a corporate bond.
bond indenture
6.
The principle that safer investments tend to offer lower returns, while riskier investments tend to offer higher returns is called _____.
risk-return relationship
7.
The risk associated with the chance of a warehouse fire is a(n) _____ risk.
pure
8.
Risk _____ is the practice of covering a firm's losses with its own funds.
retention
9.
One of the four characteristics of an insurable risk is _____. This means that the insurer must be able to use statistical tools to forecast the likelihood of loss.
predictability
10.
Which of the following best describes a health maintenance organization?
an organized health-care system providing comprehensive care in return for fixed membership fees
This activity contains 10 questions.
Through _____, companies can generate interest income by investing idle funds.
government tax reporting
cash-flow management
accounting
financial control
financial planning
_____ are funds due from customers who have bought on credit.
Accounts receivable
Accounts payable
Inventories
Buildings
Equipment
When buyers receive merchandise along with invoices stating credit terms, they have most likely received _____.
a revolving credit agreement
open-book credit
a promissory note
a trade acceptance
a line of credit
_____ is a short-term security, or note, containing a borrower's promise to pay.
Equity financing
A trade draft
A factor
Commercial paper
Leverage
The _____ is the contract that describes the terms of a corporate bond.
partnership agreement
investor's contract
bond statement
bond indenture
debenture
The principle that safer investments tend to offer lower returns, while riskier investments tend to offer higher returns is called _____.
cash flow decision
risk-return relationship
cash flow trade-off
the safety factor
the risky principle
The risk associated with the chance of a warehouse fire is a(n) _____ risk.
act of God
market
speculative
pure
financial
Risk _____ is the practice of covering a firm's losses with its own funds.
avoidance
shift
control
retention
transfer
One of the four characteristics of an insurable risk is _____. This means that the insurer must be able to use statistical tools to forecast the likelihood of loss.
verifiability
casualty
unconnectedness
profitability
predictability
Which of the following best describes a health maintenance organization?
a health care plan allowing members to select primary-care doctors who may provide services or refer patients to other plan providers
an arrangement whereby selected professional providers offer services at reduced rates and permit thorough review of their service recommendations
an organization that provides continuous income when disability keeps the insured from gainful employment
an organized health-care system providing comprehensive care in return for fixed membership fees
insurance covering losses resulting from medical and hospital expenses as well as income lost from injury or disease
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