BUS 475 Final Exam step-4
BUS 475 Final Exam step-4
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Date Created: 11/07/15
BUS 475 Final Exam QUESTIONS WITH ANSWERS 51) In an activityonnode [AON] network, the nodes represent ____________, whereas the arcs represent ____________. A. precedence relationships; time B. activities; precedence relationships C. activities; time D. events; activities 52) While glancing over the sensitivity report, you note that the stitching labor has a shadow price of $10 and a lower limit of 24 hours with an upper limit of 36 hours. If your original right hand value for stitching labor was 30 hours, you know that: A. you would lose $80 if one of your workers missed an entire 8 hour shift. B. you can send someone home 6 hours early and still pay them the $60 they would have earned while on the clock. C. the next worker that offers to work an extra 8 hours should receive at least $80. D. you would be willing pay up to $60 for someone to work another 6 hours. 53) The force behind globalization in _____ was the amount of muscle, horsepower, wind power, or steam power that a country could deploy. A. None of these B. Globalization 2.0 C. Globalization 1.0 D. Globalization 3.0 54) In the _____ phase of the decision making process, managers test potential solutions “on paper.” A. consideration B. design C. choice D. intelligence E. implementation 55) A set of programs that enable the hardware to process data is _____. A. procedures B. database C. software D. network E. hardware 56) What is _____ is not necessarily _____. A. Ethical, legal B. Unethical, illegal C. Ethical, illegal D. Unethical, legal E. Illegal, unethical 57) The Global, WebBased Platform enables individuals to do which of the following? A. all of these are true B. produce and sell goods and services C. exchange knowledge D. access information, services, and entertainment E. connect, compute, communicate, collaborate, and compete everywhere and all the time 58) The management cockpit best exemplifies which type of system? A. Group decision support system B. Functional area information system C. Digital dashboard D. Expert system E. Decision support system 59) _____ is the acquisition and efficient use of resources in accomplishing organizational goals. A. Wisdom B. Expertise C. Strategic planning D. Management control E. Operational control 60) International Game Technology’s new ERP system produced all of the following benefits except: A. Operations employees were able to access manufacturing process details at their workstations B. The company gained flexibility in manufacturing products C. ERP system connected the company’s global operations D. Company was able to maintain its original business processes E. Integrated the company’s business functions 61) Which of the following are not provided by digital dashboards? A. Exception reporting B. Key performance indicators C. Status access D. Transaction processing E. Drill down 62) _____ provides users with a view of what is happening, where _____ addresses why it is happening. A. Multidimensional data analysis, data mining B. Multidimensional data analysis, neural networks C. Data mining, expert system D. Data mining, multidimensional data analysis E. Multidimensional data analysis, structured query language 63) An increase in future value can be caused by an increase in the __________. A. dividends paid B. rate of return C. original amount invested D. starting value E. annual interest rate and number of compounding periods 64) Your company is considering an investment in a project which would require an initial outlay of $300,000 and produce expected cash flows in Years 1 through 5 of $87,385 per year. You have determined that the current after tax cost of the firm’s capital (required rate of return) for each source of financing is as follows: Cost of debt 8% Cost of preferred stock 12% Cost of common stock 16% Longterm debt currently makes up 20% of the capital structure, preferred stock 10%, and common stock 70%. What is the net present value of this project? A. $1,568 B. $463 C. $1,241 D. $871 65) Disadvantages of using current liabilities as opposed to longterm debt include: A. certainty of interest costs B. greater risk of illiquidity, and uncertainty of interest costs C. decreased risk of liquidity D. uncertainty of future liabilities E. higher cash flow exposure 66) Bell Weather, Inc. has a beta of 1.25. The return on the market portfolio is 12.5%, and the riskfree rate is 5%. According to CAPM, what is the required return on this stock? A. 15.62% B. 20.62% C. 14.37% D. 9.37% 67) Dublin International Corporation’s marginal tax rate is 40%. It can issue threeyear bonds with a coupon rate of 8.5% and par value of $1,000. The bonds can be sold now at a price of $938.90 each. The underwriters will charge $23 per bond in flotation costs. Determine the approximate aftertax cost of debt for Dublin International to use in a capital budgeting analysis. A. 9.2% B. 5.1% C. 8.5% D. 6.0% 68) Forward rates are quoted: A. on financial statements B. in direct form and at a premium or discount C. by the FDIC D. in an indirect form E. daily 69) Tri State Pickle Company preferred stock pays a perpetual annual dividend of 2 1/2% of its par value. Par value of TSP preferred stock is $100 per share. If investors’ required rate of return on this stock is 15%, what is the value of per share? A. $6.00 B. $37.50 C. $16.67 D. $15.00 70) Suppose you determine that the NPV of a project is $1,525,855. What does that mean? A. The project’s IRR would have to be less that the firm’s discount rate. B. In all cases, investing in this project would be better than investing in a project that has an NPV of $850,000. C. Under all conditions, the project’s payback would be less than the profitability index. D. The project would add value to the firm. 71) According to the hedging principle, permanent assets should be financed with _____ liabilities. A. fixed B. permanent C. current D. spontaneous 72) Exchange rate risk: A. doesn’t affect trades made in US Dollars. B. arises from the fact that the spot exchange rate on a future date is a random variable. C. applies only to certain types of domestic businesses. D. has been phased out due to recent international legislation. 73) The common stockholders are most concerned with: A. the spread between the return generated on new investments and the investor’s required rate of return. B. the percentage of profits retained. C. the size of the firm’s beginning earnings per share. D. the risk of the investment. 74) Which of the following is most consistent with the hedging principle in working capital management? A. Fixed assets should be financed with shortterm notes payable. B. Inventory should be financed with preferred stock. C. Accounts receivable should be financed with shortterm lines of credit. D. Borrow on a floating rate basis to finance investments in permanent assets. 75) You hold a portfolio with the following securities: Security Percent of Portfolio Beta Return X Corporation 20% 1.35 14% Y Corporation 35% .95 10% Z Corporation 45% .75 8% Compute the expected return and beta for the portfolio. A. 9.9%, .94 B. 10.67%, 1.02 C. 9.9%, 1.02 D. 34.4%, .94 76) Economists' economicbuyer theory assumes that __________. A. consumers only want the cheapest price B. buyers logically compare choices in order to maximize their satisfaction C. demographic data are very useful for predicting consumer behavior D. consumers should purchase only lowpriced products E. consumers always make rational decisions 77) The statement, "Of course people will buy our producteach of its features is better than the competition," most closely reflects which consumer behavior concept? A. the economicbuyer theory B. reference groups C. psychographics D. needs E. competitive advantage 78) The three basic tasks of ALL managers, according to the text, are: A. planning, implementation, and control. B. marketing, production, and finance. C. planning, staffing, and evaluating. D. execution, feedback, and control. E. hiring, training, and compensating. 79) A cluster analysis of the "toothpaste market" would probably show that: A. most consumers are concerned about cost. B. most consumers are mainly concerned about brightness of teeth. C. the broad productmarket can be served effectively with one marketing mix. D. factors such as taste, price, and "sex appeal" are not important. E. different market segments seek different product benefits. 80) "Marketing strategy planning" means: A. selecting a target market and developing a marketing strategy. B. finding attractive opportunities and selecting a target market. C. finding attractive opportunities and developing profitable marketing strategies. D. selecting an attractive target market. E. selecting an attractive marketing mix. 81) The managerial process of developing and maintaining a match between the resources of an organization and its market opportunities is called: A. market planning. B. marketing strategy planning. C. marketing programming. D. management by objective. E. strategic (management) planning. 82) Regarding organizational buying, the people who have the power to select or approve the supplierespecially for larger purchasesare called: A. users. B. buyers. C. deciders. D. influencers. E. gatekeepers. 83) The economists' view of buyers: A. None of these are true B. assumes that they always buy the lowestprice alternative. C. is based on the idea that consumers value time and select the first alternative they learn about. D. puts a great deal of emphasis on differences in buying behavior related to individual differences among consumers. E. emphasizes psychological variables rather than social influences. 84) __________ is a marketing management aid which refers to how customers think about proposed and/or present brands in a market. A. Customer relationship management (CRM) B. Market scanning C. Positioning D. Brand familiarity E. Market segmentation 85) When evaluating macromarketing: A. one must consider the society’s role in the marketing system. B. one must determine how efficiently the society's resources are used. C. the best approach is to consider the profit generated by individual firms within the overall system. D. the evaluation is necessarily subjective. E. one must consider each individual firm's role in the marketing system. 86) Marketing: A. not important if you have a good product. B. reflects existing social values in the short runwhile reinforcing these values in the long run. C. turns consumers into puppets. D. creates materialistic values which did not exist before. E. is only propaganda. 87) Clustering techniques applied to segmenting markets __________. A. doesn’t apply to demographic data B. eliminate the need for marketing managers to specify in advance what dimensions might be relevant for grouping consumers C. remove the need for managerial judgment D. usually require computers to group people based on data from market research E. is time consuming and expensive 88) Product disparagement differs from defamation of a nonpublic figure in that: A. Intent is only required in a disparagement case. B. Publication to a third party is required in the defamation case, but not in the disparagement case. C. Publication to a third party is required in the disparagement case, but not in the defamation case. D. Intent is required for the disparagement case, but not in the defamation case. E. Intent is required for the defamation case, but not in the disparagement case. 89) Mary arrived at work one day, and her boss said to her, “That’s the ugliest dress I have ever seen. Because you wore that to work today, you are fired.” Assuming that Mary is an atwill employee, which of the following is true? A. Mary can be fired only if it is in the best interest of the employer. B. If none of the exceptions to the atwill rule apply, Mary can be fired. C. If Mary has the will to work, she cannot be fired without cause. D. Mary can be fired for any reason. 90) Which of the following is correct about interpretive rules? A. Interpretive rules are not subject to judicial review. B. All federal administrative agencies have implied power to make interpretive rules. C. They must be accompanied by substantive rules. D. They do not establish new law. E. They require public notice and participation to create. 91) In responding to a constitutional challenge to the Computer Decency Act, the U.S. Supreme Court ruled that: A. The Internet was similar to television and that restrictions similar to those on television programming were appropriate. B. The Act was unconstitutional because its provisions were too vague to define. C. Obscene materials could not be available between 6:00 a.m. and 10:00 p.m. local time. D. Computers and the Internet were not covered by the free speech provisions of the U.S. Constitution because they did not exist when the Constitution was drafted. E. The Act was constitutional because obscene speech receives no protection. 92) In a criminal proceeding, what is the difference between an indictment and an information? A. An indictment requires proof beyond a reasonable doubt, but an information does not. B. A grand jury issues an indictment, but does not issue an information. C. Guilt or innocence is determined in an indictment, but not in an information. D. The defendant is charged with a crime in an indictment, but not in an information. 93) Which social responsibility theory has been advocated by Novel Prizewinning economist Milton Friedman? A. Corporate social audit. B. Corporate citizenship. C. Stakeholder interest. D. Maximizing profits. E. Moral minimum. 94) If a minor wishes to be bound to a contract after becoming an adult, she must: A. Bring an action to verify the contract. B. Give back the goods or services received as a minor. C. Disaffirm the contract. D. Ratify the contract. 95) Which of the following statements is true regarding the relationship of law and ethics? A. Depending on the circumstances, the law can require a higher, lower, or the same standard of conduct as ethics demands. B. The legal requirements will almost always be the same as the ethical requirement because the law is based on the ethical standards. C. In some cases ethics will require a higher standard of conduct than the law, but never vice versa. D. In some cases the law will require a higher standard of conduct than ethics, but never vice versa. 96) Information which comes to the knowledge of an agent is: A. Will result in termination of the agency arrangement if it is not communicated to the principal. B. Required to be communicated to the principal in all circumstances. C. Is imputed to the principal. D. Can be disclosed to the principal only with the third party’s consent. 97) Which of the following is true about “proof of claims?” A. They can generally be filed any time within one year of the filing of the bankruptcy petition. B. They must be field by both secured and unsecured creditors in order for the creditor to receive a distribution from the bankruptcy estate. C. They need not be filed by secured creditors whose security covers the amount of their debt. D. They are never used by secured creditors. 98) Although the U.S. has had a longstanding agreement with _____ after the passage of NAFTA, _____ became the United States' second largest trading partner. A. Great Britain, Paraguay B. Canada, Venezuela C. Canada, Mexico D. Mexico, Canada E. Mexico, Venezuela 99) Which country does the text describe as becoming the largest producer and consumer of many of the world's goods? A. Ecuador B. Japan C. Canada D. Mexico E. China 100) One study found that manufacturing labor costs about _____ an hour in China, compared to _____ dollars in the United States. A. Less than $1; about 40 B. Less than $1; about 15 C. About $2; about 15 D. Less than $1; about 25 E. $2; about 25
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