BMA Test Questions Flashcards

Question

Which of the following is an example of employee pilferage: A. Hacking into a competitor's computer network to obtain trade secrets B. Changing the amount specified on a check you prepare for the company with authorization C. Installing personally owned software on your workplace computer D. Padding an expense account

Answer 1

D, Padding an expense account. Employee pilferage involves the taking of small amounts or small articles without the consent of the company. That is what occurs when an employee pads his/her expense account. Having authorization to change the amount specified on a check is not pilferage. Installing personally owned software on your computer may violate company policies; however, it does not represent employee pilferage. Hacking into a competitor's computer network to obtain trade secrets is a computer crime, rather than pilferage.

Answer 2

C, Credit unions. A credit union is a financial cooperative set up to provide savings and credit services to its members. These services include small loans, installment credit, and low interest rates. Commercial banks offer many financial services including checking and savings accounts, secured and unsecured loans, installment credit, and bank credit cards. They offer small and large loans, and their interest rates vary. A sales finance company is a business that purchases borrowers' contracts from sellers. Their interest rates are higher than the rates offered by credit unions. A savings and loan association is a financial institution that offers savings accounts and makes loans to borrowers. Most of their loans are for large-ticket items such as real estate. FOCUSED ON MORTGAGES

Answer 3

A, Inductive organization. Inductive organization starts with examples, facts, or reasons and saves conclusions for last. When you need to persuade someone of something, inductive organization can be especially helpful. This is the case for Alexis and her team. She knows that her boss won't necessarily want to spend a lot of time and money on the project, so she starts by listing the benefits. If she started out with the costs, her boss would likely be scared off before she even had the chance to convince him. FACTS --> CONCLUSION Deductive organization is the opposite of inductive organization. It starts with the conclusion, and then moves to examples, facts, and reasons. This method of organization is best when delivering routine information or business writing. CONCLUSION --> FACTS Chronological order presents information in time sequence. This is useful when describing history or sales figures. Geographical order involves organizing your information around location. This method of organization isn't used that often, since there aren't many topics that are easily organized by location.

Answer 4

A, Initiation. The project life cycle consists of four stages: initiation, planning, execution, and closure. The initiation stage involves determining a project's feasibility, developing a statement of work (SoW), creating SMART objectives, and developing a project charter. The planning stage involves in-depth project planning to ensure that the project's scope is clearly defined. This entails developing a Work Breakdown Structure, identifying needed human and nonhuman resources, developing a project schedule, and preparing a project plan. The execution, or implementation, stage requires the project manager to monitor and control project activities by maintaining ongoing communication with all project participants, updating and modifying the project plan, monitoring risks, controlling project quality, gaining change approvals, and maintaining project records. The closure stage entails writing final project reports and preparing a lessons learned document.

Answer 5

C, Standing. Standing orders involve sending products at set intervals. This type of purchase order is ideal for businesses that need the same amount of an item on a regular basis. In the example, SOA Manufacturing may need the bolts to produce its products. Because SOA knows that it generates a set amount of outputs in a certain amount of time, it advises its vendor (Colbert Company) to ship a certain amount of bolts at intervals—every other week. WEEKLY/MONTHLY ETC STAPLES An advance order is a regular order that is placed now with delivery requested at a future time (e.g., weeks, months). IN ADVANCE A seasonal order is an order that is placed for seasonal merchandise, such as snow shovels or beach umbrellas. SEASONAL An open order is an order for staple goods that is placed with one of several available vendors who can meet the business's immediate requirements (e.g., time, price, quantity). An open order is a type of purchase order in which buyers place the order with the supplier that can best meet the needs or criteria (e.g., price) for a particular item. BEST MATCH FOR STAPLE GOODS

Answer 6

B, Hierarchical information. A hierarchy arrangement sets information in a certain order, rank, or level. The laddering technique is a tool that helps an organization to capture information and categorize it into a meaningful and useful order. The business can obtain information by collecting tacit knowledge from internal and external sources. The laddering technique, which can be implemented manually or with a computer program, can help a business organize the steps necessary to complete a certain activity or process. By doing so, the business might discover ways in which it can change the ordering system to increase efficiency, such as eliminating an unnecessary task or a task that is being performed twice. KEEPS ASKING WHY WHY WHY FOR WHY COMS MAKES PURCHASE (USUALLY) EXCEPT IN THIS TEST? IDEK LMAO) Horizontal communication occurs among individuals at the same level, such as coworkers

Answer 7

A, High. The cash from operating activities is compared to the company's net income. If the cash from operating activities is consistently greater than the net income, the company's net income or earnings are said to be of a high quality

Answer 8

B, To, from, date, and subject. When writing a memorandum, businesspeople place a heading at the top of the page to indicate who the letter is to, who the letter is from, what the message is about, and the date the message was written. The company's name and the employee's title do not always appear in the heading.

Answer 9

B, Presentation. Presentation software programs give the user the capability of presenting information by combining graphics, text, animation, photographs, and sound. Presentation software can be used to create slide programs, overhead transparencies, multimedia presentations, etc. This software enables users to develop visual presentations that are lively, colorful, and appealing to viewers. Communication software programs establish connections between computers. Numeric and electronic are not types of software programs, although some programs analyze numerical data.

Answer 10

B, Integrated. Integrated software applications consist of two or more related computer programs that work together to record information or perform specific business tasks or functions. An example of integrated software is Microsoft Office—it consists of several related programs, such as word processing (Word), spreadsheet (Excel), presentation (PowerPoint), and database (Access). Trajectory software is used to measure velocity, wind drift, momentum, etc.

Answer 11

C, Change management. Change management is a structured process used to ensure that changes are successfully made and have lasting impact. Change management would be beneficial to a company that is adding a new product line. There is no indication that the company needs to hire new employees, adjust its budget, or undergo ethics training

Answer 12

C, Negative comments can spread quickly online. Social media policies are especially important in today's ultra-connected world. One negative comment about a company on social media can spread like wildfire—harming the reputation of both the person who posted it and the company. It is not true that employees can't be trusted with technology—many companies rely on employees' use of technology to complete their work effectively and efficiently. While it is true that the Internet can potentially harm a company's reputation, it can also be a useful tool for improving a company's reputation and for spreading awareness of the company's products or services. Companies do not generally rely solely on social media to communicate.

Answer 13

B, Being consistent. Inconsistency is one of the biggest reasons that people struggle to effectively model ethical behavior. It is important to make sure that your actions and words are consistent and align with your moral principles. If your boss has a rule, yet s/he doesn't follow it, you won't be likely to look to him/her as an ethical role model. There is no indication that your boss is not providing feedback, making ethics relevant to employees, or communicating clearly and openly.

Answer 14

C, Assurance. Quality management is the ongoing process of planning, implementing, and integrating quality into every aspect of an organization. There are three main aspects of quality management—quality control, quality assurance, and quality improvement. Quality control is a process that measures products against predetermined standards after the products have already been created. CONTROL THE WRONG PRODCUTS CREATED Quality improvement involves an organization's willingness to change and adapt for the purpose of maintaining quality. Finally, quality assurance is an organization-wide system that businesses use to ensure that products meet quality standards. ASSURANCE IN EVERY ASPECT OF THE COMPANY

Answer 15

C, State. A database software program allows a business to sort customer information by various criteria— customer name, sales volume, customer type, zip code, etc. Queries are database fields that the business uses to sort the data. The type of data that the business wants to retrieve or analyze determines the database query (sorting mechanism) that the business uses. To obtain a list of customers in specific geographic regions, the business should sort by state. Depending on the business's needs, it may also use zip code, city name, or country to sort by geographic location. Sales volume, customer name, and street numbers are not queries that will sort customer information by geographic location. BC what will 22344 do without rest???

Answer 16

A, Pleadings. Civil lawsuits occur because of disputes among people, businesses, or other entities. The first step of the litigation process is called pleadings. During this phase, each party in a lawsuit submits an official document detailing its side of the dispute. After pleadings, the discovery process takes place. During the discovery process, each side gathers relevant information about the case to help bolster its argument. After discovery, a trial occurs in which each party presents evidence in support of its claims to a judge and/or jury. An appeal may be filed after a trial is completed. An appeal is a request for a higher court to review the case in hopes of achieving an alternative outcome. APPEAL TO A HIGHER COURT

Answer 17

C, Collected. Only collected money is recorded under cash receipts (SOUNDS LIKE RECIEVES). For example, if a business expects to make $5,000 from cash sales and $2,000 from credit sales, it records only the $5,000 in the cash receipts column. The $2,000 in credit sales is referred to as accounts receivable and should not be recorded until it is actually collected, otherwise the business will appear to have more money on hand than it actually does. Cost of goods is the amount of money a business pays for the products it will sell and often is a sizeable expense. Expenses are listed in the cash payments column rather than in the cash receipts column

Answer 18

C, Do not get along with their coworkers. Although employees lose their jobs for a variety of reasons, studies indicate that the primary reason is failure to get along with coworkers. A worker who does not get along with others usually is not very happy or productive and may cause problems in the workplace. Complaining about unsatisfactory pay is not a reason to be fired. Taking too many days off work and not being able to do all job tasks are problems that can be corrected.

Answer 19

A, Product quality. Poor-quality products that do not perform properly or break are a common CAUSE for complaint. Other causes include the business itself, its policies, and its personnel. Price reductions are usually pleasing to customers. Extended hours give customers more time to shop. Institutional ads promote the image of the business and are not likely to be the subject of complaints.

Answer 20

C, To do what everyone else does. Employees who behave unethically often justify their actions by believing that everyone else does it. Some employees may see their coworkers use company equipment for personal projects, and then do the same themselves. Most employees realize that such behavior is unethical and use "everyone else does it" as an excuse. Unethical behavior would not result in long-term positive customer relations. Most people would not want their unethical behavior to be publicized. Although some people may behave unethically to become managers, it is not a main reason for unethical behavior

Answer 21

B, Plan special sales. Businesses monitor internal inventory records to keep track of the type and quantity of products that are in stock. By monitoring this information, businesses can identify an oversupply of certain products, or products that are slow sellers. The inventory records help businesses decide when it would be appropriate to plan a special sale to get rid of excess inventory or slow-selling items. Keeping these items in stock ties up money that the business could use to buy new products that customers want to buy. Businesses do not monitor internal inventory records to obtain the information needed to organize new displays, evaluate vendors, or create safety rules.

Answer 22

D, Sales contract. A purchase order is a form that a business fills out to order goods. Because the order indicates that the business is willing to do something (pay for the items it orders) in exchange for something else (take possession of the goods), the purchase order serves as a sales contract. An open order is a type of purchase order in which buyers place the order with the supplier that can best meet the needs or criteria (e.g., price) for a particular item. Because accounts receivable is an accounting activity that involves collecting payment for the goods and services that the business offers, a purchase order is not an accounts-receivable document. A letter of intent is a letter that declares the writer's intention to do something. A purchase order is a form rather than a letter.

Answer 23

A, Pronounce your words correctly. The correct use and pronunciation of words is essential to effective oral communication. Mispronunciation creates an unfavorable impression; it can embarrass the speaker; and it may also fail to communicate the intended message. Trying to impress listeners may create a barrier to good communication. It is not necessary to know your listeners to communicate effectively. You need to attract and hold your listeners' attention, not distract them. TRY THINKING OPPOSITES`

Answer 24

C, Organizational. Organizational goals affect the overall organization. Organizational goals may involve things such as increasing efficiency levels, growing the business, or expanding market share. Ideological goals involve the vision and general purpose of the company's existence. Financial goals address the company's income and expenses. Inputs are resources that are used to produce outputs.

Answer 25

B, Express Express Contract - Each parties verbally EXPRESSES what they will do Implied Contract - There's an understanding that developes after conducting business with another paty Voidable Contract - One party committed fraud/misrepresentation Executed Contract - After contract is EXECUTED

Answer 26

C, Consolidation Ourway Airlines is acquiring many smaller companies, which is known as consolidation. MERGER - Two businesses combine to form one company - they MERGE into one EXPANSION - Company raises money (selling stocks, bank loan, profits, etc.) to expand business HYBRID STRUCTURE - A type of ownership that allows owners to enjoy the advantages of corporations and sole proprietorships/partnerships

Answer 27

D, Was nervous or trying to recall information Interviewers interview many people - they can understand that when you're looking away and not maintaining eye contact, you may be nervous or trying to recall information. However, if you're doing it for longer periods of time they may assume A, B and C.

Answer 28

- Complete business control - Not a separate business entity - your business assets and liabilities ARE NOT HELP SEPARATE FROM YOUR PERSONAL ASSETS/LIABILITIES - Can't sell stock - Banks are hesitant to lend loans - Can get trade name - Low-risk businesses

Answer 29

- One general partner with unlimited liability (LP) - All other partners have limited liability and limited control - (Everyone has limited liability - no one is responsible for the actions of the other partners) (LLP)

Answer 30

- Benefits of both companies and partnership business structures - Protects you from personal liability - your personal assets like vehicles - won't be at risk - Members of an LLC are considered self employed - Medium/high risk businesses

Answer 31

A corporation (or C-corporation) is a business that’s completely legally separate from its owner—in fact, it has a lot of the same rights that a person has. It can borrow money, start a lawsuit, own property, and enter a contract—as itself. Less liability risk. The huge advantage of starting a corporation is the legal separation. Unlike a partnership or sole proprietorship, a corporation is legally responsible for itself. So if your corporation ever faces a major lawsuit, you won’t necessarily be personally liable for the financial settlement. It’s more difficult and expensive to start a corporation, and you’ll need to keep up with a bunch of paperwork and extra operating obligations. Double taxation on assets and dividends

Answer 32

It’s a special kind of corporation that can help you avoid the double taxation problem. (FYI, the name is often shortened to “S-corp.”) Liability protection. Like a C-corporation, an S-Corporation is responsible for its own liability—so there’s much less chance of you being personally liable for your business’s obligations. Expensive to start and maintain. All that paperwork requires lots of time and resources—you’ll probably need to pay someone to help you get everything started (and then stay on top of all the ongoing paperwork). Limited eligibility. Not every corporation can be an S-corporation—you’ll have to meet a set of strict requirements to qualify.

Answer 33

A general partnership is pretty close to a sole proprietorship—except for the fact that you will share ownership of the business with at least one other person. ADVANTAGES Easy to get going. Your partnership agreement could even start with a handshake because no formal paperwork is required. DISADVANTAGES Lack of control. Because you’re forming a company with other people, you won’t have as much say over what happens as you would if you were on your own—and a major disagreement with your partners could sink the whole business. Your liability risk. Since a general partnership works a lot like a sole proprietorship, you and your partners will be personally responsible for the company’s debts and liabilities. That means you could end up paying for something unwise or negligent your partner did (so make sure you have liability coverage!).

Answer 34

1. Pleadings 2. Discovery 3 Trial 4. Appeal

Answer 35

1. Complaint - plaintiff files a complaint with the court and sends it to the defendant describing what the defendant did or failed to do that caused the plaintiff harm 2. The defendant has to file an answer with the court in a specific amount of time with the defendant's side in the dispute with MAYBE counterclaims

Answer 36

- Longest part of the case - Parties ask each other and third parties for case information (testimonies/depositions) - They can also ask expert witnesses for technical information to testify connections in the case - Motions to ask the court to rule/act - ex: motion for summary judgement to dismiss part of a party's issues, motion to exclude some evidence from trial, motion to ask court to order other parties to produce docs

Answer 37

0. Each party provides the judge a brief before the trial 1. Opening statement 2. Evidence - witnesses/documents/exhibits 3. Cross examine witnesses (Plaintiff first, defendant next) 4. Sometimes plaintiff rebuttal evidence 5. Jury deliberates and reaches a verdict 6. Post-verdict parties may challenge a jury's verdict - motion for judgement notwithstanding or set aside jury's verdict

Answer 38

- Can extend the litigation process by a year or more - Appellate court

Answer 39

D, because it is important to do that. Brief messages may appear too informal and don't organize the information

Answer 40

Customer relationship management

Answer 41

People produce whatever and however his ancestors produced - agricultural revolution, etc.

Answer 42

D, an airline It's business model is highly dependent on an increase in fuel prices because its business model is highly dependent on fuel to transport passengers,

Answer 43

GDP unadjusted to deal with inflation - real GDP is adjusted.

Answer 44

A, because inflation can distort GDP by making it higher Price deflators convert prices to a base dollar value. Nominal GDP is unadjusted for inflation

Answer 45

A written promise to repay loans

Answer 46

D, because he can use that to show he's capable and accepting of the company culture. The other options don't show that he's willing to learn an entry level position first.

Answer 47

A, Capital Expenditures Free cash flow is the measure of a company's performance. It is calculated by subtracting capital expenditures from operating cash flow. Capital expenditures include equipment, buildings, and other property.

Answer 48

C, Competitive Advantage Since many consumers are interested in socially responsible products, being socially-minded can give a business a competitive advantage over companies who are not practicing socially responsible marketing. Socially-minded marketing does not necessarily lead to lower costs, higher profits, or more products.

Answer 49

D, Mobility increased the need for protection of trade secrets

Answer 50

D, as the first phase of knowledge management process is discovery and detection, during which knowledge is recognized and categorized.

Answer 51

Association learning. Cluster detection analyzes data defines distinct clusters or sub-categories within a category.

Answer 52

A, so employees should not do that

Answer 53

C, so that it does not violate the legal rights of the employees. Employers must allow injured employees to return to their job whenever s/he has recovered from the injury - no time limits exist.

Answer 54

A, Contract Contract PO: Details, payment, delivery terms w/out products - agreement for future orders Blanket PO: Specific goods, not quantities Planned PO: Full details w/ tentative dates Standard PO: Irregular/one-time w/ all specifications

Answer 55

C, Introduce supplier to new markets Risk-averse: Bring suppliers new values Can become own supplier, but expensive and difficult and risky Canceling/withholding orders + litigation: highly risky

Answer 56

Lower cost due to reduced inventory, as each company needs to carry less doesn't have to pay for the logistics

Answer 57

Emphasizes the importance of processes in business

Answer 58

S/he can learn techniques to improve their job performance. Opportunities to make new contacts are small compared to this.

Answer 59

C, Project Charter: A document that formally authorizes the project and fives the PM the authority to apply resources to the project. The doc is often presented to senior management as a way to gain the necessary permission and commitment for the project. A project management plan is a comprehensive plan that includes all of the other plans necessary for the project. It is developed after the Project Charter A business case is a document that provides the nessacary info to understand whether the project is worthwhile. A statement of work is a narrative description of products, services, or results to be delivered by a project. It is needed to develop a project charters

Answer 60

A, Monitoring and controlling NOT closing

Answer 61

Internal/exteneral changes lead to new learning which leads to innovation.

Answer 62

C, Criminal law. Criminal law deals with crime, which can cause damage to an individual as well as society as a whole and the legal punishment of criminal offenses. Underage drinking is a criminal offense. It is not an example of breaking civil law, administrative law, or international law. Criminal law deals with crime (behaviors that have been defined as illegal/antisocial, such as manslaughter & underage drinking) Civil law: Resolution of disputes between individuals, medical malpractice is a civil law case, as are business disputes, land deals, libel & slander, & other commercial interests

Answer 63

B, Bank. Bank credit cards can be used at any business that is affiliated with the system. This gives cardholders a wide range of businesses from which to choose. Retail store, hotel, and petroleum cards are issued by individual companies and may be used only at their facilities. SOURCE: FI:002 Explain the purposes and importance of credit

Answer 64

A, Establishing her goals. NOTE: Not estimating income Before Chandra figures out the details of her budget, she needs to establish her goals. She can't create an effective or realistic budget unless she knows what goals she's focusing on. Estimating income, determining regular expenditures, and allocating income occur later in the budget development process. SOURCE: FI:066 Develop personal budge

Answer 65

C, Source documents. NOTE: Not financial statements Checks, receipts, invoices, and purchase orders are examples of transaction source documents that represent a business's financial transactions. Source documents usually contain the transaction amount, the payer, the payee, the good or service being purchased or sold, etc. Financial statements are summaries of accounting information. Source documents are the inputs to the accounting cycle, while financial statements are the outputs. Department ledgers are accounting records for specific departments or areas of the business. Accounting standards are rules that accountants must follow when preparing financial statements. SOURCE: FI:085 Explain the concept of accounting

Answer 66

A, Embedded. NOTE: NOT TACIT Embedded knowledge is information that is "trapped" within organizational routines, processes, and protocols. This type of knowledge is not clearly communicated; rather, it is hidden within employees' daily work routines. Tacit knowledge is knowledge that is intuitive—it is often hard to define and experience-based. Tacit knowledge is deeply personal and is often the hardest type of knowledge to capture. Explicit knowledge is widely available information that is easy to access and understand. An example of a source of explicit knowledge would be a company training manual. "Understood knowledge" is not generally a term used to describe one of the three main types of knowledge. SOURCE: KM:018 Apply knowledge management processes

Answer 67

A, False; businesses also use quality-control measures to evaluate products, processes, and other business functions. Quality control is ensuring the degree of excellence of a good, service, process, or activity. Efficiency levels are one measure that evaluates a variety of business processes and activities, including employee efficiency levels. If employees are not performing as efficiently as they could, there could be a problem with equipment, a process, or a procedure. Governments, industries, and management develop product-quality standards. SOURCE: OP:163 Identify quality-control measures

Answer 68

B, Helps you understand yourself. Goal setting helps you understand yourself, and understanding yourself helps you understand other people. Goal setting helps you stay on task, raises your level of self-esteem, and gives you a way to measure your progress, but these benefits do not necessarily help you in your relationships. SOURCE: PD:018 Set personal goals

Answer 69

D. Salutation Structure: Dateline Inside Address Salutation Body Signature Line

Answer 70

C, Staff As the letter was sent to all start members, it is a form of staff communication. This is a form of downward communication. Upward communication is one where employees speak to managers, etc.

Answer 71

B, A satisfaction gauge. Both utility and the marketing concept consider the consumer's point of view about a product. In the implementation of the marketing concept, utility functions as a gauge of the consumer's satisfaction. Utility is used as a measurement tool not as a payment method, a cost-saving tool, or a delivery process. SOURCE: EC:004

Answer 72

C, Planning in advance for change. Proactive management is characterized by anticipating and planning in advance for change. Proactive managers make both short and long-term plans. They encourage teamwork over individualism. They take calculated risks. SOURCE: EC:107

Answer 73

D, Perfect monopoly. Perfect monopoly is not a term used to refer to market structure. The four main idealized market structures used in trade theory are perfect competition, monopoly, oligopoly, and monopolistic competition. Perfect competition is an idealized market structure that includes large numbers of buyers and sellers. A monopoly is a market structure in which there is only one seller. An oligopoly is a market structure in which there are a number of small sellers. A monopolistic competition is a market structure in which there are many sellers producing differentiated products. SOURCE: EC:012

Answer 74

D, Progressive. In a progressive income tax system, those who have a higher income pay a larger percentage of their income to the government. In a regressive tax system, those who have a higher income pay a comparatively smaller percentage of their income as tax than those who have a smaller income. In a proportional tax system, all individuals of all incomes pay the same proportion of their incomes to the government. In a flat tax system, all individuals pay the same amount to the government regardless of their income. SOURCE: EC:072

Answer 75

B, Cost-push inflation. Cost-push inflation occurs when limited commodities drive up the costs of creating products and, in turn, their prices. Price stability is a state in which prices don't change rapidly and the value of money is stable; it is not caused by limited commodities. Demand-pull inflation happens when the money supply grows faster than the economy does. Inflation targeting is an effort by a government t hit a set inflation rate. SOURCE: EC:083

Answer 76

C Estimates. While most figures used in GDP computations are reliable, there are some that have to be estimated. It is impossible to maintain 100% accuracy when dealing with the vast amounts of informatio relating to an economy. Government bases its economic forecasts, or predictions, on the GDP figures. Transfer payments are payments made by the government for which no goods or services are received in exchange, and they are not counted in GDP. SOURCE: EC:017