Business Principles Flashcards
The following items are known as ………. on the balance sheet: cash, accounts receivable, prepaid accounts.
A. Equity.
B. Assets.
C. Liabilities.
D. Prepayments.
B
What are the three standard financial reports?
A. Income statement. Balance Sheet. Statement of cash flows.
B. Income statement. Shareholders equity. Statement of cash flows.
C. EBITA statement. Balance sheet. Statement of cash flows.
D. Profit statement. Balance Sheet. Statement of cash flows.
A
What is the best description of a balance sheet?
A. A summary of an organization’s profitability ratio.
B. A summary of an organization’s investing and financing.
C. A summary of an organization’s profit & loss.
D. A summary of an organization’s return on investment.
B
Why might divisional level managers more readily accept a bottom-up budget?
A. Because they had a role in developing it.
B. Because they are personally motivated to bonus schemes attached to it.
C. Because they are used to receive orders from senior management.
D. Because they have a bigger influence on the results.
A
What is generally the most effective approach to budget development?
A. Budget negotiation processes between management levels.
B. A combination of top-down and bottom-up processes.
C. Bottom-up processes.
D. Top-down processes.
B
In probability sampling, each population member has a known, non-zero chance of being selected.
Which of the following is an example of probability sampling?
A. Systematic sample.
B. Convenience sample.
C. Voluntary sample.
D. Snowball sample.
A
What is the fundamental template for direction, that defines and support the organization’s long-term goals, called?
A. Strategy.
B. Vision.
C. Objective.
D. Mission.
A
According to Peter Drucker, what is the most crucial question in defining business purpose & mission?
A. Who is the customer?
B. Who is the shareholder?
C. What is the market orientation of the business?
D. What is the strategy of the business?
A
Organizations can apply various strategies to boost cost-effectiveness.
Loss reduction is an example of which strategy?
A. SWOT.
B. reduction.
C. Return on investment.
D. Cost avoidance.
D
Providing a plan and process for addressing the changes that will occur when key personnel leave, is known as:
A. Functional planning.
B. Change management.
C. Job analysis.
D. Succession planning.
D
What is specified if an assessment applies the Myers–Briggs Type Indicator?
A. Reasoning abilities.
B. Integrity levels.
C. Intelligence quotient.
D. Mental preferences.
D
Security officers need to be familiar with management’s philosophy and the corporate culture, meaning they must be highly socialized. Which type of training is useful to enhance the socialization aspect of the training process?
A. Mentoring.
B. Self-study.
C. Lecturing.
D. Remote training.
A
Under this strategy, allowing an individual to reach a state of satisfaction requires changes in the work content itself, e.g., increased autonomy.
A. Maslow.
B. Argyris.
C. Herzberg.
D. Bennis.
C
Many major ethical violations have made the news in recent years. Wells Fargo employees defrauded customers to meet sales quotas. Enron executives went to jail for accounting fraud. WorldCom executives admitted to overstating assets by $11 billion. Volkswagen manipulated vehicles so they would unjustly pass emissions tests.
What are three key reasons for unethical choices?
A. Dishonesty, disrespect, and greed.
B. Motive, opportunity, and rationalization.
C. Convenience, winning, and relativism.
D. Lack of supervision, financial pressure, and greed.
C
An agreement with clearly stated terms to which both parties are bound at the time it is formed, is known as a(n):
A. Quasi contract.
B. Non-disclosure agreement.
C. Implied agreement.
D. Express contract.
D
The obligation by a person to provide compensation for a particular loss or damage suffered by another person, is known as:
A. Quasi contract.
B. Loss claim.
C. Liability.
D. Indemnity.
D