Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Study group > CPP 2012 Domain 2: Business Principles and Practices > Flashcards

CPP 2012 Domain 2: Business Principles and Practices Flashcards

1
Q

What are the three standard financial reports?

A

Income statement,
Balance sheet,

Statement of cash flows.

Source: POA: Security Management, 2.2, page 15

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What does an income statement show?

A

Revenue,
Expenses,
Net income over a defined period.
Source: POA: Security Management, 2.2.1, page 15

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What is the underlying equation of the balance sheet?

A

Assets = liabilities + shareholder equity.

Source: POA: Security Management, 2.2.2, page 17

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What does a balance sheet show?

A

A summary of an organization’s investing and financing.

Source: POA: Security Management, 2.2.2, page 17

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What does a cash flow statement show?

A

How cash inflows and outflows affect an organization.

Source: POA: Security Management, 2.2.3, page 20

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What three elements are depicted in a cash flow statement?

A

Net operating cash flow,
Net investing cash flow,
Financing cash flow.
Source: POA: Security Management, 2.2.3, page 20

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Which two ratios show how an organization has done in making money during a reporting period?

A

Return on assets = net income/total assets,
Return on equity = net income/shareholder equity.
Source: POA: Security Management, 2.3.1, page 23

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What are the three ways to measure profit margins?

A

What are the three ways to measure profit margins?

Gross profit margin = (revenue – cost of goods sold – general and administrative costs)/revenue,
Operating margin = EBITA (earnings before interest, taxes, and amortization)/revenue,
Net profit margin = net income/revenue.
Source: POA: Security Management, 2.3.1, page 22

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Which two earnings-related ratios are commonly examined in financial analysis?

A

Earnings per share = net income/total shares,
Price to earnings = price per share/earnings per share.
Source: POA: Security Management, 2.3.1, page 24

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What is the current ratio?

A

The current ratio is a measure of a company’s ability to cover short-term obligations.
Current ratio = current assets/current liabilities.
Source: POA: Security Management, 2.3.2, page 25

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What is the quick ratio?

A

The quick ratio is a measure of an organization’s ability to cover current liabilities with current assets that can be quickly converted to cash.
Quick ratio = (cash + securities + accounts receivable)/current liabilities
Source: POA: Security Management, 2.3.2, page 25

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What is the debt to equity ratio?

A

The debt to equity ratio is a measure of a company’s long-term financial health.
Debt to equity ratio = total liabilities/shareholder equity.
Source: POA: Security Management, 2.3.2, page 25

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What are the three main limitations of financial statement analysis?

A

It doesn’t directly consider changes in market conditions,
All organizations operate differently and target different markets,
Financial reports must be accurate for financial ratios to have meaning.
Source: POA: Security Management, 2.4, page 26

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What is a primary benefit of zero-based budgeting?

A

Zero-based budgeting may force managers to consider alternative ways of getting the job done.

Source: POA: Security Management, 2.5, page 27

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What is generally the most practical approach to budget development?

A

A combination of top-down and bottom-up processes.

Source: POA: Security Management, 2.5, page 27

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What is an effective way of setting the value of line items in a budget?

A

Look at each budget expense as an investment and calculate the expected return on that investment.

Source: POA: Security Management, 2.5, page 28

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Why might lower-level managers more readily accept a bottom-up budget?

A

Because they had a role in developing it.

Source: POA: Security Management, 2.5.2, page 29

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Who should be involved in developing a standard?

A

A broad group of stakeholders and interested parties, working collaboratively.

Source: POA: Security Management, 3.1.3, page 37

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What organization is the world’s largest developer of international standards?

A

ISO, the International Organization for Standardization.

Source: POA: Security Management, 3.2, page 38

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

What are the five pillars of ISO standards?

A 
Equal footing of members,
Market need, 
Consensus,
Voluntary participation and application,
Worldwide applicability.
Source: POA: Security Management, 3.2.1, page 38
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

What organization is the administrator and coordinator of the U.S. private sector voluntary standardization system?

A

The American National Standards Institute (ANSI).

Source: POA: Security Management, 3.3.1, page 40

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Which stakeholder group drives the ANSI standards development process?

A

Standards users.

Source: POA: Security Management, 3.3.2, page 41

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

What is the operating principle of ISO’s management systems standards?

A

The Plan-Do-Check-Act cycle.

Source: POA: Security Management, 3.4.3, page 46

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Who should be involved in developing a job requirements analysis?

A

The hiring manager,
Other team members,
Organizational leaders.
Source: POA: Security Management, 1.3.1, page 6

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

What’s the best way to recruit a good candidate for a job?

A

Internal recommendations.

Source: POA: Security Management, 1.3.1, page 7

26
Q

What are a company’s top two most valuable resources?

A 
#1 is employees,
#2 is corporate knowledge.
Source: POA: Security Management, 1.3.2, page 7
27
Q

What are the five basic functions of management?

A 
Planning,
Organizing,
Directing,
Coordinating,
Controlling.
Source: POA: Security Management, 4.4.1, page 85
28
Q

According to Peter Drucker, what is the most crucial question in defining business purpose and mission?

A

“Who is the customer?”

Source: POA: Security Management, 4.4.1, page 85

29
Q

What is the rule of thumb for allocating for spare parts purchases in a budget?

A

About 5 percent of the capital cost of equipment for a location should be allocated each year for spare parts.

Source: POA: Physical Security, 12.12.1, page 379

30
Q

How long should a strategic plan look out into the future?

A

Three to five years.

Source: POA: Security Management, 1.2, page 3

31
Q

What is the “span of control” principle?

A

A single person can supervise only a limited number of staff members effectively (generally, up to 10).

Source: POA: Security Management, 4.4.3, page 87

32
Q

What is unity of command?

A

An individual should report to only one supervisor.

Source: POA: Security Management, 4.4.3, page 88

33
Q

Where should an organization’s most senior security professional report in the organization?

A

Directly to senior or executive management.

Source: POA: Security Management, 4.4.3, page 88

34
Q

What is McGregor’s Theory X?

A

McGregor’s Theory X says that an average worker is lazy and lacks ambition. Workers must be pushed by a hard-driving, authoritarian manager.

Source: POA: Security Management, 4.5.1, page 90; POA: Security Officer Operations, 3.2.1, page 47

35
Q

What is McGregor’s Theory Y?

A

McGregor’s Theory Y says that workers will seek greater responsibility in the right environment. They can exercise self-direction, motivation, ingenuity, and creativity.

Source: POA: Security Management, 4.5.1, page 90; POA: Security Officer Operations, 3.2.1, page 47

36
Q

What is Herzberg’s behavioral theory?

A

Herzberg’s behavioral theory says that good job performance is a function of hygiene or maintenance factors, such as job security and working conditions, as well as satisfiers or motivators, such as recognition and advancement.

Source: POA: Security Management, 4.5.1, page 90; POA: Security Officer Operations, 3.2.1, page 48

37
Q

What is the Argyris behavioral theory?

A

The Argyris behavioral theory says that traditional organizational principles and structures are incompatible with the mental health of employees. They cause workers to become apathetic, self-protective, or combative.

Source: POA: Security Officer Operations, 3.2.1, page 49

38
Q

What is Warren Bennis’s behavioral theory?

A

Warren Bennis’s behavioral theory says organizations can be adaptive, problem solving, and innovative. Future organizations will be based on free and full communication, consensus, influence based on competence, and a climate that allows for expression of emotions.

Source: POA: Security Officer Operations, 3.2.1, page 49

39
Q

What are the components of the Big Five Model of Personality?

A 
Surgency (leadership and extroversion), 
Agreeableness, 
Adjustment, 
Conscientiousness,
Openness to experience.
Source: POA: Security Officer Operations, 3.5.1, page 56
40
Q

What term describes expectation of competent performance by a security officer?

A

Vigilant performance.

Source: POA: Security Officer Operations, 3.1, page 44

41
Q

At what hours do officer accidents caused by fatigue peak?

A

Officer accidents caused by fatigue peak at 0300 and 1500 (3:00 a.m. and 3:00 p.m.).

Source: POA: Security Officer Operations, 3.2, page 46

42
Q

What is the most effective way to maintain officer vigilance?

A

Systematically rotate duties, at two- to four-hour intervals, between fixed post and roving patrol assignments.

Source: POA: Security Officer Operations, 3.6.8, page 61

43
Q

What are the three types of learning for officer training?

A

Cognitive (mental),
Affective (emotional),
Psychomotor (physical).
Source: POA: Security Officer Operations, 4.2.1, pages 66-67

44
Q

What are the three elements of an officer’s personal development?

A

Education,
Training,
Guided experience.
Source: POA: Security Officer Operations, 4.2.4, page 67

45
Q

What are the six major benefits of officer training?

A 
Improved job performance,
Ease of supervision,
Procedure review,
Staff motivation, 
Reduced turnover,
Legal protection.
Source: POA: Security Officer Operations, 4.3, pages 69-71
46
Q

If officer training is needed immediately, what are the best options?

A

Off-the-shelf programs,
Contracted trainers.
Source: POA: Security Officer Operations, 4.5, page 73

47
Q

What are Knowles’s principles of andragogy?

A

A theory of adult learning that assumes adults are self-directed and will take responsibility for their own learning needs.

Source: POA: Security Officer Operations, 4.5, page 73

48
Q

Why aren’t participant evaluations good as training evaluation tools?

A

Participant evaluations do not measure actual learning; instead, they validate what learners think they learned.

Source: POA: Security Officer Operations, 4.5.3, page 75

49
Q

When is the case study method of training most effective?

A

When students work together in groups and actively have discussions.

Source: POA: Security Officer Operations, 4.6.2, page 76

50
Q

In most security environments, what type of training methodology works best?

A

Mentoring.

Source: POA: Security Officer Operations, 4.6.6, pages 77-78

51
Q

What are six ways to overcome limiting training budgets?

A

Use off the shelf programs,
Outsource training to a community college or technical institution, Look for grant funding,
Join professional organizations such as ASIS,
Share instructional materials,
Use distance learning.
Source: POA: Security Officer Operations, 4.8.1, pages 79-80

52
Q

What is the “Frog Syndrome”?

A

A scenario in which managers believe that they can train all their subordinates personally. They jump into the project and then jump out when they are overwhelmed by the workload.

Source: POA: Security Officer Operations, 4.8.5, page 82

53
Q

What five roles can security officers play?

A

Management representative,
Intelligence agent,
Enforcement/compliance agent,
Legal consultant,
Physical security/crime prevention specialist.
Source: POA: Security Officer Operations, 4.10, page 97-99

54
Q

What is the best way to get many different types of particularized training for small groups of officers?

A

Outsourcing.

Source: POA: Security Officer Operations, 4.11.4, page 103

55
Q

What is generally the largest item in the operating budget of a security department?

A

Personnel costs.

Source: POA: Security Officer Operations, 5.1.1., page 108

56
Q

In a security services contract, what should the scope of work specify?

A

Security tasks,
Days and hours of performance,
Total number of hours to be worked.
Source: POA: Security Officer Operations, 5.1.2, page 112

57
Q

Who should set the compensation policy for contract security officers?

A

Security managers in the contracting company, not its purchasing staff, should set compensation policy.

Source: POA: Security Officer Operations, 5.1.4, page 113

58
Q

What is the first criterion in evaluating bids for security services?

A

Complying with the submission deadline.

Source: POA: Security Officer Operations, 5.3.1, page 116

59
Q

A contracting organization should hire its own supervisor for contract personnel when those personnel work more than how many hours per week?

A

400

Source: POA: Security Officer Operations, 5.3.1, page 116

60
Q

What are three alternative approaches to calculating loss event criticality other than the cost of loss formula?

A

Known frequency rate,
Nominal numerical probability,
Scatter plots.
Source: General Security Risk Assessment Guideline, pages 21-22

61
Q

What is a fidelity bond?

A

A fidelity bond is insurance that covers losses created by dishonest employees.

Source: POA: Security Management, 4, Appendix A, page 98

62
Q

Assuming officers work 40 hours/week, and each post is staffed 24/7, what is the minimum number of officers required for each post?

A

4.2 officers, or 4.5 officers when holidays, vacation, and sick time are included in the calculation.

Source: POA: Security Officer Operations, 1.3, page 3

Study group (20 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions