Final Exams Flashcards
What is cyclical unemployment and give and example?
It is the unemployment due to the rise and fall of economic activity relative to its long term trend. A large decline in wealth would cause a shift in the demand curve to the left and for real GDP to fall. The slow down in economic activity will cause cyclical unemployment to rise.
What does a project manager NOT do?
They plan the work but they do not complete the tasks (Also, they DO communicate with shareholders)
The imputed interest rate used in the residual income approach to performance evaluation is best described as what?
The target return on investment set by a company’s management
When a firm finances each asset with a financial instrument of the same approximate maturity as the life of the asset, it is applying…
Working capital management. appropriate working capital management matches the maturity life of each asset with the length of the financial instrument used to finance that asset
According to COSO, what element of the internal control integrated framework addresses an entities financial reporting competencies?
The control environment. It includes such principles as financial reporting competencies, human resources, organizational structure, etc.
What is B2B and B2C?
B2B is e-commerce where a business attempts to sell products or services to other businesses.
B2C is e-commerce where a business attempts to sell its products or services to consumers. Both can occur whether or not the parties have had a prior business relationship
According to COSO which component of enterprise risk management (ERM) addresses an entity’s process for distinguishing risk and opportunities?
Event identification. This includes identifying relevant events that may impact an organization and then determining whether the characteristics of the events are positive (opportunities) or negative (Risks)
What causes a cost-push inflation?
It is caused by a shift left in aggregate supply. A sharp rise in nominal wages would result in a shift left in the aggregate supply
According to COSO ERM, which component addresses an entity’s process for establishing the likelihood and impact of events?
Risk Assessment. It includes analyzing risks, including the establishment of the events’ likelihood and impact
What is the primary purpose of the disaster recover plan?
To specify the steps required to resume operations
What is strategic management?
It involves development of long term plans that will direct the competitive standing of the organization. Operational planning and decision making involves shorter term recurring tactical issues
The task of performing quality assurances in managing a project is most likely…?
A dependent activity. Before quality assurance can be performed, the standard of quality must be defined, making this activity dependent on the completion of a predecessor activity.
One short term financing technique that effectively guarantees payment to creditors and is available to entities trying to access trade credit is
A letter of credit. They represent a third party guarantee of obligations incurred by a company. Letters of credit may be used by the company issuing debt (Debt that would otherwise be unsecured) to ensure payment to creditors
