Training and Development Flashcards by Hannah Jones

If a painter is commissioned by a business to complete a work to go in the training room of their building, the copyright is owned by:
A. The business
B. Equal ownership over the copyright
C. The painter

A. The business

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A copyright lasts for the life of the author, plus __ years.
A. 73
B. 75
C. 70
D. 68

C. 70

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Allows the use of copyrighted works under certain conditions:
A. Work-made-for-hire
B. Copyright act
C. “Acceptable conditions” exclusion
D. “Fair use” provision

D. “Fair use” provision

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The ______ brought employment practices under the jurisdiction of the courts.
A. Civil Rights Act of 1875
B. Civil Rights Act of 1968
C. Bill of Rights
D. Civil Rights Act of 1964

D. Civil Rights Act of 1964

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Title VII prohibits discrimination in employment practices on the basis of:
A. Race, color, national origin, religion, sex, and disability.
B. Race, color, national origin, age, and sex
C. Race, color, national origin, religion, and sex
D. Race, color, national origin, sex, and disability

C. Race, color, national origin, religion, and sex

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The Age Discrimination in Employment Act (ADEA) of 1967 prohibits discrimination in employment against persons age:
A. 50 and over
B. 55 and over
C. 40 and over
D. 60 and over

C. 40 and over

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Why do some global companies hire people to fill a position that they are not qualified for?
A. Global companies struggle to find and keep good talent. Hiring unqualified candidates creates a need for training that will improve the employees’ capabilities.
B. Simply because there is a short supply of qualified employees for global companies, whereas there are many qualified employees for domestic companies.
C. The market is more competitive at a global level; therefore, companies hire underqualified candidates they see potential in with the hopes they will one day meet the company’s expectations.
D. Global employees are usually more expensive, so global companies tend to hire underqualified candidates they can get for a more affordable price.

A. Global companies struggle to find and keep good talent. Hiring unqualified candidates creates a need for training that will improve the employees’ capabilities.

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Believing that how things are done in the US is the best, or the only, way is an example of:
A. Multiculturalism
B. Ethnocentrism
C. Xenocentrism
D. Cultural relativism

B. Ethnocentrism

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Which of the following is an example of a critical implication of globalization for the management of human resources:
A. Terrorism, safety, and security
B. Offshoring
C. Employee development
D. All are examples

D. All are examples

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Hofstede’s categories about the major differences between country cultures are:
A. Power distance, linguistic barrier, individualism/collectivism, and masculinity/femininity
B. Power distance, uncertainty avoidance, individualism/collectivism, and masculinity/femininity
C. Power distance, linguistic barrier, cultural variance, and individualism/collectivism.
D. Uncertainty avoidance, individualism/collectivism, masculinity/femininity, and cultural variance

B. Power distance, uncertainty avoidance, individualism/collectivism, and masculinity/femininity.

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One of the top reasons employees stay with an organization:
A. Find their work rewarding
B. Opportunities for career growth
C. Take pride in their company and their product
D. Pay and benefits

B. Opportunities for career growth

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The term “employment security” means:
A. The guarantee of being able to be employed whether with an existing company or another
B. Employee skills will be kept current so that if they are fired, their job skills will be marketable
C. The same thing as job security
D. The likelihood that an employee will be able to keep their employment for a long time

B. Employee skills will be kept current so that if they are fired, their job skills will be marketable

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The four competency stages are:
A. Acquiring, applying, mastering, and influencing
B. Acquiring, applying, commanding, and influencing
C. Developing, implementing, mastering, and persuading
D. Acquiring, implementing, ruling, and persuading.

A. Acquiring, applying, mastering, and influencing

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Under what competency stage is an HR professional who represents the organization to individuals, groups and institutions, inside and outside the organization?
A. Mastering
B. Acquiring
C. Applying
D. Influencing

D. Influencing

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What role do top performing leaders play in an organization’s training and development programs?
A. Top performing leaders are usually the ones who conduct the training
B. An organization’s top performers determine what needs to be taught
C. The traits that make them top performers are usually what training is designed around
D. All of the above

C. The traits that make them top performers are usually what training is designed around.

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Line managers are the best source of _____
I. Technical information about job requirements
II. Information about which employees need training
III. Information on how to train each type of employee
A. I and II
B. II
C. I
D. I, II, and III

A. I and II

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What is the role of a “CLO” or a “CKO”?
A. Conduct training and development programs that are specifically designed for top management positions in the company, like the CEO, CFO, COO, etc.
B. Develop training and development processes that align with the organizations long-term needs
C. Conduct post-training evaluations to determine what training programs have either worked effectively or not
D. Training director in charge of all training and development within an organization

B. Develop training and development processes that align with the organizations long-term needs.

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Training adds value to a company when it links __ to ___.
A. Department goals; organizational goals
B. HR management; training and learning goals
C. HR management; line management
D. Training and learning goals; organizational goals

D. Training and learning goals; organizational goals

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All of the following reasons explain why a needs analysis is not conducted EXCEPT:
A. Consume time and resources
B. Training fads and demands from senior management sometime dominate
C. Isn’t always necessary to conduct effective training
D. Difficult to summarize findings into objective data

C. Isn’t always necessary to conduct effective training.

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True/False
If the skills needed for a job are adequate, expectations for job performance are clear, and motivation is present, there should be no reason for training.

False

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The type of training program that is designed for future concerns:
A. Developmental training
B. Future training
C. Gap training
D. Precautionary training

A. Developmental training

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Most training programs are designed to address:
A. Current problems in performance
B. Solutions for future issues that may occur
C. Past problems that have occurred.
D. All of the above

A. Current problems in performance

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A common reason many training programs don’t produce results is because:
A. Trainers are more interested in conducting the program itself than in first assessing the needs of their organization and the workers.
B. Trainers do not properly perform a needs assessment which prevents them from conducting the most needed training for that organization.
C. After conducting a needs assessment, trainers then fail to design the training program the way it needs to be in order to address the needs found in the assessment.
D. All of the above.

A. Trainers are more interested in conducting the program itself than in first assessing the needs of their organization and the workers.

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It is important to consider the support of _____ for training programs.
A. Employees
B. Management
C. Peers of potential trainees.
D. All of the above

D. All of the above

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True/False If peers' attitudes and behaviors are not supportive of training in general or of a specific training program in particular, employees are not likely to take their participation in such programs seriously.

True

When it comes to training programs, when employees do not ____, there is no ____, which means there is no impact for the training program on organizational effectiveness. A. Learn; transfer B. Attend; training C. Benefit; change D. Participate; learning

A. Learn; transfer

Each of the following is a method of needs assessment EXCEPT: A. Online technology B. Benchmarking C. Focus groups D. Questionnaires

B. Benchmarking

What is the best method of needs assessment? A. Focus groups B. Observation C. Online technology D. None of the above

D. None of the above

The more ____ the scope of needs assessment is, the more valid it is going to be. A. Broad B. In depth C. Narrow D. Focused

A. Broad

When benchmarking, you try to identify ____ of another organization. A. Common business strategies B. Best practices C. Areas for improvement D. All of the above

B. Best practices

Once the preliminary list of tasks is developed and confirmed, the next step in the task analysis process is to: A. Develop a portion of the training that focuses on each task B. Create another list that ranks the tasks from most crucial to least C. Determine the importance, frequency, and difficulty of each task D. Develop a list of KSAO's needed for each task.

C. Determine the importance, frequency, and difficulty of each task.

All of the following are methods used to determine the KSAO's for a particular task EXCEPT A. Questionnaire B. Observation C. Interviewing supervisors D. Interviewing job incumbents

B. Observation

Since KSAO's may not be directly observable, we must see them as A. Hypotheses B. Objective C. Biased D. Subjective

A. Hypotheses

In order to develop a top-notch training program, you first must A. Understand how people learn B. Conduct a needs assessment C. Have a need for improvement D. Conduct an organization analysis

A. Understand how people learn

Human behavior is rooted in habit and A. Tradition B. Perceptions C. Expected outcomes D. Prior experience

D. Prior experience

Only ___ percent of organizations (with more than 1,000 employees) use needs assessment before using a training program. A. 27 B. 11 C. 6 D. 17

A. 27

True/False If an employee has the requisite skills and knowledge to accomplish their work, but management fails to make performance expectations clear through goal setting or some other means, these performance deficiencies can be corrected through training.

False

Needs assessment deals with which step in the ADDIE model? A. 2 B. 1 C. 5 D. 3

B. 1

Since the learning objectives should contain a standard of performance against which to measure performance, learning objectives should be: A. Specific and realistic B. Measurable and attainable C. Realistic and attainable D. Specific and measurable

D. Specific and measurable

Since the training should stretch the attendees, but still be reasonable, the learning objective should be: A. Attainable and realistic B. Specific and attainable C. Attainable and measurable D. Realistic and timely

A. Attainable and realistic

SMART is used to: A. Write good goal statements B. Develop training exercises C. Establish the training agenda D. All of the above

A. Write good goal statements

When training begins with simple tasks that can be mastered easily, then progress to more complex learning as trainees gain confidence, it is an example of what kind of learning concept? A. Reinforcement B. Self-efficacy C. Transfer D. Retention

B. Self-efficacy

Behavior that is reinforced tends to be: A. Accelerated B. Inadequate C. Remembered D. Repeated

D. Repeated

According to the learning concept "shaping behavior," if a certain task needs to be learned: A. It must be reinforced by positive behavior B. It can be broken into small component behaviors C. Only certain behavior can be used to learn that task D. All of the above

B. It can be broken into small component behaviors

True/False It is necessary to experience rewards and punishments yourself to learn new behaviors

False

The more ____ the material, the more readily it is retained. A. Developed B. Meaningful C. Understandable D. Applicable

B. Meaningful

Transfer of learned material back to the job happens when the training conditions are ____ to those at the work site. A. Easier B. Harder C. Similar D. Identical

D. Identical

Is good at decisiveness, practical application of ideas, and hypothetical deductive reasoning: A. Accommodator B. Converger C. Diverger D. Assimilator

B. Converger

Which of the following are the dominant learning approaches of a diverger: I. Abstract conceptualization II. Concrete experience III. Reflective observation IV. Active experimentation A. III and IV B. II and IV C. I and III D. II and III

D. II and III

Accommodator: A. Is good at implementing decisions, carrying out plans, and getting involved in new experiences B. Tends to be less concerned with people than with ideas and abstract concepts C. Prefers dealing with technical tasks rather than interpersonal issues D. Tends to be interested in people, culture, and arts

A. Is good at implementing decisions, carrying out plans, and getting involved in new experiences.

An Assimilator: A. Tends to be at ease with people but may be seen as impatient or pushy B. Is good at generating ideas, seeing a situation from multiple perspectives, and being aware of meaning and value C. Is good at decisiveness, practical application of ideas, and hypothetical deductive reasoning. D. None of the above

D. None of the above

Unlike the dependency of children, adults have formed a self-concept and a psychological need to be self-directing, therefore the role of the teacher is to: A. Coach the trainees along the process of learning B. Provide real-world experiences for the trainees to gain hands-on experience C. Teach by example, then have the trainees demonstrate D. Participate with the learner in a process of mutual inquiry.

D. Participate with the learner in a process of mutual inquiry.

A type of learning that involves understanding the big picture first, and then introducing smaller pieces to fit together is known as: A. Puzzle learning B. Structured learning C. Overlearning D. Whole learning

D. Whole learning

True/False Motivation is frequently influenced by the physical space in which the training takes place.

True

The core design of any training program is to: A. Accomplish organizational goals B. Alter work behavior C. Improve current results D. Develop better performing employees

B. Alter work behavior

The key question to ask in the design of a training program is: A. What should the trainee be able to do upon completion of the program? B. How is this training going to increase revenue? C. What employee behaviors do we want to alter? D. What is the application of this training?

A. What should the trainee be able to do upon completion of the program?

All of the following are principles for the design of training for adult learners EXCEPT: A. Need to be self-directed in their learning B. Need to know the "why" C. Training needs to be behaviorally based, focused on ways of "Gestalt" learning D. Enter the training with a problem-centered approach to learning and seek immediate application.

C. Training needs to be behaviorally based, focused on ways of "Gestalt" learning

_____ research is very useful in thinking about training program design. A. Pedagogical B. Gestalt C. Developmental D. Behavioral

A. Pedagogical

What type of training might be useful for young management? A. Mentoring B. Job rotation C. Apprenticeships D. Systematic observation

B. Job rotation

What training is most effective for learning complex sets of rules or procedures? A. Correspondence courses B. Computer-assisted instruction C. Web-based instruction D. Programmed instruction

D. Programmed instruction

What is one problem with on-the-job training? A. Require additional space, and equipment B. Expensive C. Little quality control D. Least productive training

C. Little quality control

One main advantage to simulation and structured exercises is: A. It is more cost efficient compared to other training methods B. Provides the most "real world" experience a trainee can get C. The trainer has full control over the development of the trainee D. Trainees can make mistakes without the negative repercussion

D. Trainees can make mistakes without the negative repercussion

At what group size should group discussions have a structured mechanism to assure everyone participates? A. Over 7 B. Under 5 C. About 6 D. At least 9

C. About 6

Tell, show, demonstrate, and ask questions are all part of which step in the on-the-job process? A. Perform follow-up B. Present the information C. Prepare the learners D. Have trainee practice

B. Present the information

"Off the shelf" programs from external training organizations particularly benefit: A. Those who are looking for "proved" methods of training B. Organizations that need a large number of employees trained in a short period of time C. Organizations that don't have the resources to put together their own training program D. Smaller businesses that don't have enough employees where tailored training is needed as much as a bigger organization would need.

B. Organizations that need a large number of employees trained in a short period of time

What is a part of the on-the-job process step "prepare the learners"? A. Get them interested in the learning B. Put trainees on their own for a while C. Ask questions D. Make sure they know each point

A. Get them interested in learning

True/False Knowing the material well and being a subject matter expert makes someone a good trainer.

False

True/False Outdoor management training requires the visible and active support of top management to be successful.

True

Culture buy-in trainings primary purpose is: A. To communicate to the employees that the company is going to be involved with another company from a different culture and help them understand the changes and differences they might see. B. To communicate to participants that the organization is undergoing a fundamental and radical change in corporate culture. C. To help participants adapt to current or future changes that might be happening to the culture of the company. D. To educate current employees on the diversity of the different cultures amongst the employees.

B. To communicate to participants that the organization is undergoing a fundamental and radical change in corporate culture.

Although practical, on-the-job training has very little___ A. Willing participants B. Quality control C. Success D. Noticeable results

B. Quality control

Action learning appeals to the ___ A. Visual learner B. Auditory learner C. Kinesthetic learner D. Extreme learner

C. Kinesthetic learner

E-learning disadvantages include: I. Inflexible scheduling II. Expensive if large amounts of people are involved III. High dropout rates IV. Security concerns. A. I, II, III, and IV B. I and III C. I, II, and III D. III and IV

D. III and IV

Which step in the training process includes mastery evaluation? A. Present the information B. Perform follow-up C. Prepare the learners D. Have trainee practice

D. Have trainee practice

If you want your trainer to get more familiar with training, a ____ program might be necessary. A. Train the trainer B. Subject matter expert C. Pilot D. Controlled environment

A. Train the trainer

In the 1970's, training and development had a ____ role, and it wasn't until the 2010's it had a ____ role. A. Passive; partner B. Partner; pioneer C. Pioneer; protagonist D. Passive; protagonist

D. Passive; protagonist

After you have done all of the initial steps and then considered the different ways of maximizing a trainee's learning, you then must _____. A. Perform a needs assessment B. Select the trainees C. Develop a plan for what is expected to come from the training D. Determine the specific training method

D. Determine the specific trianing method

Programmed instruction, web-based instruction, and teleconference are all forms of: A. Simulation B. Information presentation C. On-the-job training D. All of the above

B. Information presentation

If a training program emphasizes that general principles might be applied to a greater set of contexts than those presented in the training, ____ transfer is likely to occur. A. Negative B. Far C. Near D. Positive

B. Far

What are the two types of positive transfer? I. Successful II. Near III. Implemented IV. Far A. II and IV B. I and II C. III and IV D. II and III

A. II and IV

If after a two day training trainees' return to their work and after a while no apparent change has occurred, a _____ transfer occurred. A. Positive B. Faulty C. Negative D. Zero

D. Zero

If a company generally has low organizational commitment and high cynicism about change, what is the best strategy to take for training? A. Identify outliers in the organization to first participate in the training B. Select those who have the most impact on others in the company to take the training first. C. The best strategy would be to fix the problem before developing any training programs. D. First develop a training about organizational commitment and organizational change.

A. identify outliers in the organization to first participate in the training.

Pre-training motivation to learn is most affected by: I. Reputation of the training II. Meaningful pre-work III. Inherent intrinsic satisfaction from learning IV. Organizational commitment A. I, II, and III B. II and III C. II, III, and IV D. I, III, and IV

D. I, III, and IV

The "theory of identical elements" is that: A. Learning occurs best when what is being taught in training is being taught in the exact same environment to where the trainees must perform their job. B. Learning occurs best when what is being taught in training is identical to what the trainee must perform on the job. C. Transfer occurs best when what is being learned in training is identical to what the trainee must perform on the job. D. Transfer occurs best when what is being learned in training is being taught in the exact same environment to where the trainee must perform their job.

C. Transfer occurs best when what is being learned in training is identical to what the trainee must perform on the job.

The learning environment has complete ____ with the work environment. A. Fealty B. Consistency C. Fidelity D. Correspondence

C. Fidelity

If the training revolves around factual learning, it is a good idea to precede the introduction with: A. Questions B. Facts C. An example D. Case studies

A. Questions

When are adult learners most receptive to training programs? A. When they believe that the training will apply to their work B. When there is less information being taught and more skills being developed C. When the training has been proved to be beneficial D. When the applicability to their lives is direct and obvious.

D. When the applicability to their lives is direct and obvious.

True/False Negative transfer is facilitated when trainees feel the trainer doesn't fully understand their situations and job challenges and how they feel about their work. This is most likely to happen when the trainer is from inside the organization.

False

Activity level indicates: A. How many of the trained skills trainees get to use on the job. B. The amount of application trained skills have on the job. C. The level of challenge represented in the application of learnings on the job. D. The number of repetitions trainees get back on the job

D. The number of repetitions trainees get back on the job.

The level of challenge represented in the application of learning on the job is called: A. Breadth B. Activity level C. EPSS D. Task type

D. Task type

What two things must trainees do for effective transfer? A. Practice and overcome B. Apply and maintain C. Reinforce and practice D. Repeat and apply

B. Apply and maintain

True/False In order to maintain effective transfer, "relapse prevention" training was formed, which was modeled after the approaches used in the rehabilitation of those with drug and alcohol addictions.

True

Transfer of training means: A. Effectively and continually applying what they learned in training back on the job. B. Effectively applying what they learned in training to their personal life. C. Being able to train other employees on what has been learned. D. Being able to learn from different kinds of training.

A. Effectively and continually applying what they learned in training back on the job.

Transfer deals with which part(s) of the ADDIE model? I. Assessment II. Design III. Development IV. Implementation V. Evaluation A. I, II, and IV B. I and II C. I and V D. II

B. I and II

If a training program encourages trainees to focus only on important differences between training tasks and work tasks, it is trying to accomplish _____. A. Self-efficacy B. Near transfer C. Self-regulation D. Positive transfer

B. Near transfer

According to the model of training transfer, what is directly related to training transfer? I. Training design II. Work environment III. Trainee characteristics A. I and III B. I, II, and III C. III D. II and III

D. II and III

Traits, abilities and motivation are sub-groups of ____. A. Training design B. Work environment C. Trainee characteristics D. Learning retention

C. Trainee characteristics

True/False If the goal is near transfer, practice should take place in a variety of different places, and if the goal is far transfer, practice should take place in a setting that is similar to the trainees' work environment.

False.

Which criteria is the most important, but also the most difficult to measure? A. Results B. Behavior C. Reaction D. Learning

A. Results

What is the most common type of evaluation measure? A. Reaction B. Results C. Learning D. Behavior

A. Reaction

Levels of learning are often identified as: A. Comprehension, application, analysis, synthesis, and evaluation B. Knowledge, comprehension, application, analysis, synthesis, and evaluation C. Comprehension, implementation, determination, synthesis, and results. D. Knowledge, understanding, implementation, analysis, synthesis, and results.

B. Knowledge, comprehension, application, analysis, synthesis, and evaluation.

Reaction and learning measures are called _____ evaluation. A. Synthesis B. Analysis C. Application D. Internal

D. Internal

True/False The four training evaluation criteria are all considered independent from each other.

False

What is the weakness of quasi-experimental designs? A. Difficult to draw conclusion from B. Provide poor control C. Control group is not included D. Not randomly assigned trainees

D. Not randomly assigned trainees

The time series design is ____ than pre-experimental designs. A. More difficult B. Better C. Less impactful D. Longer

B. Better

Randomization: A. Eliminates unnecessary bias B. Creates a more even trainee class C. Eliminates most of the threats to the validity of conclusions D. All of the above

C. Eliminates most of the threats to the validity of conclusions

True/False Randomization eliminates the need for pretests

True

In many situations, the best experimental design is: A. Time series B. Posttest only control group C. Pretest-posttest control group D. Nonequivalent control group

B. Posttest only control group

Nonequivalent control group and time series are examples of what experimental design? A. Quasi-experimental B. Experimental C. Pre-experimental D. Pretest-posttest

A. Quasi-experimental

Single group posttest only is an example of what experimental design? A. Pre-experimental B. Experimental C. Nonequivalent D. Quasi-experimental

A. Pre-experimental

Organizations that select trainees based off of scheduling or based off of the specific individuals who they want to go through training will most likely need to use what kind of experimental design? A. Experimental B. Quasi-experimental C. Pre-experimental D. All of the above

B. Quasi-experimental

Which of the following is an example of an experimental design? A. Posttest only control group with random assignment B. Single group pretest-posttest C. Nonequivalent control group D. Time series

A. Posttest only control group with random assignment

In the IPCO case, reaction measures were taken ____. A. Two months later B. Immediately after C. Three years later D. All of the above

D. All of the above

When using self-assessments with regards to behavior change, always: A. Be skeptical about what is being reported B. Get a confirmation about the assessment from the supervisor C. Ask them to provide examples D. Assume they are biased

A. Be skeptical about what is being reported

Which of the following successes can solely be attributed to the IPCO training? A. Sick leave usage declined after training B. Total Quality Management improved C. IPCO was awarded the DoD Center of Excellence award D. None of the above

D. None of the above

_______ involves the systematic collection of data and information necessary to make effective decisions related to the selection, adoption, value, and modification of training activities. A. Training design B. Trainee selection C. Evaluation D. Needs assessment

C. Evaluation

Which level of evaluation attempts to measure changes in behavior back on the job? A. Level 2 B. Level 1 C. Level 3 D. Level 4

C. Level 3

Self-serving bias is: A. When a trainee overstates how much they have transferred their learning B. When a trainee tries to make themselves look better C. A type of bias trainers have in the selection of trainees D. Trainers training biased material to make themselves look better

A. When a trainee overstates how much they have transferred their learning.

What is the main task of the training evaluation? A. Determine how effectively the trainees learned and transferred their newly learned behaviors, knowledge, skills, or attitudes B. Evaluate the level of work trainees are doing compared to the work they were doing before the training took place. C. Determine if a change took place and demonstrate that the changes were caused by the training program. D. All of the above

C. Determine if a change took place and demonstrate that the changes were caused by the training program.

Only about ____ in 40 companies make an attempt to evaluate their training programs. A. 15 B. 10 C. 1 D. 5

C. 1

True/False Evaluation should follow the most rigorous experimental design possible.

True

Evaluation should be planned at the same time as the training program and should be closely tied to the ____ objectives established for the program. A. Behavioral B. Transfer C. Business D. Skills

A. Behavioral

When conducting an evaluation it is best to use ____ type(s) of criteria. A. 1 B. 2 C. 4 D. None of the above

D. None of the above

There are generally four categories of criteria to use when evaluating training programs, two _____ and two ______. A. Internal; external B. Developmental; environmental C. Behavioral; environmental D. Behavioral; cognitive

A. Internal; external

The four categories of criteria used for evaluation are: A. Behavior, support, transfer, and results B. Motivation, support, knowledge, and behavior C. Transfer, self-efficacy, support, and environment D. Reaction, learning, behavior, and results.

D. Reaction, learning, behavior, and results.

Asking the question, "What did the participants think and feel about the training program?" is an example of ____ criteria. A. Reaction B. Behavior C. Results D. Learning

A. Reaction

Paper and pencil test, role plays, and work samples can all be used for what criteria in training evaluation? A. Reaction B. Results C. Learning D. Behavior

C. Learning

Peers, subordinates, customers, and others in addition to the direct supervisor can be canvassed to determine ____ criteria. A. Results B. Learning C. Reaction D. Behavior

D. Behavior

What is the challenge with using criteria for determining a measurement of change? A. Knowing the validity of measurement B. Determining whether or not the change came from the training or another source C. Determining which measurement to use. D. All of the above

B. Determining whether or not the change came from the training or another source.

The principles of experimental design allow the training evaluation to be conducted in such a way as to help rule out ____ explanations for any observed improvements in learning. A. Similar B. Opposing C. Alternative D. Random

C. Alternative

What is a mistake most organizations make with their training programs? I. Send participants through a training program with no pretest II. Send participants through a training program that are not in need of training III. Send participants through a training program with no comparison group against to measure progression. A. I, II, and III B. I and III C. III D. II and III

B. I and III

True/False It is impossible to draw any conclusions about the effects of training unless organizations send a selected group of participants through a training program with a pretest and with a comparison group against which to measure progress on the criteria.

True

____ designs provide better control than ____ designs. A. Quasi-experimental; pre-experimental B. Pre-experimental; quasi-experimental C. Single-group posttest; multi-group posttest D. Multi-group posttest; single-group posttest

A. Quasi-experimental; pre-experimental

What was the purpose of the training IPCO did in the 1990's? A. Communicate the new vision for the company B. Create commitment for the new vision C. Build the organization into a high-performing team D. All of the above

D. All of the above

The triangular partnership was used: A. To encourage team commitment and unity B. As a buddy system so no individual was left alone while performing a task C. To illustrate the importance of communication and feedback in performing a difficult task D. In a group of three where there would constantly be one who was placed in charge and took responsibility for the group.

C. To illustrate the importance of communication and feedback in performing a difficult task.

According to the training evaluation model for IPCO: A. Reactions directly influence results B. Attitudes directly influence reults C. Supportive organizational climate directly influence results D. Behaviors directly influence results

D. Behaviors directly influence results

Reaction does not affect: A. Knowledge and skills B. Intentions C. Supportive organizational climate D. Attitudes

C. Supportive organizational climate

What experimental design did IPCO use? A. Quasi-experimental B. Pre-experimental C. Experimental D. None of the above

C. Experimental

Career management is: A. The planning of movement of all careers within an organization B. Facilitation of a growth inductive environment for employees of an organization C. Planning, implementing, and monitoring employee career paths D. Managing an individuals growth within a company

C. Planning, implementing, and monitoring employee career paths.

What is the difference between career management and career planning? A. Career planning is done between the employee and the supervisor B. Career management deals with the growth within the organization C. There is no difference between the two D. Career planning is the responsibility of the individual

D. Career planning is the responsibility of the individual

_____ achieves both personal career goals and organizational goals. A. Career development B. Career planning C. Career management D. Career outlook

A. Career development

Communicating development preferences to management and identifying personal abilities and interests is part of: A. Career development B. Career planning C. Career management D. None of the above

B. Career planning

Matching organizational needs with individual capabilities and identifying future organizational staffing needs is part of: A. Career development B. Career management C. Career planning D. None of the above

B. Career management

Proposed an eight-stage life cycle model: A. B. F. Skinner B. William James C. Erik Erikson D. Sigmund Freud

C. Erik Erikson

This stage begins in the late teenage years and is a time of searching for values and role models. A. Trust B. Industry C. Ego integrity D. Identity

D. Identity

During the "identity" stage it is common to: A. Find a new sense of purpose in life B. Decide on a career path C. Think about a variety of different career choices D. Find personal ego identities

C. Think about a variety of different career choices

Intimacy and involvement are a part of what stage? A. Adolescence B. Middle childhood C. Middle age D. Young adulthood

D. Young adulthood

Generativity: A. Developing something of value for other people B. Developing a personal identity C. Part of Erikson's sixth stage D. Occupies the least amount of time in a person's life.

A. Developing something of value for other people.

Typical stages in career development include all of the following except: A. Organizational entry B. Occupational preparation C. Retirement D. Mid-career

C. Retirement

True/False Individuals can cycle through all five career stages several times in their lives.

True

Which of the following is a major task of mid-career? A. Increase competence B. Remain productive in work C. Pursue career dream D. Maintain self esteem

B. Remain productive in work

Which of the following is not a major task of early career establishment and achievement? A. Develop occupational self-image B. Learn organizational norms C. Fit into chosen occupation and organization D. Learn the job

A. Develop occupational self image

People choose their career field based on a variety of factors: I. Fields that intrinsically motivate them II. Capabilities and talents III. Personality IV. Socioeconomic status A. I, II, III, and IV B. II, III, and IV C. I and II D. I, II and III

A. I, II, III, and IV

The job interview establishes ____ for the new employees and their first job supervisor. A. A psychological contract B. Responsibilites C. A relationship D. Expectations

D. Expectations

Realistic job preview is used to: A. Establish a relationship between the supervisor and interviewee B. Get unspoken job expectations out in the open C. Discuss all the job expectations D. Give the interviewee a realistic experience of what it's like to have a certain job.

B. Get unspoken job expectations out in the open.

True/False RJPs reduce acceptance rates for job offers, however, they also reduce early job turnover.

False

Another alternative to RJPs is _____ A. Question and answer interview B. Job shadowing C. Psychological contracting D. Open interviewing

C. Psychological contracting

What is the most common type of training? A. Orientation B. Supervisor C. Motivational D. Skills development

A. Orientation

Employees in the early career stage are likely dealing with issues of ___ and ___. A. Self-image; occupational choice B. Self-esteem; accomplishment C. Identity; acceptance D. Intimacy; involvement

D. Intimacy; involvement

Employees in the early career stage have a strong need for ____. A. Guidance B. Feedback C. Supervision D. Acceptance

B. Feedback

The more ____ a new hire's job is (in the early career stage) job is, the more successful they will be in the future. A. Engaging B. Manageable C. Challenging D. Meaningful

C. Challenging

It is essential that a new hire's manager be good at ____ and ____. A. Training new hires; counseling B. Establishing a relationship; coaching new hires C. Coaching; establishing trust D. Conducting performance reviews; establishing development plans

D. Conducting performance reviews; establishing development plans

What is true about performance appraisals? A. They allow the employee to achieve their career objectives B. They help satisfy organizational requirements C. Performance appraisals are rarely done right D. All of the above

D. All of the above

Employees begin questioning if they are on the right track at what career stage? A. Early-career B. Mid-career C. Late-career D. At all stages

B. Mid-career

Mid-life crisis often leads to: A. Life and career changes B. Re-examination of life and career goals C. A feeling of immobility and depression D. Irrational decisions

B. Re-examination of life and career goals

How can organizations make the best of the "re-examination" period of an employee's life? A. Help the employee get re-committed and re-invigorated B. Get the employee to take on different or more challenging work C. Search for different opportunities within the organization that might better fit the needs of the individual D. Help them realize that their current career was the right choice all along.

A. Help the employee get re-committed and re-invigorated

A big difference between Erik Erikson's model and Hudson's model is that Erikson's is _____ while Hudson's is ____. A. Linear; cyclical B. Hierarchal; egalitarian C. Scientific; theoretical D. Psychological; behavioral

A. Linear; cyclical

What is the basic logic of the renewal cycle? A. We will never feel fully satisfied about our career choice? B. Everyone at some point in time will feel negative about their career choice C. In order to get to the point of being totally happy with ones career choice, they first must experience doubt about their decision D. Life is full of either mini-transitions or life-transitions

B. Everyone at some point in time will feel negative about their career choice.

What is considered the "normal" retirement age? A. Early 70s B. Early 60s C. Mid 60s D. Late 50s

C. Mid 60s

True/False Most training provided by organizations is focused on younger employees

True

An approach organizations use to combat the retirement of baby boomers and the shortage of skilled workers is: I. Keep workers fully trained and employed for as long as possible II. Have employees go from full-time to part-time and then eventually to retirement III. Hire retired employees on a contract basis A. II B. I and III C. I, II, and III D. II and III

C. I, II, and III

Which of the following is not an issue faced by those who retire? A. Sense of purpose B. Pride in achievement C. Need to belong D. Territoriality

A. Sense of purpose

Self management is: A. Adjustment to having no direction or goals B. Adjustment to being totally self directed C. Adjustment to loss of status D. Adjustment to having no work group to interact with.

B. Adjustment to being totally self directed

Need to belong is: A. Adjustment to having no work group to interact with B. Adjustment to being totally self directed C. Adjustment to loss of status D. Adjustment to having no direction or goals

A. Adjustment to having no work group to interact with

Pride in achievement is: A. Adjustment to being totally self directed B. Adjustment to having no direction or goals C. Recognition that pride in work accomplishments will fade quickly, and so will self-esteem D. Adjustment to loss of status

C. Recognition that pride in work accomplishments will fade quickly, and so will self-esteem

Territoriality is: A. Adjustment to having no direction for goals B. Adjustment to being totally self-directed C. Adjustment to having no work group to interact with. D. Adjustment to loss of status

D. Adjustment to loss of status

Goals is: A. Adjustment to having no work group to interact with. B. Adjustment to loss of status C. Adjustment to being totally self directed D. Adjustment to having no direction for goals

D. Adjustment to having no direction for goals

Developing a career plan that accommodates the organizations needs and initiate career development programs: A. Career development B. Career planning C. Career management D. None of the above

A. Career development

Which of the following is an example of career management? A. Plan personal career goals B. Focus on individual C. Focus on the organization D. Assess career path options

C. Focus on the organization

What is the opposite of generativity? A. Dormancy B. Stagnation C. Inaction D. Quiescence

B. Stagnation

During the stage of "maturity," you acquire _____. A. Initiative B. Generativity C. Industry D. Ego integrity

D. Ego integrity

Organizations experience a higher amount of turnover during what stage? A. Seventh B. Eighth C. Sixth D. Fifth

C. Sixth

Obtain job offers from desired organizations is at what stage of career development? A. Mid-career B. Occupational preparation C. Organizational entry D. Early-career

C. Organizational entry

Develop a broader view of work and organization is at what stage of career development? A. Organizational entry B. Mid-career C. Late-career D. Early-career

B. Mid-career

Which of the following are not organizational-level information new employees need to know? A. Safety and accident prevention B. Employee and union relations C. Specific job duties and responsibilities D. Key policies and procedures

C. Specific job duties and responsibilites

Which of the following are not department level information new employees need to know? A. Performance expectations B. Department role C. Customer relations D. Policies, procedures, rules, and regulations

C. Customer relations

Why is it bad for organizations to have orientation training consisting of "talking heads", or of several people talking about particular information? A. Not as interactive B. Employee is a passive recipient C. Few opportunities to ask questions D. All of the above

D. All of the above

When employees face the decision to make a mini-transition or a major transition, organizations can help them by: I. Offering them new incentives for the current work II. Provide coaches or mentors III. Offer mid-career development workshops IV. Provide alternative career routes A. I, II, and III B. II, III, and IV C. I and II D. II and III

D. II and III

Which of the following is not a stage in the adult renewal cycle? A. Stuck in the doldrums B. Cocooning C. Organizational entry D. Go for it

C. Organizational entry

True/False Employees going through their "down in the doldrums" stage of their career do not want to maintain their effectiveness at work.

False

Retirees that have "need to belong" issues have a hard time: A. Adjusting to having no direction for goals B. Adjusting to being totally self directed C. Adjusting to loss of status D. Adjusting to having no work group to interact with

D. Adjusting to having no work group to interact with

Women hold only about _____ percent of top level management positions. A. 10-15 B. 15-20 C. 5-10 D. 3-5

A. 10-15

With "dual-career ladders" the first track is a _____ track and the second is a _____ track. A. Management; technical B. Labor; consulting C. Labor; supervisor D. Advisory; relations

A. Mangement; technical

An unofficial barrier for advancement within an organization A. Dual career ladders B. Second class citizenship C. Career plateau D. Glass ceiling

D. Glass ceiling

The term "career" refers to: A. A series of work-related positions a person holds throughout life B. A path of expertise that eventually leads to a job C. A job lasting for the majority of a person's life D. A series of unrelated jobs that a person has throughout their life.

A. A series of work-related positions a person holds throughout life.

Career management: A. Match organizational needs with individual capabilities B. Assess career path options within and outside the organization C. Design a career plan that accommodates the organizations needs D. Identify personal abilities and interests

A. Match organizational needs with individual capabilities.

Department-level information: A. Safety and accident prevention B. Physical facilities C. Policies, procedures, rules, and regulations D. Customer relations

C. Policies, procedures, rules, and regulations.

Which of the following is not a sub-goal of evaluation? A. Promotion B. Evaluation and training effectiveness C. Wage and salary decisions D. Feedback for performance improvement

D. Feedback for performance improvement

Which of the following is not a subgoal of development? A. Feedback of performance improvement B. Career planning C. Validation of employee selection approaches D. Identification of training needs

C. Validation of employee selection approaches

Poor performance is usually the result of either a ____ problem or a ____ problem. A. Skill; will B. Feedback; behavior C. Ability; attitude D. KSAs; behavior

A. Skill; will

"To increase the number of invoices processed to 150 per day by October 1st" is an example of a/an: A. Goal B. Standard C. Commitment D. Expectation

A. Goal

Standards are more applicable to: A. Jobs involving routine, repetitive tasks B. Managerial and professional jobs C. Jobs where employees engage in project work D. All of the above

A. Jobs involving routine, repetitive tasks

True/False Goals and standards are most effective when mutually agreed upon by all affected

True

_____ statements create defensiveness on the part of the feedback recipient. A. Negative B. "I" C. Accusing D. "You"

D. "You"

Feedback should always be: A. Encouraging B. People-oriented C. Problem-oriented D. Positive

C. Problem-oriented

From a competitiveness standpoint, performance feedback should be given from: I. Customers II. Peers III. Managers A. I, II, and III B. II and III C. I and III D. III

A. I, II, and III

All of the following are characteristics of a legally defensible performance assessment system except: A. Raters should have ample opportunity to observe the performance of the ratee B. Management should be committed to the PA system and communicate this commitment throughout the organization C. Ratees should be provided with feedback of the results of the PA and should have an opportunity to appeal to a higher level manager if they disagree. D. PAs should not involve the development and communication of performance standards to employees.

D. PAs should not involve the development and communication of performance standards to employees.

True/False To overcome memory bias, it is a good idea to have the "RATER" keep a written performance journal in order to recall past performance when it comes time to give a performance appraisal.

True

All are steps in the performance management cycle except: A. Determine motivation B. Establish goals and expectations C. Evaluate performance D. Feedback and coaching

A. Determine motivation

_______ involves definition, development, and evaluation of employee job performance. A. Performance management B. Organization strategy and rewards C. Coaching and feedback D. Performance appraisal

A. Performance management

What is considered the most problematic area of human resources? A. Training and development B. Performance evaluation C. Talent and acquisition D. Retention

B. Performance evaluation

True/False Managers typically don't get rewarded for completing appraisal forms on time or writing detailed performance records.

True

Performance management is related to: A. Higher productivity B. Lower employee turnover C. Higher market value for the firm D. All of the above

D. All of the above

_______ use several dimensions of job performance drawn from a job analysis. A. Alternation ranking B. Trait ranking system C. Behaviorally-anchored rating scales D. Forced distribution

C. Behaviorally-anchored rating scales.

BARS are usually developed: A. With participation B. From the performance management cycle C. At random D. Through the casual model of job performance

A. With participation

All are considered objective performance measures except: A. Absenteeism B. Trait rating C. Productivity D. Sales

B. Trait rating

Which of the following is considered a subjective rating measurement of performance? A. Alternation ranking B. Forced distribution C. Paired comparison D. Weighted checklist

D. Weighted checklist

All of the following are employee rights except: A. The right to have personal records remain confidential B. Right to fair treatment C. The right to 'terminate arbitrarily' D. Freedom from discriminatory treatment

C. The right to 'terminate arbitrarily'

True/False Employee rights are only those rights that are currently protected by law or collective bargaining agreements.

False

True/False Although unjustifiable dismissal of an employee is a more widely known issue, training is still important to help lessen the offenses that occur.

True

All of the following are things that an organization should do to help them win an 'unjustifiable dismissal' suit if an employee ever decides to take them to court except: A. Maintain accurate HR records B. Train supervisors and managers to conduct valid appraisals C. Never dismiss an employee D. Establish grievance procedures

C. Never dismiss an employee

All of the following are principles of discipline a manager should follow when disciplining an employee except: A. Avoid criticizing the employee's personal characteristics B. Discipline the person C. Make rules and consequences clear D. Be consistent when enforcing rules

B. Discipline the person

True/False Not only do employees need to comply with the rules, but to be effective over the long term, they also need to agree with them.

True

What does discipline encourage employees to do? A. Not break performance standards B. Not adhere to rules C. Not have respect for others D. Not follow policies

A. Not break performance standards

What is the "decision-making leave" day? A. The day set for the employer to fire the employee B. The day set to fix the problem at hand C. The day set that the employee must decide whether or not to stay with the organization D. The day the employee decides to quit.

C. The day set that the employee must decide whether or not to stay with the organization.

What is the first step in both the non-punitive discipline and the progressive discipline systems? A. Suspension for the inappropriate behavior B. Written warning of the behavior that needs to be fixed C. Verbal warning of the inappropriate behavior D. Having a "decision-making leave" day set

C. Verbal warning of the inappropriate behavior.

What is a difference between the non-punitive system and the progressive discipline system? A. The progressive discipline starts out with a verbal warning while the non-punitive starts with a written warning of the inappropriate behavior. B. The progressive discipline has the employer terminate while the non-punitive lets the employee decide whether they want to accept responsibility and change or leave the organization. C. The progressive discipline provides an opportunity for the employee to provide feedback while the non-punitive only allows the employer to provide feedback. D. The progressive discipline focuses on the employee accepting the rules and the non-punitive system focuses on complying with the rules.

B. The progressive discipline has the employer terminate while the non-punitive lets the employee decide whether they want to accept responsibility and change or leave the organization.

When an employer terminates an employee because they are motivated by malice, they are in violation of which of the exceptions to the at-will doctrine? A. Breach of implied covenant B. Implied contract C. Breach of working conditions D. Public policy

A. Breach of implied covenant

True/False It is important for the employer to have a paper trail to defend against the charge of wrongful discharge.

True

When doing a termination interview, which of the following should not be done? A. Describe the situation leading to the dismissal B. Have only the supervisor and the employee present C. Plan the interview carefully D. Review the specifics of the severance

B. Have only the supervisor and the employee present.

An employer should do all of the following to ensure legal termination except? A. Establish due process B. Follow procedures at will C. Establish grievance procedures D. Communicate prohibitions

B. Follow procedures at will

All of the following are things that employers should do to ensure that their employees know and understand the behaviors and expectations that are prohibited or required in the job except: A. Issuing written policy statements B. Training only management and supervisors C. Completing job descriptions D. Writing up performance criteria

B. Training only managers and supervisors

True/False Even though privacy legislation generally does not cover private employer-employee relationships, many organizations are establishing their own policies governing privacy rights.

True

Which of the following is a benefit that organizations can achieve if they recognize employee rights? A. Enhanced organizational image B. Increased wage demands C. Decreased flexibility in job assignments D. Increased legal costs

A. Enhanced organizational image

All of the following are ways employees often feel when employee rights are respected except: A. They have increased self esteem B. They feel a heightened sense of job security C. They feel a heightened sense of unfairness D. They feel they are being treated with respect

C. They feel a heightened sense of unfairness

True/False Courts and legislative bodies may be less inclined to legislate job security and on-the-job employee rights if employers take a proactive position to protect employee rights on their own.

True

All of the following are things that employers should do to verify they have not violated any laws and are not liable for wrongful termination except: A. Institute a grievance process B. Keep records of employee personalities C. Ensure due process is respected D. Communicate to employees about inappropriate behavior

B. Keep records of employee personalities

What is one of the fundamental purposes of financial forecasting? A. To understand the link between asset requirements and industry B. To create accurate financial reports that summarize the company's financial performance for the previous period. C. To estimate how changes in cost structures or sales will impact the future cash flows and financing needs of the firm. D. To ensure that the future period's sales and costs will not exceed historical numbers.

C. To estimate how changes in cost will impact the future cash flows and financing needs of the firm.

What are spontaneous accounts? A. Accounts that are optional to include when creating a financial forecast B. Accounts that vary naturally with sales C. Accounts that do not vary with sales D. Accounts that are left to management's discretion

B. Accounts that vary naturally with sales.

Which type of account changes with sales growth? A. Spontaneous accounts B. Discretionary accounts C. Fixed asset accounts D. Non-spontaneous accounts

A. Spontaneous accounts

If a company expects sales to grow by 10% next year, which account might also increase by 10%? A. Headquarters utilities B. Training budget for senior employees C. General business insurance D. Cost of goods sold

D. Cost of goods sold.

When can the discretionary financing needed (DFN) be determined? A. After total financing need is determined B. After total revenue, alone, is projected. C. After total revenue and expenses are projected D. After pro-forma financial statements are forecasted using the percent of sales method.

D. After pro-forma financial statements are forecasted using the percent of sales method.

Which action decreases the discretionary financing needed (DFN)? A. Increasing the plowback ratio B. Decreasing the retention ratio C. Decreasing the net margin D. Increasing the payback ratio

A. Increasing the plowback ratio

You are a financial manager of a company, and you have projected sales increase for next year of 8%. Which action would you take when you conduct financial forecasting using the percent of sales method? A. Leave the notes payable account constant in the projected financial statements B. Change the notes payable account in proportion to sales growth C. Leave the cash account constant in the projected financial statements D. Change the long-term liabilities account in proportion to sales growth

A. Leave the notes payable account constant in projected financial statements

You are conducting financial forecasting for your firm given the projected sales. What are you doing if you are estimating changes in the balance sheet based on the predicted change in sales? A. Projecting discretionary accounts B. Forecasting spontaneous accounts C. Determining total financing need D. Calculating retained earnings

B. Forecasting spontaneous accounts

What is the sustainable growth rate (SGR)? A. Accounts that vary with the change in sales B. Accounts that do not vary with sales but are up to management's discretion C. The growth rate that allows a firm to maintain its present financial ratios without issuing new equity D. The external financing needed to meet the projected growth

C. The growth rate that allows a firm to maintain its present financial ratios without issuing new equity.

How can a company reduce its DFN? A. Increase the dividend payout B. Reduce prices C. Increase the net margin D. Reduce the retention of earnings

C. Increase the net margin

Which action increases a company's SGR? A. Decreasing asset use efficiency B. Decreasing profitability C. Decreasing the leverage the company uses D. Decreasing the dividend payout

D. Decreasing the dividend payout

Which account should be looked at first when examining capacity constraints to determine whether the discretionary financing needed (DFN) can be reduced? A. Long-term debt B. Accounts receivable C. Fixed assets D. Notes payable

C. Fixed assets

How can a firm grow its fixed assets if it is expecting growth but has reached capacity with its fixed assets? A. Invest a substantial amount of money at one time to increase capacity B. Increase the net margin C. Use the percent of sales method to forecast fixed assets D. Continue to invest in capital through small increments over time.

A. Invest a substantial amount of money at one time to increase capacity.

What does the sales capacity equation tell you? A. How much the firm can grow without issuing new equity B. How much room a firm has to grow without additional investments in fixed assets. C. The minimum amount of fixed assets required to support current sales. D. The limit for a firm's sales growth.

B. How much room a firm has to grow without additional investment in fixed assets.

What is DFN? A. The additional projected owners' equity needed given a firm's expected future growth B. The additional financing needed given a firm's expected future growth C. The total projected liabilities needed given a firm's expected future growth D. The total projected assets needed given a firm's expected future growth

B. The additional financing needed given a firm's expected future growth

You are a financial manager of a company. The marketing department has informed you that the projected sales growth for the upcoming year is 10%. As you conduct financial forecasting, you keep the long-term liabilities the same amount as the previous year and will discuss this account with the other managers later. What type of account is long-term liabilities? A. Projected asset account B. Spontaneous account C. Projected owners' equity account D. Discretionary account

D. Discretionary account

What does DFN tell us? A. The total amount of investment needed for future years B. The total amount of owners' equity that a firm is projected to have C. The total amount of liabilities that a firm is projected to have D. The total amount of funding that management will need to obtain through discretionary financing sources.

D. The total amount of funding that management will need to obtain through discretionary financing sources.

Company ABC would like to continue to grow, but in order to maintain control of all decisions and ownership, it wants to avoid issuing new stock. Which calculation will show the company's leadership the fastest that ABC can grow? A. Return on equity B. Sustainable growth rate C. Discretionary financing needed D. Key growth indicator

B. Sustainable growth rate

What is the major purpose of financial forecasting? A. To produce a short-term budget for a company or individual B. To show the company's growth over the past several years C. To inform a company how business decisions will impact future growth D. To make operational changes within a company

C. To inform a company how business decisions will impact future growth.

What is the name for a forecast of short-term events that helps a company understand if it has sufficient cash? A. Cash budget B. Time value of money C. Sustainable growth rate D. Percent of sales forecast

A. Cash budget

What is the purpose of a monthly cash budget? A. To know how much cash you spend on a monthly and yearly basis so you can determine how much you have leftover to invest. B. To have documentation for tax and lending C. To ensure that you have enough cash each month to pay your fixed expenses D. To control cash inflows and outflows so you can balance income with expenditures and savings.

D. To control cash inflows and outflows so you can balance income with expenditures and savings

In which situation would a firm need to borrow cash? A. When the beginning cash balance plus the net cash balance is less than the minimum cash balance required for the month B. When the firm's cash receipts are negative C. When the minimum cash balance for the period has been met, but the firm wants to make sure it has enough cash to cover the beginning cash required for next month D. When the net cash balance is less than or equal to zero.

A. When the beginning cash balance plus the net cash balance is less than the minimum cash balance required for the month

How can you use the envelope method of budgeting to monitor cash flows? A. Connecting budgeting software to your financial accounts B. Put cash equal to the total sum of your expenses in one envelope, use that cash for all your expenses, and then write down what you spent it on C. Use Excel to record all of your income, savings, and expenses D. Put the amount of money budgeted for each category of your expenses into labeled envelopes and then spend the money in each envelope in that category

D. put the amount of money budgeted for each category of your expenses into labeled envelopes and then spend the money in each envelope on expenses in that category.

How should you go about making changes to your budget? A. Prioritize the changes you want to make and then implement them gradually one by one to make sure they work B. Make a few changes at a time, grouping them together by how much profit they are likely to bring you C. Implement every possible change you can think of as soon as you can so that you don't lose any profits due to an inefficient budget D. Carefully evaluate the changes you want to make and then implement them all simultaneously so that your budget is the most effective it can be as soon as possible.

A. Prioritize the changes you want to make and then implement them gradually one by one to make sure they work.

You are a financial manager of a company. The marketing department has informed you that the projected sales growth for the upcoming year is 15%. As you conduct financial forecasting, you increase cash, accounts receivable, and inventory accounts by 15% -- the same as the projected sales growth. What type of accounts are these? A. Fixed assets accounts B. Spontaneous accounts C. Non-spontaneous accounts D. Discretionary accounts

B. Spontaneous accounts

What does it mean when a firm's calculated DFN is negative? A. The firm's balance sheet will be in balance at that point in the forecast B. The firm needs to consider getting extra financing from the bank C. The firm will have enough financing to fund projected sales D. The firm should consider getting extra financing by issuing new stocks.

C. The firm will have enough financing to fund projected sales.

Which account is a spontaneous account? A. Accounts payable B. Notes payable C. Common stock D. Long-term debt

A. Accounts payable

Why is SGR useful? A. It determines the discretionary financing needed B. It gives the maximum growth rate that allows a firm to maintain its current financial ratios without issuing new equity C. It provides the firm with the necessary growth rate to maintain sales D. It demonstrates where DFN should be sources if it is needed.

B. it gives the maximum growth rate that allows a firm to maintain its current financial ratios without issuing new equity.

You are analyzing fixed assets to create pro forma financial statements for your company. You realize that, since sales will increase next year, you will also need your manufacturing capacity to increase by the same amount. Currently, you are operating at maximum capacity. You buy an entire new factory and multiple pieces of equipment that increase capacity to much more than you need to meet the sales growth. Which concept describes why such a large purchase was necessary? A. Sales are uncertain for the future year B. Fixed assets are lumpy C. Fixed assets are spontaneous accounts D. Additional financing could not be obtained

B. Fixed assets are lumpy.

How does an investment institution, such as a mutual fund, facilitate the circulation of money in the economy? A. By raising capital on a contractual basis, such as an insurance contract B. By providing individuals and firms access to financial markets to buy or sell financial securities C. By insuring deposits in investment accounts up to $250,000 to promote public confidence D. By accepting deposits of money, paying interest on deposits, and providing loans to individuals and organizations.

B. By providing individuals and firms access to financial markets to buy or sell financial securities.

Which type of economic indicator is used by governments and policymakers to implement or alter policies in an effort to avoid or minimize the effects of an economic downturn? A. Coincident indicator B. Leading indicator C. Lagging indicator D. Correlated indicator

B. Leading indicator

Which type of ratio should be used to examine the cost efficiency of a firm's production? A. Liquidity. B. Efficiency C. Market D. Profitability

D. Profitability

Which action will increase the return on equity of a firm? A. Decreasing the profitability of the firm B. Decreasing the debt financing of the firm C. Increasing the liquidity of the firm D. Increasing the asset usage efficiency of the firm

D. Increasing the asset usage efficiency of the firm

An investor is analyzing a portfolio to decide if there are any stocks that should be removed from the pool of financial securities. Quiet Flag Industries, a company the investor has invested in, has just released its annual report. Which method should the investor use to see if the company has improved? A. Cross-sectional analysis B. Trend analysis C. Progress management D. Focus analysis

B. Trend analysis

An investment analyst is concerned about a construction company's ability to sell its inventory to meet current obligations, because much of the inventory (commercial buildings) it builds and sells takes longer than a year to construct. Which ratio should this analyst use to consider the effect of the firm's inventory on the firm's ability to meet current obligations? A. Inventory ratio B. Quick ratio C. Current ratio D. Leverage ratio

B. Quick ratio

A company has calculated variances of a budget and actual cash flows that indicate the firm's strengths and weaknesses in cash flows and its budgeting process. Which major use of cash budgeting is this an example of? A. Assessment of future needs B. Performance evaluation C. Standardization D. Corrective action

B. Performance evaluation

Which type of expense is a magazine subscription? A. Variable expense B. Fixed expense C. Asset expense D. Monitored expense

A. Variable expense

A company is developing a financial forecast for the next year. The company plans to implement a new factory that will increase production resulting sales by 20%. Since the company's assets are increasing significantly, what else must increase? A. Financing B. Accounts receivable turnover C. Profit turnover D. Gross margin

A. Financing

A company that manufactures televisions must obtain financing to increase the company's inventory levels. A manager at the company knows that current investment markets are tight, and it may be difficult for the company to obtain additional financing for the next year. The manager wants to propose a way for the firm to reduce its DFN. What should the manager suggest to reduce next year's DFN? A. Increase the amount spent on fixed assets to increase production capacity B. Increase sales growth, resulting in a larger amount of revenue coming to the firm C. Lower the amount of dividends that are paid out to shareholders next year D. Lower the net margin by decreasing the sales prices and maintaining current costs.

C. Lower the amount of dividends that are paid out to shareholders next year.

Freedom Rock Bicycles has a sales capacity of $10 million. When sales exceed this capacity, the company must invest $200,000 in new equipment. Freedom Rock Bicycles had sales of $9 million in one year, and it projects a sales growth of 10%. The net fixed assets in the year were $500,000. By how much will the company's discretionary financing need increase? A. $0 B. $50,000 C. $200,000 D. $900,000

A. $0

Why are financial models helpful in financial forecasting? A. Models are required by the SEC when a firm plans to issue additional stock on the public market B. Models show the future supply schedule for a firm, which allows for negotiation with suppliers. C. Models provide credibility to a firm's financial statements for government agencies to review D. Models allow users to see the complex relationships between sales and other aspects of the business.

D. Models allow users to see the complex relationships between sales and other aspects of the business.

How does an analyst use the hurdle rate? A. It is used to compare with the IRR to determine whether a project should be accepted B. It is used to calculate the IRR for a project and determine its value C. It is used with the IRR as a method to find the required payment amount for a project D. It is used to determine the time frame of a project.

A. It is used to compare with the IRR to determine whether a project should be accepted.

What would profitability index (PI) be useful for? A. Computing the future value of a project in the future rather than the present value B. Calculating returns for a project that does not have a definite return rate for IRR or NPV C. Determining whether a firm should invest in projects with different initial outlays D. Deciding between projects that are mutually exclusive

C. Determining whether a firm should invest in projects with different initial outlays

An investor really cares about having voting rights in a firm. Which type of financial security should this investor purchase? A. Preferred stock B. Secured bonds C. Zero-coupon bonds D. Common stock

D. Common stock

The lowest rate of return is required by which type of investor or lender? A. Common stockholder B. Bondholder C. Preferred stockholder D. Bank

D. Bank

Which cash flow of a particular project would be a sunk cost? A. $20,000 market value of equipment at the end of the project B. $35,000 incremental cash flows for the third year of the project C. $50,000 marketing study conducted three months ago for the project D. $100,000 initial investment for the project

C. $50,000 marketing study conducted three months ago for the project.

Quiet Flag Industries has a large piece of land worth $250,000 that it is considering using for a miniature golf business. When evaluating cash flows that would result from doing this project, should Quiet Flag consider the land value? Why/Why not? A. No, the land value represents an existing expense B. No, the land value represents a sunk cost C. Yes, the land value represents cannibalization D. Yes, the land value represents an opportunity cost.

D. Yes, the land value represents an opportunity cost.

What is the effect of debt financing on a firm's income? A. Debt interest payments have no effect on taxable income B. Income is taxed at a lower rate when a firm has more debt C. Debt interest payments reduce taxable income D. Income is taxed at a lower rate when a firm has no debt

C. Debt interest payments reduce taxable income

An investor is reviewing the bonds of four different companies: Company A issues AA-rated bonds. Company B issues A-rated bonds. Company C issues BB-rated bonds. Company D issues C-rated bonds. Which company is likely to provide the lowest rate of return to the investor? A. Company A B. Company B C. Company C D. Company D

A. Company A

How is the cost of capital used in the decision-making process for a capital investment project? A. It is input into cash flow calculations B. It is used as the discount rate of cash flows C. It is compared to the NPV D. It is part of the initial investment.

B. It is used as the discount rate of cash flows.

Training and Development Flashcards

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