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BUSN460 Individual Financial Analysis Project

Question
	

BUSN460 Individual Financial Analysis Project
Student Name:
Instructions:
Go to the CanGo intranet found in the Report Guide tab under Course Home
Use the financial statements from the most recent year to fill in the table below.
You may find some formulae calling for an average, e.g., average inventory, average receivables. 
Balance sheet for one year is available, you can only use the one year number not an average.
Assume interest expense is $0.00
Be sure to cite your references
	

ACC- Bob’s Flowers Problem

Question
	

Using the following trial balance information for Bob’s Flowers for 2010, prepare an adjusted trial balance, adjusting and closing journal entries, and (in good form) an Income Statement, Statement of Retained Earnings and Balance Sheet.

a. Expired insurance totals $8.
b. Of the unearned revenue, all has been earned by the balance sheet date.
c. Estimated depreciation of equipment is $6.
d. Accrued wages equal $4.
e. Unused supplies on hand are $4.
f. Estimated income taxes are $2.

Account Name
Trial Balance
Cash
30debit
Account Receivable
20debit
Prepaid Insurance
12debit
Supplies
10debit
Equipment
40debit
Accumulated Depreciation, Equipment-
6credit
Account Payable
12credit
Unearned Revenue
8credit
Common Stock
64credit
Dividends
2debit
Service Revenue
48credit
Wages Expense
24debit
	

The task of stitching together a strategy

Question
	

Question: The task of stitching together a strategy 

A Entails addressing a series of hows: how to grow the business, how to please customers, how to outcompete rivals, how to respond to changing market conditions, and how to achieve strategic and financial objectives

B Is primarily an exercise in deciding which of several freshly-emerging market opportunities to pursue

C Is mainly an exercise that should be dictated by what is comfortable to management from a risk perspective and what is acceptable in terms of capital requirements

D Requires trying to copy the strategies of industry leaders as closely as possible

E Is mainly an exercise in good planning
Question: The obligations of an investor-owned company's board of directors in the strategy-making, strategy-executing process include 

A Coming up with compelling strategy proposals of their own to debate against those put forward by top management

B Overseeing the company’s financial accounting and financial reporting practices and evaluating the caliber of senior executives’ strategy-making/strategy-executing skills

C Taking the lead in developing the company’s business model and strategic vision

D Taking the lead in formulating the company's strategic plan but then delegating the task of implementing and executing the strategic plan to the company's CEO and other senior executives

E Approving the company’s operating strategies, functional-area strategies, business strategy, and overall corporate strategy
Question: Which of the following conditions acts to weaken buyer bargaining power? 

A When buyers are unlikely to integrate backward into the business of sellers

B When buyers purchase the item frequently and are well-informed about sellers’ products, prices, and costs

C When the costs incurred by buyers in switching to competing brands or to substitute products are relatively low

D When the products of rival sellers are weakly differentiated and buyers have considerable discretion over whether and when they purchase the product

E When buyers are few in number and/or often purchase in large quantities
Question: Which one of the following is not a reason why industry members are often motivated to enter into collaborative partnerships with key suppliers? 

A To reduce the costs of switching suppliers

B To speed the availability of next-generation components

C To enhance the quality of parts and components being supplied and reduce defect rates

D To squeeze out important cost savings for both themselves and their suppliers

E To reduce inventory and logistics costs
Question: What is the foremost question in running a business enterprise? 

A What must managers do, and do well, to make a company a winner in the marketplace?

B What can employees do, and do well, to ensure customer satisfaction?

C What can shareholders do, and do well, to ensure a profitable company?

D None of these

E All of these
Question: A company's mission statement typically addresses which of the following questions? 

A Who are we and what do we do?

B What objectives and level of performance do we want to achieve?

C Where are we going and what should our strategy be?

D What approach should we take to achieve sustainable competitive advantage?

E What business model should we employ to achieve our objectives and our vision?
Question: Which of the following is not one of the basic reasons that a company’s strategy evolves over time? 

A The need on the part of company managers to initiate fresh strategic actions that boost employee commitment and create a results-oriented culture

B The proactive efforts of company managers to fine-tune and improve one or more pieces of the strategy

C An ongoing need to abandon those strategy features that are no longer working well

D The need to respond to the actions and competitive moves of rival firms

E The need to keep strategy in step with changing market conditions and changing customer needs and expectations
Question: The intensity of rivalry among competing sellers does not depend on whether 

A The industry has more than two strong driving forces and whether the industry has more than two strategic groups

B Competitors are diverse in terms of visions, strategic intents, objectives, strategies, resources and countries of origin

C Strong companies outside the industry have acquired weak firms in the industry and are launching aggressive moves to transform the acquired companies into strong market contenders

D One or two rivals have particularly powerful and successful strategies

E Industry conditions tempt industry members to use price cuts or other competitive weapons to boost unit sales
Question: Quantitative measures of a company’s competitive strength 

A Signal which competitor has the most distinctive competencies and which competitor has the fewest

B Provide useful indicators of how a company compares against key rivals, factor by factor and capability by capability – thus indicating whether the company has a net overall competitive advantage or disadvantage against each rival

C Reveal which competitors are in the best and worst strategic groups

D Show which industry rival has the best overall market opportunities and which competitor has the poorest market opportunities

E Pinpoint which industry rival is subject to the least amount of competitive pressures from the five competitive forces

Question: To build a competitive advantage by out-managing rivals in performing value chain activities, a company must 

A Position itself in the industry’s more favorably situated strategic group

B Develop resources strengths that will enable it to pursue the industry's most attractive opportunities

C Develop core competencies and maybe a distinctive competence that rivals don’t have or can’t quite match and that are instrumental in helping it deliver attractive value to customers or else be more cost efficient in how it performs value chain activities such that it has a low-cost advantage

D Outsource all of its value chain activities to world-class vendors and suppliers

E Eliminate its resource weaknesses
Question: Identifying the strategic issues a company faces and compiling a worry list of problems and roadblocks is an important component of company situation analysis because 

A Without a precise fix on what problems/issues a company confronts, managers cannot know what the industry’s key success factors are

B The worry list sets the management agenda for taking actions to improve the company’s performance and business outlook

C Without a precise fix on what problems/roadblocks a company confronts, managers are less clear about what value chain activities to benchmark

D The worry list helps company managers clarify their thinking about how best to modify the company’s value chain

E These issues and obstacles must be cleared before management can focus clearly on what is the best strategy for the company to pursue
Question: Top management efforts to communicate the strategic vision to company personnel 

A Ought to be done in writing rather than orally so as to leave no room for company personnel to misinterpret what the strategic vision really is

B Should be done in language that inspires and motivates company personnel to unite behind executive efforts to get the company moving in the intended direction

C Tends to be more effective when top management avoids trying to capture the essence of the strategic vision in a catchy slogan

D Is most efficiently and effectively done by posting the strategic vision prominently on the company’s website and encouraging employees to read it

E Should be attempted only after management has explained the company’s strategic intent, strategy, and business model to company personnel
Question: Thinking strategically about industry and competitive conditions in a given industry involves evaluating such considerations as 

A The forces driving change in the industry

B The dominant economic features of the industry in which the company operates

C The kinds of competitive forces industry members are facing and the strength of each competitive force

D The key factors influencing future competitive success in the industry

E All of the above
Question: The competitive power of a company’s core competence or distinctive competence depends on 

A Whether it helps differentiate a company’s product offering from the product offerings of rival firms

B How hard it is to copy and how easily it can be trumped by substitute resource strengths and competitive capabilities of rivals

C Whether customers are aware of the competence and view the competence positively enough to boost the company’s brand name reputation

D Whether the competence is one of the industry’s key success factors

E Whether the competence is technology-based or based on superior marketing know-how
Question: A competitive environment where there is strong rivalry among sellers, low entry barriers, strong competition from substitute products, and considerable bargaining leverage on the part of both suppliers and customers 

A Is competitively unattractive from the standpoint of earning good profits

B Offers little ability to build a sustainable competitive advantage

C Is highly conducive to achieving strong product differentiation and high customer loyalty to the company’s brand

D Offers moderate to good prospects for making a reasonable profit and building a sustainable competitive advantage

E Requires that industry members have a strongly differentiated product offering in order to be profitable
Question: Developing a strategic vision for a company entails 

A Prescribing a strategic direction for the company to pursue and a rationale for why this strategic path makes good business sense

B Describing its business model and the kind of value that it is trying to deliver to customers

C Putting together a story line of why the business will be a moneymaker

D Describing who we are and what we do

E Coming up with a long-term plan for outcompeting rivals and achieving a competitive advantage
Question: Using the five-forces model of competition to determine what competition is like in a given industry involves 

A Building the picture of competition in three steps: (1) identifying the specific competitive pressures associated with each of the five competitive forces; (2) evaluating how strong the pressures comprising each competitive force are; and (3) determining whether the collective impact of all five competitive forces is conducive to earning attractive profits

B Building the picture of competition in two steps: (1) determining which rival has the biggest competitive advantage and (2) assessing whether the competitive advantages possessed by various industry members allow most industry members to earn above-average profits

C Evaluating whether competition is being intensified or weakened by the industry’s driving forces and key success factors

D Assessing whether the collective impact of all five forces is weak enough to allow industry members to go on the offensive or use a defensive strategy to insulate against fierce competitive pressures

E Gauging the overall strength of competition based on how many industry rivals are operating with a competitive advantage and how many are operating at a competitive disadvantage
Question: In crafting a company’s strategy 

A Management’s biggest challenge is how closely to mimic the strategies of successful companies in the industry

B Managers have comparatively little freedom in choosing the hows of strategy

C Managers are wise not to decide on concrete courses of action in order to preserve maximum strategic flexibility

D Managers need to come up with some distinctive Aha! element to the strategy that draws in customers and produces a competitive edge over rivals

E Managers are well-advised to be risk averse and develop a conservative strategy – dare-to-be-different strategies rarely are successful
Question: Assigning a weight to each measure of competitive strength assessment is generally analytically superior because 

A A weighted ranking identifies which competitive advantages are most powerful

B An unweighted ranking doesn't discriminate between companies with high and low market shares

C It singles out which competitor has the most competitively potent core competencies

D Weighting each company’s overall competitive strength by its percentage share of total industry profits produces a more accurate measure of its true competitive strength

E All of the various measures of competitive strength are not equally important
Question: Doing a competitive strength assessment entails 

A Determining whether a company has a cost-effective value chain

B Ranking the company against major rivals on each of the important factors that determine market success and ascertaining whether the company has a net competitive advantage or disadvantage versus major rivals

C Identifying a company’s core competencies and distinctive competencies (if any)

D Analyzing whether a company is well positioned to gain market share and be the industry’s profit leader

E Developing quantitative measures of a company’s chances for future profitability
Question: The difference between the concept of a company mission statement and the concept of a strategic vision is that 

A A mission concerns what to do to achieve short-run objectives and a strategic vision concerns what to do to achieve long-run performance targets

B The mission is to make a profit, whereas a strategic vision concerns what business model to employ in striving to make a profit

C A mission statement deals with what to accomplish on behalf of shareholders and a strategic vision concerns what to accomplish on behalf of customers

D A mission statement typically concerns a company’s present business scope (who we are and what we do) whereas the principal concern of a strategic vision is the company's long-term direction and future product-market-customer-technology focus

E A mission statement deals with where we are headed, whereas a strategic vision provides the critical answer to how will we get there
Question: A higher company’s overall weighted strength rating does not signal 

A Greater implied net competitive advantage

B Stronger overall competitiveness versus rivals

C Weaker overall competitiveness versus rivals

D Possession of competitive advantage

E None of these
Question: Which of the following is not a primary focus of a company's strategy? 

A How to attract and please customers

B How each functional piece of the business will be operated

C How to achieve above-average gains in the company’s stock price and thereby meet or beat shareholder expectations

D How to compete successfully

E How to grow the business
Question: The competitive moves and business approaches a company's management is using to grow the business, stake out a market position, attract and please customers, compete successfully, conduct operations, and achieve organizational objectives is referred to as its 

A Strategy

B Mission statement

C Strategic intent

D Business model

E Strategic vision
Question: Which of the following is not one of the central questions in evaluating a company’s business prospects? 

A What is the company’s present situation?

B What are the key products or service attributes demanded by consumers?

C Where does the company need to go from here?

D How should it get there?

E All of the above are pertinent in evaluating a company’s business prospects
	

Research a virtual computing software product

Question



Research a virtual computing software product .
Write a detailed report
summarizing your findings. What are the costs, availability, and ability of
your chosen product?

 This assignment should
be a minimum of two pages in length. 
	

Police Crime Prevention Paper

Question
	
Write a short paper (minimum 250 words, double spaced) on the following subject:
Do you feel that the city you live in has enough police to prevent or control crime? Be specific in your explanation.
	

ACC560 Assignment 2: Johnson Controls Capital Investments

Question
	
Assignment 2: Johnson Controls Capital Investments
Due Week 9 and worth 450 points
Visit the Website of Johnson Controls Inc., located atand review its 2012 financial forecasts. According to the forecasts, Johnson Controls will increase capital investments to approximately $1.7 billion. More than 70% of the company's capital expenditures in 2012 are associated with growth and margin expansion opportunities.
Write a five to six (5-6) page paper in which you:
1. Suggest a methodology to supplement the traditional methods for evaluating the capital investments of Johnson Controls in the emerging markets to reduce risk providing a rationale of how risk will be reduced.
2. Assess the potential impact of inflation on planned capital investments in China and examine approaches for an accurate evaluation of the investments. Suggest how this knowledge may impact management’s decisions.
3. Contrast the modifications you would make in evaluating the projects to increase internal capacity in North America to evaluating expansion projects in the global market and how this information will impact the decisions made related to expansion.
4. Examine the benefits of using sensitivity analysis in evaluating the projects for Johnson Controls and how this approach can provide a competitive advantage for the company.
5. Use at least three (3) quality academic resources in this assignment.
	

general business data bank

Question
	
51. Which of the following is an example
of an internalizing problem?

a. feelings of worthlessness

b. feelings of hopefulness

c. feelings of aggression directed
toward property

d. feelings of romantic attraction



52. Which of the following is an eating disorder that is
characterized by fear of gaining weight and refusal to maintain a minimally
normal body weight?

a. anorexia 

b. depression

c. egocentrism

d. menarche



53. Carla is a shy adolescent who lives a very structured life,
keeping to a strict routine. Over the last six months, she has lost 20 pounds.
She is often nauseous and does not enjoy eating. Her mother tries to encourage
her to eat, but Carla insists she is too fat and she looks better this way. A
likely diagnosis is ____.

a. externalizing disorder

b. anorexia 

c. peer group alienation

d. obstinate disorder



54. In contrast to those with anorexia,
adolescents who suffer from bulimia are more likely to _______.

a. have spurts of public gluttony

b. focus exclusively on weight loss

c. suffer serious health risks

d. prevent food absorption through
induced vomiting or use of laxatives



55. How is the problem of anorexia linked
to the topic of emotional development?

a. Girls
with anorexia have other externalizing problems as well.

b. Anorexia is associated with
difficulties accepting and expressing emotions.

c. Anorexia is associated with
difficulties in impulse control.

d. Guilt is not experienced among
adolescents with anorexia.



56. Acts that are illegal for adolescents but not adults such
as truancy and underage drinking are called _____.

a. stage
offenses

b. status
offenses

c. problems
of immaturity

d. acting
out behavioral offenses



57. Delinquency is associated with which
of the following?

a. overcontrol of emotions

b. body image dissatisfaction

c. inability to control and manage
one’s impulses

d. fear of being thought of as unmanly



58. Youth who are involved in repeated
violent crimes are likely to _________________.

a. drop out of school

b. turn themselves around with little
need for intervention

c. experience clinical levels of
depression

d. be dissatisfied with their body
image



59. Research suggests that for most males and females who carry
knives, the primary motive is _____________. 

a. self-defense

b. the desire for revenge

c. intimidation

d. peer group pressure



60. As a result of the newly installed metal detectors, Bob was
caught bringing a gun to school. He
claims that he just wanted to show it to his history teacher. Based on what you know about teens who carry
guns, what do you think might be another possible motive? 

a. Bob is interested in the physics of
weapons.

b. Bob wants to help protect his
friends from other bullies at school.

c. Bob is looking for respect by
intimidating his peers with a gun.

d. Bob is trying to protect himself,
having been threatened by other kids at school.



61. Alan is experiencing sleeplessness, moodiness, and loss of
appetite. He is very low in energy and
doesn't want to get involved in any of the activities that provided enjoyment
in the past. A likely diagnosis is
_________.

a. anorexia nervosa

b. egocentrism

c. binge drinking

d. depressed mood

, 

62. Which of the following is NOT likely
to cause depression in early adolescence?


a. experiences of loss or failure

b. parental loss or rejection

c. hormonal changes

d. peer acceptance







63. Parental loss or parental rejection increases an
adolescent's vulnerability to ___________________. 

a. egocentrism

b. depression

c. early onset of puberty

d. romantic ideas about family
formation



64. Research indicates that experiences of depression appear to
be more common for which of the following?

a. children of working mothers

b. children of depressed mothers

c. fathers of adolescents

d. teachers of adolescents



65. Which of the following might lead to increased feelings of
insecurity and worthlessness, and lack of confidence for adolescent girls?

a. lack
of a part-time job

b. parental
restrictions on dating

c. sexist
microaggressions by teachers or male peers

d. ambitious
academic goals



66. Why is a depressed mood in early adolescence of special concern?

a. It
is linked to suicide and/or suicidal attempts.

b. It
is linked to juvenile delinquency.

c. It
is linked to lack of respect for authorities.

d. It
is linked to delayed formal operational reasoning. 



67. In the U.S., among those in the age
range 15 to 24, what is the rate of suicides? 

a. one every week

b. one every day

c. one every 2 hours

d. one every 2 minutes



68. Which of the following is a
precipitating event that might lead to adolescent suicide?

a. a humiliating experience

b. a notable failure

c. rejection by a romantic partner

d. all of the these



69. Which of the following is most
accurate about adolescent suicides?

a. Boys attempt suicide more often
than girls.

b. Girls commit suicide more often
than boys.

c. Low parental monitoring is a risk
factor.

d. The number reported seems to be
quite accurate.







70. In a study of the impact of the Signs of Suicide (SOS)
prevention program in 92 schools, it was found that students who participated
in the program   .

a. showed an increase of help seeking
of 60% in the month following the beginning of the program

b. showed increases in negative
reactions after being exposed to information about suicide

c. were 34% less likely to commit
suicide than students who were not in the program

d. were less likely to talk to
teachers once the program began



71. During early adolescence, the peer group tends to become
more  than it had been
at earlier ages.

a. causal

b. structured

c. tied to the neighborhood

d. homogeneous



72. What is the meaning of the term "crowd" in relation to
the adolescent peer group?

a. a
small group of 5 to 10 friends

b. all the people one adolescent knows
by name

c. a large group recognized by a few
predominant characteristics

d. all the popular kids in a school



73. Populars, gangsters, goths, and jocks
are examples of  .

a. high school organizations

b. peer organizations

c. social class roles

d. peer crowds



74. Which of the following is considered a
characteristic of adolescent peer cliques? 

a. They have boundaries.

b. They have expectations for
behavior.

c. They can be identified by
characteristic clothing, language, and places where they get together.

d. All of the these



75. Membership in peer groups helps
adolescents learn important skills such as ________.

a. assessing group structure

b. avoiding delinquent behavior

c. being responsive to adult
expectations

d. coping with media images
	

general business data bank

Question
	
114. "We have moved from an economy of hands to
an economy of heads." Do you agree with this statement? Explain. 



 



 



 

 





115. List and describe several ways organizations
collaborate across boundaries. 



 



 



 

 

116. List and explain each of the five keys to
managing for competitive advantage. 



 



 



 

 

117. Briefly describe each of the four key management
functions. 



 



 



 

 

118. Differentiate between the various management
levels in an organization. 



 



 



 

 





119. At which level of management will you find
conceptual and decision skills most utilized? Why? 



 



 



 

 

120. What should you do to forge a successful,
gratifying career? Briefly explain each of the four dimensions that should be
considered. 



 


 
	

MGMT 640 Midterm Exam

Question
	MGMT 640 Midterm Exam

Ques. 1) Which of the following is not an advantage of the corporate form of business organization?
a. Sell debt or equity in public capital markets
b. Owners have limited liability
c. Owners are subject to double taxation
d. May continue in business in perpetuity

Ques. 2) Working capital management involves decisions related to the following:
a. Purchase of production machines
b. Extending credit to customers
c. Signing a 3 year lease for an office building
d. Negotiating with city officials a 2-year tax abatement plan for a new factory

Ques. 3) Which of the following statements is correct:
a. Market forces provide sufficient incentives for ethical behavior
b. It would be easier to do business if there were no ethical norms
c. Government regulations are necessary to ensure ethical behavior
d. An ethical culture with good internal controls promotes ethical behavior

Ques. 4) In 2010, Jack's Art Gallery sold 200 original works of art for $1,240,520. The gallery acquired the works sold for $530,000. Each painting was framed using predesigned framing kits in the gallery's own workshop. The firm bought 100 kits in January for $50,000, 100 kits in March for $60,000.,100 kits in May for $40,000 and 100 kits in August for $30,000. Other costs of operation, including salaries, supplies, rent, etc., totaled $200,000. The company depreciated its assets by $120,000 and paid interest on loans totaling $55,000. Assuming no other costs and that Jack's Art Gallery used FIFO in its inventory management, the firm's EBITDA for 2010 was:
a. $280,520
b. $230,520
c. $400,520
d. $440,520

Ques. 5) Jake Smith opened his Balinese coffee shop business in downtown Boise on January 1st 2010. On December 31st, 2010, he sat down with his accountant to figure out how his business had done in its first year and heaved a sigh of relief when his accountant reported that his EBT came to $20,000. Revenues, at $1,050,000 looked good. His expenses were as follows:

Salaries and benefits paid to employees	$210,000
Jake's own salary	$100,000
Supplies (coffee, tea, milk, pastries, etc.)	$620,000
Cost of Restaurant grade coffee machine	$30,000
Miscellaneous operating costs	$44,000
Interest on loan	$12,000
How much did Jake's accountant allocate for depreciation and amortization?
a. $44,000
b. $14,000
c. $4,000
d. $0.00

Ques. 6) Timber firewood company reported the following numbers in its 2010 income statement:
EBIT	$520,000
Depreciation	$35,000
Interest expenses	$24,000
General expenses	$110,000

If it's marginal tax rate was 30%, what were Timber's cash flows from operating activities for 2010?
a. $347,200
b. $382,200
c. $496,000
d. $520,000

Ques. 7) For the year ending June 30, 2008, the Austin Corporation has current assets of $ 275,000 and total assets of $ 900,000. It also has current liabilities of $ 150,000, equity of $ 200,000, and retained earnings of $ 100,000. The marginal tax rate for the firm is 30%. How much long-term debt does the firm have?
a) $ 250,000
b) $ 350,000
c) $ 315,000
d) $ 450,000

Ques. 8) The Johnson and Baker Company increased investments in foreign securities by $ 120,000, funded fixed asset acquisitions by $ 1,500,000, and sold $ 90,000 of long-term debt. Also, the firm had a net inflow of $ 300,000 from the sale of assets. What is the net cash used in investing activities?
a) $ 1,320,000
b) $ 1,230,000
c) $ 1,410,000
d) $ 1,800,000

Ques. 9) Net working capital is:
a) equal to the expenses on the income statement
b) a traditional measure of a firm’s liquidity
c) reduced by the firm’s outstanding treasury stock to determine profits
d) equal to total assets plus total liabilities

Ques. 10) Intangible Assets include all the following except:
a. Trademarks
b. Goodwill
c. Patents
d. Capital leases
e. All of the above

Ques. 11) Owners Equity consists of all the following except:
a. Additional paid in capital.
b. Par value stock
c. Debentures outstanding
d. Retained earnings

Ques. 12) On the statement of cash flows an increase in accounts receivables is considered:
a. A cash inflow
b. A use of cash
c. A source of cash
d. None of the above

Ques. 13) Which of the following best describes how corporations are taxed on dividend income?
a. Like individuals, corporations are taxed on all dividends received.
b. Seventy percent of dividend income received by corporations is tax exempt.
c. Varying amounts of dividend income received by corporations are tax-exempt, depending on the percent of the paying corporation that the receiving corporation owns.
d. In order to avoid triple taxation of earnings, dividend income received by one corporation from another in which it owns stock is 100% tax-exempt.

Ques. 14) Kleaner Kars has a return on assets of 6.75 percent, a total asset turnover rate of 1.3, and an equity multiplier of 1.6. Using the Dupont Identity, what is the return on equity?
a. 8.30 percent
b. 8.78 percent
c. 10.80 percent
d. 14.04 percent	
e. 14.33 percent

Ques. 15) Jefferson and Sons has total assets of $807,200, total equity of $509,500, total sales of $945,300, and net income of $25,600. What is the profit margin?
a. 1.17 percent
b. 1.86 percent
c. 2.71 percent
d. 3.17 percent
e. 5.02 percent

Ques. 16) A firm has a debt-to-equity ratio of 0.5. What is the firm’s equity multiplier?
a. 0.33
b. 1.50
c. 0.50
d. 2.00
e. 5.00

Ques. 17) Knox Corp. plans to sell 1,000 units in 2011 at an average sale price of $40 each. Cost of goods sold will be 40% of the sale price. Depreciation expense will be $2,500, interest expense $1,500, and other expenses will be $3,000. Wessel's tax rate is 35%. What will Knox Corp.'s net income be for 2011?
a. $ 9,500
b. $ 6,875
c. $14,200
d. $11,050
e. $28,430

Ques. 18) What is the return on stockholders' equity for a firm with a net profit margin of 4.9 percent, sales of $350,000, an equity multiplier of 1.6, and total assets of $215,000?
a. 12.76%
b. 15.24%
c. 12.57%
d. 8.88%

Ques. 19) Assume a firm has an average inventory of $50,000, sales of $250,000, gross profit of $100,000, and net income of $25,000. The preferred formulation for an inventory turnover results in an inventory turnover of:
a. 1 time
b. 3 times
c. 4 times
d. 5.5 times

Ques. 20) The higher the rate of interest:
a. the smaller the future value of an amount invested to-day
b. the smaller the present value of a future sum of money
c. the larger the present value of a future sum of money
d. all of the above

Ques. 21) Holding all other variables constant, an increase in the interest rate will cause ________ to decrease.
a. Future values
b. Annuity payments
c. Present values
d. Growth rates

Ques. 22) You have just calculated the present value of the expected cash flows of a potential investment. Management thinks your figures are too low. Which of the following actions would increase the present value of your cash flows?
a. assume a longer stream of cash flows of the same amount
b. decrease the discount rate
c. increase the discount rate
d. a and b

Ques. 23) Ed Sloan wants to withdraw $25,000 (including principal) from an investment fund at the end of each year for five years. How should he compute his required initial investment at the beginning of the first year if the fund earns 10% compounded annually?
a. $25,000 times the future value of a 5-year, 10% ordinary annuity
of 1.
b. $25,000 divided by the future value of a 5-year, 10% ordinary
annuity of 1.
c. $25,000 times the present value of a 5-year, 10% ordinary annuity
of 1.
d. $25,000 divided by the present value of a 5-year,10% ordinary
annuity of 1.

Ques. 24) What amount will be in a bank account three years from now if $5,000 is invested each year for four years with the fir
st investment to be made today?
a. ($5,000 x 1.260) + ($5,000 x 1.166) + ($5,000 x 1.080) + $5,000
b. $5,000 x 1.360 x 4
c. ($5,000 x 1.080) + ($5,000 x 1.166) +($5,000 x 1.260) +
d. ($5,000 x 1.360)
e. $5,000 x 1.080 x 4

Ques. 25) On January 1, 2004, Carly Company decided to begin accumulating a fund for asset replacement five years later. The company plans to make five annual deposits of $30,000 at 9% each January 1 beginning in 2004. What will be the balance in the fund, within $10, on January 1, 2009 ( one year after the last deposit)? The following 9% Interest factors may be used.
Present Value of Ordinary Annuity	Future Value of Ordinary Annuity
4 periods 3.2397 4.5731
5 periods 3.8897	 5.9847
6 periods 4.4859 7.5233

a. $195,699
b. $179,541
c. $163,500
d. $150,000

Ques. 26) Your uncle promises to give you $550 per quarter for the next five years starting today. How much is his promise worth right now if the interest rate is 8% compounded quarterly?
a. $9,173.14
b. $13,363.57
c. $13,630.84
d. $8,993.27

Ques. 27) Your bank account pays a 6% nominal rate of interest. The interest is compounded quarterly. Which of the following statements is CORRECT?
a. The periodic rate of interest is 1.5% and the effective rate of interest is 3%.
b. The periodic rate of interest is 6% and the effective rate of interest is greater than 6%.
c. The periodic rate of interest is 1.5% and the effective rate of interest is greater than 6%.
d. The periodic rate of interest is 3% and the effective rate of interest is 6%.
e. The periodic rate of interest is 6% and the effective rate of interest is also 6%.

Ques. 28) Suppose an ExxonMobil Corporation bond will pay $4,500 ten years from now. If the going interest rate on safe 10-year bonds is 4.25%, how much is the bond worth today?
a. $2,819.52
b. $2,967.92
c. $3,116.31
d. $3,272.13
e. $3,435.74

Ques. 29) You want to go to Europe 5 years from now, and you can save $3,100 per year, beginning one year from today. You plan to deposit the funds in a mutual fund that you think will return 8.5% per year. Under these conditions, how much would you have just after you make the 5th deposit, 5 years from now?
a. $18,369
b. $19,287
c. $20,251
d. $21,264
e. $22,327

Ques. 30) A portfolio with a level of systematic risk the same as that of the market has a beta that is:	
a. equal to zero
b. equal to one	
c. less than the beta of the risk-free asset
d. less than zero

Ques. 31) The expected return on KarolCo. stock is 16.5 percent. If the risk-free rate is 5 percent and the beta of KarolCo is 2.3, then what is the risk premium on the market assuming CAPM is true?	
a. 2.5%	
b. 5.0%	
c. 7.5%	
d. 10.0%	

Ques. 32) Using the above information, what is the rate of return on the market?	
a. 2.5%	
b. 5.0%	
c. 7.5%	
d. 10.0%	

Ques. 33) The expected return for Stock Z is 30 percent. If we know the following information about Stock Z:
Return	 Probability	
Poor	 0.2	 0.25	
Lukewarm	?	 0.5	
Dynamite!	0.4	 0.25	
What return will stock Z produce in the Lukewarm state of the world?	
A) 20%	
B) 30%	
C) 40%	
D) It is impossible to determine.	

Ques. 34) The risks that diversification cannot eliminate are:
a. Interest rate risk.
b. risk due to a recession.
c. inflation risk.
d. systematic risk.
e. all of the above

Ques. 35) Kevin purchased a stock a year ago that pays a dividend. He has earned a 50%. The stock was purchased for $16 and is now worth $21. What is the amount of dividends received during the year?
a. $5
b. $4
c. $3
d. $2

Ques. 36) John is investing in the S&P 500. His expected return on the S&P 500 is 10% with a standard deviation of 4%. If John is investing $200,000, then what is the dollar range of returns that John can have with 90 percent confidence at the end of the year?
a. $212,000 - $228,000
b. $206,840 - $233,160
c. $204,320 - $235,680
d. $199,400 - $240,600

Ques. 37) Microsoft’s beta is 1. The risk free rate of return is 2%. If the expected return on the market is 12 percent, then the expected return on Microsoft is:
a. 12 percent
b. 15 percent
c. 8 percent
d. 10 percent

Ques. 38) What is the relationship between present value and future value interest factors?
A. The present value and future value factors are equal to each other.
B. The present value factor is the exponent of the future value factor.
C. The future value factor is the exponent of the present value factor.
D. The factors are reciprocals of each other.
E. There is no relationship between these two factors.

Ques. 39) An investment that costs $50,000 will return $15,000 operating cash flows per year for five years. Determine the net present value of the investment if the required rate of return is 14 percent. Should the investment be undertaken? ( Your answer might be slightly different due to rounding. Select the best answer from those available.)
A. Yes, the profit is $25,000.
B. No, the accounting return is less than 14%.
C. No, the net present value is negative at $11,045.
D. Yes, the net present value is positive at $1,496.50.

Ques. 40) What is the net present value of a project with the following cash flows if the required rate of return is 15 percent?
Year	Cash Flow
0	-$42,398
1	13,407
2	21,219
3	17,800

A. -$1,574.41
B. -$1,208.19
C. -$842.12
D. -$2,991.34
E. $1,311.16
	

general business data bank

Question
	
41. ____ refers to a value
characterized by people's intolerance for uncertainty and ambiguity and
resulting support for beliefs that promise certainty and conformity.


 

 

 
a.
 
 

 
Power distance
 

 

 

 
b.
 
 

 
Uncertainty
 avoidance
 

 

 

 
c.
 
 

 
Certainty avoidance
 

 

 

 
d.
 
 

 
Conformity seekers
 

 

 

 
e.
 
 

 
None of these
 







ANS: 



 42. Which of these reflects a cultural preference for cooperation,
group decision making, and quality of life?


 

 

 
a.
 
 

 
Individualism
 

 

 

 
b.
 
 

 
Collectivism
 

 

 

 
c.
 
 

 
Masculinity
 

 

 

 
d.
 
 

 
Femininity
 

 

 

 
e.
 
 

 
Power distance
 







ANS: 



 43. One of Hofstede's social values that was developed later is


 

 

 
a.
 
 

 
power distance.
 

 

 

 
b.
 
 

 
uncertainty
 avoidance.
 

 

 

 
c.
 
 

 
masculinity.
 

 

 

 
d.
 
 

 
collectivism.
 

 

 

 
e.
 
 

 
long-term
 orientation.
 







ANS: 



 44. Recent research by the GLOBE project has extended ____ research
and offered new insights for managers.


 

 

 
a.
 
 

 
Hofstede's
 

 

 

 
b.
 
 

 
Walton's
 

 

 

 
c.
 
 

 
Weber's
 

 

 

 
d.
 
 

 
Fayol's
 

 

 

 
e.
 
 

 
Gilbreth's
 







ANS: 



 45. All of the following are cultural dimensions as defined by the
GLOBE Project, EXCEPT:


 

 

 
a.
 
 

 
assertiveness
 

 

 

 
b.
 
 

 
gender
 differentiation
 

 

 

 
c.
 
 

 
social collectivism
 

 

 

 
d.
 
 

 
humane orientation
 

 

 

 
e.
 
 

 
masculinity
 







ANS: 

: 



 46. In countries where women are often in positions of high status,
the Globe Project would describe that culture as high in ____.


 

 

 
a.
 
 

 
assertiveness
 

 

 

 
b.
 
 

 
uncertainty
 avoidance
 

 

 

 
c.
 
 

 
gender
 differentiation
 

 

 

 
d.
 
 

 
societal
 collectivism
 

 

 

 
e.
 
 

 
performance
 orientation
 







ANS: 



 47. A country that places emphasis on fairness and values kindness
would be described by the Globe Project as high in ____.


 

 

 
a.
 
 

 
assertiveness
 

 

 

 
b.
 
 

 
uncertainty
 avoidance
 

 

 

 
c.
 
 

 
gender
 differentiation
 

 

 

 
d.
 
 

 
humane orientation
 

 

 

 
e.
 
 

 
societal
 collectivism
 







ANS: 



 48. According to Spotlight on Skills in Chapter 3, what does the
gesture of scratching one's head usually mean in Russia?


 

 

 
a.
 
 

 
"You're
 crazy."
 

 

 

 
b.
 
 

 
"I am
 listening carefully."
 

 

 

 
c.
 
 

 
"I want to get
 to know you better."
 

 

 

 
d.
 
 

 
"I'm confused
 or skeptical."
 

 

 

 
e.
 
 

 
"No."
 







ANS: 



 49. According to Spotlight on Skills in Chapter 3, one of the most
universal gestures is:


 

 

 
a.
 
 

 
Arm up, shaking
 back and forth (waving)
 

 

 

 
b.
 
 

 
Scratching your
 chin (thinking)
 

 

 

 
c.
 
 

 
A smile (happiness
 or politeness)
 

 

 

 
d.
 
 

 
Closing your eyes
 (boredom)
 

 

 

 
e.
 
 

 
A pat on the back
 (congratulations)
 







ANS: 



 50. Which of the following is defined as a culture in which
communication is used to enhance personal relationships?


 

 

 
a.
 
 

 
Interpersonal
 culture
 

 

 

 
b.
 
 

 
High-context
 culture
 

 

 

 
c.
 
 

 
Power culture
 

 

 

 
d.
 
 

 
Low-context culture
 

 

 

 
e.
 
 

 
Family-oriented
 culture
 







ANS: 



 51. Which of the following countries possesses a high degree of
assertiveness?


 

 

 
a.
 
 

 
Spain
 

 

 

 
b.
 
 

 
Sweden
 

 

 

 
c.
 
 

 
Japan
 

 

 

 
d.
 
 

 
Iceland
 

 

 

 
e.
 
 

 
Switzerland
 







ANS: 



 52. Which of the following countries possesses a low degree of gender
differentiation?


 

 

 
a.
 
 

 
China
 

 

 

 
b.
 
 

 
Brazil
 

 

 

 
c.
 
 

 
Italy
 

 

 

 
d.
 
 

 
South Korea
 

 

 

 
e.
 
 

 
Denmark
 







ANS: 



 53. Which of the following countries possesses a high performance
orientation?


 

 

 
a.
 
 

 
Israel
 

 

 

 
b.
 
 

 
Sweden
 

 

 

 
c.
 
 

 
Taiwan
 

 

 

 
d.
 
 

 
Russia
 

 

 

 
e.
 
 

 
Venezuela
 







ANS: 



 54. Countries that use several languages


 

 

 
a.
 
 

 
are ethnocentric.
 

 

 

 
b.
 
 

 
are geocentric.
 

 

 

 
c.
 
 

 
are likely to have
 high uncertainty avoidance.
 

 

 

 
d.
 
 

 
have linguistic
 pluralism.
 

 

 

 
e.
 
 

 
are polycentric.
 







ANS: 



 55. In a(n) ____, people use communication primarily to exchange facts
and information.


 

 

 
a.
 
 

 
power culture
 

 

 

 
b.
 
 

 
informational
 culture
 

 

 

 
c.
 
 

 
high-context
 culture
 

 

 

 
d.
 
 

 
mid-context culture
 

 

 

 
e.
 
 

 
low-context culture
 







ANS: 



 56. A ____ interaction requires more time because a relationship has
to be developed, and trust and friendship must be established.


 

 

 
a.
 
 

 
high-context
 

 

 

 
b.
 
 

 
sales
 

 

 

 
c.
 
 

 
business
 

 

 

 
d.
 
 

 
low-context
 

 

 

 
e.
 
 

 
personal
 







ANS: 

7. A cultural attitude marked by
the tendency to regard one's own culture as superior to others is called


 

 

 
a.
 
 

 
ethnocentrism.
 

 

 

 
b.
 
 

 
polycentrism.
 

 

 

 
c.
 
 

 
geocentrism.
 

 

 

 
d.
 
 

 
technocentrism.
 

 

 

 
e.
 
 

 
none of these.
 







ANS: 



 58. When organization managers have a(n) ____ attitude, they value
employees as an end in themselves.


 

 

 
a.
 
 

 
ethnocentric
 

 

 

 
b.
 
 

 
humanistic
 

 

 

 
c.
 
 

 
instrumental
 

 

 

 
d.
 
 

 
pluralistic
 

 

 

 
e.
 
 

 
performance
 







ANS: 



 59. When organization managers have a(n) ____ attitude, they treat
employees as resources to be used.


 

 

 
a.
 
 

 
ethnocentric
 

 

 

 
b.
 
 

 
humanistic
 

 

 

 
c.
 
 

 
instrumental
 

 

 

 
d.
 
 

 
pluralistic
 

 

 

 
e.
 
 

 
performance
 







ANS: 



 60. How many nations signed on for negotiation when GATT was created
in 1947?


 

 

 
a.
 
 

 
15
 

 

 

 
b.
 
 

 
23
 

 

 

 
c.
 
 

 
28
 

 

 

 
d.
 
 

 
40
 

 

 

 
e.
 
 

 
57
 







ANS: