PEREGRINE EXAM , PRACTICE EXAMS,AND STUDY GUIDE EXAMS 2024 WITH ACTUAL CORRECT QUESTIONS, Exams of Nursing

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Page | 1 PEREGRINE EXAM , PRACTICE EXAMS,AND STUDY GUIDE EXAMS 2024 WITH ACTUAL CORRECT QUESTIONS AND VERIFIED DETAILED RATIONALES ANSWERS BY EXPERTS |FREQUENTLY TESTED QUESTIONS AND SOLUTIONS|ALREADY GRADED A+|LATEST UPDATE in times of rising prices, the inventory cost method that will yield the lowest net income is: lifo (lifo is the acronym for last-in, first-out, which is a cost flow assumption often used by u.s. corporations in moving costs from inventory to the cost of goods sold. example: assume that a corporation uses lifo and has three units of a product in its inventory. due to its supplier raising its prices, the corporation purchased the items at different costs and in the following sequence: $40, $44, and $46. the corporation ships the oldest item (the one purchased for $40) to a customer at a selling price of $60. however, under the lifo cost flow assumption the company reports its cost of goods sold at $46 (the latest cost) and reports a gross profit of $14. (the costs of $40 and $44 remain in inventory.) when a business erroneously records expenses as assets, it has violated the measurement issue of classification a dividend will reduce which of the following accounts? retained earnings lying by omission involves intentionally withholding material facts. conflicts of interest exist when employees must choose whether to advance their own interests, those of the organization, or those of some other group. which of the following statements is correct? free cash flow (fcf) is, essentially, the cash flow that is available for interest and dividends after the company has made the investments in current and fixed assets that are necessary to sustain ongoing operations. a corporate bond currently yields 8.3%. municipal bonds with the same risk, maturity, and liquidity currently yield 5.5%. at what tax rate would investors be indifferent between the two bonds? 33.73% Page | 2 when the costs of supplies increase in an industry, the low-cost leader be the only firm able to pay the higher prices and continue to earn average or above- average returns. tqm is most helpful to firms following the ____ business strategy. integrated cost-leadership differentiation all of the following are considered extrinsic motivators in herzberg's two-factor theory except: work itself which of the following is not one of the process motivation theories? acquired needs theory an individual who purchases a computer later decides to acquire a new motherboard. in terms of computing gdp, this new motherboard would be a(n) final good the largest component of gdp is consumption in economics, firms are assumed to maximize profits holding everything else equal, total revenue increases when either price or quantity increase government tactics that include removing incentives, demanding a higher share of profits and taxes, and confiscating foreign assets are known as: expropriation "people of the same trade seldom meet together, even for merriment and diversion, but their conversation often ends in conspiracy against the public." this quote from adam smith is referring to which of the following business relationship terms: collusion ____ is a collection of facts organized so that they have additional value beyond the value of the facts themselves. information ____ is the simulation of a real or imagined environment that can be experienced visually in three dimensions. virtual reality the federal highway administration uses notice-and-comment rulemaking. this process begins with Page | 5 recession is a significant decline in economic activity that goes on for more than a few months. it is visible in industrial production, employment, real income and wholesale-retail trade. international trade is the exchange of capital, goods, and services across international borders or territories. in most countries, such trade represents a significant share of gross domestic product (gdp). microeconomic trends are patterns of movements or changes in economic factors such as consumer, household, or firms' income, savings, debt, and expenditure. microeconomic analysis attempts to explain the behavior of individuals and organizations in a given economy. functions through modeling and by emphasizing interests. accounting profit is the monetary costs a firm pays out and the revenue a firm receives. total monetary - revenue total costs. economic profit is the monetary costs and opportunity costs a firm pays and the revenue a firm receives. total revenue-(explicit costs + implicit costs). law of supply that the quantity of a good supplied (i.e., the amount owners or producers offer for sale) rises as the market price rises, and falls as the price falls. law of demand says that the quantity of a good demanded falls as the price rises, and vice versa. government tactics that include removing incentives advance their own interests, those of the organization, or those of some other group. a suit for negligence must prove four elements: duty of care, breach of duty, proximate cause and actual harm financial regulation Page | 6 is a form of regulation or supervision, which subjects financial institutions to certain requirements, restrictions and guidelines, aiming to maintain the integrity of the financial system. this may be handled by either a government or non-government organization. the ftc's bureau of consumer protection stops unfair, deceptive and fraudulent business practices by collecting complaints and conducting investigations, suing companies and people that break the law, developing rules to maintain a fair marketplace, and educating consumers and businesses about their rights and responsibilities. 6 basic rights of consumers right to safety, right to be informed, right to choose, right to be heard, right to consumer education, right to courteous service corporate culture is shown (1) the ways the organization conducts its business, treats its employees, customers, and the wider community, (2) the extent to which freedom is allowed in decision making, developing new ideas, and personal expression, (3) how power and information flow through its hierarchy, and (4) how committed employees are towards collective objectives. it affects the organization's productivity and performance, and provides guidelines on customer care and service, product quality and safety, attendance and punctuality, and concern for the environment. source 5 functions of hrm 1. recruitment and selection 2. orientation 3. maintaining good working conditions 4. managing employee relations 5. training and development individual and group dynamics interaction of complex intra- and inter-personal forces operating in a group which determine its character, development, and long-term survival. field of study concerned with determination of laws underlying group behavior. population sampling is the process of taking a subset of subjects that is representative of the entire population. the sample must have sufficient size to warrant statistical analysis. type i error is the rejection of a true null hypothesis (also known as a "false positive" finding) type ii error is failing to reject a false null hypothesis (also known as a "false negative" finding) the percent of fixed assets to total assets is an example of _________? Page | 7 vertical anaylsis a corporation requesting a restraining order to bar the publication of damaging material would be seeking equity law which of the following is not a strategic alternative to laying off employees? lowering employment standards KJ built his taco truck out of $75,000,000 worth of titanium and duct tape. He uses $10.25 of organic bok choy, $6.75 of Wisconsin cheddar cheese, and $25.25 of foie gras in each taco. If he sells tacos at $475 each, what is his break-even quantity? $173,310 The Marketing Concept today is about what? Sales Which of these is not a cash flow activity category in the Statement of cash flows? A. Operating B. Investing C. Financing D. Depreciating Depreciating Which one of the following statements is false? (A) TC = TFC + TVC (B) ATC = AFC + AVC (C)AFC = TFC divided by Q (D) MC = TC divided by Q AFC = TFC divided by Q The ratio that explains how efficiently companies use their assets to generate revenue. Asset Turnover Ratio The sum of the squares total (SST)? Measures the variability in Y about the regression line. This strategy sacrifices responsiveness to local markets in favor of efficiency. Microsoft, for example, offers the same software programs around the world but adjusts the programs to match local languages. Global Strategy Another Time Around helps young inner city kids develop products they can make and sell to earn money for college. What concept best describes this? Cause Marketing Lauren is an HR manager at a marketing firm. Which of the following functions is LEAST likely to be an aspect of Lauren's job? Product Testing Page | 10 In the context of the data component of an information system, internal data sources include _____. Personnel Records According to the hot stove rule, disciplinary action should most likely occur immediately, so that the individual _____. Understand the reason for it In the context of applications of artificial intelligence (AI), _____ perform well at simple, repetitive tasks and can be used to free workers from tedious or hazardous jobs. Robots A company has two bonds that are identical except one matures in 5 years and one matures in 10 years. If interest rates fall, what will happen to the price of the bonds? Both will increase and the 10-year will increase more. Any business activity, which resorts to deceitful practices or devices with the intent to deprive another of property or other rights, or to cause economic injury. External Fraud Which of these actions would likely result in a lower current ratio? Extending the time to pay suppliers Dave is developing a social media platform to help Saint Leo students plan events and track attendance. Part of his persona profile includes age, gender and class year. What part of segmentation best describes these factors? Demographic Ellen, as a manager, has always been driven by scheduling, directing group activities, planning, and trying out new ideas. For her, meeting deadlines is critical and she always gives explicit standards of performance. Ellen can be described as high on which of these? Delegating The following is a payoff table giving profits for various situations. (State 1): 0.4 / 45 / 16 / 23 / 44 (State 2): 0.35 / 37 / 59 / 65 / 33 (State 3): 0.25 / 83 / 72 / 91 / 55 If a person were to use the expected monetary value criterion, what decision would be made? Alternative 3 In the long run, the price for a perfectly competitive firm: Will be determined by the firm's supply and demand curves? As an example of this strategy, large fast-food chains such as McDonald's and KFC rely on the same brand names and the same core menu items around the world, but make some concessions to local tastes too. Page | 11 Transnational strategy _______ laws are federal and state statutes and regulations that promote product safety and prohibit abusive, unfair, and deceptive business practices. Consumer Protection The World Trade Organization (WTO) is: The only global international organization focused on negotiating the rules of trade between nations. Which of these is not a critical component is designing an advertising campaign? Detailed product information In a relational database model, a _____ is a field in a relational table that matches the primary key column of another table. Foreign key The ________ was intended to eliminate job discrimination based on race, color, national origin, sex, and religion. Fair Employment Practices Act Which of the following is not a shortcoming of using manager judgment for forecasting availability? Managers are always overall aggressive in estimating hiring requirements Which of these is typically a characteristic of a sales promotion? The consumer does not have to buy the product to benefit from the offer A(n) _____ consists of programs that mimic human thought behavior in a specific area that human specialists have solved successfully. Artificial intelligence system When the costs of supplies increase in an industry, the low cost leader_____ is the only firm able to pay the higher prices and continue to earn average or above average returns Accounts Payable current liability account in which a company records the amounts it owes to suppliers or vendors for goods or services that it recieved on credit accounts receivable current asset account in which a company records the amounts it has a right to collect from customers who received goods or services on credit what is the cost of goods sold? the total cost of merchandise sold during a period Page | 12 owners equity one of the three main sections of a sole proprietorship's balance sheet cash includes the following: currency and coins, checks received from customers but not yet deposited, checking accounts, and petty cash cash equivalents short-term high liquidity investments with a maturity date that was 3 months or less at the time of purchase. Ex) money market accounts, U.S. Treasury Bills, and commercial paper when a business erroneously records expenses as assets, it has violated the measurement of _____ classification lying by omission involves intentionally withholding material facts The Federal Highway Administration uses notice-and-comment rulemaking. this process begins with the publication of a notice of proposed rulemaking one way human resource planning links to strategic planning is by providing a set of inputs into the ______ strategy formulation process which of the following is not one of W. Edwards Deming's 14 points? the only performance standard is zero defects operating statement is another name for the ______ Income Statement Purchases, returns and allowances, and purchase discounts are classified as _______ on the income statement contra-cost accounts law of supply states that the quantity of a good supplied (I.E. the amount owners or producers offer for sale) rises as the market price rises, and falls as the price falls population sampling the process of taking a subset of subjects that is representative of the entire population. the sample must have sufficient size to warrant statistical analysis what is principles of accounting Page | 15 a population characteristic, such as a population mean, is called a parameter an increase to ______ will increase owners eqity client fees the last step in preparing a worksheet is ______ total the income and balance sheet items to compute net income (loss) mission statement defines the company's business, its objectives and its approach to reach those objectives vision statement describes the desired future position of the company corporate structure a board of directors, officers, employees, shareholders/owners, an internal configuration of the functional areas of a business corporate governance The role of a corporation's executive staff and board of directors in ensuring that the firm's activities meet the goals of the firm's stakeholders GDP Calculation GDP = Spending by consumers + investment by businesses + government spending + (exports - Imports) GDP the total market value of all final goods and services produced annually in an economy inflation a sustained increase in the general level of prices for goods and services in a country recession e significant decline in economic activity that goes on for more than a few months international trade the exchange of capital goods, and services across international borders or territories microeconomic trends patterns of movements or changes in economic factors such as consumer, hosehold, or firms income, savings, debt, and expenditure microeconomic analysis Page | 16 attempts to explain the behavior of individuals and organizations in a given economy accounting profit total revenue minus total explicit cost economic profit a firm's total revenue minus its explicit and implicit costs law of demand says that the quantity of a good demanded falls as the price rises and vice versa government tactics that include removing incentives ______ advance their own interests, those of the organization, or those of some other groups a suit for negligence must prove four elements: duty of care, breach of duty, proximate cause, and actual harm financial regulation The rules that govern how financial services providers operate and deal with their customers. the FTC's Bureau of consumer protection protects consumers against unfair, deceptive, or fraudulent practices 6 basic rights of consumers right to safety, right to be informed, right to choose, right to be heard, right to consumer education, right to courteous service corprate culture the ways the organization conducts its business, treats its employees, customers and the wider community; the extent to which freedom is allowed in decision making, developing new ideas and personal expression; how power and info floe through its hierarchy; how committed employees are towards collecting objectives 5 functions of HRM recruitment and selection; orientation; maintaining good working conditions; managing employee relations; training and development type I error the rejection of a true null hypothesis (aka. a "false positive" finding) type II error failing to reject a false null hypothesis (aka. a "false negative" finding) Page | 17 The Process by which management plans, evaluates, and controls long-term investment decisions involving fixed assets is called: Capital investment analysis Oral communication is better than written communication for _________. conveying feelings and emotions When a person manipulates information so that it will be received more favorable, he/she is __________. filtering information Which of the following best describes the term corporate culture? A set of values, beliefs, goals, norms, and ways of solving problems that the public shares The use of bribery in international business is: an acceptable business practice in many countries' culture For both managers and external financial analysts, _________ is the single most important accounting number found on the income statement. Net income (net profit after tax) __________ ratios would provide the best information regarding total return to common stockholders. Profitability The resources and capabilities that lead to the formation of distinctive competencies are mostly created at which level of the organization? Functional Economies of scale are: unit cost reductions associated with a large-scale output Larger quantities can be produced at a lower average unit cost Economies of scope are: unit cost to produce a product will decrease as the variety of products increases Leadership effectiveness tends to be higher when the leader's intelligence is: a little higher than that of the average group memeber Creativity among leaders tends to be distributed: along a continuum from low to high Gross private domestic (GDP) investment is equal to all purchases of newly produced capital goods: Page | 20 a single seller or firm whereby he has the soul power to decide prices in the market. The product sold by a monopoly is highly differentiated from the market. There are high barriers to enter such Market and such barriers includes patent rights, government licensing. Price discrimination is a common practice in such Market. Which of the following is true of an S corporation? It cannot have more than one hundred shareholders A member of a minority race applies for a promotion to a position advertised as available at his company. The minority applicant, who is qualified for the position, is rejected by the company which hires a nonminority applicant for the position. The minority applicant can sue under ________. C. Title VII of the Civil Rights Act D Which of the following is true of employment discrimination defined under Title VII? Disparate impact discrimination may occur when an employer adopts a work rule that is neutral on its face but is shown to cause an adverse impact on a protected class Which of the following statements is true of disparate treatment and disparate impact? For there to be discrimination under disparate treatment, there has to be intentional discrimination. The ADAAA is a federal statute that makes it illegal for an employer to discriminate against job applicants and employees based on genetic information. True To claim under disparate-treatment discrimination, the complainant must prove that ________. he or she was rejected due to over-qualification Why is proving a bona fide occupational qualification essential? For an employee to claim being discriminated against by the employer Title VII of the Civil Rights Act was intended to eliminate job discrimination based on race, color, national origin, sex, and religion. True Which of the following is true of sex discrimination? Employment discrimination because of pregnancy is sex discrimination A(n) ________ provides that certain job preferences will be given to members of minority racial and ethnic groups, females, and other protected-class applicants when making employment decisions. Page | 21 Reasonable accommodation plan Native American tribes and tax-exempt private clubs are expressly excluded from Title VII of the Civil Rights Act of 1964. True Which of the following best describes quid pro quo sex discrimination? Selective or partial treatment offered to an employee or a group of employees based on their gender Employees stricken with cancer, diabetes, or epilepsy are considered qualified individuals with a disability under ADA provisions. False Using a sexually explicit picture or screensaver to mock an employee constitutes ________. quid pro quo sex discrimination Which of the following elements constitutes an affirmative defense by an employer whose employee has suffered sexual harassment at the work place? The employer had no knowledge about the sexual harassment faced by the plaintiff-employee until a court notice was served on the employer. The EEOC will issue a right to sue letter to the complainant even if it does not find a violation upon investigation of the charge. True Labor unions are not covered under Title VII of the Civil Rights Act. False The U.S. Supreme Court has held that sexual harassment that creates a hostile work environment violates ________. Fair Employment Practices Act The Equal Employment Opportunity Commission is the federal administrative agency that is responsible for enforcing most federal antidiscrimination laws. True Employers are obligated to provide reasonable accommodations to physically challenged employee if they do not incur significant difficulty or expense for the employers. True Denying employment to a woman because she is pregnant is a form of quid pro quo sex discrimination. False Page | 22 Disparate-impact discrimination occurs when an employer adopts a work rule that is neutral on its face but is shown to cause an adverse impact on a protected class. False Federal antidiscrimination laws prohibit employers from engaging in retaliation against an employee for filing a charge of discrimination. True A complainant may file his or her employment discrimination claim with the ________ instead of the EEOC. FEPA What is a general ledger? A general ledger account is an account or record used to sort, store and summarize a company's transactions. asset accounts such as Cash, Accounts Receivable, Inventory, Investments, Land, and Equipment liability accounts including Notes Payable, Accounts Payable, Accrued Expenses Payable, and Customer Deposits stockholders' equity accounts such as Common Stock, Retained Earnings, Treasury Stock, and Accumulated Other Comprehensive Income What is the difference between accounts payable and accounts receivable? Accounts payable is a current liability account in which a company records the amounts it owes to suppliers or vendors for goods or services that it received on credit. Accounts receivable is a current asset account in which a company records the amounts it has a right to collect from customers who received goods or services on credit. What is the cost of goods sold? The cost of goods sold is the cost of the products that a retailer, distributor, or manufacturer has sold. What is owner's equity? Owner's equity is one of the three main sections of a sole proprietorship's balance sheet and one of the components of the accounting equation: Assets = Liabilities + Owner's Equity. What is principles of accounting? Principles of accounting can also refer to the basic or fundamental accounting principles: cost principles, matching principles, full disclosure principles, materiality principles, going concern principles, economic entity principles, and so on. In this context, principles of accounting refers to the broad underlying concepts which guide accountants when preparing financial statements. Page | 25 measures the total variability in X about the mean. measures the total variability in Y about the mean. measures the variability in X about the regression line. measures the variability in Y about the regression line. Measures the variability in Y about the regression line. This strategy sacrifices responsiveness to local markets in favor of efficiency. Microsoft, for example, offers the same software programs around the world but adjusts the programs to match local languages. Multinational strategy Global strategy Transnational strategy Multidomestic strategy Global Another Time Around helps young inner city kids develop products they can make and sell to earn money for college. What concept best describes this? The marketing mix Cause marketing Benevolent advertising A tax deduction Corporate charitable marketing None of the above. cause marketing Lauren is an HR manager at a marketing firm. Which of the following functions is LEAST likely to be an aspect of Lauren's job? Employee and labor relations Staffing Employee staffing Product testing Product Testing Local area networks (LANs) are used to _____. link computers that are geographically far apart provide communication services spanning several cities or states connect various wide area networks in metropolitan areas integrate services to a single building or campus integrate services to a single building or campus Page | 26 n June 2015, American steel companies United States Steel Corp., Nucor Corp., Steel Dynamics Inc., ArcelorMittal USA, AK Steel Corp., and California Steel Industries filed a complaint with the Department of Commerce and the ITC alleging that China (and other countries) were selling steel in the U.S. market at prices lower than their own markets. This practice is known as Tacit collusion Collusion Price fixing Dumping Dumping Dumping is considered: Repackaging a product currently being sold in a foreign country. Collecting and destroying products before they contaminate the market for the brand. The sale of an exported product at a price lower than that charged for the same or a like product in the "home" market of the exporter. Offering a bribe to a foreign official for the purposes of opening markets. Combining a poorly selling product with a new product. The sale of an exported product at a price lower than that charged for the same or a like product in the "home" market of the exporter. Marginal revenue is equal to: the change in total revenue associated with a change in quantity. marginal cost. the change in total profits associated with a change in quantity. total revenue divided by its output. Marginal cost The primary purpose of employer branding is to ________. promote employee benefits encourage mentions in social media. attract quality employees sell consumer products attract quality employees The days required for a business to receive inventory, sell the inventory, and collect cash from the sale of the inventory. Inventory period Operating cycle Accounts receivable period Page | 27 Accounting period operating cycle Which of the following statements is CORRECT? Two firms with identical sales and operating costs but with different amounts of debt and tax rates will have different operating incomes by definition. If a firm is reporting its income in accordance with generally accepted accounting principles, then its net income as reported on the income statement should be equal to its free cash flow. After-tax operating income is calculated as EBIT(1 - T) + Depreciation. Free cash flow (FCF) is, essentially, the cash flow that is available for interest and dividends after the company has made the investments in current and fixed assets that are necessary to sustain ongoing operations. Free cash flow (FCF) is, essentially, the cash flow that is available for interest and dividends after the company has made the investments in current and fixed assets that are necessary to sustain ongoing operations. The data component of an information system is: a set of facts that have been analyzed by the process component a series of integrated files containing relevant facts the input to the information system the output of the information system a series of integrated files containing relevant facts Another name for a decision table is a payout table. payoff table. payment table. pay-up table. Payoff table In the automobile industry, workers have just negotiated a new contract giving workers a large raise. There has also been an increase in the number of licensed drivers who are in the market for a new car. In the market for new automobiles, the effects that these changes will have on the equilibrium price and quantity include: price will increase, and quantity will decrease. price will decrease, and the effect on quantity is indeterminate. price will decrease, and quantity will increase. Page | 30 Marginal utility declined as he consumed additional Big Macs. The law of diminishing marginal utility does not apply to consumption of Big Macs. Marginal utility declined as he consumed additional Big Macs. George, a project manager at a publishing firm, is experiencing many stress-related symptoms. What is the best advice an HR manager could give George? Handle work issues immediately. Recognize your own limitations. Keep your problems to yourself. Focus on making work a priority. Recognize your own limitations Which of the following is a category or element of the balance sheet? Liabilities Losses Expenses Gains Liabilities In the context of the data component of an information system, internal data sources include _____. economic conditions personnel records population statistics government agencies Personnel Records According to the hot stove rule, disciplinary action should most likely occur immediately, so that the individual _____. Share the experience with co-workers Have time to contact an HR manager Understand the reason for it Receive appropriate training opportunities Understand the reason for it In the context of applications of artificial intelligence (AI), _____ perform well at simple, repetitive tasks and can be used to free workers from tedious or hazardous jobs. data mining agents firewalls Page | 31 robots electronic trackers Robots A company has two bonds that are identical except one matures in 5 years and one matures in 10 years. If interest rates fall, what will happen to the price of the bonds? Both will increase and the 10-year will increase more. Both will decrease and the 5-year will decrease more. Both will increase and the 5-year will increase more. Both will decrease and the 10-year will decrease more. Both will increase and the 10-year will increase more. Any business activity, which resorts to deceitful practices or devices with the intent to deprive another of property or other rights, or to cause economic injury. External Fraud Which of these actions would likely result in a lower current ratio? Holding more stocks to offer better customer service. Increasing cash by selling excess fixed assets. Extending the time to pay suppliers Allowing major customers more time to pay bills. Extending the time to pay suppliers Dave is developing a social media platform to help Saint Leo students plan events and track attendance. Part of his persona profile includes age, gender and class year. What part of segmentation best describes these factors? Developmental Demographic Millennial Psychographic Quantified Demographic Ellen, as a manager, has always been driven by scheduling, directing group activities, planning, and trying out new ideas. For her, meeting deadlines is critical and she always gives explicit standards of performance. Ellen can be described as high on which of these? Participating Consideration Transformation Delegating Page | 32 Delegating The following is a payoff table giving profits for various situations. State one: 0.4 / 45 / 16 / 23 / 44 State 2 : 0.35 / 37 / 59 / 65 / 33 State 3 : 0.25 / 83 / 72 / 91 / 55 If a person were to use the expected monetary value criterion, what decision would be made? Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alternative 3 In the long run, the price for a perfectly competitive firm: will equal the minimum average total cost. will equal marginal cost where marginal cost is at a minimum. will allow for positive economic profits. will be determined by the firm's supply and demand curves. Will be determined by the firm's supply and demand curves? As an example of this strategy, large fast-food chains such as McDonald's and KFC rely on the same brand names and the same core menu items around the world, but make some concessions to local tastes too. Global strategy Multidomestic strategy Multinational strategy Transnational strategy Transnational strategy _______ laws are federal and state statutes and regulations that promote product safety and prohibit abusive, unfair, and deceptive business practices. Consumer protection Canon Caveat emptor FDCA Consumer Protection The World Trade Organization (WTO) is: Page | 35 There may be a sizable gap between rich and poor people, citizens must pay for most basic necessities by themselves, there is no guarantee of steady employment for many citizens, citizens often purchase their own health care and higher education Which of the following would be a producer? someone owning a book store someone shopping in a grocery store someone putting gas in a car someone waiting in line at a bank someone owning a book store John has a large apple orchard. He has decided to bake pies and sell them at the local farmer's market. Which best describes John's use of economics? John is using available and renewable resources. John is relying on inexpensive labor costs to improve profits. John is using resources to produce both goods and services. John is assuming consumers will have limited need for his product. John is using available and renewable resources Which statement best describes the body paragraphs of an argumentative essay? The body paragraphs acquaint readers with the topic and set up the ideas that will be presented. The body paragraphs establish the focus of the essay and tell readers what the writer's position will be. The body paragraphs tie the essay together and tell readers what they have learned and should take away. The body paragraphs flesh out the argument and include counterclaims and evidence from research. The body paragraphs flesh out the argument and include counterclaims and evidence from research The proper style for an argumentative essay is formal To create the proper tone for an argumentative essay, a writer should include opinionated words. add complicated language. incorporate unusual stories. use a straightforward approach. use a straightforward approach In the lesson, you learned about Dave and his bakery. It was mentioned that "in one hour of work, Dave can make either 60 donuts or 30 bagels." Which might help Dave assess whether he should focus on bagels or donuts? It costs less to make bagels. Customers prefer donuts. Dave charges more for bagels. Donuts cost more to produce. Page | 36 customers prefer donuts Which of the following is influenced by personal economic choices? Check all that apply. the cost of your rent and utilities the resources you have available the amount of money you spend on a bus pass the money you decide to spend on leisure products the amount of money you put into your savings account the manner in which you balance your time between work and leisure the resources you have available, the money you decide to spend on leisure products, the amount of money you put into your savings account, the manner in which you balance your time between work and leisure What might happen if an economy is unable to produce wanted goods and services? People will go without them. People will look elsewhere for them. People will stop wanting them. People will focus on needs instead. people will look elsewhere for them Which of the following statements about opportunity cost are true? CHECK ALL THAT APPLY. It exists because resources are scarce. It influences consumers. It influences producers. It assists in anticipating profits. It encourages people to spread their resources around. It exists because resources are scarce, it influences consumers, it influences producers In a republic, elected officials create __ to regulate the economy laws In which way do producers try to differentiate themselves in monopolistic competition? price advertising product features image product features Page | 37 Which quality best describes a producer with an absolute advantage? efficient fast accurate prolific efficient A chart that shows the connection between consumer demand and price is a market schedule. market curve. demand curve. demand schedule. demand schedule Which best describes the relationship between consumers and producers? They usually ignore each other. They interact with each other. They agree on prices. They dislike each other. they interact with each other Both a demand curve and a demand schedule show how prices affect consumer demand. consumer demand affects income. prices affect complementary goods. consumer demand affects substitute goods. prices affect consumer demand Excess supply is created when price or __ move away from the equilibrium point. quantity What is the best definition of elasticity in economics? Elasticity of supply measures how the amount of a good changes when the producer hires more employees. Elasticity of supply measures how the amount of a good changes when the producer uses new materials. Elasticity of demand measures how the amount of a good changes when its price goes up or down. Elasticity of demand measures how the amount of a good changes when its distribution expands. Page | 40 a business. cooperatives allow all owners to share profits, while franchises are required to share profits with a parent company. cooperatives allow all owners to share profits, while franchises are required to share profits with a parent company Spending that can change from year to year is known as __ spending. discretionary Which of these are goals of an expansionary policy? Check all that apply. increased available credit decreased available credit increased money supply increased inflation increased interest rates decreased interest rates increased available credit, increased money supply, decreased interest rates Which best explains why a sole proprietor would want a partner? to reduce the number of responsibilities to make it easier to raise funds for expansion to move into a more favorable tax bracket. to take advantage of little government oversight. to make it easier to raise funds for expansion Which body manages the Fed? the Appropriations Committee the Federal Reserve Board the Federal Open Markets Committee the Economic Policy Subcommittee the Federal Reserve Board Economist Friedrich Hayek argued that __ can serve as signals in an economy. prices US federal income tax is progressive by law, but which best explains why is it sometimes regressive in practice? High-income earners can fight in court for the right to a reduced rate. High-income earners reduce their tax rates through numerous deductions. Page | 41 High-income earners use tax laws to their advantage to reduce their tax rates. High-income earners always place their assets overseas to lower their tax rates. High-income earners use tax laws to their advantage to reduce their tax rates Why do developing countries usually have less variety in their economic activities? Limited access to education means that people are not trained to work in industry or technology. Focusing on one or two economic activities leads to more rapid economic development. Developing countries are usually small and have limited populations and resources. People prefer the lifestyle that accompanies traditional activities such as farming. Limited access to education means that people are not trained to work in industry or technology Why might a country choose to devalue its currency? to please its trading partners to encourage exports to encourage imports to reduce taxes to encourage exports How did NAFTA affect the economies of participating countries? by creating unrestricted trade benefits by raising employment rates and standards of living by creating a balance of exports and imports by increasing the overall volume of production by increasing the overall volume of production If the value of the US dollar declines in relation to other currencies, goods imported into the United States will not be allowed to enter the country. become less expensive. remain the same in price. become more expensive. become more expensive What type of economic growth do most developed economies experience? rapid growth unpredictable growth moderate growth slow growth slow growth A reason that countries trade with each other is to help their neighbors. Page | 42 to get products they cannot produce. to sell goods they do not need. to share excess resources. to get products they cannot produce Which describes the difference between a trade surplus and a trade deficit? A trade surplus is when a country exports more than it imports, while a trade deficit happens when imports exceed exports. A trade surplus is when a country imports more than it exports, while a trade deficit happens when exports exceed imports. A trade surplus is when a country produces more than it consumes, while a trade deficit happens when consumption exceeds production. A trade deficit is when a country loses money on products it makes, while a trade surplus happens when production leads to profits. A trade surplus is when a country exports more than it imports, while a trade deficit happens when imports exceed exports Why does an increase in literacy rates often accompany an increase in per capita income? People who have higher-paying jobs often have the time available to develop literacy skills. Developing countries have higher-than-average literacy rates, which typically leads to higher income. People who can read and who receive an education are eligible for higher-paying jobs. Developed countries often attempt to raise low literacy rates to improve income. People who can read and who receive an education are eligible for higher-paying jobs Which is the best question for Joe to ask himself when deciding whether to open a checking or savings account? Is there an ATM near my home or work? Does the bank offer free checking? If I need a loan, will they give it to me? Why am I opening a bank account? Why am I opening a bank account? Companies report people to credit agencies if they fail to pay their bills on time. borrow too much money. fail to use different types of credit. use large amounts of credit at once. fail to pay their bills on time Through the successful study of personal finance, an individual will be better prepared for potential problems. Page | 45 What is a major factor in the decline of some occupations, such as those in the textiles and clothing industries? shifting consumer tastes overseas labor costs changing technologies aging populations changing technologies What is a general ledger? A general ledger account is an account or record used to sort, store and summarize a company's transactions. asset accounts such as Cash, Accounts Receivable, Inventory, Investments, Land, and Equipment liability accounts including Notes Payable, Accounts Payable, Accrued Expenses Payable, and Customer Deposits stockholders' equity accounts such as Common Stock, Retained Earnings, Treasury Stock, and Accumulated Other Comprehensive Income What is the difference between accounts payable and accounts receivable? Accounts payable is a current liability account in which a company records the amounts it owes to suppliers or vendors for goods or services that it received on credit. Accounts receivable is a current asset account in which a company records the amounts it has a right to collect from customers who received goods or services on credit. What is the cost of goods sold? The cost of goods sold is the cost of the products that a retailer, distributor, or manufacturer has sold. What is owner's equity? Owner's equity is one of the three main sections of a sole proprietorship's balance sheet and one of the components of the accounting equation: Assets = Liabilities + Owner's Equity. What is principles of accounting? Principles of accounting can also refer to the basic or fundamental accounting principles: cost principles, matching principles, full disclosure principles, materiality principles, going concern principles, economic entity principles, and so on. In this context, principles of accounting refers to the broad underlying concepts which guide accountants when preparing financial statements. What is equity? Equity can indicate an ownership interest in a business, such as stockholders' equity or owner's equity. Equity can mean an owner's interest in a personal asset. For example, the owner of a $200,000 house that has a mortgage loan of $75,000 is said to have $125,000 of equity in the house. Page | 46 What is meant by reconciling an account? Reconciling an account is likely to mean proving or documenting that an account balance is correct. What is included in cash and cash equivalents? In accounting, a company's cash includes the following: currency and coins checks received from customers but not yet deposited checking accounts petty cash Cash equivalents are short-term, highly liquid investments with a maturity date that was 3 months or less at the time of purchase. money market accounts U.S. Treasury Bills commercial paper What is the difference between an implicit cost and an explicit cost? An implicit cost is present but it is not initially shown or reported as a separate cost. An explicit cost is a cost that is present and it is clearly shown or reported as a separate cost. What is the difference between stocks and bonds? Stocks, or shares of capital stock, represent an ownership interest in a corporation. Every corporation has common stock. Bonds are a form of long-term debt in which the issuing corporation promises to pay the principal amount at a specified maturity date. AN INCREASE TO WHICH OF THE FOLLOWING ACCOUNTS WILL INCREASE OWNERS' EQUITY? Client Fees IN TIMES OF RISING PRICES, THE INVENTORY COST METHOD THAT WILL YIELD THE LOWEST NET INCOME IS: LIFO (LIFO is the acronym for last-in, first-out, which is a cost flow assumption often used by U.S. corporations in moving costs from inventory to the cost of goods sold. Example: Assume that a corporation uses LIFO and has three units of a product in its inventory. Due to its supplier raising its prices, the corporation purchased the items at different costs and in the following sequence: $40, $44, and $46. The corporation ships the oldest item (the one purchased for $40) to a customer at a selling price of $60. However, under the LIFO cost flow assumption the company reports its cost of goods sold at $46 (the latest cost) and reports a gross profit of $14. (The costs of $40 and $44 remain in inventory.) When a business erroneously records expenses as assets, it has violated the measurement issue of classification Page | 47 A dividend will reduce which of the following accounts? Retained Earnings Lying by omission involves intentionally withholding material facts. Conflicts of interest exist when employees must choose whether to advance their own interests, those of the organization, or those of some other group. Which of the following statements is CORRECT? Free cash flow (FCF) is, essentially, the cash flow that is available for interest and dividends after the company has made the investments in current and fixed assets that are necessary to sustain ongoing operations. A corporate bond currently yields 8.3%. Municipal bonds with the same risk, maturity, and liquidity currently yield 5.5%. At what tax rate would investors be indifferent between the two bonds? 33.73% When the costs of supplies increase in an industry, the low-cost leader be the only firm able to pay the higher prices and continue to earn average or above- average returns. TQM is most helpful to firms following the ____ business strategy. integrated cost-leadership differentiation All of the following are considered extrinsic motivators in Herzberg's two-factor theory EXCEPT: Work itself Which of the following is NOT one of the process motivation theories? Acquired needs theory An individual who purchases a computer later decides to acquire a new motherboard. In terms of computing GDP, this new motherboard would be a(n) Final good The largest component of GDP is consumption In economics, firms are assumed to Maximize profits Holding everything else equal, total revenue increases when either price or quantity increase Page | 50 IT ENCOMPASSES PRACTICALLY EVERY SPHERE OF MANAGEMENT, FROM ACTION PLANS AND INTERNAL CONTROLS TO PERFORMANCE MEASUREMENT AND CORPORATE DISCLOSURE. GDP Calculation THE FORMULA FOR GDP IS: GDP = C + I + G + (EX -IM), WHERE "C" EQUALS SPENDING BY CONSUMERS, "I" EQUALS INVESTMENT BY BUSINESSES, "G" EQUALS GOVERNMENT SPENDING AND "(EX -IM)" EQUALS NET EXPORTS, THAT IS, THE VALUE OF EXPORTSMINUSIMPORTS. GROSS DOMESTIC PRODUCT (GDP) IS ONE OF THE PRIMARY INDICATORS USED TO GAUGE THE HEALTH OF A COUNTRY'S ECONOMY. IT REPRESENTS THE TOTAL DOLLAR VALUE OF ALL GOODS AND SERVICES PRODUCED OVER A SPECIFIC TIME PERIOD, OFTEN REFERRED TO AS THE SIZE OF THE ECONOMY ANALYSIS: GDP GROWTH RATE IS THE GROWTH IN GDP FROM QUARTER TO QUARTER.GDP PER CAPITA MEASURES GDP PER PERSON AND IS A GREAT WAY TO COMPARE GDP DATA BETWEEN VARIOUS COUNTRIES. Inflation IS DEFINED AS A SUSTAINED INCREASE IN THE GENERAL LEVEL OF PRICES FOR GOODS AND SERVICES IN A COUNTY, AND IS MEASURED AS AN ANNUAL PERCENTAGE CHANGE. UNDER CONDITIONS OF INFLATION, THE PRICES OF THINGS RISE OVER TIME. Recession IS A SIGNIFICANT DECLINE IN ECONOMIC ACTIVITY THAT GOES ON FOR MORE THAN A FEW MONTHS. IT IS VISIBLE IN INDUSTRIAL PRODUCTION, EMPLOYMENT, REAL INCOME AND WHOLESALE-RETAIL TRADE. International Trade IS THE EXCHANGE OF CAPITAL, GOODS, AND SERVICES ACROSS INTERNATIONAL BORDERS OR TERRITORIES. IN MOST COUNTRIES, SUCH TRADE REPRESENTS A SIGNIFICANT SHARE OF GROSS DOMESTIC PRODUCT (GDP). MICROECONOMIC TRENDS ARE PATTERNS OF MOVEMENTS OR CHANGES IN ECONOMIC FACTORS SUCH AS CONSUMER, HOUSEHOLD, OR FIRMS' INCOME, SAVINGS, DEBT, AND EXPENDITURE. MICROECONOMIC ANALYSIS ATTEMPTS TO EXPLAIN THE BEHAVIOR OF INDIVIDUALS AND ORGANIZATIONS IN A GIVEN ECONOMY. FUNCTIONS THROUGH MODELING AND BY EMPHASIZING INTERESTS. Accounting Profit Page | 51 IS THE MONETARY COSTS A FIRM PAYS OUT AND THE REVENUE A FIRM RECEIVES. TOTAL MONETARY - REVENUE TOTAL COSTS. Economic Profit IS THE MONETARY COSTS AND OPPORTUNITY COSTS A FIRM PAYS AND THE REVENUE A FIRM RECEIVES. TOTAL REVENUE-(EXPLICIT COSTS + IMPLICIT COSTS). LAW OF SUPPLY THAT THE QUANTITY OF A GOOD SUPPLIED (I.E., THE AMOUNT OWNERS OR PRODUCERS OFFER FOR SALE) RISES AS THE MARKET PRICE RISES, AND FALLS AS THE PRICE FALLS. Law of Demand SAYS THAT THE QUANTITY OF A GOOD DEMANDED FALLS AS THE PRICE RISES, AND VICE VERSA. Government tactics that include removing incentives advance their own interests, those of the organization, or those of some other group. A suit for negligence must prove four elements: duty of care, breach of duty, proximate cause and Actual harm Financial Regulation is a form of regulation or supervision, which subjects financial institutions to certain requirements, restrictions and guidelines, aiming to maintain the integrity of the financial system. This may be handled by either a government or non-government organization. THE FTC'S BUREAU OF CONSUMER PROTECTION STOPS UNFAIR, DECEPTIVE AND FRAUDULENT BUSINESS PRACTICES BY COLLECTING COMPLAINTS AND CONDUCTING INVESTIGATIONS, SUING COMPANIES AND PEOPLE THAT BREAK THE LAW, DEVELOPING RULES TO MAINTAIN A FAIR MARKETPLACE, AND EDUCATING CONSUMERS AND BUSINESSES ABOUT THEIR RIGHTS AND RESPONSIBILITIES. 6 BASIC RIGHTS OF CONSUMERS right to safety, right to be informed, right to choose, right to be heard, right to consumer education, right to courteous service Corporate culture is shown (1) the ways the organization conducts its business, treats its employees, customers, and the wider community, (2) the extent to which freedom is allowed in decision making, developing new ideas, and personal expression, (3) how power and information flow through its hierarchy, and (4) how committed employees are towards collective objectives. It affects the organization's productivity and performance, and provides guidelines on customer care and service, product quality and safety, attendance and Page | 52 punctuality, and concern for the environment. Source 5 Functions of HRM 1. Recruitment and Selection 2. Orientation 3. Maintaining good working conditions 4. Managing employee relations 5. Training and Development Individual and Group Dynamics Interaction of complex intra- and inter-personal forces operating in a group which determine its character, development, and long-term survival. Field of study concerned with determination of laws underlying group behavior. Population Sampling is the process of taking a subset of subjects that is representative of the entire population. The sample must have sufficient size to warrant statistical analysis. TYPE I ERROR IS THE REJECTION OF A TRUE NULL HYPOTHESIS (ALSO KNOWN AS A "FALSE POSITIVE" FINDING) TYPE II ERROR IS FAILING TO REJECT A FALSE NULL HYPOTHESIS (ALSO KNOWN AS A "FALSE NEGATIVE" FINDING) When the costs of supplies increase in an industry, the low cost leader_____ is the only firm able to pay the higher prices and continue to earn average or above average returns Accounts Payable current liability account in which a company records the amounts it owes to suppliers or vendors for goods or services that it recieved on credit accounts receivable current asset account in which a company records the amounts it has a right to collect from customers who received goods or services on credit what is the cost of goods sold? the total cost of merchandise sold during a period owners equity one of the three main sections of a sole proprietorship's balance sheet cash includes the following: currency and coins, checks received from customers but not yet deposited, checking accounts, and petty cash Page | 55 expropriation "people of the same trade seldom meet together, even for merriment and diversion, but their conversation often ends in conspiracy against the public." this quote by Adam Smith is referring to ______ collusion information a colection of facts organized so that they have additional value beyond the value of the facts themselves virtual reality the simulation of a teal or imagined environment that can be experienced visually in 3 dimensions Kip opens an account at a Lotsa Goodies Store, and buys a digital music player and other items, but makes no payments on the account. to collect the debt, Mako, the manager contacts Kip's Parents. this violates ______ No federal law strategic planning the process of setting major organization objectives and developing plans to achieve them a leading force currently driving change at work is ______ global competition a questioning, probing attitude is at the core of ______ critical thinking which of the following is NOT a purpose of a marketing plan? it explains how marketing activities mesh with other functional areas in the context of marketing planning, why is it vital that the marketing plan be capable of selling itself to top management? because top managers must decide whether the marketing plan is the best use for the organizations scarce resources sensitivity analysis considers changes in values of the payoffs a population characteristic, such as a population mean, is called a parameter an increase to ______ will increase owners eqity Page | 56 client fees the last step in preparing a worksheet is ______ total the income and balance sheet items to compute net income (loss) mission statement defines the company's business, its objectives and its approach to reach those objectives vision statement describes the desired future position of the company corporate structure a board of directors, officers, employees, shareholders/owners, an internal configuration of the functional areas of a business corporate governance The role of a corporation's executive staff and board of directors in ensuring that the firm's activities meet the goals of the firm's stakeholders GDP Calculation GDP = Spending by consumers + investment by businesses + government spending + (exports - Imports) GDP the total market value of all final goods and services produced annually in an economy inflation a sustained increase in the general level of prices for goods and services in a country recession e significant decline in economic activity that goes on for more than a few months international trade the exchange of capital goods, and services across international borders or territories microeconomic trends patterns of movements or changes in economic factors such as consumer, hosehold, or firms income, savings, debt, and expenditure microeconomic analysis attempts to explain the behavior of individuals and organizations in a given economy accounting profit total revenue minus total explicit cost Page | 57 economic profit a firm's total revenue minus its explicit and implicit costs law of demand says that the quantity of a good demanded falls as the price rises and vice versa government tactics that include removing incentives ______ advance their own interests, those of the organization, or those of some other groups a suit for negligence must prove four elements: duty of care, breach of duty, proximate cause, and actual harm financial regulation The rules that govern how financial services providers operate and deal with their customers. the FTC's Bureau of consumer protection protects consumers against unfair, deceptive, or fraudulent practices 6 basic rights of consumers right to safety, right to be informed, right to choose, right to be heard, right to consumer education, right to courteous service corprate culture the ways the organization conducts its business, treats its employees, customers and the wider community; the extent to which freedom is allowed in decision making, developing new ideas and personal expression; how power and info floe through its hierarchy; how committed employees are towards collecting objectives 5 functions of HRM recruitment and selection; orientation; maintaining good working conditions; managing employee relations; training and development type I error the rejection of a true null hypothesis (aka. a "false positive" finding) type II error failing to reject a false null hypothesis (aka. a "false negative" finding)