I MIGHT KNOW THIS...
What is economic cost (which includes both explicit and implicit costs)?
explicit
costs out-of-pocket costs for a firm, for example, payments for wages and salaries, rent, or materials
implicit
costs opportunity cost of resources already owned by the firm and used in business, for example, expanding a factory onto land already owned
Macroeconomics would address all of the following questions except
What causes cyclical unemployment in the U.S economy?
How does a decline in interest rates affect the U.S economy?
Should the U.S. government adopt policies to reduce consumption?
How much of its product should a firm produce in a given period?
How much of its product should a firm produce in a given period?
In one study, 72 % of customers would pay a 40% premium price for their brand of choice, related to the closest competing brand. This is an example of a brand with __________, thus making this brand a valuable company asset.
Popularity
Low prices
Reputation
Brand equity
Brand equity
Which of the following statements provides information about the operating, investing and financing activities of a company?
Statement of Cash Flows
Balance Sheet
Income Statement
Statement of Stockholders’ Equity
Statement of Cash Flows
The FIFO cost flow assumption is often used for valuation purposes of:
Inventory
Buildings
Accounts Receivable
Equipment
Inventory
When banks borrow reserves from the Federal Reserve, the interest rate the Fed charges the borrowing banks is call the _________.
discount rate
Marginal Revenue vs. Marginal Cost
Marginal revenue is the amount of revenue one could gain from selling one additional unit.
Marginal cost is the cost of selling one more unit.
Product, price, place and promotion are all elements of
The marketing mix
A target market
A consumer good
A business strategy
The marketing mix
Accounts receivable which result from sales transactions are called
other receivables
nontrade receivables
trade receivables
noncurrent receivables
trade receivables
Which of the following is classified as a long-term asset
Notes Payable
Accounts Receivable
Truck
Prepaid Rent
Truck
Wal-Mart's effective distribution management techniques, efficient control of inventories through point-of-purchase data collection, and extensive agreements with suppliers represent the type of core competencies necessary to achieve:
a complex competitive advantage
competitive parity
a sustainable competitive advantage
technology awards
a sustainable competitive advantage
If inputs decrease while output remains constant, productivity will…..
increase.
Decrease.
remain the same.
it is impossible to tell
increase
What is mean, median, and mode?
The "mean" is the "average" you're used to, where you add up all the numbers and then divide by the number of numbers. The "median" is the "middle" value in the list of numbers. To find the median, your numbers have to be listed in numerical order from smallest to largest, so you may have to rewrite your list before you can find the median. The "mode" is the value that occurs most often. If no number in the list is repeated, then there is no mode for the list.
A bond with a face interest rate higher than the current market rate will be issued at
face value
a premium
a discount
future net value
a premium
Which of the following elements is not found on the Income Statement?
Cash
Revenues
Expenses
Gains/Losses
Cash
What method is used for capital budgeting decisions?
Net present value
Key elements of the Total Quality Management (TQM) approach include:
involvement of everyone in the organization.
continuous improvement.
emphasis on customer satisfaction.
all of the above
all of the above
During a market analysis, a company learned that its brand is viewed as being of high quality, relative to the competition in the minds of most consumers. This information would have most likely been gathered during the analysis of the brand’s ___________.
Target markets
Positioning strategy
Objectives
Pricing strategies
Target markets
If a company’s monthly rent increases, what is the effect on break-even volume?
decreases
increases
stays the same
cannot determine
increases
Economists maintain that workers’ economic well-being depends on their real wage, not their nominal (current dollar)wage. During the 1970s and 1980s, nominal wages increased for many workers but their real wages actually fell. This most likely occurred because
price increases were exactly offset by price decreases over this period of time
nominal wages rose faster than the prices of consumer goods
the prices of consumer goods rose faster than nominal wages
the 1970s and 1980s defied most principles of economics
the prices of consumer goods rose faster than nominal wages
The motivation for expanding into international markets is:
a. to increase the size of the firm's potential markets.
b. to avoid economies of scale.
c. to reduce the need for responsiveness.
d. to pressure host governments to provide concessions and/or legal restrictions desired by the firm.
to increase the size of the firm's potential markets.
The promotional-mix consists of which of the following?
Advertising, communications, promotion, PR, personal selling and products
Advertising, sales promotion, public relations, personal selling and direct marketing
Advertising, promotion, distribution, and pricing
Advertising, sales promotion, PR, pricing and distribution
Advertising, sales promotion, public relations, personal selling and direct marketing
Generally Accepted Accounting Principles require which method to “fairly present” financial statements?
Cash Method
Hybrid Method
Accrual Method
Method prescribed by the Internal Revenue Code
Accrual Method
Which of the following ratios is considered a measure of profitability
Price-earnings ratio
current ratio
quick (acid-test) ratio
profit margin
profit margin
What is the Regression Equation?
Finds the relationship, if any, that exists between sets of data.