Multiple Choice 1
1. Which of the following is a type of intangible business property that is protected by law:
A. Equipment
B. Inventory
C. Acreage
D. Trademark
What is
D. Trademark
6. Compliance in the finance industry involves financial institutions operating within
A. specific territories.
B. regulatory guidelines.
C. organizational plans.
D. different relationships.
What is
B. regulatory guidelines.
11. Alma is preparing a presentation about her department's budget to make to the company president. She wants to use a visual representation of the budget that shows parts in relation to the whole. Alma should consider using a
A. table.
B. pie chart.
C. line graph.
D. bar graph.
What is
B. pie chart.
16. When Mr. Schwarz's order did not arrive at the expected time, he called Karl, the salesperson with whom he had placed his order. Karl apologized for the delay and told Mr. Schwarz that he would check into the issue. After Karl talked with the transportation company, he immediately called Mr. Schwarz to let him know where the order was and when to expect delivery. Mr. Schwarz thanked Karl for getting back with him so quickly. In this situation, Karl reinforced the company's image by
A. delegating work tasks.
B. giving vague answers.
C. providing efficient follow-up.
D. complementing the customer.
What is
D. complementing the customer.
21. Which of the following is an example of a change in the relative price ratio when the original price of red apples is $0.60 per pound and the original price of green apples is $0.80 per pound:
A. Red apples @ $0.30 per pound; green apples @ $0.40 per pound
B. Red apples @ $0.90 per pound; green apples @ $0.80 per pound
C. Red apples @ $0.45 per pound; green apples @ $0.60 per pound
D. Red apples @ $1.20 per pound; green apples @ $1.60 per pound
What is
D. Red apples @ $1.20 per pound; green apples @ $1.60 per pound
2. When filing a tort against a business, the plaintiff must establish that the defendant
A. damaged property intentionally.
B. breached the duty of care.
C. conspired with a competitor.
D. violated the doctrine of sovereign immunity.
What is
B. breached the duty of care.
7. In general, a governance, risk, and compliance (GRC) software system identifies and measures risk; monitors the risk-management system; routinely checks adherence to company-wide policies; and ensures compliance with
A. reporting requirements.
B. union demands.
C. product standards.
D. contingency plans.
What is
A. reporting requirements.
12. What type of letter should a business include when sending copies of a contract to a vendor?
A. Request
B. Acknowledgment
C. Claim
D. Transmittal
What is
C. Claim
17. What is an important aspect of a customer-centric business?
A. Reducing the number of touch points with customers
B. Limiting the employees' decision making
C. Being satisfied with the status quo
D. Aligning business activities with customer needs
What is
D. Aligning business activities with customer needs
22. Determining what consumers want in order to promote and sell those goods and services is a function of the business activity of
A. risk management.
B. quality management.
C. production.
D. marketing.
What is
A. risk management.
3. Which of the following is an example of a voluntary debtor-creditor relationship:
A. Requiring specific information
B. Receiving a monetary gift
C. Obtaining a loan from a bank
D. Owing punitive damages
What is
C. Obtaining a loan from a bank
8. While conducting a staff meeting, the speaker noticed that Colin was texting on his smartphone. Colin's nonverbal behavior indicates that he was
A. distracted.
B. annoyed.
C. listening to the speaker.
D. interested in the topic.
What is
B. annoyed.
13. Identify the type of appeal used in the following persuasive message: "This new book is written by Dr. Juliet Browne, who holds a doctorate from the Harvard School of Medicine and is the Chair of the World Health Organization."
A. Emotions
B. Reason
C. Credibility
D. Shock value
What is
D. Shock value
18. When providing product information to clients, finance professionals should use
A. standard responses.
B. technical terms.
C. financial acronyms.
D. simple explanations.
What is
C. financial acronyms.
24. Seeing the big picture instead of smaller, individual parts is an organizational learning concept known as
A. systems thinking.
B. team learning.
C. shared organizational vision.
D. personal mastery.
What is
A. systems thinking.
4. Chris purchased 500 shares of microcap HRR stock. Then, he posted false information about HRR on several investment websites to hype up the stock. After driving up the price of HRR stock, Chris quickly sold all of his stock in the company and earned a large profit. The price of the stock then fell, leaving HRR investors with worthless stock. What type of investment scam did Chris commit?
A. Phishing
B. Pyramid scheme
C. Ponzi scheme
D. Pump and dump
What is
D. Pump and dump
9. Before DiAnn presents her new idea to her boss, she searches the Internet and jots down two statistics that reinforce the idea. This is an example of
A. obtaining primary information.
B. supporting ideas with evidence.
C. giving alternative ideas.
D. clarifying a new idea.
What is
B. supporting ideas with evidence.
14. What is a type of informal communication that coworkers often use to communicate with each other?
A. Network
B. Feedback
14. What is a type of informal communication that coworkers often use to communicate with each other?
A. Network
B. Feedback
C. Grapevine
D. Structured
D. Structured
What is
C. Grapevine
19. Beverly, the new office manager, just completed a review of the last two years of accounts receivable data. In doing so, she discovered that there are erroneous duplicate entries totaling $25,628 in the system. Unfortunately, due to these duplicate entries, collection letters were sent to many customers who had already paid in full—customers who are angry with the company for sending them the letters. What should Beverly do to try to save these customer relationships and ensure that these customers are not bothered in the future?
A. Contact each customer by phone and apologize
B. Complete an accounting software update
C. Complete a data cleansing of the erroneous entries
D. Use funds from the accounts payable account to pay the debt
What is
B. Complete an accounting software update
25. The general economic growth of a country is supported by its
A. level of productivity.
B. standard of living.
C. gross domestic product.
D. wealth of goods and services.
What is
B. standard of living.
5. Which of the following statements best describes the taxation of Roth IRAs:
A. Contributions and withdrawals during retirement are both taxed.
B. Contributions are tax deductible, but withdrawals during retirement are taxed.
C. Contributions are taxed, but withdrawals during retirement are not.
D. Contributions and withdrawals during retirement are tax deductible.
What is
C. Contributions are taxed, but withdrawals during retirement are not.
10. At work, Bob is assigned to be on a team of five people that will create a new product. Which action can Bob take to participate in the team in a useful way?
A. Keep the group on track by stopping others from offering unusual ideas
B. Encourage the team to avoid setting ground rules
C. Find out what other people in the group know about the product
D. Walk around the room during discussions to keep energy in the group
What is
C. Find out what other people in the group know about the product
15. What is one of the benefits to a business of reinforcing service orientation through communication?
A. Rewards customers for their support
B. Promotes the sale of new products
C. Builds positive relationships with customers
D. Encourages employees to be aggressive
What is
C. Builds positive relationships with customers
20. The process or activity of using goods is called
A. production.
B. consumption.
C. exchange.
D. distribution.
What is
B. consumption.
23. Which of the following describes the matrix organizational structure:
A. It is a combination of two other organizational structures.
B. It includes only traditional departments, such as sales and marketing.
C. It is separated by product lines.
D. It is the oldest organizational structure being used.
What is
A. It is a combination of two other organizational structures.