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Q:
What primary discriminatory tax must be taken into account in foreign competition?
A) transfer taxes
B) tariffs
C) tolls
D) excise taxes
E) inflation taxes
Q:
The business entity principle means that a business is accounted for separately from other business entities, including its owner or owners.
Q:
Refer to the above figure. If the marginal cost curve for pollution abatement shifts to the right, everything considered, theA) degree of air quality or cleanliness will also decrease.B) the degree of air quality or cleanliness will stay unchanged. C) the degree of air quality will improve.D) the marginal cost of pollution abatement has nothing to do with air quality.
Q:
________ duties are levied as a percentage of the value of the goods imported.
A) Specific
B) Protective
C) Prohibitive
D) Ad valorem
E) Compound
Q:
On November 1 of the current year, Lois Bell began Lois Bell, Interior Design with an initial investment of $50,000 cash. On November 30 her records showed the following (alphabetically arranged) items and amounts:From the information given, prepare a November 30 balance sheet.
Q:
Originally, the threshold income level used to determine official poverty statistics was based on
A) a per capita income of $3000 in 1955 prices.
B) the lowest income of the second quartile of families in the country.
C) an income three times greater than necessary to purchase a nutritionally adequate diet.
D) figures developed by a committee in the American Economic Association.
Q:
A(n) ________ duty is a flat charge per physical unit imported.
A) ad valorem
B) compound
C) prohibitive
D) alternative
E) specific
Q:
Generally accepted accounting principles are the basic assumptions, concepts, and guidelines for preparing financial statements.
Q:
In a monopsonistic market,A) employment is lower but wages are higher than in a comparable competitive market.B) employment is higher but wages are lower than in a comparable competitive market. C) both employment and wages are higher than in a comparable competitive market.D) both employment and wages are lower than in a comparable competitive market.
Q:
What results from the added costs incurred as a result of exporting products from one country to another?
A) price deflation
B) penetration pricing
C) price escalation
D) price gouging
E) predatory pricing
Q:
The percentage of U.S. workers in the private sector who belong to unions is currentlyA) greater than 50 percent. B) approximately 20 percent.C) approximately 12 percent. D) approximately 8 percent.
Q:
In most cases, the reason products cost relatively little in one country and cost more in another is the
A) profiteering measures taken by exporting companies.
B) consistency in perception of quality in all countries.
C) inelastic demand of most consumer goods.
D) requirement that all export goods must use set skimmed price.
E) higher costs of exporting.
Q:
The business entity principle means that a business will continue operating for an indefinite period of time.
Q:
Quantity of WorkersTotal ProductMarginal Marginal Physical Product Revenue Product00- -17 218 330 440 548 In the above table, if this is a perfectly competitive firm and the market price of the product is $5 and the marginal factor cost of labor is $60, how many units of labor will the firm hire?A) 2 B) 3 C) 4 D) 6
Q:
Cosmeticon, a U.S.-based firm, has recently started exporting cosmetics to India. Cosmeticon has introduced a new range of mineral-based makeup products for the first time in the Indian market. As Cosmeticon has no competitors in this segment of the Indian cosmetics market, it has set a very high price for its products in order to reach the premium, price insensitive segment of the market. This is an example of
A) penetration pricing policy.
B) psychological pricing policy.
C) bundling.
D) price skimming.
E) cost-based pricing policy.
Q:
Behavior on the part of the firm that allows it to comply with the letter of the law but violate the spirit reducing the lawʹs effect isA) asymmetric information. B) creative response.C) the lemons problem. D) only a problem in a monopoly.
Q:
A ________ policy is used to stimulate market and sales growth by deliberately offering products at low prices.
A) penetration pricing
B) variable-cost pricing
C) premium pricing
D) price skimming
E) full-cost pricing
Q:
The Financial Accounting Standards Board is the private group that sets both broad and specific accounting principles.
Q:
If the supply of a product in a market is limited, a company may follow a ________ approach to maximize revenue and to match demand to supply.
A) penetration
B) psychological pricing
C) variable-cost pricing
D) predatory pricing
E) price skimming
Q:
Which of the following games yields an outcome in which two firms would simultaneously be willing to adopt a compatible product format?A) the prisonersʹ dilemma B) Tweedle Dee-Tweedle DumC) Battle of the Sexes D) none of the above
Q:
Ann Maslow's consulting practice had equity of $172,500 at December 31, 2008. Net income for 2009 amounted to $56,400. Ann's withdrawals during 2009 were $48,000, and Ann made no investments in the business during 2009. Prepare the statement of owner's equity for 2009.
Q:
A company uses ________ when the objective is to reach a segment of the market that is relatively price insensitive and thus willing to pay a premium price for the value received.
A) penetration pricing
B) everyday low pricing
C) predatory pricing
D) price skimming
E) psychological pricing
Q:
Which of the following does NOT help explain why oligopolies exist?A) Economies of scale B) MergersC) Product homogeneity D) Barriers to entry
Q:
Which approach to pricing is most suitable when a company has high variable costs relative to its fixed costs?
A) full-cost pricing
B) marginal-cost pricing
C) static-cost pricing
D) demand-based pricing
E) premium pricing
Q:
The balance sheet shows whether or not the firm had net income or loss over a period of time.
Q:
All of the following are characteristics of a monopolistically competitive industry EXCEPT A) homogeneous products. B) many firms.C) low barriers to entry and exit. D) sales promotion and advertising.
Q:
Prepare a December 31 balance sheet in proper form for Surety Insurance from the following items and amounts:
Q:
Companies that use ________ pricing insist that no unit of a similar product is different from any other unit in terms of cost and that each unit must bear its full share of the total fixed and variable cost.
A) full-cost
B) fixed-cost
C) variable-cost
D) demand-based
E) premium
Q:
The price-output combination that maximizes profits for a monopolist occurs at the point whereA) total revenues and total costs are equal.B) the difference between total revenues and total costs is the greatest. C) total revenues are the greatest.D) the elasticity of demand equals one.
Q:
________ pricing is a practical approach to use when a company has high fixed costs and unused production capacity.
A) Full-cost
B) Cost-plus
C) Marginal-cost
D) Demand-based
E) Premium
Q:
Accounting information is communicated to various parties through financial statements.
Q:
If the long-run supply curve slopes downward, we know that this isA) a decreasing-cost industry. B) a constant-cost industry.C) an increasing-cost industry.D) a situation in which no input prices change as firms enter and exit the industry.
Q:
What characterizes the variable-cost pricing approach?
A) Prices are often set on a cost-plus basis, that is, total costs plus a profit margin.
B) No unit of a similar product is different from any other unit in terms of cost.
C) Each unit must bear its full share of the total fixed and variable cost.
D) This approach is suitable when a company has high variable costs relative to its fixed costs.
E) Any contribution to fixed cost after variable costs are covered is profit to the company.
Q:
Prepare a November 30 balance sheet in proper form for Green Bay Delivery Service from the following alphabetical list of the accounts at November 30:
Q:
Refer to the above figure. Profits for this firm are positiveA) only for all points less than B. B) only at points B and C.C) for points between B and C.D) for all points less than B and greater than C.
Q:
Marianne's Chocolates sell well in the U.S. at a price of $24 per pound, and she has overproduced one kind of chocolate bar. Marianne has decided to see if she can sell them in Mexico, so she sets a price that is just over her cost. She figures if she makes even a little money, it would be worth it. Marianne is using ________ pricing.
A) full-cost
B) fixed-cost
C) variable-cost
D) demand-based
E) premium
Q:
A sole proprietorship is one or more individuals selling products or services for profit.
Q:
In the short run, total costs equalA) the sum of total fixed costs and total variable costs.B) the sum of total fixed costs and total explicit costs.C) the sum of total variable costs and total implicit costs.D) the sum of total fixed costs and total implicit costs.
Q:
In ________ pricing, a firm is concerned only with the marginal or incremental cost of producing goods to be sold in overseas markets.
A) full-cost
B) fixed-cost
C) variable-cost
D) demand-based
E) premium
Q:
Presented below is selected financial information for Stanley's Bike Shop. Using the appropriate information, prepare the income statement for 2009.
Q:
The yield percentage of a stock is calculated asA) the corporationʹs net worth divided by the number of shareholders. B) the book value of the stock divided by the number of shareholders. C) the stock dividend divided by the price of the stock.D) the expected appreciation of the stock.
Q:
Firms that are unfamiliar with overseas marketing and firms that produce industrial goods orient their pricing solely on the basis of
A) cultural differences in perceptions of pricing.
B) market segmentation from market to market.
C) the costs of production of the goods.
D) market segmentation from country to country.
E) competitive pricing in the market.
Q:
In the partnership form of business, the owners are called stockholders.
Q:
Out-of-pocket expenses such as wages and raw materials areA) direct costs. B) an owner-provided capital cost. C) implicit costs. D) explicit costs.
Q:
________ distribution, a practice often used by companies to maintain high retail margins to encourage retailers to maintain the exclusive-quality image of a product, can create a favorable condition for parallel importing.
A) Exclusive
B) Speculative
C) Intensive
D) Lateral
E) Dual
Q:
Della's Donuts had cash inflows from operating activities of $27,000; cash outflows from investing activities of $22,000, and cash outflows from financing activities of $12,000. Calculate the net increase or decrease in cash.
Q:
The marginal rate of substitution is theA) rate at which the consumer can exchange one good for the other.B) change in the quantity of one good that just offsets a one -unit change in the consumption of another good such that the total satisfaction remains constant.C) change in the quantity of one good that changes the utility received by one unit. D) same thing as the marginal utility of a good.
Q:
Gift Group Inc., an importing organization in New York, buys perfume from a company in France for $13 a unit. Unknown to the French company, Gift Group sells this product in the United States for $19 a unit. This leads to a loss of revenue for the French company as it also sells its perfume in the United States but for a higher price of $22. What concept does this demonstrate??
A) black-listed importing
B) indirect importing
C) circular importing
D) co-mingled importing
E) parallel importing
Q:
Owners of a corporation are called shareholders or stockholders.
Q:
A company that views pricing as a static element in a business decision most probably
A) places a high priority on foreign business.
B) sets prices to achieve specific objectives such as targeted return on profit.
C) views export sales as active contributions to sales volume.
D) views domestic sales as an insignificant source of revenue.
E) places a low priority on foreign business.
Q:
Given the above figure, if Joey was a rational consumer he would NOT eat more than ________ piece(s) of pizza.A) 1 B) 5 C) 4 D) 6
Q:
Cool Tours had beginning equity of $72,000; net income of $25,000, and withdrawals by owners of $9,000. Calculate the ending equity.
Q:
What is most likely to be true of a company that views prices as an active instrument of accomplishing marketing objectives?
A) The company sets prices to achieve specific objectives.
B) The company follows market prices to achieve specific objectives.
C) The company exports only excess inventory.
D) The company views its export sales as an insignificant source of revenue.
E) The company places a low priority on foreign business.
Q:
ʺThe price elasticity of demand for a particular good is smaller in the long run because consumers adapt to higher prices over time.ʺ Do you agree or disagree? Explain.
Q:
A partnership is a business owned by two or more people.
Q:
In general, price decisions are viewed in two ways: pricing as a static element in a business decision, and pricing
A) that depends on factors that are often beyond the control of a company.
B) as more a phenomenon of luck than planning.
C) as an active instrument of accomplishing marketing objectives.
D) that is determined by local sales managers.
E) that is static no matter the market.
Q:
A 5 percent rise in the price of a good leads to a 5 percent decrease in quantity demanded. The absolute price elasticity of demand isA) 5. B) 10. C) 0.1. D) 1.0.
Q:
Assuming that an international marketer has produced the right product, used the proper channel of distribution, and promoted the goods correctly, the effort will fail if the international marketer fails to
A) inform the host government about all its marketing objectives.
B) set the right price for the goods or services.
C) set the import tariff for the goods or services.
D) form a joint venture in order to sell the product.
E) work on a franchise basis in the country.
Q:
Della's Donuts has revenues of $83,000 and expenses of $64,000. Calculate its net income.
Q:
Refer to the above figure. The marginal benefit of pollution abatement is curveA) (1). B) (2). C) (3). D) (4).
Q:
The Sarbanes-Oxley Act (SOX) does not require public companies to apply both accounting oversight and stringent internal controls.
Q:
Sales on open accounts are recommended when shipping is hazardous.
Q:
The official number of poor in the United StatesA) is higher today than at any other time in our history.B) has risen steadily since 1981. C) was lowest in the late 1960s. D) is lowest today.
Q:
In bills of exchange, the buyer assumes all the risk until the payment is made.
Q:
ParFour's total liabilities are $130,000 and its equity is $340,000. Calculate the company's total assets.
Q:
At the profit-maximizing level of employment, the monopsonistA) pays a wage equal to MRP. B) pays a wage greater than MRP.C) pays a wage less than MRP. D) pays a wage equal to MFC.
Q:
The portion of international business handled on a cash-in-advance basis is not large and this is typically used when credit is doubtful.
Q:
Good ethics are good business.
Q:
A company can hire non-union workers, but a condition of their employment is that they must join the union within their first 90 days on the job. This is an example of aA) right-to-work law. B) closed-shop.C) union shop. D) voluntary craft union.
Q:
Except for cash in advance, letters of credit afford the greatest degree of protection for the seller.
Q:
Identify the risk and the return in each of the following examples.
a. Investing $500 in a CD at 4.5% interest.
b. Placing a $100 bet on an NBA game.
c. Investing $10,000 in Microsoft stock.
d. Borrowing $20,000 in student loans.
Q:
Quantity of WorkersTotal ProductMarginal Marginal Physical Product Revenue Product00- -17 218 330 440 548 In the above table, if this is a perfectly competitive firm and the market price of the product is $8, what is the marginal revenue product of worker 3?A) $96 B) $88 C) $80 D) $240
Q:
An irrevocable, confirmed letter of credit means that a U.S. bank accepts responsibility to pay the seller regardless of the financial situation of the buyer or foreign bank.
Q:
The Sarbanes-Oxley Act (SOX) requires each issuer of securities to disclose whether is has adopted a code of ethics for its senior financial officers and the contents of that code.
Q:
The Interstate Commerce Commission (ICC) regulates railroads, barges and trucks. Suppose technical change lowers the costs of railroads. As a result, the ICC permits railroads to lower prices some but also alters the rates of barges and trucks so they get additional business. The ICC would be acting consistently withA) the capture theory of regulation.B) the public interest theory of regulation.C) the share-the-gains, share-the-pains theory of regulation.D) None of the theories presented in the text since economic regulation is specific to a single industry and not to agencies that cover more than one industry. That is the province of social regulation.
Q:
Letters of credit shift the buyer's credit risk to the bank issuing the letter of credit.
Q:
Quick Computer Service had net income for the year of $30,000. Its assets at the beginning of the year were $400,000. At the end of the year assets were worth $450,000. Calculate its return on assets.
Q:
The situation in which firms wish to coordinate but cannot agree on how to do so is calledA) the prisonersʹ dilemma. B) a Tweedle Dee-Tweedle Dum game. C) Battle of the Sexes. D) a cartel.
Q:
Domestic cartelization is legal in the United States.
Q:
Identifying the proper ethical path is easy.