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Q:
How would the accounting equation of Boston Company be affected by the billing of a client for $10,000 of consulting work completed?
A.+$10,000 accounts receivable, -$10,000 accounts payable.
B.+$10,000 accounts receivable, +$10,000 accounts payable.
C.+$10,000 accounts receivable, +$10,000 cash.
D.+$10,000 accounts receivable, +$10,000 revenue.
E.+$10,000 accounts receivable, -$10,000 revenue.
Q:
Slices of PizzaTotal UtilityMarginal Utility150 290 3120 4130 5137 6120 In the above table, what is the marginal utility of the second slice of pizza consumed?A) 10 B) 90 C) 30 D) 40
Q:
What best defines virtual expatriates?
A) They stay and work abroad for a short period of one to two months and then return to their home country.
B) They work in a foreign culture and blend to such an extent that they may more closely resemble a local than an expatriate.
C) They work abroad in one country after another for the greater part of their career.
D) They are expatriates from their own countries working for a foreign company in a third country.
E) They manage operations in foreign countries but do not move there.
Q:
Photometer Company paid off $30,000 of its accounts payable in cash. What would be the effects of this transaction on the accounting equation?
A.Assets, $30,000 increase; liabilities, no effect; equity, $30,000 increase.
B.Assets, $30,000 decrease; liabilities, $30,000 decrease; equity, no effect.
C.Assets, $30,000 decrease; liabilities, $30,000 increase; equity, no effect.
D.Assets, no effect; liabilities, $30,000 decrease; equity, $30,000 increase.
E.Assets, $30,000 decrease; liabilities, no effect; equity $30,000 decrease.
Q:
Helmut, a German national, works as a sales manager for Grey Oil Corporation in the Middle East. Given the benefits associated with the job, he works on one foreign assignment after another and rarely returns to the headquarters in Germany. In view of the given information, we can say that Helmut is a
A) repatriate manager.
B) virtual expatriate.
C) third-country national.
D) professional expatriate.
E) native salesperson.
Q:
Which of the following is more likely to have perfectly elastic or nearly perfectly elastic demand?
A) a textbook required for an economics course
B) the guitar produced by a master craftsman
C) milk produced by a Wisconsin dairy farmer
D) the services offered by the only allergist in the community
Q:
An exchange of value between two entities is called:
A.The accounting equation.
B.Recordkeeping or bookkeeping.
C.A business transaction.
D.An asset.
E.Net Income.
Q:
What is a characteristic of a professional expatriate?
A) They work abroad for a period of one month and then return to the home office.
B) They work for a foreign company in a third country for a short period.
C) They work abroad in country after country for the greater part of their careers.
D) They work in their home branches for most of their careers.
E) They manage operations in other countries but do not move there.
Q:
If the absolute price elasticity of demand for good Y is 0.75, when there is a 30 percent increase in price, we can conclude that quantity demandedA) has fallen by 35.0 percent. B) has fallen by 10.4 percent. C) has fallen by 22.5 percent. D) has fallen by 40.0 percent.
Q:
Assets created by selling goods and services on credit are:
A.Accounts payable.
B.Accounts receivable.
C.Liabilities.
D.Expenses.
E.Equity.
Q:
What is a strategy that international companies use to encourage sales personnel to accept foreign assignments?
A) International experience is considered important to join top management.
B) It is made mandatory for all sales personnel to take up expatriate positions.
C) Part of the headquarters of the company is set up at the foreign location.
D) Companies unfailingly provide employment for the employee's spouse in a top position.
E) Legal obligations are imposed on the expatriate sales representatives.
Q:
In economic analysis, the optimal level of pollution
A) is always zero.
B) arises at the point at which the marginal benefit from further reduction equals the marginal cost of further reduction.
C) occurs at the point at which demand crosses the private cost supply curve.
D) should be determined by the private market without any government intervention.
Q:
On June 30 of the current year, the assets and liabilities of Phoenix Phildell are as follows: Cash $20,500; Accounts Receivable, $7,250; Supplies, $650; Equipment, $12,000; Accounts Payable, $9,300. What is the amount of owner's equity as of July 1 of the current year?
A.$8,300
B.$13,050
C.$20,500
D.$31,100
E.$40,400
Q:
What is the most likely reason for Americans to seek third-country nationals for their international sales forces?
A) They transcend legal and cultural barriers.
B) They are thoroughly knowledgeable about a country's business structure.
C) They are often able to speak several languages.
D) They cost less to maintain than a staff of local nationals.
E) They can lead a company better through unfamiliar referral networks than local nationals.
Q:
Under the Social Security program currently in existence, A) benefits are based on need.B) benefits are determined by whether or not one contributed to the system.C) benefits are provided to everyone who contributed to the system EXCEPT those under private retirement programs that provide an annual income in excess of $13,500.D) benefits are guaranteed to be no lower for future retirees than for current retirees.
Q:
What is a disadvantage associated with a sales force consisting of expatriate salespeople?
A) adverse effect on the prestige of the product
B) inability to effectively communicate and influence headquarters' personnel
C) lack of technological expertise
D) inadequate knowledge of the company
E) large cultural barriers
Q:
The assets of a company total $700,000; the liabilities, $200,000. What are the claims of the owners?
A.$900,000.
B.$700,000.
C.$500,000.
D.$200,000.
E.It is impossible to determine unless the amount of this owners' investment is known.
Q:
Which of the following is FALSE regarding a monopsonist?A) The monopsonist is the only buyer in a market.B) The monopsonist faces an upward sloping labor supply curve.C) The monopsonist faces an upward sloping labor demand curve. D) The monopsonist faces the entire market labor supply curve.
Q:
What is an advantage of a sales force consisting of expatriate sales representatives?
A) They possess greater technical training.
B) They transcend cultural and legal barriers.
C) They cost less to be maintained in a foreign location.
D) The cultural gap can be easily narrowed.
E) They have a better understanding of distribution channels.
Q:
The balance sheet equation is:
A.Revenues minus expenses equals net income.
B.Debits equal credits.
C.The bookkeeping phase of accounting.
D.Another name for the accounting equation.
E.Assets minus liabilities and equity.
Q:
If a firm is a union shop, thenA) a worker may elect to either join or not join the union.B) only workers who have been union members for two years may be employed. C) only union members may be employed by the firm.D) a non-union worker may be hired but must join the union within a certain time period.
Q:
When is an expatriate sales force most likely to have an advantage over a native sales force?
A) when selling consulting services
B) when selling in relationship-oriented countries
C) when the product caters to a niche market
D) when the product is highly technical in nature
E) when selling does not require effective communication skills
Q:
Distributions by a business to its owners are called:
A.Withdrawals.
B.Expenses.
C.Assets.
D.Retained earnings.
E.Net Income.
Q:
Derived demand isA) a derivative of the demand curve.B) the demand for goods and services produced by companies using scarce resources.C) the demand for advertising to increase the sales of the product.D) the demand for the factors of production that are used to produce goods and services.
Q:
An expatriate sales force is likely to be
A) most efficient in relationship-based cultures.
B) unsuitable when a company wants to sell high-technology products.
C) lacking in knowledge regarding the product line of the company.
D) received unfavorably in information-oriented cultures.
E) the best choice when selling requires an extensive background of information.
Q:
A payment to an owner is called a(n):
A.Liability.
B.Withdrawal.
C.Expense.
D.Contribution.
E.Investment.
Q:
The largest personnel requirement in foreign countries for most companies is in the
A) management team.
B) finance department.
C) information technology team.
D) human resources department.
E) sales team.
Q:
Refer to the above table. The table represents information on the costs for Ajax Corporation.Ajax operates in a perfectly competitive market and the price of the product is $7. What will be the value of total revenue when quantity sold equals 2?A) $7 B) $14 C) $21 D) $16
Q:
Which of the following statements is true about assets?
A.They are economic resources owned or controlled by the business.
B.They are expected to provide future benefits to the business.
C.They appear on the balance sheet.
D.Claims on them can be shared between creditors and owners.
E.All of these.
Q:
A multinational company with its headquarters in the U.S. wants to sell its new high-technology product in Germany. For the most effective selling, the sales force for this company would probably consist mostly of
A) local German nationals.
B) illegal aliens living in the US.
C) temporary, freelancing German sales personnel.
D) American expatriates.
E) third-culture people from Japan.
Q:
Use the above figure. The AFC at output level 20 isA) $10.00. B) $0.50. C) $3.00. D) $1.00.
Q:
The excess of expenses over revenues for a period is:
A.Net assets.
B.Equity.
C.Net loss.
D.Net income.
E.A liability.
Q:
Suppose a firm wanted to go out of business. The firm sells all its assets and pays off everything it owes to creditors. The stockholders would receive
A) nothing.
B) their annual dividend payment.
C) one half of the funds; the other half of the funds goes to bondholders.
D) the rest of the funds, after everyone who has a claim against the firm is paid.
Q:
In countries like Japan, a sales force is likely to be most effective if it consists mostly of
A) professional expatriates.
B) local nationals.
C) virtual expatriates.
D) third-world nationals.
E) expatriates from Asian countries.
Q:
Another name for equity is:
A.Net income.
B.Expenses.
C.Net assets.
D.Revenue.
E.Net loss.
Q:
Countries such as Germany allow for greater use of expatriates in international sales forces. What is most likely the reason for this?
A) Germany is a member of the World Trade Organization.
B) Germany has a relationship-oriented culture.
C) The German language is easy to master.
D) Germany has an information-oriented culture.
E) Germany is a member of the United Nations.
Q:
The higher are a firmʹs risk-corrected returns, A) the lower are its labor costs.B) the higher are its opportunity costs.C) the more advantage it has in obtaining investor financing.D) the more difficulty it will have financing its expansion plans.
Q:
If assets are $99,000 and liabilities are $32,000, then equity equals:
A.$32,000.
B.$67,000.
C.$99,000.
D.$131,000.
E.$198,000.
Q:
Relationship marketing focuses on
A) the short-term effort.
B) maintaining an atmosphere of trust with the sales manager.
C) involving all members of the sales team in the sale.
D) treating each sale as a one-time event.
E) building long-term alliances.
Q:
Assume that good X and good Y each have diminishing marginal utility for a consumer. In this case,A) an indifference curve linking the two goods will have a constant slope. B) an indifference curve will be convex to the origin.C) the demand curves for these goods will be positively sloped. D) the demand curves for these goods will be horizontal.
Q:
What is the final link in a company's marketing and sales efforts?
A) the chairperson
B) the marketing manager
C) the sales representative
D) the customer
E) the sales manager
Q:
Accounting
A.Is an information and measurement system.
B.Identifies, records, and communicates information about business activities
C.Helps people make better decisions
D.Involves interpreting information and designing information systems to provide useful reports that monitor and control a company's activities.
E.All of these
Q:
If marginal utility is zero,A) total utility increases at a decreasing rate.B) total utility increases at an increasing rate. C) total utility is at a maximum.D) people will not consume the good even if the price is zero.
Q:
Revenues are:
A.The same as net income.
B.The excess of expenses over assets.
C.Resources owned or controlled by a company
D.The gross increase in equity from a company's earning activities.
E.The costs of assets or services used.
Q:
What is a company's most direct tie to the customer?
A) the product
B) the salesperson
C) the parent company
D) the retail outlet
E) the distributor
Q:
If the absolute price elasticity of demand is equal to 1 in the short run, then in the long run, other things being equal, the absolute price elasticity of demand will beA) less than one. B) less than zero. C) greater than one. D) equal to zero.
Q:
Net income:
A.Occurs when revenues exceed expenses.
B.Is the same as revenue.
C.Equals resources owned or controlled by a company.
D.Occurs when expenses exceed assets.
E.Represents assets taken from a company for an owner's personal use.
Q:
Most companies today limit their search for senior-level executive talent to their home countries.
Q:
Which of the following statements about demand and price elasticity of demand is TRUE?A) As the demand curve has a positive slope, the price elasticity of demand is positive.B) As the demand curve has a negative slope, the price elasticity of demand is negative. C) As the demand curve has a positive slope, the price elasticity of demand is negative. D) As the demand curve has a negative slope, the price elasticity of demand is positive.
Q:
An expatriate with excellent cultural skills does not tolerate ambiguity and upholds the superiority of his or her culture.
Q:
Expenses:
A.Increase equity.
B.Are gross increases in equity from a company's earning activity.
C.Are the costs of assets or services used to earn revenues.
D.Occur when equity exceeds revenue.
E.Are creditors claims on assets.
Q:
The total benefits to society from pollution abatementA) increase at an increasing rate with the increase of pollution abatement. B) increase at a decreasing rate with the increase of pollution abatement. C) decrease at an increasing rate with the increase of pollution abatement. D) decrease at a decreasing rate with the increase of pollution abatement.
Q:
An expatriate with excellent management and technical skills is sure to excel in any environment, even if he or she lacks an understanding of cultural differences.
Q:
Assets = Liabilities + Equity is known as the:
A.Income statement equation.
B.Cost principle.
C.Objectivity principle.
D.Accounting equation.
E.Transaction principle.
Q:
Which of the following statements about the Earned Income Tax Credit Program (EITC) program is FALSE?A) On net the EITC discourages work by low - or moderate- income earners more than it rewards work.B) It provides rebates of Social Security taxes to low -income workers.C) Recipients who receive benefit payments under Social Security are also eligible for SSI.D) It is the largest poverty reduction program in the U.S..
Q:
Personal career planning for the expatriate is a significant strategy that helps companies prevent returnee attrition.
Q:
The description of the relation between a company's assets, liabilities, and equity, which is expressed as Assets = Liabilities + Equity, is known as the:
A.Income statement equation.
B.Accounting equation.
C.Business equation.
D.Return on equity ratio.
E.Net income.
Q:
Monopsonistic exploitation isA) measured by the area above the supply curve but below the wage paid.B) the difference between the marginal revenue product of a worker and the wage received by the worker.C) measured by the height of the supply curve of labor. D) the cost to society from unions.
Q:
Jacob's wife never grew accustomed to his foreign assignment and was miserable, so Jacob requested a move back to the home country. This is a common reason for an expatriate's failure to function effectively in a foreign assignment.
Q:
Decreases in equity that represent costs of assets or services used to earn revenues are called:
A.Liabilities.
B.Equity.
C.Withdrawals.
D.Expenses.
E.Owner's Investment.
Q:
The United Steel Workers Union is an example ofA) a craft union. B) an auto union.C) an industrial union. D) a blue collar union.
Q:
The primary control tool used by American sales managers is the benefits system.
Q:
Creditors' claims on the assets of a company are called:
A.Net losses.
B.Expenses.
C.Revenues.
D.Equity.
E.Liabilities.
Q:
The MRP isA) the supply curve of labor for an individual firm.B) the demand curve for labor for an individual firm.C) the demand curve for labor for the entire market. D) the supply curve of labor for the entire market.
Q:
In the U.S., poor performers typically stay with the company and are seldom fired.
Q:
The difference between a company's assets and its liabilities, or net assets is:
A.Net income.
B.Expense.
C.Equity.
D.Revenue.
E.Net loss.
Q:
Suppose technical change permits cable television companies to provide their services at lower rates. The share-the-gains, share-the-pains theory would predict that the regulators wouldA) permit the firms to keep the savings and would lower prices only if the firms were pressured to do so.B) force the firms to pass all the savings on to consumers in the form of lower prices. C) force the firms to pass the savings on to consumers in the form of better service.D) force the firms to pass some of the savings on to consumers and to permit the firms to keep some of the savings themselves.
Q:
In Europe, external labor unions are involved in setting compensation rules for sales people.
Q:
Net income is:
A.Assets minus liabilities.
B.The excess of revenues over expenses.
C.An asset.
D.The same as revenue.
E.The excess of expenses over equity.
Q:
Which of the following is NOT subject to a network effect?
A) the layout of the keys on your keyboard
B) rotating your tires every six months
C) using a fax machine
D) purchasing a new high-definition DVD player
Q:
Separation allowances are benefits paid when an expatriate manager leaves a company.
Q:
Gross increases in equity from a company's earnings activities are:
A.Assets.
B.Revenues.
C.Liabilities.
D.Owner's Equity.
E.Expenses.
Q:
Expatriates working in high-tax countries prefer direct income instead of fringe benefits as part of their compensation package.
Q:
The first unit of an information product is produced at a high fixed cost. Producing additional units entails relatively lowA) total costs. B) marginal and average variable cost. C) external cost. D) social cost.
Q:
Resources owned or controlled by a company that are expected to yield future benefits are:
A.Assets.
B.Revenues.
C.Liabilities.
D.Owner's Equity.
E.Expenses.
Q:
Expatriate managers fear that they will lose opportunities for promotion because they will be forgotten by the home office while they are working in a foreign country.
Q:
Which of the following is NOT a feature of a monopolistically competitive market?A) numerous buyers and sellers B) differentiated productsC) advertising D) a homogeneous product
Q:
Differences in languages and culture can make mutual understanding between foreign managers and sales representatives difficult.
Q:
In the above figure, the total cost of producing the profit maximizing level of output is shown by rectangleA) 0P1AQ1.B) 0P5EQ5. C) 0P4HQ4. D) 0P2BQ1.
Q:
If equity is $300,000 and liabilities are $192,000, then assets equal:
A.$108,000.
B.$192,000.
C.$300,000.
D.$492,000.
E.$792,000.