zilongwang/ReadingBank huggingface dataset:
When the parties have a contractual relationship, minimum contacts may be by the parties' negotiations preceding their agreement, the course of dealing between the parties, the terms of the agreement, and foreseeable future consequences arising out of the agreement. In this case, there is no such agreement and hence, it does not apply. Ethics AACSB: Reflective Thinking Blooms: Apply Difficulty: 3 Hard Learning Objective: 02-03 Identify the major legal issues courts must resolve when deciding whether in personam jurisdiction exists with regard to a defendant in a civil case. Topic: State Courts and Their Jurisdiction
12. (p. 33) The perennially low voter turnout in the U.S. is an expression of disillusionment with democracy. TRUE Difficulty: Easy Learning Objective: 3 13. (p. 33) The structure of the U.S. Constitution establishes a republic. TRUE Difficulty: Medium Learning Objective: 3 14. (p. 34) The Eighth Amendment of the U.S. Constitution guaranteed jury trials in common law cases. FALSE Difficulty: Hard Learning Objective: 3 15. (p. 35) The devolution of a right destroys the right. FALSE Difficulty: Medium Learning Objective: 4 16. (p. 36) A code is a compilation of all the statutes of the federal government. TRUE Difficulty: Medium Learning Objective: 5 17. (p. 37) The job of a drafting committee is to write the actual uniform law, point by point. TRUE Difficulty: Medium Learning Objective: 6
B12. Refer to Fact Pattern 2-1B. Bryn’s dissociation from the firm results in a. the automatic termination of the firm’s existence. b. the partnership’s buyout of Bryn’s interest in the firm. c. the immediate maturity of all partnership debts. d. Bryn’s purchase of her interest in the partnership from the firm. answer: B PAGES: Section 3 BUSPROG: Reflective AICPA: BB-Legal B13. Refer to Fact Pattern 2-1B. The partners decide to dissolve Equity Lending. Duke collects and distributes the firm’s assets. This results in a. nothing with respect to the firm’s existence. b. the continuation of the firm’s business. c. the termination of the firm’s existence. d. the temporary suspension of the firm’s business. answer: C PAGES: Section 4 BUSPROG: Reflective AICPA: BB-Legal B14. Edgar, Jon, and Phoebe do business as partners in Reliable Movers. Phoebe develops a debilitating illness and can no longer work. Phoebe a. may dissociate from the partnership. b. may not dissociate from the partnership without the other partners’ consent. c. must dissociate from the partnership. d. may terminate the partnership. answer: A PAGES: Section 3 BUSPROG: Reflective AICPA: BB-Legal B15. Round-Up Ranch and Smith & Jones, Accountants, are limited liability partnerships (LLPs). The major features of an LLP are that it limits the personal liability of the partners and a. it allows the partnership to continue as a pass-through tax entity. b. LLP statutes do not vary from state to state.
Required: Record the effects of transactions in an accounting equation worksheet. ASSETS = > Cash + Office Equip. + Computer Equip. = Accounts Payable + K. Holden, Capital > a. > Bal. > b. > Bal. > c. > Bal. > d. > Bal. > e. > Bal. > f. > Bal. > g. > Bal. > h. > Bal. > < + < + Client Fees – Rent Expense – Utilities Expense < a. < Bal. < b. < Bal. < c. < Bal. < d. < Bal. < e. < Bal. < f. < Bal. < g. < Bal. < h. < Bal. ASSETS = > Cash + Office Equip. + Computer Equip. = Accounts Payable + K. Holden, Capital > a. 12,000 12,000 > Bal. 12,000 12,000 > b. (7,500) 7,500 > Bal. 4,500 7,500 12,000 > c. 11,500 11,500 > Bal. 4,500 7,500 11,500 11,500 12,000 > d. (1,100) >
10. An unwritten promise to pay a supplier for assets purchased or services rendered. business entity concept 8 11. Reports assets, liabilities, and owner's equity on a specific date. accounting equation 7 12. An amount owed to a business by its customers as a result of the sale of or services. assets 6 13. The amount by which the business assets exceed the business liabilities. accounts payable 10 14. Reports the profitability of business operations for a specific period of time. account 2 15. Reports beginning capital, plus net income, less withdrawals to compute ending capital. accounts receivable 12 16. The decrease in assets (or increase in liabilities) as a result of efforts to produce revenues. business entity 5
1. During her boss's presentation at a work conference, Patricia is bored and cannot help yawning and looking at her watch. Her behavior is an example of nonverbal communication. TRUE Patricia looking at her watch is an example of nonverbal communication. Nonverbal communication is communication without words. AACSB: Communication Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 02-01 Discuss the basics of nonverbal communication and their importance in all interactions. Level of Difficulty: 2 Medium Topic: Essential Principles 2. When nonverbal cues contradict verbal cues, people tend to trust their perception of the verbal cues over the nonverbal cues. FALSE When nonverbal cues contradict verbal cues, people tend to trust their perception of the nonverbal cues. Therefore, even from the first impressions people form about you, through personal and professional relationships as they grow, the nonverbal information you broadcast will weigh heavily on your influence and impact on people. Communication Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 02-01 Discuss the basics of nonverbal communication and their importance in all interactions. Level of Difficulty: 2 Medium Topic: The Importance of Nonverbal Communication 3. Posture and physical appearance contribute to the kinesics category of nonverbal communication. TRUE Physical attributes such as appearance, facial expressions, eye contact, and posture all contribute to kinesics, or body language. Body language, or kinesics, is the gestures, movements, and mannerisms by which a person communicates with others. Communication Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 02-01 Discuss the basics of nonverbal communication and their importance in all interactions. Level of Difficulty: 1 Easy Topic: Categories of Nonverbal Communication
32. A company has two production lines for plastic bottles, A and B. Two percent of the bottles coming off of line A are defective and 8% of those off of line B are defective. Line A produces three times as many bottles as Line B. If a bottle is selected at random and found to be defective, what is the probability that it came from line A? A. 0.04 B. 0.4 C. 0.1111 D. 0.4286 E. 0.625 Difficulty: Hard Type: Computation 33. A particular company has twenty salespeople. How many ways can a group of three salespeople be chosen from this company? A. 1140 B. Permutation of 20 chose 3 C. Combination of 20 chose 20 D. 5700 E. None of the above Difficulty: Medium Type: Computation Use the following to answer questions 34-35: An urn contains two red balls and three white balls. 34. If a ball is chosen at random, what is the probability that it is white? A. 0 B. 1 C. 2/5 D. 1/5 E. 3/5 Difficulty: Easy Type: Computation
84. If the P(A) = 0.20 and P(B) = 0.30 and the two events are mutually exclusive, what is the P(A B)? zero Difficulty: Easy Type: Concept 85. If the P(A) = 0.20 and P(B) = 0.30 and A and B are known to be independent, what is the probability of the intersection of A and B? 0.20 x 0.30 = 0.06, if A and B are independent Difficulty: Medium Type: Computation 86. Ten people try out for a local basketball team. If only five people can be chosen for the team and all players can play all positions, how many ways can this team be chosen? combination of 10 choose 5 = 252 Difficulty: Medium Type: Computation 87. Suppose 100 people enter a drawing for three grand prizes of $10,000, $5,000 and $1,000. How many ways can the winners for these three prizes be selected? permutation of 100 choose 3 = 100 x 99 x 98 = 970,200 Difficulty: Medium Type: Computation 88. If the probability of event A is 0.82, what is the probability of the complement of event A? 1 - 0.82 = 0.18 Difficulty: Easy Type: Computation
59. Heidi and Anastasia are residents of the mythical country of Wetland. Heidi pays $1,500 income tax on taxable income of $6,000. Anastasia pays income tax of $21,000 on taxable income of $72,000. The income tax structure is 60. Elrod is an employee of Gomez Inc. During 2015, Elrod receives a salary of $120,000 from Gomez. What amount should Gomez withhold from Elrod's salary as payment of Elrod's social security and medicare taxes? 61. earns $80,000 as a sales manager for Household Books. How much Social Security and medicare tax does Marie have to pay for 2015?
39. _____ tend to feel they don't have control over the outcome of events. 40. has purchased a brand that she has purchased before. However, the first time she used this brand, the product failed and she was dissatisfied. Unfortunately, the second time she purchased this brand, the same thing happened. She's frustrated and wants her money back, but she doesn't feel as though she has any control over this situation. She's decided that she just needs to accept this poor quality and not expect so much from the next product she purchases. Marie can be described as a(n) ______. 41. The fact that Americans are prone to engage in physical activities and to take an approach to problems can be explained through which self-oriented value dichotomy? 42. What are the two of materialism?
11. (p. 41) _____ are rules that specify or prohibit certain behaviors in specific situations. Norms are rules that specify or prohibit certain behaviors in specific situations. AACSB: Analytic Blooms: Knowledge Difficulty: 2 Medium Learning Objective: 02-01 Define the concept of culture Topic: The Concept of Culture 12. (p. 41) Karen's father is an executive for a major international corporation and has been transferred to various countries over the years. With each move, Karen is enrolled in a new school. Even though English is spoken in the schools she attends, there are students from all over the world whose parents have jobs similar to Karen's father. With each new school, Karen spends the first few weeks merely observing the other students to learn which behaviors are appropriate in specific situations because she's learned that at each school the kids behave differently. Karen is attempting to learn that student body's specific _____ regarding behavior. Norms are rules that specify or prohibit certain behaviors in specific situations. AACSB: Analytic Blooms: Comprehension Difficulty: 2 Medium Learning Objective: 02-01 Define the concept of culture Topic: The Concept of Culture 13. (p. 41) Norms are derived from _____.
24. (p. 43) Which of the following is an example of an other-oriented value? Risk taking/security is an example of an other-oriented value. AACSB: Analytic Blooms: Knowledge Difficulty: 3 Hard Learning Objective: 02-02 Describe core values that vary across culture and influence behaviors Topic: Variations in Cultural Values 25. (p. 43) Which of the following is NOT an example of an other-oriented value? Tradition/change is not an example of an other-oriented value; it is an example of an environment-oriented value. AACSB: Analytic Blooms: Knowledge Difficulty: 3 Hard Learning Objective: 02-02 Describe core values that vary across culture and influence behaviors Topic: Variations in Cultural Values 26. (p. 43) Which of the following is an example of an environment-oriented value? Tradition/change is an example of an environment-oriented value. AACSB: Analytic Blooms: Knowledge Difficulty: 3 Hard Learning Objective: 02-02 Describe core values that vary across culture and influence behaviors Topic: Variations in Cultural Values
a. commercial bank b. thrift institution c. securities broker d. all are financial intermediaries ANS: C PTS: 1 OBJ: TYPE: Fact NAT: Reflective thinking LOC: Knowledge of financial markets and interest rates TOP: An overview of the U.S. financial system 23. In the ________ market, the firm receives the proceeds from the sale of its securities. a. over-the-counter b. secondary c. fully integrated d. primary ANS: D PTS: 1 OBJ: TYPE: Fact NAT: Reflective thinking LOC: Knowledge of financial markets and interest rates TOP: Primary and secondary markets 24. A savings and loan association is an example of which type of financial intermediary? a. commercial bank b. investment company c. finance company d. thrift institution ANS: D PTS: 1 OBJ: TYPE: Fact NAT: Reflective thinking LOC: Knowledge of financial markets and interest rates TOP: Thrift institutions 25. In any economy as a the actual savings for a given period of time must ________ the actual investments. a. be greater than b. be unrelated to c. equal d. be less than ANS: C PTS: 1 OBJ: TYPE: Fact NAT: Reflective thinking LOC: Knowledge of financial markets and interest rates TOP: An overview of the financial system 26. Financial intermediaries a. issue secondary claims to the lender b. are compensated for their services by fixed fees c. include both brokers and dealers d. issue primary claims to the lender ANS: A PTS: 1 OBJ: TYPE: Fact NAT: Reflective thinking LOC: Knowledge of financial markets and interest TOP: An overview of the finance system 27. The main purpose of an economy's financial system is to facilitate the transfer of funds from a. financial middlemen to financial intermediaries
ANS: 252 PTS: 1 DIF: Difficult 72. Find the least common denominator for the fraction: , , , ANS: 300 PTS: 1 DIF: Difficult 73. Add the fraction, and reduce to lowest ANS: PTS: 1 DIF: Easy 74. Add the fraction, and reduce to lowest terms: ANS: PTS: 1 DIF: Easy 75. Add the fraction, and reduce to lowest terms: ANS: PTS: 1 DIF: Medium 76. Add the fraction, and reduce to lowest terms: ANS: PTS: 1 DIF: Easy 77. Add the fraction, and reduce to lowest terms: ANS: PTS: 1 DIF: Easy 78. Add the fraction, and reduce to lowest ANS: PTS: 1 DIF: Easy 79. Subtract the fraction and reduce to lowest terms:
$2,200 c. $1,400 d. $5,500 ANSWER: b RATIONALE: SUPPORTING CALCULATIONS: $7,500 + $1,400 - $1,200 - $4,000 - $1,500 = $2,200
AACSB: Analytic Blooms: Remember Difficulty level: 2 Medium Topic: The Income Statement 17. Dividends per share is equal to dividends paid: AACSB: Analytic Blooms: Remember Difficulty level: 2 Medium Topic: The Income Statement 18. Which of the following are included in current assets? I. equipment II. Inventory III. accounts payable IV. cash AACSB: Analytic Blooms: Understand Difficulty level: 2 Medium Topic: The Balance Sheet 19. Which of the following are included in current liabilities? I. Note payable to a supplier in eighteen months II. Debt payable to a mortgage company in nine months III. Accounts payable to suppliers IV. Loan payable to the bank in fourteen months
AACSB: Analytic Blooms: Understand Difficulty level: 2 Medium Topic: The Balance Sheet 20. An increase in total assets: AACSB: Analytic Blooms: Understand Difficulty level: 2 Medium Topic: The Balance Sheet 21. Which one of the following assets is generally the most liquid? AACSB: Analytic Blooms: Understand Difficulty level: 2 Medium Topic: The Balance Sheet 22. Which one of the following statements concerning liquidity is correct?
Taxable income = $670,000 - $460,000 - $50,000 - $55,000 = $105,000; Tax = .34($105,000) = $35,700; Net income = $105,000 - $35,700 = $69,300 AACSB: Analytic Blooms: Apply Difficulty level: 2 Medium Topic: The Income Statement 57. the tax rates as shown, what is the average tax rate for a firm with taxable income of $126,500? Tax = .15($50,000) + .25($25,000) + .34($25,000) + .39($126,500 - $100,000) = $32,585; Average tax rate = $32,585 ÷ $126,500 = .2576 = 25.76% AACSB: Analytic Blooms: Apply Difficulty level: 2 Medium Topic: Taxes 58. The tax rates are as shown. Your firm currently has taxable income of $79,400. How much additional tax will you owe if you increase your taxable income by $21,000? Additional tax = .34($100,000 - $79,400) + .39($79,400 + $21,000 - $100,000) = $7,160 AACSB: Analytic Blooms: Apply Difficulty level: 2 Medium Topic: Taxes 59. Your firm has net income of $198 on total sales of $1,200. Costs are $715 and depreciation is $145. The tax rate is 34%. The firm does not have interest expenses. What is the operating cash flow? Earnings before interest and taxes = $1,200 - $715 - $145 = $340; Tax = [$198 ÷ (1 - .34)] - $198 = $102; Operating cash flow = $340 + $145 - $102 = $383
24. (p. 13) Selling to prospects requires different skills than does selling to existing customers. TRUE Level of Difficulty: Easy 25. (p. 13) Selling capital to manufacturers is much easier than selling cookies to consumers. FALSE of Difficulty: Easy 26. (p. 13) Many sales jobs do not involve building long-term partnerships. TRUE Level of Difficulty: Easy 27. (p. 14) Inside selling typically is more demanding than field selling because the former entails more intense interactions with customers. FALSE Level of Difficulty: Easy 28. (p. 16) almost a century of research, scholars have finally identified a definitive profile of the personality characteristics of the "perfect" salesperson. FALSE Level of Difficulty: Easy 29. (p. 20) Salespeople are like independent entrepreneurs because they have a territory to manage and few restrictions on how to do it. TRUE Level of Difficulty: Medium 30. (p. 20) Salespeople usually earn overtime pay for working more than 40 hours. FALSE Level of Difficulty: Medium Multiple Choice Questions 31. (p. 4) Personal selling includes all of the following EXCEPT: Level of Difficulty: Easy
Level of Difficulty: Medium 60. (p. 12) Missionary salespeople: Level of Difficulty: Easy 61. (p. 12) Manufacturers' Representatives Inc. (MRI) is an independent company that employs sales representatives to sell products from a number of producers. MRI's sales reps sell the products to wholesalers and retailers. MRI receives a commission from the producers for the products it sells. MRI is an example of a: Level of Difficulty: Medium 62. (p. 12) Manufacturers' agents:
Level of Difficulty: Easy 69. (p. 14) Luis for USAA, an insurance company headquartered in San Antonio. Luis is employed in the firm's telemarketing center where he answers customers' calls to the firm's 1-800 number about buying insurance. Luis is an example of a(n): Level of Difficulty: Medium 70. (p. 15) Which of the following products would most likely be the hardest for a new salesperson to sell? Level of Difficulty: Medium 71. (p. 15) A salesperson will find that he or she is called upon to use the greatest creativity when:
79. (p. 20) A person who _____ would probably find a career in sales attractive. of Difficulty: Medium 80. (p. 20) Salespeople are like entrepreneurs because: Level of Difficulty: Medium Short Answer Questions 81. (p. 7) Relative to advertising, what is the major advantage and disadvantage of personal selling? Relative to advertising, the major advantage of personal selling is that it provides greater flexibility. The major disadvantage of personal selling is that it is more costly than advertising. Level of Difficulty: Easy 82. (p. 7) Relative to publicity, what are the major advantages and disadvantages of personal selling? Greater control and flexibility are the major advantages of personal selling. Lower credibility and higher costs are the major disadvantages of personal selling. Level of Difficulty: Easy
Prepare a journal entry for the purchase of a truck on May 24 for $56,900, paying $4,000 cash and the remainder on account. May 24 Truck 56,900 Cash 4,000 Accounts Payable 52,900 Prepare a journal on September 15 for the fees earned on account, $35,600. Sept 15 Accounts Receivable 35,600 Fees Earned 35,600 Prepare a journal on February 27 for the payment of $5,000 for dividends from Laborstaff Counseling Services. Feb 27 Dividends 5,000 Cash 5,000 State for each account whether it is likely to have (a) debit entries only, (b) credit entries only, or (c) both debit and credit entries. Also, indicate the normal balance of each account. 1. Fees Earned 4. Supplies 2. Utilities Expense 5. Cash 3. Accounts Payable 6. Accounts Receivable 1. Credit entries only, normal credit balance 2. Debit entries only, normal debit balance 3. Both debit and credit entries, normal credit balance 4. Both debit and credit entries, normal debit balance 5. Both debit and credit entries, normal debit balance 6. Both debit and credit entries, normal debit balance
1,700.00 On November 12th NetSolutions provides $1,900.00 in services to clients. At the time of service, the clients paid $500.00 in cash and put the balance on account. (a) Journalize this event. (b) On November 29th NetSolutions clients paid an additional $800.00 on their accounts due. Journalize this event. (c) Calculate the amount on accounts receivable on November 30th. (a) Nov 12 Cash 500.00 Accounts Receivable 1,400.00 Fees Earned 1,900.00 (b) Nov 29 Cash 800.00 Accounts Receivable 800.00 (c) Original invoice $1,900 Less cash paid upon completion 500 Original amount on accounts receivable 1,400 Less Nov 29th payment 800 Accounts Receivable balance $ 600 Journalize the following selected transactions for August 2008 in a two-column journal. Journal entry explanations may be omitted. Aug 1 Received cash from the investment in exchange for capital stock, $15,000. 2 Received cash for providing accounting services, $8,000. 3 Billed customers on account for providing services, $4,000. 4 Paid advertising expense, $400. 5 Received cash from customers on account, $3,500. 6 Dividends paid, $1,000 7 Received telephone bill, $100 8 Paid telephone bill, $100. Date Description Post Ref Debit Credit
69. The tire business is becoming increasingly competitive as new manufacturers from Southeast Asia and elsewhere enter the global marketplace. At the same time, customer expectations for performance, tread life, and safety continue to increase. An increasing variety of vehicles, from the small and innovative gas/electric vehicles to the large SUVs, place more demands on tire designers and on tire manufacturing flexibility. Established brands such as Goodyear and Firestone must look to new ways to compete and maintain profitability. Required: 1. Is the competitive strategy of a global tire maker cost leadership or differentiation? Explain your answer. 2. What are the ethical issues, if any, for tire manufacturers?
2. A company's strategic plan: A strategic plan maps out where a company is headed, establishes strategic and financial targets, and outlines the competitive moves and approaches to be used in achieving the desired business results. Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-01 Why it is critical for company managers to have a clear strategic vision of where a company needs to head and why. Topic: Strategy and the Strategic Management Process 3. Which of the following is an integral part of the managerial process of crafting and executing strategy?
Strategy making is by no means solely a top management function, the exclusive province of CEOs, high-ranking executives, and board members. The more a company's operations cut across different products, industries, and geographic areas, the more that headquarters executives have little option but to delegate considerable strategy-making authority to down-the-line managers in charge of particular subsidiaries, divisions, product lines, geographic sales offices, distribution centers, and plants. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 02-03 Why the strategic initiatives taken at various organizational levels must be tightly coordinated to achieve companywide performance targets. Topic: Crafting and Executing a Strategy 62. A company's overall strategy:
40) ________ refers to understandings built up through common usage and also to decisions rendered by courts in previous cases. A) Precedent B) Procedural law C) law D) Criminology 41) About how many people arrested by the police are eventually convicted? A) 25 percent B) 10 percent C) 35 percent D) 50 percent 42) Jake Robinson was convicted on a burglary and a drug offense. He was given a sentence of six years in prison for both offenses. These sentences were to run concurrently. How many years would he spend in prison? A) 15 B) 6 C) 12 D) 8 43) Which Supreme Court era is remembered for its concern with protecting the innocent against massive power of the state in criminal proceedings? A) B) D) 44) Which Supreme Court case mandated that states provide lawyers for defendants who are unable to pay for them? A) Miranda v. Arizona B) Gideon v. Wainwright C) v. Nachtigal D) Blanton v. 45) Supreme Court case holds that even a defendant who committed a petty crime may be entitled to a jury trial if he or she can show that additional penalties viewed together with the maximum prison term are so severe that the legislators determined that the offense is a severe one? A) Miranda v. Arizona B) Mapp v. Ohio C) Gideon v. Wainwright D) Blanton v.
7) TRUE 8) 9) TRUE 10) TRUE 11) TRUE 12) TRUE 13) TRUE 14) FALSE 15) TRUE 16) FALSE 17) A 18) C 19) B 20) D 21) B 22) A 23) D 24) B 25) B 26) C 27) A 28) B 29) C 30) D 31) D 32) A 33) C 34) D 35) A 36) B 37) D 38) D 39) C 40) A 41) D 42) B 43) D 44) B 45) D 46) C 47) B 48) B 49) D 50) D 51) A 52) D
53) D 54) B 55) B 56) A 57) C 58) A 59) systems 60) Individual 61) Patriot 62) arraignment 63) administration 64) courts 65) conflict 66) Multiculturalism 67) social 68) parole
data set has 200 observations. In the data, a quantitative variable's highest value is 1080 and its lowest value is 960. What is the minimum class interval that you would recommend? _____________ data set has 200 observations. In the data, a qualitative variable's highest is "extremely satisfied" and its lowest value is "extremely dissatisfied". What is the minimum class interval that you would recommend? _____________ following frequency distribution shows the distribution of delivery times (in days) for swimstuff.com customer orders during the last month. How many orders were delivered in less than one day or 24 hours? following frequency distribution shows the distribution of delivery times (in days) for swimstuff.com customer orders during the last month. What is the relative frequency for orders delivered in less than one day or 24 hours?
127. A bar chart shows the frequency for the distribution of a qualitative variable. A pie chart shows the relative frequency for the distribution of a qualitative variable. The pie chart is also a great way to make a visual message of the proportions that each variable contributes to the total observations. 128. A frequency distribution shows the number of observations in each class. A cumulative frequency distribution shows the sum of number of observations in a class plus all lower ranked or valued classes. 129. A bar chart shows the frequency distribution of a qualitative variable. A qualitative variable is discrete and not continuous. Therefore, placing a space between each bar reflects the fact that a qualitative variable is not continuous. 130. TRUE 131. FALSE 132. FALSE 133. TRUE 134. TRUE 135. TRUE 136. TRUE 137. TRUE 138. TRUE 139. FALSE 140. TRUE 141. TRUE 142. TRUE 143. TRUE 144. TRUE 145. B 146. D 147. A 148. B 149. C 150. B 151. A 152. B 153. C 154. D 155. D 156. A 157. C
LOC: from trade, specialization and trade TOP: Specialization and Exchange 86. The division of labor a. allows more people to be employed b. allows tasks to be performed more efficiently c. makes people happier on the job d. means that less management is required e. means that less equipment will be used ANS: B PTS: 1 DIF: Easy NAT: Reflective Thinking LOC: from trade, specialization and trade TOP: Division of Labor and Gains from Specialization 87. The division of labor facilitates productivity increases for all of the following reasons, except one. Which is the exception? a. It allows people to do those tasks for which they have the greatest natural ability. b. Workers get better at the more they repeat them. c. The more experience workers gain by specializing in a task, the more likely they will enjoy that task. d. More sophisticated production techniques are introduced. e. The division of labor often permits the introduction of labor-saving machinery. ANS: C PTS: 1 DIF: Easy NAT: Reflective Thinking LOC: Gains from trade, specialization and trade TOP: Division of and Gains from Specialization 88. of the following is not a gain from division of labor? a. Workers' abilities are matched to tasks. b. Workers gain experience from the repetition of the tasks. c. Workers save time by not moving to different tasks. d. Workers' morale increases as tasks become more specialized. e. The introduction of labor-saving machinery is possible. ANS: D PTS: 1 DIF: Moderate NAT: Reflective Thinking LOC: Gains from trade, specialization and trade TOP: Division of and Gains from Specialization 89. Division of labor increases productivity because a. tasks can be assigned according to individual tastes and abilities b. workers who repeatedly perform the same tasks become bored c. each worker must learn each of the numerous tasks in the total production process d. specialization of labor allows for the introduction of cheaper, less sophisticated production techniques e. managers can force workers to produce goods that are valued more highly than the costs of producing them. ANS: A PTS: 1 DIF: Moderate NAT: Analytic LOC: Gains from trade, specialization and trade TOP: Division of Labor and Gains from Specialization 90. Because of specialization and comparative advantage, most people a. consume only what they produce themselves b. consume the products produced by their family and friends
72. Economic efficiency would be primarily discussed in response to which of the fundamental questions about a competitive market economy? A. What will be produced? B. How is the output to be produced? C. How can the system accommodate change? D. Who is to receive the output? AACSB: Analytic Bloom's: Knowledge Learning Objective: 2-3 Level: Easy Topic: Five fundamental questions 73. In the market system, the costly techniques of production will be chosen by competitive firms because: A. Of consumer sovereignty B. Of the law of diminishing returns C. Profits will be highest with such techniques D. These techniques will result in full employment AACSB: Analytic Bloom's: Knowledge Learning Objective: 2-3 Level: Easy Topic: Five fundamental questions Suppose a firm can produce 70 of a hypothetical product, Zenia, by combining labor, land, capital, and entrepreneurial ability in each of the four ways shown in the table below. Assume further that the firm can hire labor at $3 per unit, land at $3 per unit, capital at $6 per unit, and entrepreneurship at $9 per unit.
104. The economic institution that was characteristic of the former Soviet Union and also China was: A. Consumer sovereignty B. Central planning C. Decentralized ownership of property D. A system of markets to determine prices AACSB: Analytic Bloom's: Knowledge Learning Objective: 2-1 Level: Moderate Topic: Demise of the command systems 105. The problem in central planning has to do with: A. Determining the production goals for a factory B. Determining the proper geographic location of new firms C. Coordinating production so that bottlenecks do not develop D. Providing financial resources for increasing the real flows of products AACSB: Analytic Bloom's: Knowledge Learning Objective: 2-1 Level: Moderate Topic: Demise of the command systems 106. In the system of central planning: A. There is rapid decay of the infrastructure B. There is severe inflation in wholesale and retail prices C. Economic growth leads to widespread unemployment among workers D. The outputs of some industries become inputs for other industries AACSB: Analytic Bloom's: Knowledge Learning Objective: 2-1 Level: Difficult Topic: Demise of the command systems
7) Which of the following is likely to offer a brokerage account? A) Federal Reserve B) Federal Deposit Insurance Corporation C) Fidelity Investments D) Commonwealth Bank Answer: C Difficulty: Easy Analytical Thinking Brokerage Accounts 8) Mutual funds charge an annual fee, which is usually referred to as the . A) expense ratio B) reserve ratio C) coupon payment D) dividend Answer: A Difficulty: Easy Analytical Thinking Topic: Mutual Funds 9) A typical annual expense ratio is of the value of the assets in the mutual fund. A) 1% B) 5% C) 10% D) 20% Answer: A Difficulty: Easy AACSB: Analytical Thinking Topic: Mutual Funds 10) The expense of a mutual fund is usually reported on the . A) mutual fundʹs prospectus B) investorʹs passbook C) annual statement of the mutual fund D) quarterly statements of the mutual fund Answer: A Difficulty: Easy Analytical Thinking Topic: Mutual Funds 11) The fee that a mutual fund charges is usually proportional to the . A) number of investors who invest in the fund B) current prices of the assets that the investor has C) incomes of the investors who invest in the fund D) amount of assets that the investor has in the mutual fund Answer: D Difficulty: Easy AACSB: Analytical Thinking Mutual Funds
13. If a consumer always eats cheese with macaroni, then for that consumer macaroni and cheese are examples of: 14. If an increase in the price of cookies leads to a decrease in the demand for ice cream, then ice cream and cookies must be 15. If an increase in the price of bicycles leads to an increase in the demand for bus transportation, the bicycles and bus rides must be 16. If the price of digital cameras drops sharply, the demand for memory sticks 17. A student graduates from college and gets a high-paying job. As a result of the increase in income, the student buys more frozen pizzas. For the student, frozen pizzas must be a(n)
30. Refer to the graph below: The demand curve and supply curve for beef are DD and SS. Which of the following could cause supply to shift to S1S1? 31. Refer to the graph below: Which of the following statements is incorrect? 32. Refer to the graph below: If demand and supply shift to D1D1 and S1S1, market price will be
109. Refer to WWYD Waste Management. The Sierra Club is an example of a(n) __________ in the way it __________ companies such as Waste Management.
5. Which of the following is a personal computer that users can carry from place to place? 6. In which gesture do you quickly touch and release one finger one time? 7. In which gesture do you quickly touch and release one finger two times? 8. In which gesture do you press and hold one finger on an object and then move the finger to the new location?
104. Servers like the one in the accompanying figure typically support only one computer at a time. 105. Larger corporate, government, and Internet applications may use powerful, expensive servers (an example of which is shown in the accompanying figure) to support their daily operation. 106. The differences between server computers like the one in the accompanying figure and client computers are that the client typically has more power, more storage space, and expanded communications capabilities. 107. Providers of wireless communications services may charge additional fees for sending text, picture, or video messages, depending on the service plan.
41. Which of the following comparison operators means "not equal to"? 42. To find numbers greater than or equal to 500, use which comparison operator? 43. Which of the following comparison operators means "greater than"? 44. Which of the following comparison operators means "less than or equal to"?
24. (p. 41) Two ways to build social capital are legitimacy and social networking. TRUE Difficulty: Medium 25. (p. 42) Wearing uniforms or business attire is a goodwill indicator of people-based legitimacy. FALSE Difficulty: Medium 26. (p. 44) One of the key parts of social networking is actually seeking the help or advice of others. TRUE Difficulty: Easy 27. (p. 46) Networking is the idea and action of each person helping the other. FALSE Difficulty: Medium 28. (p. 48) Electronic social networks are usually fast and easy to develop but cost a lot. FALSE Difficulty: Medium 29. (p. 49) One of the steps in handling a crisis is to admit you're in trouble. TRUE Difficulty: Medium
38. You should start a business doing something you have a passion for because you will spend more time starting and running the business than if you start a business that does not excite you. TRUE An entrepreneur will need to spend considerable time at the business for it to be successful. Therefore, you need to enjoy what you do. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 1 Easy Learning Objective: 02-05 Explain how you can evaluate those things that you enjoy the most and discover how they may lead to business opportunities. Topic: Form a Business Doing What You Like Multiple Choice Questions 39. _________ in large companies that have excess resources such as equipment and employees. Organizational slack is having excess resources in a large organization. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 02-01 Explain how entrepreneurial founders impact the business world as a whole. Topic: Founders Are the Reason Why Entrepreneurial Businesses Work So Well 40. A small business has _________ formal procedures as compared to a larger firm to operate the company. A new entrepreneurial business has few formal procedures, a concentration of knowledge in those individuals who start the business, and limited slack resources.
Dizio clearly illustrates the risk taking that characterizes an entrepreneur. He quit his job and funded his venture initially with credit card debt. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-01 Explain how entrepreneurial founders impact the business world as a whole. Topic: Founders Are the Reason Why Entrepreneurial Businesses Work So Well 77. In the Friend's Home Health case study, the three potential entrepreneurs evaluated their personal motivation and risk orientations. They found that: When the three potential entrepreneurs completed an exercise on risk tolerance, Betty and Joan realized they were far more frugal in their lives than Bob. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 02-01 Explain how entrepreneurial founders impact the business world as a whole. Topic: Founders Are the Reason Why Entrepreneurial Businesses Work So Well
the issue of global warming, until the hurricane season of 2005, the federal government's official stance was that the information available from the scientific community was neither conclusive nor persuasive. This governmental position was probably due to ________.
10. (p. 38) Adherence to ethical and socially responsible principles is the moral obligation of advertisers. TRUE Difficulty: Medium Type: Comprehension 11. (p. 39) The U.S. Supreme Court does not differentiate between speech and commercial speech. FALSE The Supreme Court defines commercial speech as speech that promotes a commercial transaction. Difficulty: Medium Type: Comprehension 12. (p. 40) While most children and parents are still joint consumers, more and more children are becoming sole decision makers. TRUE Difficulty: Medium Type: Comprehension 13. (p. 41) Because there are so many federal, state and local agencies that regulate different aspects of advertising, advertisers sometimes find it difficult to comply with regulations. TRUE Difficulty: Medium Type: Comprehension 14. (p. 42) Deceptive advertising occurs when a consumer is "unjustifiably injured" or there is a "violation of public policy". FALSE This is the definition for unfair advertising. Difficulty: Easy Type: Definition
71. Premium Pet Supplies has of $98,400. The costs of goods sold are $55,000 and the other costs are $21,000. Depreciation is $12,000 and the tax rate is 35 percent. What is the net income of the company? a. $2,560 b. $3,640 C. $6,760 d. $10,400 e. $14,560 BLOOMS TAXONOMY QUESTION TYPE: APPLICATION LEVEL OF DIFFICULTY: BASIC SECTION: 2.2 TOPIC: NET INCOME TYPE: PROBLEMS 72. Precious Gems Jewelry has sales of $267,400 and costs of $200,800. The depreciation expense is $36,100. Interest paid equals $19,700 and dividends paid equal $4,500. The tax rate is 34 percent. What is the amount of the addition to retained earnings? a. $828 b. $1,142 C. $2,628 d. $3,672 e. $4,158 BLOOMS TAXONOMY QUESTION TYPE: APPLICATION LEVEL OF DIFFICULTY: BASIC SECTION: 2.2 TOPIC: ADDITION TO RETAINED EARNINGS TYPE: PROBLEMS 73. Last year, Sally's Studio added $2,300 to retained earnings from sales of $66,800. The company had costs of $52,300, dividends of $1,000, and interest paid of $900. The tax rate was 34 percent. What was the amount of the depreciation expense? a. $4,200 b. $6,800 C. $8,600 d. $9,500 e. $14,500 BLOOMS TAXONOMY QUESTION TYPE: APPLICATION OF DIFFICULTY: INTERMEDIATE SECTION: 2.2 TOPIC: DEPRECIATION TYPE: PROBLEMS
AACSB: Analytic Blooms: Understand Difficulty: 2 Medium Learning Objective: 02-04 Recount how the mix of U.S. output has changed over time. Topic: What America Produces 120. If the United States imports more than it exports, this implies that the country uses more goods and services than it produces. TRUE Imports represent goods and service that are used by Americans but are not produced in the U.S. AACSB: Reflective Thinking Blooms: Analyze Difficulty: 2 Medium Learning Objective: 02-04 Recount how the mix of U.S. output has changed over time. Topic: What America Produces 121. The manufacturing of output has increased in the United States since World War II. FALSE The manufacturing and agricultural shares have decreased while the services share has increased. AACSB: Analytic Blooms: Understand Difficulty: 2 Medium Learning Objective: 02-04 Recount how the mix of U.S. output has changed over time. Topic: What America Produces 122. A capital-intensive production process increases the of output per worker. TRUE Capital greatly assist in increasing the level of output per person. AACSB: Analytic Blooms: Understand Difficulty: 2 Medium Learning Objective: 02-03 Explain why the U.S. economy can produce so much. Topic: How America Produces
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Learning Objective: 01-05 Apply appropriate criteria to evaluate alternate tax systems. Level of Difficulty: 3 Hard 109. Given the following tax structure, what amount of tax would need to be assessed on Carrie to make the tax horizontally equitable? What is the minimum tax that Simon should pay to make the tax structure vertically equitable based on Fantasia's tax rate? This would result in what type of tax rate structure? Horizontal equity means that two taxpayers in similar situations pay the same tax. Thus, to make the tax structure horizontally equitable, Carrie should pay $1,500 in tax. Fantasia's average tax rate is 7.5%. To be vertically equitable with respect to tax rates, Simon should pay a tax rate higher than 7.5%. A 7.5% tax rate on Simon's $30,000 taxable income would result in $2,250 of tax (i.e., 7.5% x $30,000 = $2,250). Thus, Simon must pay more than $2,250 tax for the tax structure to be vertically equitable (i.e., to generate a tax rate more than 7.5%). This would result in a progressive tax rate structure. AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Learning Objective: 01-05 Apply appropriate criteria to evaluate alternate tax systems. Level of Difficulty: 3 Hard 110. Consider the following tax rate structures. Is it horizontally equitable? Why or why not? Is it vertically equitable? Why or why not? The tax rate schedule is horizontally equitable because taxpayers in the same situation (Lucy and Ethel) pay the same tax ($4,500). The tax is not vertically equitable because the taxpayers with a greater ability to pay (Lucy and Ethel) do not pay more tax, nor do they pay a higher tax rate. AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Learning Objective: 01-05 Apply appropriate criteria to evaluate alternate tax systems. Level of Difficulty: 3 Hard
33. Which one of the following provides the best example of securitization? 34. of the following indexes are market value-weighted? I. The NYSE Composite II. The S&P 500 III. The Wilshire 5000 35. The interest rate charged by large banks in London to lend money among themselves is called _________. 36. A firm that has large securities holdings and wishes to raise money for a short length of time may be able to find the cheapest financing from which of the following? 37. Currently, the Dow Jones Industrial Average is computed by _________.
AACSB: Analytic Blooms: Remember Difficulty: 2 Medium Learning Objective: 02-01 Distinguish among the major assets that trade in money markets and in capital markets. Topic: The Bond Market 28. The yield on tax-exempt bonds is ______. Analytic Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-01 Distinguish among the major assets that trade in money markets and in capital markets. Topic: The Bond Market 29. __________ is not a money market instrument. AACSB: Analytic Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-01 Distinguish among the major assets that trade in money markets and in capital markets. Topic: The Money Market 30. An investor buys a T-bill at a bank discount quote of 4.80 with 150 days to maturity. The investor's actual annual rate of return on this investment is _____.
are two major types of e-commerce transactions: business-to-consumer (B2C) and business-to-business (B2B). Explain the difference between B2C and B2B. Which is more important? the evolution of Canadian business. Identify the key trends, and discuss the implications these trends have for the future. claim that there are 5 factors that contribute to wealth creation. Explain 4 out of the 5 factors of production.
27. is the external auditor of Texas Two Steps, a privately-owned dance company in Texas. Rosie believes the owner of the company is skimming cash off the top. She approaches the owner who explains that the money will be replaced in the following month after he refinances his house. Rosie accepts the owner's explanation but reclassifies the expenditure as a receivable of the company from Rosie. Rosie's reasoning best reflects: 28. Steve is in charge of accounting for the purchase of equipment at Cal Works, Inc. The company has a policy that all expenditures less than $1,000 must be expensed. Steve decides to take a $900 expenditure and separate $600 one and combine them into one $1,500 expenditure so that the total can be capitalized thereby eliminating the effects on income. Steve's actions can be characterized as: 29. Role expectation or approval from others is a motive for doing right in which stage of Kohlberg's moral reasoning? 30. At which stage of Kohlberg's view on ethical development is an individual's actions influenced by group norms? 31. How does Gilligan evaluate the solution to Heinz's dilemma? 32. Rest's components of a moral model include all but
9. The unit-of-measure assumption states that financial information is reported in the national monetary unit. True False 10. The separate-entity assumption assumes a stable monetary unit (not affected by inflation or deflation). True False 11. Three of the four basic assumptions that underlie accounting measurement and reporting relate to the statement of financial position. True False 12. The amount shown on the balance sheet as shareholders' equity represents the current market value of the owners' residual claim against the company. True False 13. Prepayments (e.g., insurance premiums and rent paid in advance of use of a building) reflect available benefits (e.g., monthly insurance protection, office space) that the company will use within one year. True False 14. Transactions have a dual economic effect on the fundamental accounting True False 15. The payment of a liability in cash will decrease owners' equity. True 16. The basic system of recording transactions has withstood the test of time, and has been in use for more than 500 years. True False 17. If you trade your computer plus cash for a new car, the cost of the new car is equal to the cash paid plus the market value of the computer. True False