'We have no experience in stopping a nuclear war.' - Sidney Drell (no replies)        
'..My greatest concern is the lack of public awareness about this existential threat, the absence of a vigorous public debate about the nuclear-war plans of Russia and the United States, the silent consent to the roughly fifteen thousand nuclear weapons in the world. These machines have been carefully and ingeniously designed to kill us. Complacency increases the odds that, some day, they will. The “Titanic Effect” is a term used by software designers to explain how things can quietly go wrong in a complex technological system: the safer you assume the system to be, the more dangerous it is becoming.'

'The harsh rhetoric on both sides increases the danger of miscalculations and mistakes, as do other factors. Close encounters between the military aircraft of the United States and Russia have become routine, creating the potential for an unintended conflict. Many of the nuclear-weapon systems on both sides are aging and obsolete. The personnel who operate those systems often suffer from poor morale and poor training. None of their senior officers has firsthand experience making decisions during an actual nuclear crisis. And today’s command-and-control systems must contend with threats that barely existed during the Cold War: malware, spyware, worms, bugs, viruses, corrupted firmware, logic bombs, Trojan horses, and all the other modern tools of cyber warfare. The greatest danger is posed not by any technological innovation but by a dilemma that has haunted nuclear strategy since the first detonation of an atomic bomb: How do you prevent a nuclear attack while preserving the ability to launch one?

..

..the Cuban Missile Crisis, when a series of misperceptions, miscalculations, and command-and-control problems almost started an accidental nuclear war—despite the determination of both John F. Kennedy and Nikita Khrushchev to avoid one. In perhaps the most dangerous incident, the captain of a Soviet submarine mistakenly believed that his vessel was under attack by U.S. warships and ordered the firing of a torpedo armed with a nuclear warhead. His order was blocked by a fellow officer. Had the torpedo been fired, the United States would have retaliated with nuclear weapons. At the height of the crisis, while leaving the White House on a beautiful fall evening, McNamara had a strong feeling of dread—and for good reason: “I feared I might never live to see another Saturday night.”

..

The personnel who command, operate, and maintain the Minuteman III have also become grounds for concern. In 2013, the two-star general in charge of the entire Minuteman force was removed from duty after going on a drunken bender during a visit to Russia, behaving inappropriately with young Russian women, asking repeatedly if he could sing with a Beatles cover band at a Mexican restaurant in Moscow, and insulting his military hosts. The following year, almost a hundred Minuteman launch officers were disciplined for cheating on their proficiency exams. In 2015, three launch officers at Malmstrom Air Force Base, in Montana, were dismissed for using illegal drugs, including ecstasy, cocaine, and amphetamines. That same year, a launch officer at Minot Air Force Base, in North Dakota, was sentenced to twenty-five years in prison for heading a violent street gang, distributing drugs, sexually assaulting a girl under the age of sixteen, and using psilocybin, a powerful hallucinogen. As the job title implies, launch officers are entrusted with the keys for launching intercontinental ballistic missiles.

..

..A recent memoir, “Uncommon Cause,” written by General George Lee Butler, reveals that the Pentagon was not telling the truth. Butler was the head of the U.S. Strategic Command, responsible for all of America’s nuclear weapons, during the Administration of President George H. W. Bush.

According to Butler and Franklin Miller, a former director of strategic-forces policy at the Pentagon, launch-on-warning was an essential part of the Single Integrated Operational Plan (siop), the nation’s nuclear-war plan. Land-based missiles like the Minuteman III were aimed at some of the most important targets in the Soviet Union, including its anti-aircraft sites. If the Minuteman missiles were destroyed before liftoff, the siop would go awry, and American bombers might be shot down before reaching their targets. In order to prevail in a nuclear war, the siop had become dependent on getting Minuteman missiles off the ground immediately. Butler’s immersion in the details of the nuclear command-and-control system left him dismayed. “With the possible exception of the Soviet nuclear war plan, [the siop] was the single most absurd and irresponsible document I had ever reviewed in my life,” Butler concluded. “We escaped the Cold War without a nuclear holocaust by some combination of skill, luck, and divine intervention, and I suspect the latter in greatest proportion.” The siop called for the destruction of twelve thousand targets within the Soviet Union. Moscow would be struck by four hundred nuclear weapons; Kiev, the capital of the Ukraine, by about forty.

After the end of the Cold War, a Russian surprise attack became extremely unlikely. Nevertheless, hundreds of Minuteman III missiles remained on alert. The Cold War strategy endured because, in theory, it deterred a Russian attack on the missiles. McNamara called the policy “insane,” arguing that “there’s no military requirement for it.” George W. Bush, while running for President in 2000, criticized launch-on-warning, citing the “unacceptable risks of accidental or unauthorized launch.” Barack Obama, while running for President in 2008, promised to take Minuteman missiles off alert, warning that policies like launch-on-warning “increase the risk of catastrophic accidents or miscalculation.” Twenty scientists who have won the Nobel Prize, as well as the Union of Concerned Scientists, have expressed strong opposition to retaining a launch-on-warning capability. It has also been opposed by former Secretary of State Henry Kissinger, former Secretary of State George Shultz, and former Senator Sam Nunn. And yet the Minuteman III missiles still sit in their silos today, armed with warheads, ready to go.

William J. Perry, who served as Secretary of Defense during the Clinton Administration, not only opposes keeping Minuteman III missiles on alert but advocates getting rid of them entirely. “These missiles are some of the most dangerous weapons in the world,” Perry wrote in the Times, this September. For many reasons, he thinks the risk of a nuclear catastrophe is greater today than it was during the Cold War. While serving as an Under-Secretary of Defense in 1980, Perry also received a late-night call about an impending Soviet attack, a false alarm that still haunts him. “A catastrophic nuclear war could have started by accident.”

Bruce Blair, a former Minuteman launch officer, heads the anti-nuclear group Global Zero, teaches at Princeton University, and campaigns against a launch-on-warning policy. Blair has described the stresses that the warning of a Russian attack would put on America’s command-and-control system. American early-warning satellites would detect Russian missiles within three minutes of their launch. Officers at norad would confer for an additional three minutes, checking sensors to decide if an attack was actually occurring. The Integrated Tactical Warning/Attack System collects data from at least two independent information sources, relying on different physical principles, such as ground-based radar and satellite-based infrared sensors. If the norad officials thought that the warning was legitimate, the President of the United States would be contacted. He or she would remove the Black Book from a briefcase carried by a military aide. The Black Book describes nuclear retaliatory options, presented in cartoon-like illustrations that can be quickly understood.

..

Although the Air Force publicly dismissed the threat of a cyberattack on the nuclear command-and-control system, the incident raised alarm within the Pentagon about the system’s vulnerability. A malfunction that occurred by accident might also be caused deliberately. Those concerns were reinforced by a Defense Science Board report in January, 2013. It found that the Pentagon’s computer networks had been “built on inherently insecure architectures that are composed of, and increasingly using, foreign parts.” Red teams employed by the board were able to disrupt Pentagon systems with “relative ease,” using tools available on the Internet. “The complexity of modern software and hardware makes it difficult, if not impossible, to develop components without flaws or to detect malicious insertions,” the report concluded.

In a recent paper for the Royal United Services Institute for Defence and Security Studies, Andrew Futter, an associate professor at the University of Leicester, suggested that a nuclear command-and-control system might be hacked to gather intelligence about the system, to shut down the system, to spoof it, mislead it, or cause it to take some sort of action—like launching a missile. And, he wrote, there are a variety of ways it might be done.

..

Strict precautions have been taken to thwart a cyberattack on the U.S. nuclear command-and-control system. Every line of nuclear code has been scrutinized for errors and bugs. The system is “air-gapped,” meaning that its networks are closed: someone can’t just go onto the Internet and tap into a computer at a Minuteman III control center. At least, that’s the theory. Russia, China, and North Korea have sophisticated cyber-warfare programs and techniques. General James Cartwright—the former head of the U.S. Strategic Command who recently pleaded guilty to leaking information about Stuxnet—thinks that it’s reasonable to believe the system has already been penetrated. “You’ve either been hacked, and you’re not admitting it, or you’re being hacked and don’t know it,” Cartwright said last year.

If communications between Minuteman control centers and their missiles are interrupted, the missiles can still be launched by ultra-high-frequency radio signals transmitted by special military aircraft. The ability to launch missiles by radio serves as a backup to the control centers—and also creates an entry point into the network that could be exploited in a cyberattack. The messages sent within the nuclear command-and-control system are highly encrypted. Launch codes are split in two, and no single person is allowed to know both parts. But the complete code is stored in computers—where it could be obtained or corrupted by an insider.

Some of America’s most secret secrets were recently hacked and stolen by a couple of private contractors working inside the N.S.A., Edward Snowden and Harold T. Martin III, both employees of Booz Allen Hamilton. The N.S.A. is responsible for generating and encrypting the nuclear launch codes. And the security of the nuclear command-and-control system is being assured not only by government officials but also by the employees of private firms, including software engineers who work for Boeing, Amazon, and Microsoft.

Lord Des Browne, a former U.K. Minister of Defense, is concerned that even ballistic-missile submarines may be compromised by malware. Browne is now the vice-chairman of the Nuclear Threat Initiative, a nonprofit seeking to reduce the danger posed by weapons of mass destruction, where he heads a task force examining the risk of cyberattacks on nuclear command-and-control systems. Browne thinks that the cyber threat is being cavalierly dismissed by many in power. The Royal Navy’s decision to save money by using Windows for Submarines, a version of Windows XP, as the operating system for its ballistic-missile subs seems especially shortsighted. Windows XP was discontinued six years ago, and Microsoft warned that any computer running it after April, 2014, “should not be considered protected as there will be no security updates.” Each of the U.K. subs has eight missiles carrying a total of forty nuclear weapons. “It is shocking to think that my home computer is probably running a newer version of Windows than the U.K.’s military submarines,” Brown said.In 2013, General C. Robert Kehler, the head of the U.S. Strategic Command, testified before the Senate Armed Services Committee about the risk of cyberattacks on the nuclear command-and-control system. He expressed confidence that the U.S. system was secure. When Senator Bill Nelson asked if somebody could hack into the Russian or Chinese systems and launch a ballistic missile carrying a nuclear warhead, Kehler replied, “Senator, I don’t know . . . I do not know.”

After the debacle of the Cuban Missile Crisis, the Soviet Union became much more reluctant to provoke a nuclear confrontation with the United States. Its politburo was a committee of conservative old men. Russia’s leadership is quite different today. The current mix of nationalism, xenophobia, and vehement anti-Americanism in Moscow is a far cry from the more staid and secular ideology guiding the Soviet Union in the nineteen-eighties. During the past few years, threats about the use of nuclear weapons have become commonplace in Moscow. Dmitry Kiselyov, a popular newscaster and the Kremlin’s leading propagandist, reminded viewers in 2014 that Russia is “the only country in the world capable of turning the U.S.A. into radioactive dust.” The Kremlin has acknowledged the development of a nuclear torpedo that can travel more than six thousand miles underwater before devastating a coastal city. It has also boasted about a fearsome new missile design. Nicknamed “Satan 2” and deployed with up to sixteen nuclear warheads, the missile will be “capable of wiping out parts of the earth the size of Texas or France,” an official news agency claimed.

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Russia’s greatest strategic vulnerability is the lack of a sophisticated and effective early-warning system. The Soviet Union had almost a dozen satellites in orbit that could detect a large-scale American attack. The system began to deteriorate in 1996, when an early-warning satellite had to be retired. Others soon fell out of orbit, and Russia’s last functional early-warning satellite went out of service two years ago. Until a new network of satellites can be placed in orbit, the country must depend on ground-based radar units. Unlike the United States, Russia no longer has two separate means of validating an attack warning. At best, the radar units can spot warheads only minutes before they land. Pavel Podvig, a senior fellow at the U.N. Institute for Disarmament Research, believes that Russia does not have a launch-on-warning policy—because its early-warning system is so limited.

For the past nine years, I’ve been immersed in the minutiae of nuclear command and control, trying to understand the actual level of risk. Of all the people whom I’ve met in the nuclear realm, Sidney Drell was one of the most brilliant and impressive. Drell died this week, at the age of ninety. A theoretical physicist with expertise in quantum field theory and quantum chromodynamics, he was for many years the deputy director of the Stanford Linear Accelerator and received the National Medal of Science from Obama, in 2013. Drell was one of the founding members of jason—a group of civilian scientists that advises the government on important technological matters—and for fifty-six years possessed a Q clearance, granting him access to the highest level of classified information. Drell participated in top-secret discussions about nuclear strategy for decades, headed a panel that investigated nuclear-weapon safety for the U.S. Congress in 1990, and worked on technical issues for jason until the end of his life. A few months ago, when I asked for his opinion about launch-on-warning, Drell said, “It’s insane, the worst thing I can think of. You can’t have a worse idea.”

Drell was an undergraduate at Princeton University when Hiroshima and Nagasaki were destroyed. Given all the close calls and mistakes in the seventy-one years since then, he considered it a miracle that no other cities have been destroyed by a nuclear weapon—“it is so far beyond my normal optimism.” The prospect of a new cold war—and the return of military strategies that advocate using nuclear weapons on the battlefield—deeply unnerved him. Once the first nuclear weapon detonates, nothing might prevent the conflict from spiralling out of control. “We have no experience in stopping a nuclear war,” he said.

..

Donald Trump and Vladimir Putin confront a stark choice: begin another nuclear-arms race or reduce the threat of nuclear war. Trump now has a unique opportunity to pursue the latter, despite the bluster and posturing on both sides. His admiration for Putin, regardless of its merits, could provide the basis for meaningful discussions about how to minimize nuclear risks. Last year, General James Mattis, the former Marine chosen by Trump to serve as Secretary of Defense, called for a fundamental reappraisal of American nuclear strategy and questioned the need for land-based missiles. During Senate testimony, Mattis suggested that getting rid of such missiles would “reduce the false-alarm danger.” Contrary to expectations, Republican Presidents have proved much more successful than their Democratic counterparts at nuclear disarmament. President George H. W. Bush cut the size of the American arsenal in half, as did his son, President George W. Bush. And President Ronald Reagan came close to negotiating a treaty with the Soviet Union that would have completely abolished nuclear weapons.

Every technology embodies the values of the age in which it was created. When the atomic bomb was being developed in the mid-nineteen-forties, the destruction of cities and the deliberate targeting of civilians was just another military tactic. It was championed as a means to victory. The Geneva Conventions later classified those practices as war crimes—and yet nuclear weapons have no other real use. They threaten and endanger noncombatants for the sake of deterrence. Conventional weapons can now be employed to destroy every kind of military target, and twenty-first-century warfare puts an emphasis on precision strikes, cyberweapons, and minimizing civilian casualties. As a technology, nuclear weapons have become obsolete. What worries me most isn’t the possibility of a cyberattack, a technical glitch, or a misunderstanding starting a nuclear war sometime next week. My greatest concern is the lack of public awareness about this existential threat, the absence of a vigorous public debate about the nuclear-war plans of Russia and the United States, the silent consent to the roughly fifteen thousand nuclear weapons in the world. These machines have been carefully and ingeniously designed to kill us. Complacency increases the odds that, some day, they will. The “Titanic Effect” is a term used by software designers to explain how things can quietly go wrong in a complex technological system: the safer you assume the system to be, the more dangerous it is becoming.'

- Eric Schlosser, World War Three, By Mistake, December 23, 2016


Context

The International Day for the Total Elimination of Nuclear Weapons

          Comment on JANK 200! by mrm1138        
I am hopelessly behind on my podcasts, so I only just got around to listening to this today. There were two things that struck me about this episode. You'll have to forgive me, though, because I'm not good at remembering the names of the casters and whose voice is whose. First, I must say that the idea of regimented interaction is precisely why I enjoy gaming. I'd always considered myself an introvert, but my wife, who is truly an introvert, has classified me as an extrovert who is just painfully shy. She can't stand to be around people for more than a couple hours and a time and needs to go home and have a lot of downtime to recharge. (She has never gotten into RPGs—as opposed to board games or card games—because the idea of spending several hours being forced to interact with people sounds like a nightmare to her.) I, on the other hand, really enjoy being around people for long periods of time. The only problem is that I have trouble keeping up a conversation unless there's something very definite to talk about, and that's where games come in. Second, when one of the casters mentioned that tabletop roleplaying gamers tend to be a progressive group of people (and that he himself was an activist for a time), I definitely agreed. I am huge into comic books, but one of the reasons I can't stand to listen to comic book podcasts is because the hosts tend to be your typical bigoted fanboys who will go into a nerd rage if a previously straight character comes out of the closet, or a white superhero is replaced by another character of a different skin color* or sex, or anything they perceive as being political correctness being forced into their comics. While the TTRPG community's record certainly isn't spotless—there were some particularly vile comments from TTRP-gamers after Gen Con delivered the press release regarding Indiana's "religious freedom" bill—I don't feel that the bigotry involved is nearly as rampant as it is in the worlds of comics and video games. *See the recent announcement of Miles Morales replacing Peter Parker as Spider-Man in the main Marvel Universe.
          Burn After Reading        

Who’s Who
What’s What

In the World of CIA Fronts, Partners, Proprietaries & Contractors




NEW BOOK:

The Almost Classified Guide to CIA Front Companies, Proprietaries & Contractors
By WAYNE MADSEN
ISBN: 978-1-365-11196-9


Cool Justice Editor's Note: Following are excerpts from author Madsen's introduction and the body of the work. Additional suggested reading: News story about Madsen's book via the Washington, D.C. based Justice Integrity Project [link at the bottom of this post].

EXCERPTS:

From the Introduction


One of the most pervasive uses of companies as intelligence partners was under the CIA’s Operation MOCKINGBIRD. During the Cold War, the CIA, often with the approval of corporate executives, infiltrated their agents to work as journalists in newspapers, radio and television networks, wire services, and magazines. The following pages in this book are rife with examples of this penetration of the Fourth Estate – all too many in the opinion of this journalist. The CIA admitted to at least 400 journalists on the agency’s payroll at the height of MOCKINGBIRD. The CIA traditionally understates its capabilities, especially when its covert activities become publicly known. Moreover, the end of the Cold War did not stop the practice of the CIA in infiltrating the media and slant news reports to its wishes.

*

An insightful look behind the veils of secrecy into the CIA’s use of fronts, proprietaries, and partners calls into question the purpose of the CIA. Created by President Harry S Truman to serve as a central collector and repository of intelligence, the CIA became much more than that. A few weeks after the United States witnessed the assassination of President Kennedy in the middle of downtown Dallas, Truman penned an op-ed piece that appeared in several newspapers around the country. In it, Truman shared his regret for having created the CIA in 1947:

“I think it has become necessary to take another look at the purpose and operations of our Central Intelligence Agency—CIA . . . For some time I have been disturbed by the way CIA has been diverted from its original assignment. It has become an operational and at times a policy-making arm of the Government. This has led to trouble and may have compounded our difficulties in several explosive areas.

"I never had any thought that when I set up the CIA that it would be injected into peacetime cloak and dagger operations. Some of the complications and embarrassment I think we have experienced are in part attributable to the fact that this quiet intelligence arm of the President has been so removed from its intended role that it is being interpreted as a symbol of sinister and mysterious foreign intrigue.”

*

The 21st century’s CIA’s partners are more likely to be found among high-tech companies marketing the latest and greatest mobile applications and data mining programs than among banks, law offices, and advertising agencies. However, in the post-World War II era, the CIA’s top and middle echelons were normally found operating through cover as typewriter-pecking journalists, traveling Madison Avenue admen, corporate lawyers, and chain-smoking oilmen. In the 1970s and 80s, CIA contractors and partners began showing up in the high-tech field, with database, local area networking, and on-line information retrieval systems attracting the most interest by Langley.

*

As this book went to press, the smart phone game application Pokémon Go fad was sweeping the planet. Unbeknownst to many of the on-line game’s avid fan’s was the connection of the game’s developers to the CIA’s venture capital firm IN-Q-TEL. All users saw their geo-location and other smart phone data being swept up by a CIA partner firm.

SELECTED ENTRIES

Amazon, Inc. [CIA contractor]. Company provides cloud computing services for the CIA. Amazon’s CEO Jeff Bezos also owns The Washington Post.

American Historical Society. [CIA partner]. Many society officials were OSS/CIA officers.

American Press Institute. [CIA front]. Operating out of Columbia University, the institute’s director in the 1950s was a CIA officer.

AmeriCares. [CIA partner]. A non-profit organization that is often the “first in” at refugee situations. Founded by tycoon J. Peter Grace, a board chairman of the CIA front, the American Institute for Free Labor Development (AIFLD) and a trustee of another CIA front, the American Committee for Liberation from Bolshevism, AmeriCares was involved in funding the Nicaraguan contras. The group has also provided the CIA with recruiting opportunities at mass refugee sites, particularly in Latin America and Asia.

Bechtel Corporation. [CIA contractor]. Bechtel is a large construction company that has included former CIA director Richard Helms, CIA pseudonym “Fletcher M. Knight,” among its executive ranks. Bechtel was active in providing corporate cover for the OSS in the Middle East during World War II. Bechtel has been a consummate service company for various CIA operations, including support for the CIA-inspired coup against the Syrian government in 1949, the Iranian government of Prime Minister Mohamed Mossadeq in 1953, and President Sukarno of Indonesia in 1965. From the 1960s to the 1970s, Bechtel provided cover for CIA agents in Libya under both the regime of King Idris and his successor, Muammar Qaddafi. Sometimes called a “secret arm” of the CIA, Bechtel’s executives included those who would join President Reagan’s Cabinet, including Secretary of State George Schultz and Secretary of Defense Caspar Weinberger.

Before World War II, Steve Bechtel formed a military-industrial complex partnership with John McCone. McCone later became the chairman of the Atomic Energy Commission and later, director of the CIA. The CIA has used Bechtel to provide cover for non-official cover CIA operatives abroad.

Blackstone Investment Group. [CIA front]. With offices in Washington, DC and Moscow, arranged for the purchase of KGB documents following the collapse of the Soviet Union. Among the documents sought by the front company were any related to illegal CIA activities during the Cold War, including the 1963 assassination of President John F. Kennedy.

Bourbon and Beefsteak Bar and Restaurant. [CIA front]. Opened in 1967 in King’s Cross in Sydney, Australia. Served as a rendezvous point for CIA, Australian Security Intelligence Organization (ASIO), and organized crime figures. Its proprietor was Bernie Houghton, a CIA operative with links to Nugan Hand Bank, CIA weapons smuggler Edwin Wilson, and CIA clandestine services officers Theodore Shackley, Rafael Quintero, and Thomas Clines.

Center for Democracy. [CIA front]. Administered under the aegis of Boston University, the center maintained offices in Boston, Washington, DC, Guatemala City, and Strasbourg, France. Involved in CIA operations in eastern Europe, Central America, and Africa.

Colt Patent Firearms Company. [CIA partner]. Based in Hartford, Connecticut, provided corporate cover for CIA officers operating abroad.

Daddario & Burns. [CIA partner]. Headed by former OSS officer Emilio Daddario, a Democratic Representative from Connecticut, the Hartford-based law firm provided services to the CIA.

DC Comics. [CIA partner]. Worked with the International Military Information Group (IMIG), a joint CIA/Pentagon unit at the State Department, to disseminate propaganda comic books, featuring Superman, Batman, and Wonder Woman, in Serbo-Croatian and Albanian, to youth in the Balkans during the military conflicts in that region.

Disney Corporation. [CIA partner]. CIA agents who were adept at creating front companies and shell corporations in Florida, worked closely with Disney in preparation for the construction of Disney World near Orlando, Florida. OSS veteran “Wild Bill” Donovan and CIA shell company expert Paul Helliwell helped create two fake Florida cities, Bay Lake and Lake Buena Vista, as well as a number of shell corporations, to keep secret the plans for Disney World. This kept land prices low because real estate speculators were unaware of the prospective value of the land in a desolate area of central Florida.

Emory School of Medicine. [CIA partner]. Located in Atlanta, Georgia. Involved in the CIA’s MK-ULTRA behavioral modification project.

Enron Corporation [CIA partner]. Houston-based firm that was used by the CIA to provide commercial cover for its agents around the world. There were at least 20 CIA employees on Enron’s payroll. Andre Le Gallo, a former official of the CIA’s Operations Directorate, went to work as a corporate intelligence officer for Enron.

Fair Play for Cuba Committee (FPCC). [CIA front]. Officially established by American Trotskyists, the group was penetrated by CIA operatives. The FPCC New Orleans office was a CIA front that provided cover for the anti-Fidel Castro activities of Lee Harvey Oswald, Clay Shaw, and David Ferrie, among others. The New Orleans FPCC office was located at 544 Camp Street and shared the same building entrance with Guy Banister Associates, Inc., a private detective agency, the address for which was 531 Lafayette Street and around the corner from 544 Camp Street.

In December 1963, after the assassination of President John F. Kennedy, the FPCC ceased all U.S. operations.

General Electric Company. [CIA partner]. Based in Fairfield, Connecticut, provided corporate cover for CIA officers operating abroad.

General Foods Corporation. [CIA partner]. Advertising account at CIA’s Robert Mullen Company handled by an active CIA employee.

Google, Inc. [CIA partner]. Developed as a result of a research grant by the CIA and Pentagon to Stanford University’s Department of Computer Science. The CIA referred to the research as the “google project.”

Greenberg Traurig. [CIA partner]. Washington, DC “connected” law firm.

Guy Banister Associates, Inc. [CIA partner]. New Orleans private detective agency headed by former FBI agent Guy Banister. The detective agency coordinated the activities of various anti-Castro Cuban groups in New Orleans, including Banister’s own Anti-Communist League of the Caribbean, as well as the Cuban Revolutionary Council, the Cuban Democratic Revolutionary Front, Friends of Democratic Cuba, and the Crusade to Free Cuba Committee.

Banister and Associates shared office space with the CIA’s New Orleans front, the Fair Play for Cuba Committee, headed by Lee Harvey Oswald.

Hale and Dorr. [CIA partner]. Boston-based law firm that provided cover for CIA’s Independence and Brown Foundations.

Halliburton. [CIA contractor]. Based in Houston, it is the world’s largest oil service company. Recipient of a number of CIA sole-source contracts for services worldwide.

Harper and Row, Inc. [CIA partner]. Manuscripts submitted to the New York publisher that dealt with intelligence matters, particularly CIA operations, were turned over to the CIA for censoring edits before publication.

Hewlett Packard Corporation. [CIA partner]. Sold computers to Iraq for Saddam Hussein’s missile program with the knowledge and approval of the CIA.

Hill & Knowlton. [CIA partner]. Public relations firm that teamed with the CIA on a number of operations. Hill & Knowlton’s numerous offices abroad provided cover for CIA agents. One known Hill & Knowlton office that was a CIA front operation was in Kuala Lumpur.

Kerr-McGee. [CIA partner]. Provided corporate cover for CIA officers operating overseas.

Kissinger Associates, Inc. [CIA partner]. New York-based international consulting firm founded by former Secretary of State and National Security Adviser Henry Kissinger. Former National Security Adviser Brent Scowcroft is a co-owner. The firm provided support to the CIA-linked American Ditchley Foundation and the Bilderberg Group. Much of the 1982 seed money for Kissinger Associates was provided by Goldman Sachs.

Knight Foundation. [CIA partner]. Also known as the John S. and James L. Knight Foundation. Based in Miami, the foundation provides funding for various CIA-connected media operations in the United States and around the world.

Kroll Inc. [CIA partner]. Founded in 1972 by Jules Kroll, who had links to both U.S. and Israeli intelligence. Based in Manhattan. French domestic law enforcement believed Kroll’s Paris office was a CIA front. Kroll handled the security for the World Trade Center after the 1993 terrorist bombing and continued to be responsible for security up to, during, and after the September 11, 2001 terrorist attack. Kroll employed former FBI assistant director for counter-terrorism John O’Neill, who died in the collapse of the World Trade Center.

Lincoln Savings and Loan. [CIA partner]. Based in Irvine, California and headed by notorious swindler Charles Keating, Jr., involved in laundering funds for the Iran-contra scandal.

Lone Star Cement Corporation. [CIA partner]. Based in Stamford, Connecticut and linked to the Bush family, provided corporate cover for CIA officers operating abroad. Involved in the Iran-contra scandal.

Mary Carter Paint Company. [CIA front]. A money-laundering operation for the CIA. Involved in casinos in the Bahamas.

Monsanto. [CIA partner]. The firm contracted with former CIA official Cofer Black’s Total Intelligence Solutions (TIS), a subsidiary of the CIA-connected Blackwater USA, later Xe Services, to monitor animal rights groups, anti-genetically modified (GM) food activists, and other groups opposed to Monsanto’s agri-business operations worldwide.

National Enquirer. [CIA partner]. The tabloid’s founder, Generoso (Gene) Pope, Jr., worked for the CIA’s psychological warfare unit and the agency’s Italy branch in 1950. In 1952, Pope acquired The New York Enquirer broadsheet and transformed it into a tabloid, renaming it The National Enquirer. This transformation bore the imprimatur of the CIA’s Operation MOCKINGBIRD media influence program.

Newsweek. [CIA partner]. Magazine reporters and stringers fed information to the CIA. Newsweek’s stringers in southeastern Europe and the Far East were CIA agents. When Newsweek was bought by The Washington Post Company in 1961, cooperation between the magazine and the CIA increased. It was a participant in the CIA’s Operation MOCKINGBIRD media influence program. Much of the staff of Newsweek was absorbed into a new online publication, The Daily Beast, which continues to disseminate CIA-influenced articles. See Washington Post.

Nieman Foundation. [CIA partner]. Located at Harvard University, the foundation awarded Nieman Fellowships, some on behalf of the CIA, for foreign journalists to study at Harvard. The journalists were subjected to CIA recruitment efforts prior to their returning to their home countries.

Pamela Martin & Associates. [CIA partner], Escort firm run by Deborah Jeane Palfrey, the so-called “DC Madam.” During her 2008 trial for mail fraud, Palfrey attempted to invoke the Classified Information Procedures Act in order to discuss her relationship with the CIA. The U.S. Court refused Palfrey’s request and she was convicted and later said to have committed suicide before her sentencing hearing in Washington, DC. One of her clients was Randall Tobias, the head of the CIA-connected USAID. Another was Louisiana Republican senator David Vitter.

Paris Review. [CIA front]. Literary magazine edited by George Plimpton. Published works by Jack Kerouac and Samuel Beckett. The magazine’s co-founder, Peter Matthiessen, relied on his affiliation with the magazine as his CIA cover.

Quaker Oats Company. [CIA partner]. Worked with the CIA and Atomic Energy Commission to place trace amounts of radiation in breakfast cereal served to boys at the Fernald School for the mentally retarded in Waltham, Massachusetts.

Radio Corporation of America. [CIA partner]. Provided corporate cover for CIA officers operating abroad, particularly in Iran, Philippines, Japan, and West Germany. Provided technical assistance to CIA-financed clandestine and propaganda radio stations worldwide, including Radio Free Europe. RCA founder David Sarnoff was a major supporter of CIA operations, including propaganda dissemination around the world. RCA chairman and chief executive officer Thornton F. Bradshaw was active in the operations of the CIA-linked American Ditchley Foundation.

Reily Coffee Company. [CIA partner]. Also known as William B. Reily Coffee Company and based in New Orleans, this company employed Lee Harvey Oswald and a number of other U.S. government employees, many of whom were suspected CIA officers.

Robert M. Mullen Company. [CIA proprietary]. A Washington, DC public relations firm, it was used as a front for CIA activities. E. Howard Hunt, the CIA agent, worked for Robert Mullen when he was arrested in the break-in of the Democratic National Committee headquarters at the Watergate Hotel in Washington in 1972. The Senate Watergate Committee reported that “the Mullen and Company has maintained a relationship with the Central Intelligence Agency since its incorporation in 1959. It provided covers for agents in Europe (Stockholm), Latin America (Mexico City), and the Far East (Singapore) at the time of the Watergate break-in.”

Rockefeller Foundation. [CIA partner]. Used by the CIA to direct scholarships and grants to the Third World and Eastern Europe. Rockefeller Foundation money was funneled to the American Committee for a United Europe (ACUE), created in 1948. The chairman of ACUE was OSS chief William J. Donovan and the vice chairman was Allen Dulles. One of ACUE’s board members was Walter Bedell Smith, the first CIA director.

Summa Corporation. [CIA partner]. Owned by Howard Hughes, Summa is believed to have skimmed gambling profits from the Sands, Desert Inn, Frontier, Silver Slipper, Castaways, and Landmark casinos in Las Vegas and Harold’s Club in Reno for the CIA and the Mafia. Provided financial cover for the CIA’s Glomar Explorer project.

Teneo Intelligence. [CIA partner]. Branch of Teneo Holdings, which is headquartered in New York. Teneo Holdings’s intelligence branch includes former CIA officials. Teneo is closely linked to former President Bill Clinton and Hillary Clinton. Teneo Intelligence has offices in New York, London, Rome, Brussels, Dubai, Bogota, New Delhi, and Tokyo.

Texas Commerce Bank (TCB). [CIA partner]. Houston-based bank founded by the family of James Baker III. Texas Commerce Bank was used to provide commercial cover for CIA agents. After serving as vice president for Texas Commerce Bank in Caracas from 1977 to 1979, Jeb Bush joined his father’s presidential campaign in 1980. Serving with Bush on the campaign was Robert Gambino, the CIA deputy director of security who gave Bush his orientation brief at Langley in 1977.

Kenneth Lay, the chairman of Enron, which had its own links to the CIA, served on the board of Texas Commerce Bank. Texas Commerce Bank was acquired by Chemical Bank in 1987.

The bank provided major loans to Howard Hughes’s Summa Corporation. See Summa Corporation.

United Fruit Company [CIA partner]. Involved in 1954 CIA overthrow of Jacobo Arbenz government in Guatemala. Published the Latin America Report, a publication that was a CIA front used for clandestine activities. The CIA transferred weapons to United Fruit employees in Guatemala who were involved in undermining the Arbenz government. The joint CIA-United Fruit plan was code named OPERATION FORTUNE. Company provided an airfield in Guatemala for the CIA’s training of Cuban exiles for the Bay of Pigs invasion of Cuba.

U.S. Rubber Company. [CIA partner]. Headquartered in Naugatuck, Connecticut and later called Uniroyal, provided corporate cover to CIA officers operating abroad. Included those operating under the cover of the Dominion Rubber Company of Canada, a subsidiary of U.S. Rubber Company.

U.S. Youth Council (USYC). [CIA front]. Founded in 1945 and based in New York. Some 90 percent of its funds came from the CIA. USYC received funding from the Foundation for Youth and Student Affairs (FYSA), a CIA front. The USYC was composed of American Youth Hostels, Camp Fire Girls, 4-H, American Unitarian Youth, National Catholic Welfare Conference, National Students Assembly, YMCA and YWCA.

Wackenhut. [CIA contractor]. Wackenhut, a Palm Beach Gardens, Florida-based security firm, stood accused of providing the CIA with specialized services around the world, including Chile, Greece, and El Salvador. Its Venezuelan branch, Wackenhut Venezolana, C.A., was accused in 2002 of involvement in the CIA’s coup against President Hugo Chavez. William Casey served as Wackenhut’s outside counsel before becoming CIA director in 1981.

Wackenhut eventually merged into the global security firm G4S.

Washington Post. [CIA partner]. The Washington Post was part of the CIA’s Operation MOCKINGBIRD, the agency’s media influence project. Post publisher Phil Graham was a close friend and associate of MOCKINGBIRD chief Frank Wisner, Sr. and CIA director Allen Dulles. Wisner assisted Graham in acquiring The Washington Times-Herald and WTOP radio, creating a sizable CIA-influenced media operation in the nation’s capital.

W. R. Grace. [CIA partner]. Provided corporate cover to CIA officers operating abroad, particularly in Latin America. Provided donations to CIA front foundations.

  • News story about Madsen's book via The Justice Integrity Project



  •           Za'atar         
    Summer Za'atar on the border with Lebanon
    There is a little confusion around the name "Za'atar" and what exactly does it refer to: A condiment? A spice mix? An herb? And if so - which herb exactly - Hyssop? Thyme? Oregano? Marjoram?

    The truth is that za'atar is an Arabic word used interchangeably for a number of wild herbs that grow wild in the Mediterranean region, and all contain thymol and carvacrol. Hence their similar sharp and warm aroma, bitter taste and spicy, almost hot "bite". They also share similar medicinal properties, most of them used in folk medicine for most digestive ailments and respiratory complaints. The mixture known to us as "Za'atar" is in fact a misnomer. Za'atar is originally the name of the plant now classified as Origanum syriacum, but in Arabic it is loosely applied to several other related wild and not so wild herbs.

    Zaatar

    The name for the condiment is in fact "doukka" (pronounced often as "Do-ak" with a very throaty "K" that almost sounds like an "A" so in reality the word sounds more like "Do-ah"). In Arabic this means "to grind". Each region in the Arab world has its own "Doukka", which is either sprinkled on food, or more commonly covered in olive oil to which the traditional regional bread is dipped. For example - Egypt has a complex nut-based doukka with toasted hazelnuts or walnuts, to which toasted or untoasted spices such as cumin, coriander seeds, green peppercorns and sweet fennel have been added.

    In the Levant "doukka" happens to be made primarily of a mixture of thymol-containing herbs, with "The" Za'atar (Origanum syriacum) being the star of the show. Lesser amounts of other herbs, will be added - the most important of which are "Za'atar Farsi" (winter savory), Israeli Thyme (Corydothymus capitatus), Zuta זוטה לבנה ( Micromeria fruiticosa barbata), a delicate wild white mint known in English as White-Leaved Savory (which does not even belong to the savory genus, but to micromeria because of its tiny leaves). Common oregano (Origanum vulgare) makes a good addition, albeit cannot substitute for the real Za'atar or Syrian oregano if you actually know the real deal. Likewise, marjoram and thyme can also make a good addition but not be at the centre. Even though their profiles are similar - there are some nuances that will be lost if using only the garden variety oreganos and thymes and none of the wild stuff.

    Many other things can be added to the mix, the most important being sumac berries (Rhus coriaria) for their wonderful salty-sour flavour, and toasted sesame seeds for their pop-in-the-mouth nuttiness. But you'll also find spices sometimes, including more obscure ones such as butum (بطم) - toasted terebinth fruits (Pistachia palestina), which are really like tiny pistachios with the outer red peel intact. I've got a few of those drying right now, because I've never seen them in any market before and I'm very curious how they taste as a spice.

    The following are several authentic Za'atar recipes I've collected - and of course you are welcome to browse google's universe of shared recipes, but be cautious of a few things if you want to make an authentic za'atar:
    1) Use actual Origanum syriacum even if a generic "oregano" is called for
    2) Do not by any stretch of the imagination use "fresh" leaves. They must be dried first. And only then will you grind them up with the rest of the ingredients. This is a dried herb and spice mix. Not a fresh herb concoction.
    3) Usage of salt, although found in many recipes, seems very superfluous to me, unless you are not using sumac berries. These have a unique taste - equally salty and tangy. The whole point of using them is so you do not need to use salt. Likewise, using citric acid is a way to fake the sumac effect. Which I'm not quit sure why would anyone do that aside from laziness. Sumac berries are difficult to grind manually (or even in a coffee grinder) - but you can find ground sumac easily in many spice shops and markets.

    When shopping for pre-made spice mixes, or any ground spices for that matter, the main culprit is adulteration and using old raw material that are "dressed up" as authentic. It's hard to teach someone who've never tasted or smelled za'atar what to look for, but some things are a telling sign. For example: if you don't see the dark maroon red and still taste salt or tanginess, it is probably from salt and citrus acid, and not from the (missing) red sumac berries. Secondly, another visual sign - za'atar leaves are rather grey in colour when dried, so any other colour you see (olive green) is either food colouring or a combination of other types of "za'atar" herbs (i.e.: thyme, za'atar farsi, etc.). Best sign is by taste - if it taste like dust (and looks like dust) it's either too old or just a fake.

    I suggest you start with the most basic three ingredients, and then play with the proportions and adding other herbs and/or spices. You can even start with equal amount of za'atar leaves, sumac and sesame and adjust to taste.

    Safta Ada's Za'atar Recipe 
    This is my mom's handmade recipe that she would make from wild harvested za'atar (before it was illegal to pick any) and would even send it to Vancouver so I can enjoy a taste of home.
    1 cup dried za'atar leaves, coarsely crushed between your palms, or pounded with mortar and pestle to a finer powder
    4 Tbs ground sumac berries (I suggest you purchase them pre-ground, otherwise their seeds can break your teeth!)
    2 Tbs toasted brown sesame seeds, whole

    May Bsisu wrote an excellent book, The Arab Table, which I highly recommend, and it includes a unique Palestinian style of za'atar that includes caraway:
    10oz oregano (I assume she means za'atar)
    5oz thyme
    3 Tbs sumac, ground
    1/4 cup toasted sesame seeds
    2-1/2 Tbs coarse salt
    1/2 tsp allspice, ground
    1/4 tsp caraway seeds, ground 

    Easy Lebanese Recipes provides a "Traditional Rich Recipe" for za'atar that I'm compelled to try, with dried za'atar, roasted sesame, sumac, marjoram, coriander, cumin, cinnamon, fennel, aniseed and salt.

    Mamma's Lebanese Kitchen recipe contains thyme, marjoram, sumac, sesame, cumin, coriander, fennel, cinnamon and salt.

    How to consume za'atar?
    Use your za'atar mixed with olive oil as a dip for bread, on top of labneh (strained yoghurt cheese) or as a substitute for butter under any other soft or hard cheese, avocado, etc.
    It's also a nice addition to salads, and for baking fish or poultry. I also like to add it to chickpeas that I fry whole in olive oil, after they've been cooked and drained.

    Fresh za'atar leaves come in late winter and can be enjoyed all through spring, and can be fried in olive oil much like tender sage leaves and become this wonderful crispy topping for fresh bread, pasta, roasted vegetables, etc. Also, they can be used as they are in salads (May Bsisu has a recipe for fresh oregano salad in that book as well), with lots of onion and tomatoe. The Druze use it to season the dough or the fillings for various savoury pastries, such as sambusak (a flatbread that is folded in half to conceal a thin layer of highly seasoned stuffing, and baked in the tabun) and fatayer (little dough pockets filled with cheese), and the dried whole leaves can be used much like oregano in meat and pasta sauces, in soups, stews, breads, etc.

    Now, let's explore the Za'atar "group" of plants:

    Hyssop (Wild Oregano)

    Ezov (the Hebrew word for the Biblical Hyssop - not the European Hyssopus officials which is also a medicinal plant, and produces a rather toxic essential oil), which is now classified as an oregano, Origanum syriacum (formerly Majorana syriaca). Like many of the other aromatic plants from the Lamiaceae family, za'atar has a winter and spring foliage and a summer foliage, which is smaller in order to preserve water and survive the long arid season. I suspect the essential oils also aid with the survival of these plants in such harsh conditions - because whenever they are grown in regions where the water is more abundant (British Columbia, for example) - their flavour is largely lacking. What you see above is the luscious winter "look", which features soft and larger leaves, and their colour is much greener, and therefore more similar to the common oregano (Origanum vulgare).

    Satureja

    Za'atar Farsi (meaning Persian Za'atar), or as it is called in Hebrew צתרה ורודה - Tzatra Vruda (Pink Tzatra) which really is winter or mountain savory (Satureja montana). Its long needle-like leaves have a sharp, spicy taste. When we were growing up my mom would spice the egg for French Toast with them and make them literally savoury.

    Thymbra spicata צתרנית משובלת
    Mediterranean Thyme (Thymbra spicata), in Hebrew צתרנית משובלת Tzatranit Meshubelet is also called in Arabic "Za'atar farsi", and has a very similar leaf shape (only a bit longer, narrower and softer) and almost identical odour and aroma profile. It has flowers that look a bit more like chaffs of wheat (not unlike those of Lavandula dentata, and is even more rare to find than Satureja montana.

    Coridothymus capitatus
    Israeli Thyme (Corydothymus capitatis / Thymus capitatus / Thymbra capitata) or in Hebrew Koranit Mekurkefet קורנית מקורקפת is also known by many other names - Israeli oreganum (oil), Cretan thyme, Corido thyme, Headed savory, Thyme of the Ancient, Conehead thyme and most commonly - Spanish Oregano (even though it is not classified as "origanum"). This oil is what is often sold as "oregano oil", by the way. This is now a rare plant that in our area grows only along the rocky seashores of the North Coast leading to Lebanon. The leaves are tiny and sharp, like a miniature version of the Pink Tzatra, but they grow more dense and close together to form clusters around the tip of the branches. The branches are woody-looking almost like bonsai trees that crawl all over the rocks - and the flowers tiny and purplish-pink. The aroma is clean and maybe a little more simple than that of za'atar, but also the taste is much more sharp and phenolic.




              Supplements And Nutrition        
    A well-balanced diet and affinity for all food groups ensure right amounts of much-needed nutrients. However, not all people are blessed with a liking for vegetables or tolerance for milk. There are also people with allergies to nuts and poultry which are excellent sources of protein and good fat. What if you are one of them? How can you be sure that you get proper nutrition without force-feeding yourself brocollis? This is why Supplements and Nutrition should work together.
    Before taking supplements, it would be wise to seek your doctor's advice. After all, you want to be sure to have the proper Supplements and Nutrition. The wide variety of supplements include multivitamins, protein supplements, minerals, and specialized supplements. Multivitamins are the most prescribed supplements. Regulated and concentrated amounts of essential vitamins are packed in a tablet or gels. Protein supplements are commonly used by people who want to build more muscle such as athletes. Mineral supplements include calcium for bone growth. Dietary supplements and memory enhancers are commonly classified as specialized supplements.
    Supplements and Nutrition must be complementary. For example, a person who consumes large amounts of carrots and squash need not take a supplement of Vitamin A. This is because too much of Vitamin A can cause a yellow or orange tinge to the skin. Other overdoses on minerals and vitamins can even disrupt normal hormonal function. After all, even too much of a good thing can be hazardous to health.
    Hence, a proper Supplements and Nutrition scheme must be discussed with the doctor in order to prevent overdoses or taking unnecessary supplements. The US FDA in recognition of the growing market and need for supplements has taken steps to regulate the production, dosage, and sanitation of supplements. This was done to ensure good-quality products. This move is also partly due to rising number of unprescribed supplement use among consumers. The agency also stressed the importance of informed use among supplement users. It is not enough to know the name of your supplements. You should know what deficiency it corrects and how it works. Studies show that many use different supplements whereas tests done to them indicate only a minimal lack which can be corrected by a single kind. Also, despite the supplement rage, doctors and health experts still stand by natural correction of deficiencies by means of a proper diet. They suggest eating alternative sources of nutrients found in allergy-inducing foods. Hey, real food tastes better than capsules anyway.

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              Of Ivory Gulls and Parasites        
    BirdsIvory Gull by Nathan Goldberg

    Ivory Gull (Pagophila eburnea) photo by Nathan Goldberg.

    On the morning of January 7, I received a phone call from our former intern Nathan Goldberg, currently a student at Cornell University, who was birding in northeast Minnesota. "I just found a roadkill Spruce Grouse, do you guys want it?" That was an easy question: "Of course we do," I replied. Spruce Grouse is a bird of the North Woods, far from Chicago, so this was an excellent opportunity to get a fresh specimen of a species that rarely comes into the collection. Plus we have all of the necessary permits to receive specimens from Minnesota.

    That was just the beginning of the story. One of the main reasons Nathan was in that area, along with dozens of other birders, was to see the rare Ivory Gull that showed up a week earlier on the Duluth lakefront and was being seen daily.

    Not long after his phone call, I saw a distressing message on Facebook--an Ivory Gull had been found dead, mostly eaten by a mammal, just across the border in Wisconsin. Only the head and wings remained. Laura Erickson, a birder who lives in Duluth, went out and salvaged what was left of the specimen after learning of the bird's demise. As is the norm these days, all of this was known in real-time thanks to social media.  Nathan then contacted Laura to ask if, while he was at it, he could take the Ivory Gull remains to the Field Museum along with the Spruce Grouse that was already in his trunk. She agreed. In the meantime, a living, breathing Ivory Gull was seen again in Duluth! (I highly recommend reading Laura’s account of the remarkable situation). Late the following night, Nathan, knowing that his mother wouldn't approve of a big bag of dead birds in her freezer, stopped by my apartment on his way home from Minnesota to drop off the specimens.

    nathan_ruffling_img_4212.jpg

    Nathan Goldberg ruffling
    Nathan Goldberg and I examine the Ivory Gull specimen for ectoparasites. Photo by Lynne Remington.

    As an intern at the Museum, Nathan had worked with Jason Weckstein, a former staff scientist whose research focuses on birds and their associated parasites. Not wanting to miss an opportunity for further study, Nathan asked that we wait a week to prepare the specimens so he could come in to the museum and examine them himself for lice. That wasn't a problem, and we both knew Jason would be thrilled to receive anything that he found. 

    The following week Nathan came to the museum to do just this. We had pulled the birds out of one of the Bird Collection’s many freezers that morning, so they were thawed and ready to be "ruffled," the term for rummaging through a bird’s plumage to collect its ectoparasites: lice, mites, fleas, and ticks in particular. We find ectos, as we call them, on roughly 50% of the birds we check; today, however, the success rate was 100%. Nathan found lice on both the Ivory Gull and the Spruce Grouse as well as a mite on the gull. It's entirely possible that some of the parasites represent new species. We checked the “Bird Louse Bible,” and it turns out that several louse species have been found on Ivory Gulls—the first was described way back in 1780! Just one species is known from Spruce Grouse.

    ivgu_louse.jpg

    The Ivory Gull's louse, in the genus Quadraceps. Photo by Nathan Goldberg.

    Tom Gnoske, our Assistant Collections Manager, then prepared both birds as specimens. The Ivory Gull specimen consists of one wing, the head feathering, the skull, plus additional feathers. The Spruce Grouse was prepared as a study skin, with a partial skeleton saved as well. As we do for every specimen that comes through the prep lab, tissue samples were saved from both birds to preserve their DNA. A quick search of VertNet, the online database of museum bird collections, shows that the Ivory Gull tissue sample may be only the second one in a museum collection. 

    Ivory Gull is a rare bird, making this a unique opportunity to study its parasite fauna and collect a tissue sample that can be used for genetic studies in the future. It is classified as Near-threatened by BirdLife International because it “has declined rapidly in part of its range,” indeed by as much as 80% in Canada over the last thirty years. Part of the problem may be mercury poisoning, which increased in their systems by 45 times in 130 years. Whether or not this is related to birds showing up so far out of range is yet to be studied. But thanks to the quick work of birders and the wonders of social media, when it is studied there is no doubt that this specimen will be used.

    ivory_gull_specimen_img_2514.jpg

    Ivory Gull and Spruce Grouse specimens
    The prepared specimens: the Ivory Gull's wing and head feathers, along with the Spruce Grouse and a Least Bittern.

     


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              Hand Therapy Using Hand Bath        
    Special Recommend information on A H1N1 (swine flu)
    As it is known to all, currently we human being are all faced with a big enemy-A/H1N1 flu (swine flu) which has been threatening our life. Now the situation is worsening. As health and medical to AH1N1organ, we shoulder more responsibility to handle outbreak of this emergency.

    In TCM, A/H1N1 belongs to epidemic febrile disease of TCM which is the same as human avian influenza and SARS and similar to A/H1N1 flu syndrome differentiation and treatment of TCM prevention and cure. It is advocated “dispelling wind, reducing fever and dissipating dampness in clinical.

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    Hand bath is a steaming and washing therapy. The hot steam from an herbal decoction is used to heat the hands which are then soaked in the warm decoction after it gradually cools down. Diseases can be cured by the hot stimulation applied to the meridians and acupoints of the hand and by the gradual absorption of herbs through the skin.

    1. Origin and classification of steaming and washing therapy:

    Steaming and washing therapy originated in ancient times. Among 52 ancient herbal therapy recipes unearthed from the Han Dynasty Mawangdui Tomb, eight were used for steaming and washing therapy. This indicates that steaming and washing therapy has been used by Chinese people to treat diseases for at least 2,000 years. This therapy is also mentioned in classical medical books of the Han (206 B. C.-220) and Jin (265-420) dynasties. During the Tang Dynasty (618-907), this method was used to treat carbuncles, cellulitis, skin rashes, dermatitis, frostbite, hand and foot diseases, and gynecological and eye disorders. In the Kin (1115-1234) and Yuan (1271-1368) dynasties this method was classified as an essential medical therapy. In the Qing Dynasty ( 1644-1911 ), Wu Shangxian, a famous physician of traditional Chinese medicine, divided this therapy into smoking, steaming, shower, sitz bath, and hot ironing. It is a folk treatment used by common people to treat acute sprains, bone injuries, and contusions with a good therapeutic results.
    Steaming and washing therapy can be classified as general and local. Local treatment includes steaming and washing therapy for the hand, foot, and eye, and sitz baths. Hand bath is steaming and washing therapy for the hand.

    2. Function and characteristics of hand bath:

    As demonstrated by the experiments of modern medicine. steaming and washing therapy with hot and moist air can promote the absorption of herbs through the skin, dilate the skin's small blood vessels, promote the circulation of blood and lymph, enhance the phagocytic functions of the reticuloendothelial system, increase the permeability of cellular membranes, and promote metabolism by stimulating the sensitive sensory nerves scattered along the skin. The effective components of herbs used in steaming and washing therapy can directly kill the pathogenic germs on the skin. According to the theory of traditional medicine, the meridians of the hand are closely related to the organs and meridians of the entire body. Therefore, this therapy can clear stagnation in meridians, adjust bodily deficiency and excess, and promote circulation of qi and blood.
    The hand bath is simple, cheap, and easy to learn and practice, with numerous indications and good therapeutic effects, and without any harmful side effects. It is most useful for patients proscribed from taking drugs.

    3. Methods of manipulation:

    1) The proper recipe is selected according to the diseases and the basin, towel and sheets are prepared in use.
    2) The hot decoction of herbs is poured into the basin and the hands and arms are put over the basin. Cover the arms and basin with a sheet to reserve the hot air from quickly escaping away. Some boiled water may be added to the basin to maintain the temperature. After the decoction is cooled down to an adequate temperature, the hands may be soaked and washed in the decoction.
    3) After steaming and bathing, the hands should be dried with a towel and protected from attack of wind and coldness.
    4) The steaming and washing therapy may last for 20-30 minutes, twice a day.

    4. Precautions:

    I) The water used to boil the herbs should be adequate to prepare a decoction of the proper concentration. Aromatic and volatile herbs should be boiled for only 10-15 minutes; and roots, stems and herbs in large clumps should be boiled for 30
    minutes.
    2) The temperature of the decoction for bathing and soaking the hands should be monitored to avoid burning the skin.
    3) These decoctions are not for oral administration.

    More information from TCM and health: Hand Therapy Using Hand Bath
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              MPEG decoding, state save/restore, NRF emulation, ...        
    It's been a while since I wrote anything here, but that doesn't mean that work on CD-i Emulator has stopped. On the contrary, a lot has happened in the last month and describing all of it will take a very long blog post. So here goes…

    Last January an annoying date-checking bug was found which forced me to release beta2 somewhat earlier than anticipated. After that I did no further work on CD-i Emulator. There were various reasons for this, but the most import one was a very busy period at my day job.

    After a well-earned vacation I resumed CD-i related work in early August. First I spent a few days on Walter Hunt's OS-9 port of gcc, the GNU C/C++ Compiler that I found in October of last year. Getting it working on a modern Cygwin installation was interesting and something very different from my usual line of work. The result could be useful for homebrew activities: it's a much more usable C compiler then the Microware OS-9 one and supports C++ as a bonus. I intend to use this for ROM-less emulation validation some day; see also below. The sources need to be released but I haven’t gotten to that stage yet.

    After that I had another go at the Digital Video cartridge emulation. At the point where I left off last year the major stumbling block was the presumed picture / frame buffering logic of the MPEG video driver. When the appropriate interrupt status bits are set the driver starts copying a bulk of status information to an array of device registers and it will sometimes also read from those registers. This is all controlled by several status and timing registers that are also referenced elsewhere and I previously could not get a handle on it.

    My first attempt this time was spending another few days staring at it and tracing it, but this did not gain me much new understanding. Finally I decided to just leave it for now and see how far I could get without understanding this part of the driver. I decided to once again attempt to get "CD-i Full Motion Video Technical Aspects" working.

    This CD-i was produced by Philips to give future Full Motion Video (as the new MPEG playback functions were called at the time) developers a demonstration of the technical capabilities of the new hardware, at a time when this hardware was still in the early beta phase. The CD-i actually contains the compiler libraries necessary for making FMV calls from CD-i applications, as these had not previously been widely distributed.

    It is not a very slick disc visually, being intended for developers, but it demonstrates a number of FMV techniques such as regular playback, playback control including pause, slow motion and single step, freeze frame and forward/backward scan, special effects like scrolling the FMV window, a seamless jump and a sample of overlay effects with the CD-i base case video planes.

    I had previously tried to run this disc on CD-i Emulator, but it always crashed for an unknown reason that I attributed to MPEG device emulation problems. This time I traced back the crash and it turned out to have nothing at all to do with FMV playback but was instead caused by an incorrect emulation of the 68000 instruction "move ea,ccr" which is supposed to set the condition code register (ccr) to the value specified by the effective address (ea). In the processor manual this is classified as a word instruction and I had emulated it as such, which turned out to be wrong as it caused a word write to the full status register which should have been a byte write to the lower eight bits of it which hold the condition codes.

    The problem manifested itself when the application calls the math trap handler for some mundane number calculations, which were naturally supposed to set the condition codes. The value written to the status register inadvertently changed the processor from user to system mode (and also scrambled the active interrupt masking level) which caused an instant stack switch that caused a bus error when the trap handler attempts to return to the application program (the cpu took the return address from the wrong stack and got garbage instead).

    Most CD-i applications probably don't use the math trap handler so the problem went undetected for a long time. Now that it's fixed some other titles have probably started working but I haven't tested that.

    After this, the FMV Technical Aspects application would get to its main menu screen, allowing me to start FMV playback operations. Regular playback worked fine until the end of the video clip, where there turned out to be status bit generation issues that prevented the application from properly detecting the end of video clip condition (the decoder is supposed to send a "buffer underflow" signal, among others, after the end of the MPEG data and my emulation didn't do that yet).

    This was not very easy to fix because of the way that MPEG data buffering and decoding is handled inside CD-i Emulator, which I'll get into below. So it took me some time.

    Regular play working fine, I started worrying about window control. This was the area where I feared the picture buffering stuff, but it turned out that this was easily bypassed. The horizontal / vertical scrolling functions were ideal to test this but it took me some time to get it working. There were bugs in several areas, including my integration of the MPEG video decoding code, which I took from the well-known mpeg2dec package. This code is written to decode a single video sequence and consequently did not handle image size changes without some re-initialization calls at the appropriate times. Failing that, it mostly just crashed (at the Windows application level) due to out-of-bounds video buffer accesses.

    Another issue was the timing of device register updates for image size changes; I turned out to have the basic mechanism wrong and consequently the driver would keep modifying the window parameters to incorrect values.

    Having all of the above fixed, I returned my attention to playback control. So far I can get the video playback properly paused, but I haven't been able to get it properly resumed. For some reason the application resumes the MPEG playback but it doesn't resume the disc playback. Since the driver waits for new data to arrive from disc before actually resuming MPEG playback nothing happens (this is documented as such). The application is presumably expecting some signal from the driver to get into the proper state for resuming disc playback, but I haven't found it yet.

    At this point, it seemed promising to look at other CD-i titles using playback control and the Philips Video CD application is an obvious candidate. Again, regular playback appears to work fine, but playback control (including pause/resume) does not. It turns out that this application uses a different driver call (it uses MV_ChSpeed instead of MV_Pause, probably in preparation for possible slow motion or single step), which never completes successfully, probably again because of device status signaling. Similar issues appear to block playback control in a few other titles I tried.

    I've given some thought to tracing driver calls and signals on an actual player to see what CD-i Emulator is doing wrong, and it appears to be relatively simple, there's just a bandwidth issue because all of the trace output will have to go out the serial port which can go no higher then 19200 baud. Some kind of data compression is obviously needed and I've determined a relatively simple scheme that should be enough (the CD-i player side will all need to be coded in 68000 machine language so simplicity is important!), but I haven't actually written any code for it yet.

    I know there are issues with the proper timing of some video status signals. Things like start-of-sequence, end-of-sequence and start-of-picture-group should be delayed until display of the corresponding picture, at present they are delivered at decoding time, which can be a few pictures early. But that does not really affect the titles I've tried so far, because they do not attempt picture-synced operations. An application like The Lost Ride might be sensitive to thinks like this, though, and it needs to be fixed at some time. Similar issues are probably present with time code delivery. In addition, the last-picture-displayed and buffer-underflow signals are not always properly sent; I'm fixing these as I go along.

    In the process, I decided that the magenta border was getting annoying and tried to fix it. That turned out to be harder then I thought. The MPEG chip has a special border color register that is written by the MV_BColor driver call and it seemed enough to just pass the color value to the MPEG window overlay routines. Well, not so. Again the issue turned out to be timing of decoder status signals, but of a different kind. The driver doesn't write the border color registers until it has seen some progress in certain timing registers related to the picture buffering thing, presumably to avoid visual flashes or something on the actual hardware. Fortunately, it turned out to be easy to simulate that progress, taking care not to trigger the complicated picture buffer code that I so far managed to keep dormant.

    At some point, possibly related to slow motion or freeze frame, I might need to actually tackle that code but I hope to by that time have gained more understanding of the supposed workings of the MPEG chip.

    Looking at the above, you might think that all of the difficulties are with the MPEG video decoding and that is indeed mostly true. I did have to fix something in the MPEG audio decoding, related to the pause/resume problems, and that was the updating of the audio decoder clock. When audio and video playback are synchronized the MPEG video driver uses the MPEG audio clock as it's timing reference, which means that it has to be stopped and restarted when video playback control operations occur. Since I had never before seriously tested this, the audio clock wasn't stopped at all and the video driver obligingly continued decoding and displaying pictures until it ran out of buffered data.

    There is currently just one known problem with the MPEG audio decoding: the audio isn't properly attenuated as specified by the driver. This causes little audio distortions at some stream transitions and when buffers run out. There is also a problem with base case audio synchronization but that is hard to trigger and possibly even not audible in many titles so I'll worry about that much later.

    Above I promised to get into the MPEG data buffering and decoding issue. The basic problem is one of conceptual mismatch: the CD-i decoding hardware gets data "pushed" into it (by DMA or direct device I/O) at the behest of the driver, whereas the MPEG decoding code (based on the publicly available mpeg2dec and musicout programs from the MPEG Software Simulation Group) expects to "pull" the data it needs during decoding. Things get messy when the decoding runs out of data, as the code does not expect to ever do so (it was originally written to decode from a disc file which of course never runs out of data until the end of the sequence). Some obvious solutions include putting the decoding in a separate thread (which given multi-core processors might be a good idea anyway from a performance perspective) and modifying it to become restartable at some previous sync point (most easily this would be the start of an audio frame or a picture or picture slice). Both options are somewhat involved although they have obvious benefits, and it may turn out that I will need to do one of them anyway at some point. For now I've avoided the problems by carefully timing calls into the MPEG decoding code so that enough data to decode a single audio frame or video picture should always be available; the MPEG data stream at the system level contains enough timestamp and buffering information to make this possible (in particular, it specifies the exact decoding time of every audio frame or video picture in relation to the timing of the data stream, thus making it possible to make those calls into the decoding code at a time that a valid MPEG data stream will have already filled the buffers far enough).

    The approach depends on the timing of the MPEG data entering the decoder, which means that it does not handle buffer underflow conditions unless you add some kind of automatic decoding that continues even if no more MPEG data appears, and this is basically what I’ve done. In the end it was just relatively straightforward extension of the automatic decoding already there to handle the fact that MPEG audio streams do not have to explicitly timestamp every single audio frame (the CD-i Green Book does not even allow this unless you waste massive amounts of space in each MPEG audio data sector) and would have been needed anyway to correctly decode the last pictures of a sequence, but that had never been tested before.

    For performance and possible patent reasons I have taken care to edit the MPEG decoding code (placing appropriate #ifdef lines at the right places) so that only MPEG 1 video and audio layer I/II decoding code is compiled into the CD-i Emulator executable. This is all that is needed for CD-i anyway and MPEG 2 video and audio layer III greatly complicate the decoding and thus significantly enlarge the compiled code.

    Being somewhat stymied at the FMV front, I next decided to spend some time on another lingering issue. During testing, I often have to do the same exact sequence of mouse actions to get a CD-i application to a problem point and this is starting to be annoying. Input recording and playback are a partial solution to this but then you still have to wait while the application goes through it, which is also annoying and can sometimes take quite some time anyway. The obvious solution is a full emulation state save/restore feature, which I've given some thought and started implementing. It's nowhere near finished, though.

    During the MESS collaboration I spent some time investigating the MESS save/restore mechanism. If at all possible I would love to be compatible for CD-i emulation states, but it turns out to be quite hard to do. The basic internal mechanism is quite similar in spirit to what I developed for CD-i Emulator, but it's the way the data is actually saved that makes compatibility very hard. Both approaches basically boil down to saving and restoring all the relevant emulation state variables, which includes easy things like the contents of cpu, memory and device registers but also internal device state variables. The latter are of course not identical between different emulators but they could probably be converted if some effort was thrown at it and for a typical device they aren't very complex anyway. The MESS implementation uses an initialization-time registration of all state variables; at save/restore time it just walks the registrations and saves or restores the binary contents of those variables. CD-i Emulator has a somewhat more flexible approach; at save/restore time it calls a device-specific serialize function to save or restore the contents of the state variables. The actual registration / serialization codes are structurally similar in the two emulators (a simple list of macro/function calls on the state variables) but the code runs at different times.

    The real problem is that MESS includes very little meta information in the save files: only a single checksum of all the names and types of registered state variables in registration order. This is enough to validate the save data at restore time if the state variables of the saving emulator exactly match those of the restoring emulator, because there is no information to implement skipping or conversions. This holds between different versions or in some case even configurations of MESS emulators, but it holds even more so between MESS and CD-i Emulator! The meta information could of course be obtained from the MESS source code (relatively simply macro modifications could cause it to be written out) but that would require exact tracking of MESS versions because every version could have its own checksum corresponding to different meta information (in this case CD-i Emulator would need meta information sets for every MESS checksum value it wants to support).

    I want CD-i Emulator to be more flexible, especially during development, so I decided to make full meta information an option in the save file. The saved state of every device is always versioned, which allows the save/restore code to implement explicit conversion where needed, but during development this isn't good enough. With full meta information turned on, the name and type of every state variable precedes the save data for that variable in the save file. This allows more-or-less automatic skipping of unknown state variables and when properly implemented the restore code can also handle variable reordering. At release time, I will fix the version numbers and save full metadata information sets for those version numbers so that the same automatic skipping and handling of reordering can be done even if the metadata isn't in the save file (it probably won't be because of file size considerations, although that may turn out to be a non-issue because save files need to include the full RAM contents anyway which is 1 MB of data in the simplest case without any compression, which is of course an option).

    In addition to all of the above, I made some progress on the ROM-less emulation front. First I spent some time reading up on the internals of OS-9 file managers, because writing a replacement for the NRF file manager (NRF = Nonvolatile RAM File manager) seemed the logical next step. Actually writing it turned out not to be that hard, but there were of course bugs in the basic ROM emulation code. Most of them had to do with handlers not calling into the original ROM, which totally screwed up the tracing code. Some new functionality was also needed to properly read/write OS-9 data structures inside the emulated machine from the ROM emulation code; I wanted to implement this in such a way that compilation to "native" 68000 code remains a future option for ROM emulation modules. And of course the massive tracing described in the previous blog post had to be curtailed because it was impossible to see the relevant information in the morass of tracing output.

    The new emulated NRF stores its files in the PC file system and it currently works fine when you start it with no stored files (i.e., the player will boot). In that case it will write out a proper "csd" (Configuration Status Descriptor) file. However, if this file already exists, the player crashes, although I have so far not found any fault in the NRF code. The origin of the problem probably lies elsewhere; I suspect it has to do with the hidden "player_shell_settings.prf" file. This file is read and written by the ROM bootstrap even before OS-9 is running; it does this by directly accessing the NVRAM memory (the file never changes size and is always the first one in NVRAM). Since the bootstrap accesses of this file do not go through the NRF file manager or even the NVRAM driver they are not redirected by the OS-9 emulation. However, later accesses by the player shell *are* redirected and the player shell does not seem able to handle the file not existing in the PC file system in the case where a csd file already exists. Solutions include extending the emulated NRF to always access this particular file from the NVRAM instead of the PC file system or somehow synchronizing the two locations for the file. The latter is probably the easiest route given the fixed location and size of the file, but the former is also useful as it would provide a full reimplementation of the original NRF that could in principle be compiled to native 68000 code to replace the "original" NRF in ROM (this is where gcc comes in as alluded to earlier, since all emulation code is written in C++).

    In either case, I do not want the file manager to directly access emulated NVRAM although it could do so easily, as there is already an internal CNvramPort interface that provides just such access independent of the actual emulated NVRAM chip. The NRF file manager should instead call the NVRAM driver, which means that I need to implement cross-module calling first. It's not really hard in principle, the design has been done but there are a lot of little details to get right (the most obvious implementation uses at least 66 bytes of emulated stack space on each such call which I find excessive and might not even work; smarter implementations require some finicky register mask management or a "magic cookie" stacking approach, the latter having the best performance in the emulation case but being impossible in the native 68000 compilation case). When cross-module calling is working, I can also have the file manager allocate emulated memory and separate out the filename parsing functions by using the OS-9 system calls that provide these functions (the current emulated NRF does not allocate emulated memory which is arguably an emulation error and has the filename parsing coded out explicitly).

    When everything works correctly with the emulated NRF, I have to find some way of integrating it in the user experience. You could always start over without any NVRAM files, but I'd like to have some way of migrating files between the two possible locations without having to run CD-i Emulator with weird options. Extending the CD-i File Extractor (cdifile) by incorporating (part of) the emulated NRF seems the obvious choice, which would also provide me with some impetus to finally integrate it with the CD-i File Viewer (wcdiview) program that's supposed to be a GUI version of cdifile but so far is just a very thin skeleton barely able to graphically display a single CD-i IFF image file passed on the command line (it doesn't even have a File Open menu) and will often crash. A proper implementation would look like Windows Explorer with a tree view on the left (CD-i file system, real-time channels and records, IFF chunk structure, etc) and a variable content display on the right (raw data view, decoded sector view, code disassembly view, graphical image view, audio playback, slideshow playback, decoded MPEG view, MPEG playback, etc).

    That touches on another area in which I did some work last month: the saving of CD-i IFF image files for each emulated video frame. The motivation for this was to bring full-resolution real-time frame saving into the realm of the possible, as it would write only about 2 x (1024 + 280 x (384 + 32)) = 247 KB of raw CD-i video and DCP data per frame instead of 560 x 768 x 3 = 1260 KB of raw RGB. At least on my PC this has turned out not to be the case, however. The data is written out fine, which is not as easy as it sounds since video line data size can vary with each line because of pixel repeat and run-length encoding, but it's still too slow. That being so, I am not really very motivated to extend the CD-i IFF decoding implementation to actually decode this information. Some kind of compression could be an option, but that takes processor time and makes things even harder and possibly slower. Perhaps using another thread for this would be a solution, on a multi-core machine this should not greatly impact the basic emulation performance nor the debugging complexity as the compression code would be independent of the emulation itself.

    So there is still a lot of work to be done, but it's all quite interesting and will provide for some entertaining evenings and weekends in the coming weeks or possibly months.

              Annual Mormon Book Review        

    Carrying on from last year's review of David Robert's Devil's Gate: Brigham Young and the Great Mormon Handcart Tragedy, here is a second review of another Mormon-centered book. Enjoy!

    Jared Farmer. On Zion’s Mount: Mormons, Indians, and the American Landscape. Cambridge: Harvard University Press, 2008. 455 pages. Cloth: Alkaline Paper. $29.95.


    From the early days of the inception of the Church of Jesus Christ of the Latter-Day Saints (LDS), the Mormons were concerned with place-making. Joseph Smith, the religion’s founder, initially identified Jackson County, Missouri as the “center place,” where the Garden of Eden had once stood. However, the devout were soon thrown out of the state by the governor, and moved on to Nauvoo, Illinois. Later, after Smith was assassinated, the new Mormon leader, Brigham Young, turned his gaze farther west and in 1846-1847 led a party of followers to Utah, which he claimed as “Deseret”—their Zion. There, the Saints found their “place apart” from the rest of the world.

    Jared Farmer’s 2008 book On Zion’s Mount: Mormons, Indians, and the American Landscape adroitly traces Mormon place-making in Utah. His story is ostensibly about Mount Timpanogos, a landmark known as “Timp” that unites the skyline above Orem and Provo. But the history involves much more than the mountain. It is a microcosm of Angloamerican settlement in the west. Using a singular landmark, Farmer delves into the importance of creating place out of space. He asks why Mount Timpanogos usurped the importance of the historically and agriculturally significant Lake Utah, and how the Mormon settlers manipulated their turbulent history with the Ute Indians in order to make myths and claim places as their own. The book deals with two centuries of history, as well as the interaction between varied cultures and the sometimes contradictory dogma of the LDS Church. Though complex, On Zion’s Mount is a wonderfully executed book—well written, insightful, and an excellent example of how to use local history to illuminate greater historical narratives.

    The book is divided into three sections, each focusing on a different step in the climb to the veneration of “Timp.” The first, “Liquid Antecedents,” deals with the early history of the Ute Indians and the Mormons. It also concentrates on how bodies of water were significant to residents and settlers in the Utah Valley. This section is compelling, as Farmer explains just how distinct the freshwater Lake Utah was in the arid Great Basin. The lake was a natural landmark for the Utes, who relied heavily on its plentiful supply of fish. In the mid-1800s, it became a landmark for the Mormons, who arrived predisposed to seek out monuments in their new “holy land.”

    Despite the Mormons’ intention to find a locale that was disconnected from the rest of the world, the Utah Valley, where the first waves of Mormons settled, was not a “place apart.” It was populated with Ute Indians, who had lived in the area for centuries. The wellspring for many of these Utes was Utah Lake, a freshwater reservoir southeast of the Great Salt Lake. The Indians there called themselves Timpanogos Nuche—“Rocky River Fish Eaters.” They identified themselves in connection with the body of water. The Mormons entered into an unstable relationship with the Timpanogos; an association characterized by violent fits, uneasy alliances, and contradictory feelings. This fluctuating friendship came with a bond to Utah Lake.

    Both the Timpanogos and the Mormons emphasized the importance of place. The Utes classified bands by “geographic food names” like “Lake People” and “Fish-Eaters.” (25) The Saints were concerned with place as it related to Millenialism. While other religions affected by the Second Great Awakening believed in a prediction of when Christ would return, the Mormons were concerned with where. (36) When the Mormons arrived in the Salt Lake Valley, the hot springs, streams, and of course the Great Salt Lake all contributed to the Saints’ belief that they had found their promised land. In the waters they took healing baths, baptized their children, and fished. These same waters had been frequented by the Utes for decades, if not centuries.

    From their introduction onward, relations between the Mormons and the Timpanogos were rocky. In 1849, the former noticed that livestock was missing, and rallied a group to ride south and confront Little Chief, a Ute leader who lived on the shores of Utah Lake. The chief turned the Saints towards some “mean Ewtes,” who they subsequently slaughtered for stealing.(62) Three days afterward, a band of Mormon men decided to relocate their families to Utah Lake. The Saints settled in the midst of hostilities between bands of Utes. In order to secure their own safety, the settlers at Utah Lake as well as the LDS leadership engaged in unsteady diplomacy and occasional fights with different Indian contingents.

    To complicate the already problematic situation, Mormons arrived in Utah with preconceptions of Native Americans. In fact, Indians were integral to the burgeoning religion’s discourse. According to LDS dogma, Indians were descendants of the “Lamanites,” once followers of Christ who traveled to America before the Babylon captivity. In the New World, the hostile sect broke away from their brothers, the “Nephites.” For this, God cursed the Lamanites with dark skin. The ill-fated group waged war on the Nephites and erased any fragments of Christianity from the land. The last Nephite scribe, Moroni, was the impetus for the Mormon religion. He came to Joseph Smith in a dream and told him where to find the scriptural record of this lost history. With his revelation of the sanctity of the Lamanites, Smith incorporated proselytizing to Indians into the Book of Mormon. The descendants of the Lamanites who converted would be saved during the Second Coming. More importantly, they would assist Christ in destroying the earth as soldiers of the apocalypse. This created a contradictory idea of Native Americans: “They were cursed to be inferior yet promised to be superior. They were destined to save the world, yet they couldn’t save themselves.”(57) Furthermore, dealing with real-life Utes proved harder than the LDS leadership imagined.

    The tension in Saints’ beliefs between “Indian-as-brother and Indian-as-other” continued to influence their interactions with natives around Utah Lake.(61) Young was wary of the amicable relations between his followers and the Timpanogos and wished that the two groups not mix. In 1850, following the murder of an Indian man, the Mormons and the Utes engaged in the “Indian War.” Later, LDS leadership chastised natives for engaging in slave trade with a New Mexican. Though in Mormon thought there were some redeemable Indians, by 1860 Young was determined that the Utes ought to be displaced. He wrote to Washington, D.C.: “It is our wish that the Indian title should be extinguished, and the Indians removed from our Territory (Utah) and that for the best of reasons, because they are doing no good here to themselves or any body else.”(82) By the latter half of the 1860s most of the Timpanogos people moved to the Uinta Basin, estranged from the place upon which they based their identity.

    Following the removal of the Utes, Utah Lake experienced a surge and then a decline in popularity that mirrored the fate of other regional waterways. In the late 19th century, tourists came to the area to take in the healing waters of the hot springs, the Great Salt Lake, and Utah Lake. Additionally, the latter continued to be a distinguished fishery. However, this fame did not last. In the first half of the 20th century, fires destroyed a number of Salt Lake resorts. Overfishing and the introduction of nonnative species affected Utah Lake. The Great Depression and WWII furthered the destruction of water sport popularity. The federal government opened the Geneva Steel plant on Utah Lake; its smokestacks and pollution diminished the reservoir’s beauty and water quality. Even after the plant closed in 2001, the lake had lost its reputation. Residents considered it dirty, shallow, and full of undesirable fish. Furthermore, during the twentieth century Utahans rethought their sense of identity. Instead of revering the hydrological geography of Utah, its residents had turned their gaze upward to the peaks.

    The second section of the book, “Making a Mountain: Alpine Play,” discusses how Utahans built Mount Timpanogos into a landmark. Farmer makes great use of the exclusion of certain places as well as their later inclusion. Using topographical resources from the four western surveys, as well as mormon settler drawings and maps, Farmer shows how Timpanogos went from being an undefined ridge in the Wasatch Range to a distinct massif that overshadowed both the larger Mount Nebo to the south and the historically significant Lake Utah to the west.

    As in the first three chapters, Farmer employs LDS beliefs to form the basis of his argument. The Saints’ theological sense of place included an emphasis on mountains. Settlers viewed their new homeland through religion; mountains pervade world religions as the geographical pathway to God. Peaks were of special importance to Mormons, since Joseph Smith purportedly prophesied that they would “become a mighty people in the midst of the Rocky Mountains.”(150) When the Saints arrived in Deseret, they labeled many geographic sites with biblical names, including Mount Nebo, the highest peak in the Wasatch range. However, in the 1880s Mormons began to secularize their environment. This shift was motivated by the United States Congress, which outlawed theocracy and polygamy. During what Mormons call “The Great Accommodation,” the Saints rethought the peaks in a patriotic light.

    The King Survey was the first to identify “Tim-pan-o-gos Peak” in 1869.(164) However, no one considered it a defining aspect of the region, and many could not even see it; the massif was just a part of the jagged wall between Provo and American Fork Canyons. It wasn’t until the early decades of the 20th century that residents of Provo “began to visualize a mountain.”(167) The view of Timpanogos from Provo changed as the town relocated to the east of its original home at old Fort Utah. Spurred by the historic importance of mountains to the Mormons as well as the “European vogue of alpine aesthetics,” it was not unnatural for the residents of Provo to revere a nearby peak.(141) By 1910, the town described itself in relation to the mountain.

    The King Survey did more than just identify Mount Timpanogos—the survey also pronounced it (erroneously) the highest peak in the Wasatch Range. In reality, that title belongs to Mount Nebo. However, the claim persisted even after the U.S. Coast and Geodetic Survey corrected the record, and tourists began arriving to climb the “highest mountain in the Wasatch.”(175) With the boosterism of Eugene “Timpanogos” Roberts, Brigham Young University’s athletics director, and the national increase in the popularity of hiking, “Timp” became a recreational landmark. Roberts led yearly hikes to the top of the massif, and along with the claim that they were climbing the highest peak in the Wasatch, boosters “endlessly repeated claims that the Annual Timpanogos Hike ranked as the biggest hike in America, the greatest community hike in the world, and the largest ‘pilgrimage’ to any mountain over 10,000 feet.”(202) The peak, as well as its ascent were powerful symbols of community strength.

    Though the hike was discontinued in the 1970s, the peak remained emblematic of Provo. The Forest Service designated Timpanogos as wilderness. They banned the grazing of domestic animals and introduced mountain goats to the area in 1981. Meanwhile, Provo and Orem transformed from farming communities into suburbia and Robert Redford bought and built up Sundance. These changes emphasized the dichotomy between wilderness and urban areas. With the growth in population of the two cities and the ski resort, Timpanogos increased in importance. In 1996 the mountain’s significance was solidified in Mormon minds when the LDS Church built Mount Timpanogos Temple. Farmer ends this section with a rumination on environmentalism. Despite all the reverence for place, Mormons are not conservationists, and do not engage in preservation of their landmark. “Sense,” he concludes, “is not the same as sensibility.”(238)

    The final section of the book, “Making a Mountain: Indian Play,” investigates how “Timp” was marked with cultural meaning. Farmer examines the place name as well as the legends that surround it. In the nineteenth century, white Americans like Henry Schoolcraft and Lydia Sigourney advocated the use of Indian place-names, despite the usual miscommunication, misappropriation, or blatant invention of “native” words. The American government continued the trend by accepting Indianist names of states. In Utah, “Timpanogos” was a long-remembered name in the Provo region. The Indians themselves were displaced to the Uinta Band, and though the name had originally designated a river, the waterway had been renamed “Provo River.” For locals, associating the mountain with a Native word “gave the landmark a heightened semblance of antiquity and authenticity.”(281)

    Ironically, to further this authenticity, Eugene “Timpanogos” Roberts provided the mountain with a fake Indian legend. “The Story of Utahna and Red Eagle, an Indian Legend of Timpanogos” retold a familiar Angloamerican tale of the Indian Princess—the “dark-skinned Sappho” throwing herself from a precipice in response to a suitor.(287) These stories, all of which have suspect providence, used Native American tragedies to deepen American antiquity.(297) In a land without any ancient city walls or moldering castles, a sense of historic depth was created through legend. Additionally, the legends of leaping maidens alleviated whites’ guilt on displacing the Indians across the continent. The tales emphasized either brutish men that the women could only escape by committing suicide or savage societies that forced women to neglect her chosen lover. Either ended with the implicit message: the race of Indians is uncivilized. More importantly, the destruction of these Native maids was self-imposed. In an age when America was dealing with the morality of Indian Removal, it was more convenient for white storytellers that the natives to make the choice of self-destruction.(314)

    The Legend of Timpanogos gained further footing by its performance in Utah. People repeated the story of Utahna and Red Eagle, and the tale influenced an opera, a ballet, and an oratorio. Locals further promoted the fake history by dressing up in war paint and moccasins and climbing the mountain “as Indians.” The mountain was seen as the embodiment of a Native woman; like the “Sleeping Ute” in Colorado, “Timp’s” ridge resembles a slumbering Indian maid. The Mormon use of Indianist music, storytelling, and fashion to create the Legend of Timpanogos was paradoxical in that they paid homage to a romanticized version of the people that they had forced out of the Utah Valley—the Timpanogos’ ancestral home. These cultural performances replaced history with both fiction and selective memory. Modern residents of Utah formed their own heritage; no matter that their memory is based on a fallacy.

    But of course it does matter, which is Farmer’s point. Mormons produced a heritage that all but erased the Utes, just as it effaced the importance of Utah Lake. Instead of concentrating on their forebears’ efforts to colonize a “place apart,” which would necessitate emphasis on their interactions with the Indian inhabitants, Saints overwhelming focused their attention on the successive journeys westward. LDS theologians went so far as to modify the meaning of a Lamanite, so that Amerindians lost their scriptural status.(370) When they did incorporate Native Americans into their heritage, they did so with Indianist fictional stories that obscured history with romanticism. In this way, Farmer’s book acts as a historical monument, countering the heritage attached to Mount Timpanogos. Using “Timp” as a framework for his study, Farmer is able to resurrect the forgotten history of the Timpanogos Nuches and Lake Utah.

    On Zion’s Mount is an outstanding cultural, local, environmental, and religious history. Farmer engages readers with his lucid prose even as he presents the tangled story of Mormons, Utes, and the western landscape. Such excellent writing is especially important when one is reminded of some of the recently popular books on Mormon history: Jon Krakauer’s Under the Banner of Heaven and David Roberts’ Devil’s Gate: Brigham Young and the Great Mormon Handcart Tragedy.19 Krakauer and Roberts are both professional journalists and authors; their work is aimed at the populace rather than the academy. And yet Farmer rivals these works in its composition and surpasses them in its historic breadth and depth. More importantly for scholars, his argument illuminates the American inclination to transform its landscape and pinpoints those transformations in culture and historic memory. Overall, Timpanogos’ jagged ridge proved an excellent vantage point from which to view Utah’s past.
              Programme Update – On the Road        
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              Zika Classified as an STD: What You Need to Know        
    Author: Dr. Jenn Kruk, Molecular Biologist, IEM Unlike other vector-borne diseases such as dengue, yellow fever, and chikungunya, Zika can be spread through the traditional mosquito bite and through sexual transmission. To help stop the spread of Zika through sexual transmission, it is important to understand the risks of Zika as a sexually transmitted disease (STD) […]
              No Divergence from "Mama Bear" Stereotype in Veronica Roth's Divergent        
    My almost 11-year-old daughter recently received Divergent (2011), by Veronica Roth, as an early Christmas present.  The gift came from a family member who had taught English in a middle school for the past several years, so, thinking that it was already vetted by an expert, I felt pretty safe letting Taegan read the book.  Besides, Taegan reads at at least a 10th-grade level, and she’s been choosing books from the Young Adult section in the library for a few months now.  Granted, I try to assess each YA book for its levels of violence and sexual content before letting her check it out, but, honestly, how much can you tell from a cover?  I’ve pretty much resigned myself to the idea that she will probably, at some point, read content that is somewhat inappropriate for her, but I guess I’d rather her read that than not at all due to boredom with the books that are classified as Juvenile. 

    Anyway, I picked up Taegan’s copy of Divergent one day last week, and we ended up reading it together.  The book upheld my expectation of a YA novel in its inclusion of some violence and sexual content.  It was titillating but not explicit; perhaps more importantly, nobody got past first base.  Even so, Taegan said that it contained the most kissing that she has ever encountered in a book.  J  Going through it with Taegan actually gave me the opportunity to talk to her a little bit about what she was reading, though, which ended up being a good thing, I think. 

    Divergent is frequently compared to The Hunger Games and The Maze Runner, due to its similar themes and target audience.  It is a bestseller, and Lionsgate Entertainment is currently producing a film version of the story.  The novel is the first in a trilogy about a dystopian world where people are strictly organized, according to their dominant personality traits, into five factions: Abnegation, Dauntless, Erudite, Candor, and Amity.  It is also a coming-of-age story, portraying Beatrice—or Tris—Prior’s discovery that she is Divergent, which means that she doesn’t fit neatly into one faction; her subsequent choice to leave her home faction of Abnegation, because she is unwilling to live an entire life in a state of self-denial; and her successful initiation into Dauntless, where she struggles to hide her differences from the other initiates.  In the ending chapters, the novel depicts the beginnings of a war between Erudite and Abnegation.  Erudite’s attack is fueled by the insertion of computer chips into members of Dauntless and their use Tris’s Dauntless peers as combatants.  By the end of the novel, Tris is uniquely positioned—because she is Divergent—to quell the violence of the war and change the structure of her society for the better. 

    Divergent is interesting in several ways, but I am most intrigued by its portrayal of Tris’s mother, Natalie Prior.  Although the critics have said very little about her, Natalie plays a crucial role in the development of the story’s narrative arc, as she ends up teaching Tris that which I would argue is the primary lesson of the novel.  In the heat of battle, Natalie courageously sacrifices her life for her daughter, an act that proves that self-denial and bravery are sometimes one and the same—not opposite from each other, as the division between Dauntless and Abnegation seems to suggest.  By extension, Tris begins to realize that no one is merely one thing or another, that every personality combines elements of selflessness, courage, knowledge, honesty, and kindness.

    Natalie is portrayed as foundational to Tris’s journey of self-discovery and cultural awareness, even from the opening pages of the novel.  The story begins with Natalie and Tris locking gazes in a mirror, a moment that might suggest, of course, that the two see each other in their own reflections.  According to Abnegation rules, members of the faction may utilize mirrors only on the second day of every third month, and, this time, Natalie is taking advantage of the opportunity to cut Tris’s hair (1).  Tris needs to look her best for the upcoming Choosing Ceremony, where she will elect the faction in which she will spend the rest of her life.  Tris perceives Natalie as the perfect model of self-abnegation, “well-practiced in the art of losing herself” (1).  But, in this instance, Natalie surprises Tris: “Her eyes catch mine in the mirror.  It is too late to look away, but instead of scolding me, she smiles at our reflection. . . . Why doesn’t she reprimand me for staring at myself?” (2).  Natalie surprises Tris again at the Choosing Ceremony, defying the motto, “Faction before family,” when she assures Tris that she will continue to love her no matter her choice (41).  Certainly, Natalie’s words contribute to Tris’s election to enter into Dauntless, but Tris continues to think of her home faction and her new one as stark opposites, telling herself, “I am selfish.  I am brave” (47). 

    When Natalie visits Tris on Visiting Day, she complicates her daughter’s perception of the division between the two factions.  Tris learns that her mother wasn’t always as selflessness as she appears to Tris: Natalie was a transfer to Abnegation and originated in Dauntless (188).  Even more shockingly, Natalie displays traits that Tris never saw in her before.  When the older woman tells Tris that her father isn’t attending Visiting Day because he “has been selfish lately,” Tris is stunned: “More startling than the label is the fact that she assigned it to him” (179).  Tris deduces that her mother must be angry with her father to call him “selfish,” and she is shocked that Natalie is capable of such an emotion.  Natalie is also easily able to shake hands with Tris’s Dauntless friends, even though shaking hands is not acceptable in Abnegation, where the gesture indicates too high of a level of self-possession (181). 

    After Visiting Day, Tris begins to call on the image of her mother as both an inspiration for moments of self-sacrifice and a source of strength when she is faced with challenges.  After a fellow initiate is brutally attacked by a competitor, Tris volunteers to clean up the blood, thinking, “Scrubbing the floor when no one else wanted to was something that my mother would have done.  If I can’t be with her, the least I can do is act like her sometimes” (209).  In a later scene, Tris dreams that her mother engages her in the process of cooking crows, birds that have repeatedly swarmed Tris in the simulations that she has undergone throughout initiation (301).  In this dream, Natalie is depicted as herself a force of power and, also, as a source of encouragement as Tris is learning to overcome her fears.

    I would argue that the climax of the novel occurs at the same point where Natalie most surprises her daughter by displaying bravery much like that of Tris’s Dauntless peers.  When the war between Erudite and Abnegation breaks out, Tris is discovered as Divergent and taken to become a test subject for Erudite officials, as they attempt to learn how to control even the most irrepressible among them (437).  Natalie rescues Tris from her confines and then courageously runs into a crowd of soldiers, knowing that they will kill her but that her daughter will escape (443).  Tris later announces to her remaining family that, since leaving Abnegation, she has learned how to be both brave and selfless and that, “Often they’re the same thing” (457).

    Some might read Natalie as a powerful mother figure and her depiction in the novel an improvement from, say, the portrayal of Katniss’s mother—weak and overcome by her circumstances—in The Hunger Games.  Surely, Natalie is strong and wise; she lives and dies as a testament to the important overlap between fearlessness and self-sacrifice.  But, at the same time, Natalie’s characterization is stereotypical.  She fits the type of the “mama bear”—or the “mama grizzly” so infamously celebrated in Sarah Palin’s campaign rhetoric in 2008.  In literature and film throughout the ages, the “mama bear” is subservient until her child is threatened, at which point she becomes fearless and ferociously powerful.  Michelle Rodino-Colocina argues that the “mama grizzly” ideology articulated by conservative female politicians such as Sarah Palin and Michelle Bachman “st[ands] to further the interests of wealthy, white patriarchs rather than working to end sexist oppression” (89).  It characterizes women as motivated solely by the wellbeing of their children and, in doing so, reduces their own claims to subjectivity.  Although Divergentgives us a strong female lead in Tris, its depiction of Natalie Prior as a “mama bear” does little to challenge this harmful sort of ideology regarding the place and interests of women.  In addition to kissing, the “mama bear” is another thing that I’ll need to talk to Taegan about.

    Works Cited

    Rodino-Colocina, Michelle.  “Man Up, Woman Down: Mama Grizzlies and Anti-Feminist Feminism during the Year of the (Conservative) Woman and Beyond.”  Women and Language 35.1 (2012), 79-96.


    Roth, Veronica. Divergent. New York: HarpersCollins, 2011.

              The Sexual Power of Mother Nature in Prodigal Summer        
    Teeming with the imagery of natural fertility, Barbara Kingsolver’s 2000 Prodigal Summer presents the intertwined stories of three unlikely romances: Deanna Wolfe, a ranger dedicated to protecting the ecosystems of Zebulon Mountain, and Eddie Bondo, a bounty hunter in pursuit of pack of coyotes; Nannie Rawley, the liberal owner of an organic orchard, and Garnett Walker, a stodgy old-timer determined to repopulate the Zebulon forests with an ancient breed of chestnut trees; and Lusa Maluf Landowski, a scientist-turned-farmer, and Cole Widener, Lusa’s husband who is killed early in the narrative but whom she comes to know better after his death than she had during their very brief marriage.  Within each of these pairs, the woman comes to represent “mother nature,” pitted—to varying degrees—against the forces of “man,” enacted and symbolized by her partner. 

    The storyline closely associates these women with nature—especially its nurturance and fertility.  The two who are still menstruating, Deanna and Lusa, note that they naturally cycle with the moon, for instance.  Deanna also cares for the wild animals that live near her mountain cabin in a way that Eddie declares can only be classified as “maternal” (190).  And after a couple of months of passionate—even animalistic—intercourse with Eddie, a man nearly 20 years her junior, she realizes that she will have a child of her own (387).  Despite being recently widowed, Lusa, too, becomes a figure of maternal abundance, deciding to adopt a troubled niece and nephew as her sister-in-law loses her battle with cancer (380).  Finally, both Lusa and Nannie use flower pollination as a way of talking about sex with their young charges, Lusa with her niece Crystal (351) and Nannie with Deanna when she was a girl (200).  In this way, they present sexuality as a natural part of life—and, indeed, as necessary to the continuance of life.

    The three women also seem to understand the interdependence of living things more clearly than their male counterparts.  Several times, Deanna explains to Eddie that a predator—though villanized in American culture—is a critical link in the food chain, finally managing to convince him to read her Master’s thesis on the importance of the coyote to the health of the mountain ecosystem (179, 362).  Nannie values predators as well.  When Garnett refuses to stop spraying near Nannie’s farm, she invites him to sit down and delivers a lesson on the different insects that live on her orchard, detailing how the bigger insects naturally take care of the “pests.” This natural form of pest control is disrupted, though, when these predators are killed off by the drift of herbicide that Garnett uses to keep his lawn looking tidy.  The pest population recovers more quickly than the predator population, Nannie explains, and causes great damage to her crops until the bigger insects can once again handle the pests (274).  Lastly, after Cole’s death, Lusa decides to try an alternative to tobacco, previously the Widener cash crop, and raise goats for meat instead.  Quite intentionally, she integrates the goats into the landscape of the farm, using them to keep the briars and thistles from taking over her hayfields and, in turn, allowing the animals to harvest some of the hay in order to round out their nutritional profiles (also turning them into more quality products for market) (157). 

    In the end, each of the men seems to acquiesce to the women’s greater wisdom of the natural world, at least temporarily.  Eddie departs Zebulon Mountain (without knowing about Deanna’s pregnancy), leaving behind a note that simply states, “It’s hard for a man to admit he had met his match” (432).  Deanna takes this one line as an indication that Eddie is “offering his leaving as a gift,” that he is leaving both Deanna and her beloved coyotes alone: “No harm would come to anything on this mountain because of him” (433).  On the Widener farm, Lusa’s goat-raising scheme is successful, bringing more of a profit than Cole’s tobacco ever had.  More importantly, Lusa comes to realize that Cole had disliked the conventional agricultural methods that he felt that he had had to use; she begins to think that Cole probably would have enjoyed seeing the farm reformulated into a hormone- and pesticide-free operation, although he was not willing to implement these kinds of changes himself.  For his part, Garnett accepts Nannie’s offer to use the genetics of the old chestnut trees on her orchard to strengthen the strains that he is developing and, in doing so, starts to accept the idea that she already takes for granted—that relationships are more important than property lines.

    What is interesting about these cases, taken together, is that the men seem to submit to the women as much because they are each irresistibly attracted to their female counterparts on a carnal level as because they are persuaded on an intellectual level to see the women’s points of view.  Both Lusa and Deanna speak with their mates, Cole when he was living and Eddie during his time atop Zebulon Mountain, of the power of women’s pheromones to attract men (37, 92).  After Cole’s death, Lusa is finally able to accept Cole’s sense of attachment to her, and, then, that he would have wanted her to make the farm her own after his death.  Just as Lusa’s pheromones most certainly played a part in the development of Cole’s love for her, it is likely that Deanna’s womanly scents played a part in Eddie’s development of affection for her and his subsequent decision to leave instead of to hunt Zebulon’s coyotes.  For his part, Garnett finally gives in to Nannie’s kindness toward him when he can no longer resist the image of her picking fruit in her “short pants” (427).  Although each situation is different, in each of all three relationships, the man finally succumbs to the power of a distinctly female sexuality. 

    Tom Conoboy has pointed out that the ending of this novel is a little too neat, happy, ultimately “bloodless.”  This is true in lots of ways; one of these is that the men seem to lose very little of themselves in submitting to their female mates.  I would argue, though, that Eddie, Cole, and Garnett may be willing to shift in their worldviews, if only temporarily, because they benefit as much as the women in seeing the interconnectedness of the natural world.  If Deanna, Lusa, and Nannie represent “mother nature” in this text and their male counterparts represent “man,” then the novel seems to suggest that we must allow ourselves to be seduced by the sensuous beauty of the Earth—as Eddie, Cole, and Garnett allow themselves to be by the women in the story.  We must submit to the power of nature’s fertility and abundance in order to reap the benefits of these.  

              51) Which one of the following statements concerning production and staffing plans is best? A. A master production schedule is a projected statement of income, costs, and profits. B. Aggregation can be performed along three dimensions: product families, labor, and time. C. Production plans are based primarily on information from the master production plan. D. A staffing plan is the intermediate link between the business plan and the master production schedule.         

    BUS/475 Guide 4


    1) The cost principle requires that when assets are acquired, they be recorded at __________.
    A.   list price B.   selling price C.   exchange price paid D.   appraisal value
    2) "Generally accepted" in the phrase generally accepted accounting principles means that the principles __________.
    A.   have been approved for use by the managements of business firms
    B.   have been approved by the Internal Revenue Service C.   have substantial authoritative support D.   are proven theories of accounting
    3) The standards and rules that are recognized as a general guide for financial reporting are called __________.
    A.   standards of financial reporting B.   operating guidelines C.   generally accepted accounting principles D.   generally accepted accounting standards
    4) Sam's Used Cars uses the specific identification method of costing inventory. During March, Sam purchased three cars for $6,000, $7,500, and $9,750, respectively. During March, two cars are sold for $9,000 each. Sam determines that at March 31, the $9,750 car is still on hand. What is Sam’s gross profit for March?
    A.   $8,250
    B.   $750 C.   $4,500
    D.   $5,250
               
    5) Hess, Inc. sells a single product with a contribution margin of $12 per unit and fixed costs of $74,400 and sales for the current year of $100,000. How much is Hess’s break even point?
    A.   2,133 units
    B.   6,200 units
    C.   $25,600 D.   4,600 units
               
    6) As Plant Controller, you are trying to determine which costs over which you have the most control on a day to day basis. Your goal is to achieve better profitability. The Plant Operations Manager suggests that overhead is the easiest area to directly reduce costs. Which of the following items would be classified as manufacturing overhead?
    A.   The western division’s vice president’s salary
    B.   Cost of landscaping the corporate office C.   General corporate liability insurance D.   Factory janitor
    7) What is the preparation of reports for each level of responsibility in the company’s organization chart called?
    A.   Master budgeting analysis
    B.   Exception reporting C.   Responsibility reporting
    D.   Static reporting
    8) Disney’s variable costs are 30% of sales. The company is contemplating an advertising campaign that will cost $22,000. If sales are expected to increase $40,000, by how much will the company's net income increase?
    A.   $6,000 B.   $12,000
    C.   $28,000
    D.   $18,000
               
    9) The cost of an asset and its fair market value are __________.
    A.   never the same B.   irrelevant when the asset is used by the business in its operations
    C.   the same on the date of acquisition D.   the same when the asset is sold
    10) Which one of the following is a product cost?
    A.   Indirect labor B.   Sales person’s salaries
    C.   Advertising costs D.   Office salaries
    11) What exists when budgeted costs exceed actual results?
    A.   A budgeting error B.   An unfavorable difference
    C.   An excess profit D.   A favorable difference
    12) The income statement and balance sheet columns of Pine Company's worksheet reflects the following totals:
                            Income Statement                  Balance Sheet
                Dr.       Cr.                   Dr.       Cr.
    Totals              $58,000           $48,000                       $34,000           $44,000
               

    Closing entries are necessary for __________.
    A.   permanent accounts only B.   both permanent and temporary accounts
    C.   permanent or real accounts only D.   temporary accounts only
    13) Managerial accounting __________.
    A.   is concerned with costing products B.   pertains to the entity as a whole and is highly aggregated
    C.   places emphasis on special-purpose information D.   is governed by generally accepted accounting principles
               
    14) H55 Company sells two products, beer and wine. Beer has a 10 percent profit margin and wine has a 12 percent profit margin. Beer has a 27 percent contribution margin and wine has a 25 percent contribution margin. If other factors are equal, which product should H55 push to customers?
    A.   Beer B.   Selling either results in the same additional income for the company
    C.   It should sell an equal quantity of both D.   Wine
    15) Lekeisha's income exceeds her expenditures. Lekeisha is a __________.
    A.   saver who demands money from the financial system B.   borrower who demands money from the financial system
    C.   borrower who supplies money to the financial system D.   saver who supplies money to the financial system
    16) Maurice receives $100 as a birthday gift. In deciding how to spend the money, he narrows his options down to four choices: Option A, Option B, Option C, and Option D. Each option costs $100. Finally he decides on Option B. The opportunity cost of this decision is __________.
    A.   the value to Maurice of the option he would have chosen had Option B not been available
    B.   $100 C.   $300 D.   the value to Maurice of Options A, C and D combined
    17) A production possibilities frontier will be a straight line if __________.
    A.   the economy is producing efficiently B.   the economy is engaged in trade with at least one other economy C.   increasing the production of one good by x units entails no opportunity cost in terms of the other good
    D.   increasing the production of one good by x units entails a constant opportunity cost in terms of the other good
               
    18) In economics, the cost of something is __________.
    A.   what you give up to get it B.   often impossible to quantify, even in principle C.   the dollar amount of obtaining it D.   always measured in units of time given up to get it
               
    19) A tax on an imported good is called a __________.
    A.   supply tax
    B.   trade tax C.   quota D.   tariff
    20) Which of the following statements about GDP is correct?
    A.   GDP is to a nation’s economy as household income is to a household. B.   GDP increases if the total population increases. C.   GDP measures two things at once: the total income of everyone in the economy and the unemployment rate.
    D.   Money continuously flows from households to government and then back to households, and GDP measures this flow of money.
               
    21) In computing GDP, market prices are used to value final goods and services because __________.
    A.   if market prices are out of line with how people value goods, the government sets price ceilings and price floors
    B.   Market prices are not used in computing GDP C.   market prices reflect the values of goods and services D.   market prices do not change much over time, so it is easy to make comparisons between years

    22) Which of the following statements about GDP is correct?
    A.   Nominal GDP values production at market prices, whereas real GDP values production at the cost of the resources used in the production process.
    B.   Nominal GDP consistently underestimates the value of production, whereas real GDP consistently overestimates the value of production.
    C.   Nominal GDP values production at current prices, whereas real GDP values production at constant prices.
    D.   Nominal GDP values production at constant prices, whereas real GDP values production at current prices.
               
    23) Which of the following is not correct?
    A.   The U.S. debt per-person is large compared with average lifetime income.
    B.   In 2005, the U.S. government had a deficit. C.   A potential cost of deficits is that they reduce national saving, thereby reducing growth of the capital stock and output growth.
    D.   Deficits give people the opportunity to consume at the expense of their children, but they do not require them to do so.
               
    24) The part of the balance of payments account that lists all long-term flows of payments is called the:
    A.   balance of trade. B.   financial and capital account.
    C.   government financial account.
    D.   current account.
    25) Edward Prescott and Finn Kydland won the Nobel Prize in Economics in 2004. One of their contributions was to argue that if a central bank could convince people to expect zero inflation, then the Fed would be tempted to raise output by increasing inflation. This possibility is known as __________.
    A.   the sacrifice ratio dilemma B.   the monetary policy reaction lag
    C.   the time inconsistency of policy
    D.   inflation targeting
    26) In general, the longest lag for __________.
    A.   fiscal policy is the time it takes to change policy, while for monetary policy the longest lag is the time it takes for policy to affect aggregate demand
    B.   both fiscal and monetary policy is the time it takes for policy to affect aggregate demand
    C.   monetary policy is the time it takes to change policy, while for fiscal policy the longest lag is the time it takes for policy to affect aggregate demand
    D.   both fiscal and monetary policy is the time it takes to change policy
    27) Consider two items that might be included in GDP: (1) The estimated rental value of owner-occupied housing; and (2) purchases of newly-constructed homes. How are these two items accounted for when GDP is calculated?
    A.   Only item (2) is included in GDP and it is included in the investment component.
    B.   Item (1) is included in the consumption component, while item (2) is included in the investment component.
    C.   Item (1) is included in the investment component, while item (2) is included in the consumption component.
    D.   Both item (1) and item (2) are included in the consumption component of GDP.

    28) Managers will utilize __________ skills with increasing frequency as they rise within an organization.
    A.   Professional B.   Interpersonal and communication
    C.   Technical D.   Professional E.   Conceptual and decision
    29) Which of these represent skills that managers need?
    A.   Interpersonal, quantitative, and professional B.   Technical, interpersonal & communication and conceptual & decision making
    C.   Professional, technical and interpersonal & communication D.   Conceptual & decision making, professional and technical E.   Interpersonal & communication, conceptual & decision making and professional
               
    30) Building a dynamic organization is another way of describing which function of management?
    A.   Staffing B.   Organizing
    C.   Leading D.   Controlling
    E.   Planning
    31) Your roommate is interested in starting a business and everybody has been giving him different information about being an entrepreneur. Since you have been studying about entrepreneurship and new ventures, which of these would you tell him is true?
    A.   Anyone can start a business B.   All entrepreneurs need venture capital in order to get started C.   Successful entrepreneurs take very careful, calculated risks D.   Entrepreneurs are their own bosses and completely independent
    E.   Money should not be considered a start-up ingredient
    32) The term used to refer to all kinds of differences including religious affiliation, age, disability status, economic class and lifestyle in addition to gender, race, ethnicity and nationality is:
    A.   Diversity B.   Managerial ethics
    C.   Recruiting D.   Employment E.   Selection
    33) A manager's ability to stimulate people to be high performers is referred to as:
    A.   Planning B.   Supervising
    C.   Controlling
    D.   Organizing E.   Leading
    34) A series of quality standards developed by a committee working under the International Organization for Standardization to improve total quality in all businesses for the benefit of both producers and consumers is:
    A.   Total quality management B.   Customer-based integration C.   Computer-integrated manufacturing (CIM)
    D.   Just-in-time control (JIT)
    E.   ISO 9000
    35) Japanese manufacturers' kaizen (continuous improvement) programs enable them to maintain:
    A.   A strategic alliance B.   A homogeneous workforce C.   Positive working relationships with all employees
    D.   A Learning advantage over their competition E.   Larger, faster facilities
    36) Listening to employee suggestions, gaining support for organizational objectives and fostering an atmosphere of teamwork are all considered:
    A.   Technical skills B.   Conceptual C.   Professional skills D.   Interpersonal/communication skills
    E.   Diagnostic skills
    37) The basic components of an effective sexual harassment policy include the following EXCEPT:
    A.   To develop an organization wide policy on sexual harassment B.   To establish a means for ongoing training C.   To act immediately when employees complain of sexual harassment
    D.   To establish a performance appraisal system E.   To establish a formal complaint procedure
    38) Teams that operate separately from the regular work structure and exist temporarily are known as:
    A.   Management teams B.   Transnational teams
    C.   Self-managed teams
    D.   Parallel teams E.   Self-designing teams
               
    39) The Aquatic Center, Inc. periodically reviews the goals of the company. During the process, The Aquatic Center managers analyze their current strategies as compared to their competitors, determine goals that they will pursue and decide upon specific actions for each area of the company to take in pursuit of these goals. The Aquatic Center managers have been engaged in the management function of:
    A.   Goal Coordination
    B.   Controlling C.   Organizing D.   Staffing E.   Planning
    40) As related to managing of human resources, diversity refers to:
    A.   Differences in demographics (such as age, race, gender, disability status, lifestyle, veteran status, educational level, etc.)
    B.   Differences in pay methods (such as hourly, salaried, overtime, hazard-pay, commissioned, etc.)
    C.   Differences in employee benefit plans (such as pensions, insurance, vacations, memberships, etc.)
    D.   Differences in retention strategies (such as training, hiring, incentives, etc) E.   Differences in recruiting methods (such as newspapers, schools, flyers, magazines, agencies, etc.)
               
    41) __________ is the process of working with people and resources to accomplish organizational goals.
    A.   Controlling B.   Decision making
    C.   Planning D.   Supervising E.   Management
    42) Twelve randomly-chosen students were asked how many times they had missed class during a certain semester, with this result: 2, 1, 5, 1, 1, 3, 4, 3, 1, 1, 5, 18.
    For this sample, the median is _____.
    A.   3 B.   3.5
    C.   2.5
    D.   2
    43) Use the following table to answer question:
     P(S | W) is approximately _____.
    A.   .40
    B.   .30
    C.   .12
    D.   .58
               
    44) Use the following table to answer question:
     P(M  A) is approximately _____.
    A.   .50 B.   .625
    C.   .125
    D.   .25
    45) Dullco Manufacturing claims that its alkaline batteries last forty hours on average in a certain type of portable CD player. Tests on a random sample of 18 batteries showed a mean battery life of 37.8 hours with a standard deviation of 5.4 hours.
    In determining the p-value for reporting the study's findings, which of the following is true?
    A.   The p-value is equal to .05. B.   The p-value is greater than .05. C.   The p-value cannot be determined without specifying  . D.   The p-value is less than .05.
    46) William used a sample of 68 U.S. cities to estimate the relationship between Crime (annual property crimes per 100,000 persons) and Income (median income per capita). His estimated regression equation was Crime = 428 + .050 Income.
    Which outcomes would be likely in a bivariate regression on 45 randomly chosen U.S. cities in 2005 with
    Y = number of robberies in each city (thousands of robberies) and
    X = size of police force in each city (thousands of police)?
    A.   High R2 (due to city size). B.   Positive slope (due to city size).
    C.   No correlation. D.   Autocorrelation.
    47) Twelve randomly-chosen students were asked how many times they had missed class during a certain semester, with this result: 2, 1, 5, 1, 1, 3, 4, 3, 1, 1, 5, 18.
    For this sample, which measure of central tendency is least representative of the “typical” student?
    A.   Midrange
    B.   Mean C.   Mode D.   Median
               
    48) Likely reasons for inaccurate control limits would include which of the following?
    A.   Process variation was not zero, as expected. B.   The engineering parameter for variance is unknown.
    C.   There was insufficient preliminary sampling. D.   The engineers were underpaid for their work.
    49) You are faced with a linear programming objective function of:
    Max P = $20X + $30Y
    and constraints of:
    3X + 4Y = 24 (Constraint A)
    5X – Y = 18 (Constraint B)
    You discover that the shadow price for Constraint A is 7.5 and the shadow price for Constraint B is 0. Which of these statements is TRUE?
    A.   The most you would want to pay for an additional unit of A would be $7.50.
    B.   You can change quantities of X and Y at no cost for Constraint B. C.   For every additional unit of the objective function you create, the price of A rises by $7.50.
    D.   For every additional unit of the objective function you create, you lose 0 units of B.
               
    50) A project has three paths. A–B–C has a length of 25 days. A–D–C has a length of 15 days. Finally, A–E–C has a length of 20 days. Which one of the following statements is TRUE?
    A.   The expected duration of this project is 25 + 15 + 20 = 60 days.
    B.   A–D–C is the critical path. C.   The expected duration of this project is 25 days. D.   A–B–C has the most slack.
    51) Which one of the following statements concerning production and staffing plans is best?
    A.   A master production schedule is a projected statement of income, costs, and profits.
    B.   Aggregation can be performed along three dimensions: product families, labor, and time.
    C.   Production plans are based primarily on information from the master production plan.
    D.   A staffing plan is the intermediate link between the business plan and the master production schedule.
               
    52) While glancing over the sensitivity report, you note that the stitching labor has a shadow price of $10 and a lower limit of 24 hours with an upper limit of 36 hours. If your original right hand value for stitching labor was 30 hours, you know that:
    A.   you would lose $80 if one of your workers missed an entire 8 hour shift. B.   the next worker that offers to work an extra 8 hours should receive at least $80.
    C.   you would be willing pay up to $60 for someone to work another 6 hours.
    D.   you can send someone home 6 hours early and still pay them the $60 they would have earned while on the clock.

    53) The costs of delivering products in the _____ channel are much higher than delivering products in the _____ channel.
    A.   physical, digital B.   e-commerce, digital
    C.   physical, financial D.   digital, e-commerce
    E.   digital, physical
    54) When customers access a Web site and make purchases, they generate __________.
    A.   Tracking cookies B.   Web data C.   Information D.   Clickstream data
    E.   Hyperlink data
    55) _____ is the integration of economic, social, cultural, and ecological facets of life, enabled by information.
    A.   regionalization B.   globalization C.   nationalization D.   business environment
               
    56) Various organizations that promote fair and responsible use of information systems often develop __________.
    A.   a code of ethics B.   responsibility charters
    C.   a strategic plan D.   a mission statement E.   a goals outline
    57) What is _____ is not necessarily _____.
    A.   Illegal, unethical B.   Unethical, legal C.   Ethical, illegal D.   Unethical, illegal
    E.   Ethical, legal
    58) _____ provides users with a view of what is happening, where _____ addresses why it is happening.
    A.   Multidimensional data analysis, structured query language
    B.   Multidimensional data analysis, neural networks C.   Data mining, multidimensional data analysis D.   Data mining, expert system E.   Multidimensional data analysis, data mining
    59) Computer support is greatest for which of the following problems?
    A.   Semistructured and strategic planning B.   Semistructured and management control
    C.   Unstructured and operational control D.   Structured and operational control E.   Structured and management control
    60) The management cockpit best exemplifies which type of system?
    A.   Decision support system B.   Functional area information system
    C.   Expert system D.   Digital dashboard E.   Group decision support system
    61) _____ is the efficient and effective execution of specific tasks.
    A.   Operational control
    B.   Expertise C.   Management control
    D.   Strategic planning E.   Wisdom
    62) Geocoding is __________.
    A.   accessing geographical information B.   integrating maps with spatially oriented databases and other databases
    C.   integrating organizational transactions with spatially oriented databases D.   programming spatially oriented databases E.   encrypting spatial information
    63) At 8% compounded annually, how long will it take $750 to double?
    A.   48 months
    B.   6.5 years C.   9 years D.   12 years
    64) Which of the following represents an attempt to measure the earnings of the firm’s operations over a given time period?
    A.   Cash flow statement
    B.   Balance sheet C.   Income statement D.   Quarterly statement
               
    65) A machine costs $1,000, has a three-year life, and has an estimated salvage value of $100. It will generate after-tax annual cash flows (ACF) of $600 a year, starting next year. If your required rate of return for the project is 10%, what is the NPV of this investment? (Round your answerwer to the nearest $10.)
    A.   $570 B.   $490 C.   $900 D.   -$150
               
    66) Disadvantages of using current liabilities as opposed to long-term debt include:
    A.   higher cash flow exposure B.   greater risk of illiquidity, and uncertainty of interest costs
    C.   decreased risk of liquidity D.   certainty of interest costs E.   uncertainty of future liabilities
    67) Petrified Forest Skin Care, Inc. pays an annual perpetual dividend of $1.70 per share. If the stock is currently selling for $21.25 per share, what is the expected rate of return on this stock?
    A.   12.5% B.   36.13%
    C.   8.0% D.   13.6%
    68) Which of the following is most consistent with the hedging principle in working capital management?
    A.   Fixed assets should be financed with short-term notes payable. B.   Inventory should be financed with preferred stock. C.   Accounts receivable should be financed with short-term lines of credit.
    D.   Borrow on a floating rate basis to finance investments in permanent assets.
               
    69) An increase in future value can be caused by an increase in the __________.
    A.   original amount invested B.   annual interest rate and number of compounding periods
    C.   rate of return D.   dividends paid E.   starting value
    70) If the quote for a forward exchange contract is greater than the computed price, the forward contract is:
    A.   at equilibrium.
    B.   undervalued. C.   a good buy. D.   overvalued.
    71) Your company is considering an investment in a project which would require an initial outlay of $300,000 and produce expected cash flows in Years 1 through 5 of $87,385 per year. You have determined that the current after-tax cost of the firm’s capital (required rate of return) for each source of financing is as follows:
    Cost of debt     8%
    Cost of preferred stock           12%
    Cost of common stock            16%
    Long-term debt currently makes up 20% of the capital structure, preferred stock 10%, and common stock 70%. What is the net present value of this project?
    A.   $1,568
    B.   $871 C.   $1,241
    D.   $463
    72) Suppose you determine that the NPV of a project is $1,525,855. What does that mean?
    A.   The project’s IRR would have to be less that the firm’s discount rate. B.   The project would add value to the firm. C.   Under all conditions, the project’s payback would be less than the profitability index.
    D.   In all cases, investing in this project would be better than investing in a project that has an NPV of $850,000.
               
    73) The common stockholders are most concerned with:
    A.   the spread between the return generated on new investments and the investor’s required rate of return.
    B.   the size of the firm’s beginning earnings per share. C.   the risk of the investment. D.   the percentage of profits retained.
    74) PepsiCo calculates unlevered betas for each peer group in order to:
    A.   eliminate different financial risks.
    B.   eliminate competitive factors. C.   eliminate judgment factors. D.   eliminate different business risks.
    75) Which of the following best represents operating income?
    A.   Income from discontinued operations
    B.   Earnings before interest and taxes C.   Income from capital gains D.   Income after financing activities
    76) In comparison to the buying of final consumers, the purchasing of organizational buyers:
    A.   is even less predictable. B.   leans basically toward economy, quality, and dependability.
    C.   is always emotional. D.   is strictly economic and not at all emotional. E.   is always based on competitive bids from multiple suppliers.
               
    77) The basic objective of the U.S. market-directed economic system is to:
    A.   achieve an annual growth rate of at least 10 percent. B.   provide each person with an equal share of the economic output.
    C.   make the most efficient use of the country's resources. D.   minimize inflation. E.   satisfy consumer needs as they--the consumers--see them.
    78) Comparing GDP for foreign countries can help a marketing manager evaluate potential markets if the manager remembers that:
    A.   GDP measures show people's tendency to buy particular products. B.   income tends to be evenly distributed among consumers in most countries. C.   GDP estimates may not be very accurate for very different cultures and economies.
    D.   Other countries most likely don’t use the US Dollar as their primary currency.
    E.   GDP measures show the degree of competition in a market.
    79) A firm's "marketing mix" decision areas would NOT include:
    A.   Promotion.
    B.   People. C.   Price. D.   Place. E.   Product.
    80) __________ is a marketing management aid which refers to how customers think about proposed and/or present brands in a market.
    A.   Brand familiarity B.   Positioning
    C.   Market scanning D.   Customer relationship management (CRM)
    E.   Market segmentation
    81) The "four Ps" of a marketing mix are:
    A.   Production, Personnel, Price, and Physical Distribution
    B.   Promotion, Production, Price, and People C.   Potential customers, Product, Price, and Personal Selling
    D.   Product, Price, Promotion, and Profit E.   Product, Place, Promotion, and Price
    82) When evaluating macro-marketing:
    A.   the evaluation is necessarily subjective. B.   the best approach is to consider the profit generated by individual firms within the overall system.
    C.   one must determine how efficiently the society's resources are used. D.   one must consider the society’s role in the marketing system. E.   one must consider each individual firm's role in the marketing system.
    83) A cluster analysis of the "toothpaste market" would probably show that:
    A.   the broad product-market can be served effectively with one marketing mix.
    B.   most consu
              52) While glancing over the sensitivity report, you note that the stitching labor has a shadow price of $10 and a lower limit of 24 hours with an upper limit of 36 hours. If your original right hand value for stitching labor was 30 hours, you know that: A. you would lose $80 if one of your workers missed an entire 8 hour shift. B. the next worker that offers to work an extra 8 hours should receive at least $80. C. you would be willing pay up to $60 for someone to work another 6 hours. D.         

    BUS/475 Guide 4


    1) The cost principle requires that when assets are acquired, they be recorded at __________.
    A.   list price B.   selling price C.   exchange price paid D.   appraisal value
    2) "Generally accepted" in the phrase generally accepted accounting principles means that the principles __________.
    A.   have been approved for use by the managements of business firms
    B.   have been approved by the Internal Revenue Service C.   have substantial authoritative support D.   are proven theories of accounting
    3) The standards and rules that are recognized as a general guide for financial reporting are called __________.
    A.   standards of financial reporting B.   operating guidelines C.   generally accepted accounting principles D.   generally accepted accounting standards
    4) Sam's Used Cars uses the specific identification method of costing inventory. During March, Sam purchased three cars for $6,000, $7,500, and $9,750, respectively. During March, two cars are sold for $9,000 each. Sam determines that at March 31, the $9,750 car is still on hand. What is Sam’s gross profit for March?
    A.   $8,250
    B.   $750 C.   $4,500
    D.   $5,250
               
    5) Hess, Inc. sells a single product with a contribution margin of $12 per unit and fixed costs of $74,400 and sales for the current year of $100,000. How much is Hess’s break even point?
    A.   2,133 units
    B.   6,200 units
    C.   $25,600 D.   4,600 units
               
    6) As Plant Controller, you are trying to determine which costs over which you have the most control on a day to day basis. Your goal is to achieve better profitability. The Plant Operations Manager suggests that overhead is the easiest area to directly reduce costs. Which of the following items would be classified as manufacturing overhead?
    A.   The western division’s vice president’s salary
    B.   Cost of landscaping the corporate office C.   General corporate liability insurance D.   Factory janitor
    7) What is the preparation of reports for each level of responsibility in the company’s organization chart called?
    A.   Master budgeting analysis
    B.   Exception reporting C.   Responsibility reporting
    D.   Static reporting
    8) Disney’s variable costs are 30% of sales. The company is contemplating an advertising campaign that will cost $22,000. If sales are expected to increase $40,000, by how much will the company's net income increase?
    A.   $6,000 B.   $12,000
    C.   $28,000
    D.   $18,000
               
    9) The cost of an asset and its fair market value are __________.
    A.   never the same B.   irrelevant when the asset is used by the business in its operations
    C.   the same on the date of acquisition D.   the same when the asset is sold
    10) Which one of the following is a product cost?
    A.   Indirect labor B.   Sales person’s salaries
    C.   Advertising costs D.   Office salaries
    11) What exists when budgeted costs exceed actual results?
    A.   A budgeting error B.   An unfavorable difference
    C.   An excess profit D.   A favorable difference
    12) The income statement and balance sheet columns of Pine Company's worksheet reflects the following totals:
                            Income Statement                  Balance Sheet
                Dr.       Cr.                   Dr.       Cr.
    Totals              $58,000           $48,000                       $34,000           $44,000
               

    Closing entries are necessary for __________.
    A.   permanent accounts only B.   both permanent and temporary accounts
    C.   permanent or real accounts only D.   temporary accounts only
    13) Managerial accounting __________.
    A.   is concerned with costing products B.   pertains to the entity as a whole and is highly aggregated
    C.   places emphasis on special-purpose information D.   is governed by generally accepted accounting principles
               
    14) H55 Company sells two products, beer and wine. Beer has a 10 percent profit margin and wine has a 12 percent profit margin. Beer has a 27 percent contribution margin and wine has a 25 percent contribution margin. If other factors are equal, which product should H55 push to customers?
    A.   Beer B.   Selling either results in the same additional income for the company
    C.   It should sell an equal quantity of both D.   Wine
    15) Lekeisha's income exceeds her expenditures. Lekeisha is a __________.
    A.   saver who demands money from the financial system B.   borrower who demands money from the financial system
    C.   borrower who supplies money to the financial system D.   saver who supplies money to the financial system
    16) Maurice receives $100 as a birthday gift. In deciding how to spend the money, he narrows his options down to four choices: Option A, Option B, Option C, and Option D. Each option costs $100. Finally he decides on Option B. The opportunity cost of this decision is __________.
    A.   the value to Maurice of the option he would have chosen had Option B not been available
    B.   $100 C.   $300 D.   the value to Maurice of Options A, C and D combined
    17) A production possibilities frontier will be a straight line if __________.
    A.   the economy is producing efficiently B.   the economy is engaged in trade with at least one other economy C.   increasing the production of one good by x units entails no opportunity cost in terms of the other good
    D.   increasing the production of one good by x units entails a constant opportunity cost in terms of the other good
               
    18) In economics, the cost of something is __________.
    A.   what you give up to get it B.   often impossible to quantify, even in principle C.   the dollar amount of obtaining it D.   always measured in units of time given up to get it
               
    19) A tax on an imported good is called a __________.
    A.   supply tax
    B.   trade tax C.   quota D.   tariff
    20) Which of the following statements about GDP is correct?
    A.   GDP is to a nation’s economy as household income is to a household. B.   GDP increases if the total population increases. C.   GDP measures two things at once: the total income of everyone in the economy and the unemployment rate.
    D.   Money continuously flows from households to government and then back to households, and GDP measures this flow of money.
               
    21) In computing GDP, market prices are used to value final goods and services because __________.
    A.   if market prices are out of line with how people value goods, the government sets price ceilings and price floors
    B.   Market prices are not used in computing GDP C.   market prices reflect the values of goods and services D.   market prices do not change much over time, so it is easy to make comparisons between years

    22) Which of the following statements about GDP is correct?
    A.   Nominal GDP values production at market prices, whereas real GDP values production at the cost of the resources used in the production process.
    B.   Nominal GDP consistently underestimates the value of production, whereas real GDP consistently overestimates the value of production.
    C.   Nominal GDP values production at current prices, whereas real GDP values production at constant prices.
    D.   Nominal GDP values production at constant prices, whereas real GDP values production at current prices.
               
    23) Which of the following is not correct?
    A.   The U.S. debt per-person is large compared with average lifetime income.
    B.   In 2005, the U.S. government had a deficit. C.   A potential cost of deficits is that they reduce national saving, thereby reducing growth of the capital stock and output growth.
    D.   Deficits give people the opportunity to consume at the expense of their children, but they do not require them to do so.
               
    24) The part of the balance of payments account that lists all long-term flows of payments is called the:
    A.   balance of trade. B.   financial and capital account.
    C.   government financial account.
    D.   current account.
    25) Edward Prescott and Finn Kydland won the Nobel Prize in Economics in 2004. One of their contributions was to argue that if a central bank could convince people to expect zero inflation, then the Fed would be tempted to raise output by increasing inflation. This possibility is known as __________.
    A.   the sacrifice ratio dilemma B.   the monetary policy reaction lag
    C.   the time inconsistency of policy
    D.   inflation targeting
    26) In general, the longest lag for __________.
    A.   fiscal policy is the time it takes to change policy, while for monetary policy the longest lag is the time it takes for policy to affect aggregate demand
    B.   both fiscal and monetary policy is the time it takes for policy to affect aggregate demand
    C.   monetary policy is the time it takes to change policy, while for fiscal policy the longest lag is the time it takes for policy to affect aggregate demand
    D.   both fiscal and monetary policy is the time it takes to change policy
    27) Consider two items that might be included in GDP: (1) The estimated rental value of owner-occupied housing; and (2) purchases of newly-constructed homes. How are these two items accounted for when GDP is calculated?
    A.   Only item (2) is included in GDP and it is included in the investment component.
    B.   Item (1) is included in the consumption component, while item (2) is included in the investment component.
    C.   Item (1) is included in the investment component, while item (2) is included in the consumption component.
    D.   Both item (1) and item (2) are included in the consumption component of GDP.

    28) Managers will utilize __________ skills with increasing frequency as they rise within an organization.
    A.   Professional B.   Interpersonal and communication
    C.   Technical D.   Professional E.   Conceptual and decision
    29) Which of these represent skills that managers need?
    A.   Interpersonal, quantitative, and professional B.   Technical, interpersonal & communication and conceptual & decision making
    C.   Professional, technical and interpersonal & communication D.   Conceptual & decision making, professional and technical E.   Interpersonal & communication, conceptual & decision making and professional
               
    30) Building a dynamic organization is another way of describing which function of management?
    A.   Staffing B.   Organizing
    C.   Leading D.   Controlling
    E.   Planning
    31) Your roommate is interested in starting a business and everybody has been giving him different information about being an entrepreneur. Since you have been studying about entrepreneurship and new ventures, which of these would you tell him is true?
    A.   Anyone can start a business B.   All entrepreneurs need venture capital in order to get started C.   Successful entrepreneurs take very careful, calculated risks D.   Entrepreneurs are their own bosses and completely independent
    E.   Money should not be considered a start-up ingredient
    32) The term used to refer to all kinds of differences including religious affiliation, age, disability status, economic class and lifestyle in addition to gender, race, ethnicity and nationality is:
    A.   Diversity B.   Managerial ethics
    C.   Recruiting D.   Employment E.   Selection
    33) A manager's ability to stimulate people to be high performers is referred to as:
    A.   Planning B.   Supervising
    C.   Controlling
    D.   Organizing E.   Leading
    34) A series of quality standards developed by a committee working under the International Organization for Standardization to improve total quality in all businesses for the benefit of both producers and consumers is:
    A.   Total quality management B.   Customer-based integration C.   Computer-integrated manufacturing (CIM)
    D.   Just-in-time control (JIT)
    E.   ISO 9000
    35) Japanese manufacturers' kaizen (continuous improvement) programs enable them to maintain:
    A.   A strategic alliance B.   A homogeneous workforce C.   Positive working relationships with all employees
    D.   A Learning advantage over their competition E.   Larger, faster facilities
    36) Listening to employee suggestions, gaining support for organizational objectives and fostering an atmosphere of teamwork are all considered:
    A.   Technical skills B.   Conceptual C.   Professional skills D.   Interpersonal/communication skills
    E.   Diagnostic skills
    37) The basic components of an effective sexual harassment policy include the following EXCEPT:
    A.   To develop an organization wide policy on sexual harassment B.   To establish a means for ongoing training C.   To act immediately when employees complain of sexual harassment
    D.   To establish a performance appraisal system E.   To establish a formal complaint procedure
    38) Teams that operate separately from the regular work structure and exist temporarily are known as:
    A.   Management teams B.   Transnational teams
    C.   Self-managed teams
    D.   Parallel teams E.   Self-designing teams
               
    39) The Aquatic Center, Inc. periodically reviews the goals of the company. During the process, The Aquatic Center managers analyze their current strategies as compared to their competitors, determine goals that they will pursue and decide upon specific actions for each area of the company to take in pursuit of these goals. The Aquatic Center managers have been engaged in the management function of:
    A.   Goal Coordination
    B.   Controlling C.   Organizing D.   Staffing E.   Planning
    40) As related to managing of human resources, diversity refers to:
    A.   Differences in demographics (such as age, race, gender, disability status, lifestyle, veteran status, educational level, etc.)
    B.   Differences in pay methods (such as hourly, salaried, overtime, hazard-pay, commissioned, etc.)
    C.   Differences in employee benefit plans (such as pensions, insurance, vacations, memberships, etc.)
    D.   Differences in retention strategies (such as training, hiring, incentives, etc) E.   Differences in recruiting methods (such as newspapers, schools, flyers, magazines, agencies, etc.)
               
    41) __________ is the process of working with people and resources to accomplish organizational goals.
    A.   Controlling B.   Decision making
    C.   Planning D.   Supervising E.   Management
    42) Twelve randomly-chosen students were asked how many times they had missed class during a certain semester, with this result: 2, 1, 5, 1, 1, 3, 4, 3, 1, 1, 5, 18.
    For this sample, the median is _____.
    A.   3 B.   3.5
    C.   2.5
    D.   2
    43) Use the following table to answer question:
     P(S | W) is approximately _____.
    A.   .40
    B.   .30
    C.   .12
    D.   .58
               
    44) Use the following table to answer question:
     P(M  A) is approximately _____.
    A.   .50 B.   .625
    C.   .125
    D.   .25
    45) Dullco Manufacturing claims that its alkaline batteries last forty hours on average in a certain type of portable CD player. Tests on a random sample of 18 batteries showed a mean battery life of 37.8 hours with a standard deviation of 5.4 hours.
    In determining the p-value for reporting the study's findings, which of the following is true?
    A.   The p-value is equal to .05. B.   The p-value is greater than .05. C.   The p-value cannot be determined without specifying  . D.   The p-value is less than .05.
    46) William used a sample of 68 U.S. cities to estimate the relationship between Crime (annual property crimes per 100,000 persons) and Income (median income per capita). His estimated regression equation was Crime = 428 + .050 Income.
    Which outcomes would be likely in a bivariate regression on 45 randomly chosen U.S. cities in 2005 with
    Y = number of robberies in each city (thousands of robberies) and
    X = size of police force in each city (thousands of police)?
    A.   High R2 (due to city size). B.   Positive slope (due to city size).
    C.   No correlation. D.   Autocorrelation.
    47) Twelve randomly-chosen students were asked how many times they had missed class during a certain semester, with this result: 2, 1, 5, 1, 1, 3, 4, 3, 1, 1, 5, 18.
    For this sample, which measure of central tendency is least representative of the “typical” student?
    A.   Midrange
    B.   Mean C.   Mode D.   Median
               
    48) Likely reasons for inaccurate control limits would include which of the following?
    A.   Process variation was not zero, as expected. B.   The engineering parameter for variance is unknown.
    C.   There was insufficient preliminary sampling. D.   The engineers were underpaid for their work.
    49) You are faced with a linear programming objective function of:
    Max P = $20X + $30Y
    and constraints of:
    3X + 4Y = 24 (Constraint A)
    5X – Y = 18 (Constraint B)
    You discover that the shadow price for Constraint A is 7.5 and the shadow price for Constraint B is 0. Which of these statements is TRUE?
    A.   The most you would want to pay for an additional unit of A would be $7.50.
    B.   You can change quantities of X and Y at no cost for Constraint B. C.   For every additional unit of the objective function you create, the price of A rises by $7.50.
    D.   For every additional unit of the objective function you create, you lose 0 units of B.
               
    50) A project has three paths. A–B–C has a length of 25 days. A–D–C has a length of 15 days. Finally, A–E–C has a length of 20 days. Which one of the following statements is TRUE?
    A.   The expected duration of this project is 25 + 15 + 20 = 60 days.
    B.   A–D–C is the critical path. C.   The expected duration of this project is 25 days. D.   A–B–C has the most slack.
    51) Which one of the following statements concerning production and staffing plans is best?
    A.   A master production schedule is a projected statement of income, costs, and profits.
    B.   Aggregation can be performed along three dimensions: product families, labor, and time.
    C.   Production plans are based primarily on information from the master production plan.
    D.   A staffing plan is the intermediate link between the business plan and the master production schedule.
               
    52) While glancing over the sensitivity report, you note that the stitching labor has a shadow price of $10 and a lower limit of 24 hours with an upper limit of 36 hours. If your original right hand value for stitching labor was 30 hours, you know that:
    A.   you would lose $80 if one of your workers missed an entire 8 hour shift. B.   the next worker that offers to work an extra 8 hours should receive at least $80.
    C.   you would be willing pay up to $60 for someone to work another 6 hours.
    D.   you can send someone home 6 hours early and still pay them the $60 they would have earned while on the clock.

    53) The costs of delivering products in the _____ channel are much higher than delivering products in the _____ channel.
    A.   physical, digital B.   e-commerce, digital
    C.   physical, financial D.   digital, e-commerce
    E.   digital, physical
    54) When customers access a Web site and make purchases, they generate __________.
    A.   Tracking cookies B.   Web data C.   Information D.   Clickstream data
    E.   Hyperlink data
    55) _____ is the integration of economic, social, cultural, and ecological facets of life, enabled by information.
    A.   regionalization B.   globalization C.   nationalization D.   business environment
               
    56) Various organizations that promote fair and responsible use of information systems often develop __________.
    A.   a code of ethics B.   responsibility charters
    C.   a strategic plan D.   a mission statement E.   a goals outline
    57) What is _____ is not necessarily _____.
    A.   Illegal, unethical B.   Unethical, legal C.   Ethical, illegal D.   Unethical, illegal
    E.   Ethical, legal
    58) _____ provides users with a view of what is happening, where _____ addresses why it is happening.
    A.   Multidimensional data analysis, structured query language
    B.   Multidimensional data analysis, neural networks C.   Data mining, multidimensional data analysis D.   Data mining, expert system E.   Multidimensional data analysis, data mining
    59) Computer support is greatest for which of the following problems?
    A.   Semistructured and strategic planning B.   Semistructured and management control
    C.   Unstructured and operational control D.   Structured and operational control E.   Structured and management control
    60) The management cockpit best exemplifies which type of system?
    A.   Decision support system B.   Functional area information system
    C.   Expert system D.   Digital dashboard E.   Group decision support system
    61) _____ is the efficient and effective execution of specific tasks.
    A.   Operational control
    B.   Expertise C.   Management control
    D.   Strategic planning E.   Wisdom
    62) Geocoding is __________.
    A.   accessing geographical information B.   integrating maps with spatially oriented databases and other databases
    C.   integrating organizational transactions with spatially oriented databases D.   programming spatially oriented databases E.   encrypting spatial information
    63) At 8% compounded annually, how long will it take $750 to double?
    A.   48 months
    B.   6.5 years C.   9 years D.   12 years
    64) Which of the following represents an attempt to measure the earnings of the firm’s operations over a given time period?
    A.   Cash flow statement
    B.   Balance sheet C.   Income statement D.   Quarterly statement
               
    65) A machine costs $1,000, has a three-year life, and has an estimated salvage value of $100. It will generate after-tax annual cash flows (ACF) of $600 a year, starting next year. If your required rate of return for the project is 10%, what is the NPV of this investment? (Round your answerwer to the nearest $10.)
    A.   $570 B.   $490 C.   $900 D.   -$150
               
    66) Disadvantages of using current liabilities as opposed to long-term debt include:
    A.   higher cash flow exposure B.   greater risk of illiquidity, and uncertainty of interest costs
    C.   decreased risk of liquidity D.   certainty of interest costs E.   uncertainty of future liabilities
    67) Petrified Forest Skin Care, Inc. pays an annual perpetual dividend of $1.70 per share. If the stock is currently selling for $21.25 per share, what is the expected rate of return on this stock?
    A.   12.5% B.   36.13%
    C.   8.0% D.   13.6%
    68) Which of the following is most consistent with the hedging principle in working capital management?
    A.   Fixed assets should be financed with short-term notes payable. B.   Inventory should be financed with preferred stock. C.   Accounts receivable should be financed with short-term lines of credit.
    D.   Borrow on a floating rate basis to finance investments in permanent assets.
               
    69) An increase in future value can be caused by an increase in the __________.
    A.   original amount invested B.   annual interest rate and number of compounding periods
    C.   rate of return D.   dividends paid E.   starting value
    70) If the quote for a forward exchange contract is greater than the computed price, the forward contract is:
    A.   at equilibrium.
    B.   undervalued. C.   a good buy. D.   overvalued.
    71) Your company is considering an investment in a project which would require an initial outlay of $300,000 and produce expected cash flows in Years 1 through 5 of $87,385 per year. You have determined that the current after-tax cost of the firm’s capital (required rate of return) for each source of financing is as follows:
    Cost of debt     8%
    Cost of preferred stock           12%
    Cost of common stock            16%
    Long-term debt currently makes up 20% of the capital structure, preferred stock 10%, and common stock 70%. What is the net present value of this project?
    A.   $1,568
    B.   $871 C.   $1,241
    D.   $463
    72) Suppose you determine that the NPV of a project is $1,525,855. What does that mean?
    A.   The project’s IRR would have to be less that the firm’s discount rate. B.   The project would add value to the firm. C.   Under all conditions, the project’s payback would be less than the profitability index.
    D.   In all cases, investing in this project would be better than investing in a project that has an NPV of $850,000.
               
    73) The common stockholders are most concerned with:
    A.   the spread between the return generated on new investments and the investor’s required rate of return.
    B.   the size of the firm’s beginning earnings per share. C.   the risk of the investment. D.   the percentage of profits retained.
    74) PepsiCo calculates unlevered betas for each peer group in order to:
    A.   eliminate different financial risks.
    B.   eliminate competitive factors. C.   eliminate judgment factors. D.   eliminate different business risks.
    75) Which of the following best represents operating income?
    A.   Income from discontinued operations
    B.   Earnings before interest and taxes C.   Income from capital gains D.   Income after financing activities
    76) In comparison to the buying of final consumers, the purchasing of organizational buyers:
    A.   is even less predictable. B.   leans basically toward economy, quality, and dependability.
    C.   is always emotional. D.   is strictly economic and not at all emotional. E.   is always based on competitive bids from multiple suppliers.
               
    77) The basic objective of the U.S. market-directed economic system is to:
    A.   achieve an annual growth rate of at least 10 percent. B.   provide each person with an equal share of the economic output.
    C.   make the most efficient use of the country's resources. D.   minimize inflation. E.   satisfy consumer needs as they--the consumers--see them.
    78) Comparing GDP for foreign countries can help a marketing manager evaluate potential markets if the manager remembers that:
    A.   GDP measures show people's tendency to buy particular products. B.   income tends to be evenly distributed among consumers in most countries. C.   GDP estimates may not be very accurate for very different cultures and economies.
    D.   Other countries most likely don’t use the US Dollar as their primary currency.
    E.   GDP measures show the degree of competition in a market.
    79) A firm's "marketing mix" decision areas would NOT include:
    A.   Promotion.
    B.   People. C.   Price. D.   Place. E.   Product.
    80) __________ is a marketing management aid which refers to how customers think about proposed and/or present brands in a market.
    A.   Brand familiarity B.   Positioning
    C.   Market scanning D.   Customer relationship management (CRM)
    E.   Market segmentation
    81) The "four Ps" of a marketing mix are:
    A.   Production, Personnel, Price, and Physical Distribution
    B.   Promotion, Production, Price, and People C.   Potential customers, Product, Price, and Personal Selling
    D.   Product, Price, Promotion, and Profit E.   Product, Place, Promotion, and Price
    82) When evaluating macro-marketing:
    A.   the evaluation is necessarily subjective. B.   the best approach is to consider the profit generated by individual firms within the overall system.
    C.   one must determine how efficiently the society's resources are used. D.   one must consider the society’s role in the marketing system. E.   one must consider each individual firm's role in the marketing system.
    83) A cluster analysis of the "toothpaste market" would probably show that:
    A.   the broad product-market can be served effectively with one marketing mix.
    B.   most consu
              53) The costs of delivering products in the _____ channel are much higher than delivering products in the _____ channel. A. physical, digital B. e-commerce, digital C. physical, financial D. digital, e-commerce E. digital, physical        

    BUS/475 Guide 4


    1) The cost principle requires that when assets are acquired, they be recorded at __________.
    A.   list price B.   selling price C.   exchange price paid D.   appraisal value
    2) "Generally accepted" in the phrase generally accepted accounting principles means that the principles __________.
    A.   have been approved for use by the managements of business firms
    B.   have been approved by the Internal Revenue Service C.   have substantial authoritative support D.   are proven theories of accounting
    3) The standards and rules that are recognized as a general guide for financial reporting are called __________.
    A.   standards of financial reporting B.   operating guidelines C.   generally accepted accounting principles D.   generally accepted accounting standards
    4) Sam's Used Cars uses the specific identification method of costing inventory. During March, Sam purchased three cars for $6,000, $7,500, and $9,750, respectively. During March, two cars are sold for $9,000 each. Sam determines that at March 31, the $9,750 car is still on hand. What is Sam’s gross profit for March?
    A.   $8,250
    B.   $750 C.   $4,500
    D.   $5,250
               
    5) Hess, Inc. sells a single product with a contribution margin of $12 per unit and fixed costs of $74,400 and sales for the current year of $100,000. How much is Hess’s break even point?
    A.   2,133 units
    B.   6,200 units
    C.   $25,600 D.   4,600 units
               
    6) As Plant Controller, you are trying to determine which costs over which you have the most control on a day to day basis. Your goal is to achieve better profitability. The Plant Operations Manager suggests that overhead is the easiest area to directly reduce costs. Which of the following items would be classified as manufacturing overhead?
    A.   The western division’s vice president’s salary
    B.   Cost of landscaping the corporate office C.   General corporate liability insurance D.   Factory janitor
    7) What is the preparation of reports for each level of responsibility in the company’s organization chart called?
    A.   Master budgeting analysis
    B.   Exception reporting C.   Responsibility reporting
    D.   Static reporting
    8) Disney’s variable costs are 30% of sales. The company is contemplating an advertising campaign that will cost $22,000. If sales are expected to increase $40,000, by how much will the company's net income increase?
    A.   $6,000 B.   $12,000
    C.   $28,000
    D.   $18,000
               
    9) The cost of an asset and its fair market value are __________.
    A.   never the same B.   irrelevant when the asset is used by the business in its operations
    C.   the same on the date of acquisition D.   the same when the asset is sold
    10) Which one of the following is a product cost?
    A.   Indirect labor B.   Sales person’s salaries
    C.   Advertising costs D.   Office salaries
    11) What exists when budgeted costs exceed actual results?
    A.   A budgeting error B.   An unfavorable difference
    C.   An excess profit D.   A favorable difference
    12) The income statement and balance sheet columns of Pine Company's worksheet reflects the following totals:
                            Income Statement                  Balance Sheet
                Dr.       Cr.                   Dr.       Cr.
    Totals              $58,000           $48,000                       $34,000           $44,000
               

    Closing entries are necessary for __________.
    A.   permanent accounts only B.   both permanent and temporary accounts
    C.   permanent or real accounts only D.   temporary accounts only
    13) Managerial accounting __________.
    A.   is concerned with costing products B.   pertains to the entity as a whole and is highly aggregated
    C.   places emphasis on special-purpose information D.   is governed by generally accepted accounting principles
               
    14) H55 Company sells two products, beer and wine. Beer has a 10 percent profit margin and wine has a 12 percent profit margin. Beer has a 27 percent contribution margin and wine has a 25 percent contribution margin. If other factors are equal, which product should H55 push to customers?
    A.   Beer B.   Selling either results in the same additional income for the company
    C.   It should sell an equal quantity of both D.   Wine
    15) Lekeisha's income exceeds her expenditures. Lekeisha is a __________.
    A.   saver who demands money from the financial system B.   borrower who demands money from the financial system
    C.   borrower who supplies money to the financial system D.   saver who supplies money to the financial system
    16) Maurice receives $100 as a birthday gift. In deciding how to spend the money, he narrows his options down to four choices: Option A, Option B, Option C, and Option D. Each option costs $100. Finally he decides on Option B. The opportunity cost of this decision is __________.
    A.   the value to Maurice of the option he would have chosen had Option B not been available
    B.   $100 C.   $300 D.   the value to Maurice of Options A, C and D combined
    17) A production possibilities frontier will be a straight line if __________.
    A.   the economy is producing efficiently B.   the economy is engaged in trade with at least one other economy C.   increasing the production of one good by x units entails no opportunity cost in terms of the other good
    D.   increasing the production of one good by x units entails a constant opportunity cost in terms of the other good
               
    18) In economics, the cost of something is __________.
    A.   what you give up to get it B.   often impossible to quantify, even in principle C.   the dollar amount of obtaining it D.   always measured in units of time given up to get it
               
    19) A tax on an imported good is called a __________.
    A.   supply tax
    B.   trade tax C.   quota D.   tariff
    20) Which of the following statements about GDP is correct?
    A.   GDP is to a nation’s economy as household income is to a household. B.   GDP increases if the total population increases. C.   GDP measures two things at once: the total income of everyone in the economy and the unemployment rate.
    D.   Money continuously flows from households to government and then back to households, and GDP measures this flow of money.
               
    21) In computing GDP, market prices are used to value final goods and services because __________.
    A.   if market prices are out of line with how people value goods, the government sets price ceilings and price floors
    B.   Market prices are not used in computing GDP C.   market prices reflect the values of goods and services D.   market prices do not change much over time, so it is easy to make comparisons between years

    22) Which of the following statements about GDP is correct?
    A.   Nominal GDP values production at market prices, whereas real GDP values production at the cost of the resources used in the production process.
    B.   Nominal GDP consistently underestimates the value of production, whereas real GDP consistently overestimates the value of production.
    C.   Nominal GDP values production at current prices, whereas real GDP values production at constant prices.
    D.   Nominal GDP values production at constant prices, whereas real GDP values production at current prices.
               
    23) Which of the following is not correct?
    A.   The U.S. debt per-person is large compared with average lifetime income.
    B.   In 2005, the U.S. government had a deficit. C.   A potential cost of deficits is that they reduce national saving, thereby reducing growth of the capital stock and output growth.
    D.   Deficits give people the opportunity to consume at the expense of their children, but they do not require them to do so.
               
    24) The part of the balance of payments account that lists all long-term flows of payments is called the:
    A.   balance of trade. B.   financial and capital account.
    C.   government financial account.
    D.   current account.
    25) Edward Prescott and Finn Kydland won the Nobel Prize in Economics in 2004. One of their contributions was to argue that if a central bank could convince people to expect zero inflation, then the Fed would be tempted to raise output by increasing inflation. This possibility is known as __________.
    A.   the sacrifice ratio dilemma B.   the monetary policy reaction lag
    C.   the time inconsistency of policy
    D.   inflation targeting
    26) In general, the longest lag for __________.
    A.   fiscal policy is the time it takes to change policy, while for monetary policy the longest lag is the time it takes for policy to affect aggregate demand
    B.   both fiscal and monetary policy is the time it takes for policy to affect aggregate demand
    C.   monetary policy is the time it takes to change policy, while for fiscal policy the longest lag is the time it takes for policy to affect aggregate demand
    D.   both fiscal and monetary policy is the time it takes to change policy
    27) Consider two items that might be included in GDP: (1) The estimated rental value of owner-occupied housing; and (2) purchases of newly-constructed homes. How are these two items accounted for when GDP is calculated?
    A.   Only item (2) is included in GDP and it is included in the investment component.
    B.   Item (1) is included in the consumption component, while item (2) is included in the investment component.
    C.   Item (1) is included in the investment component, while item (2) is included in the consumption component.
    D.   Both item (1) and item (2) are included in the consumption component of GDP.

    28) Managers will utilize __________ skills with increasing frequency as they rise within an organization.
    A.   Professional B.   Interpersonal and communication
    C.   Technical D.   Professional E.   Conceptual and decision
    29) Which of these represent skills that managers need?
    A.   Interpersonal, quantitative, and professional B.   Technical, interpersonal & communication and conceptual & decision making
    C.   Professional, technical and interpersonal & communication D.   Conceptual & decision making, professional and technical E.   Interpersonal & communication, conceptual & decision making and professional
               
    30) Building a dynamic organization is another way of describing which function of management?
    A.   Staffing B.   Organizing
    C.   Leading D.   Controlling
    E.   Planning
    31) Your roommate is interested in starting a business and everybody has been giving him different information about being an entrepreneur. Since you have been studying about entrepreneurship and new ventures, which of these would you tell him is true?
    A.   Anyone can start a business B.   All entrepreneurs need venture capital in order to get started C.   Successful entrepreneurs take very careful, calculated risks D.   Entrepreneurs are their own bosses and completely independent
    E.   Money should not be considered a start-up ingredient
    32) The term used to refer to all kinds of differences including religious affiliation, age, disability status, economic class and lifestyle in addition to gender, race, ethnicity and nationality is:
    A.   Diversity B.   Managerial ethics
    C.   Recruiting D.   Employment E.   Selection
    33) A manager's ability to stimulate people to be high performers is referred to as:
    A.   Planning B.   Supervising
    C.   Controlling
    D.   Organizing E.   Leading
    34) A series of quality standards developed by a committee working under the International Organization for Standardization to improve total quality in all businesses for the benefit of both producers and consumers is:
    A.   Total quality management B.   Customer-based integration C.   Computer-integrated manufacturing (CIM)
    D.   Just-in-time control (JIT)
    E.   ISO 9000
    35) Japanese manufacturers' kaizen (continuous improvement) programs enable them to maintain:
    A.   A strategic alliance B.   A homogeneous workforce C.   Positive working relationships with all employees
    D.   A Learning advantage over their competition E.   Larger, faster facilities
    36) Listening to employee suggestions, gaining support for organizational objectives and fostering an atmosphere of teamwork are all considered:
    A.   Technical skills B.   Conceptual C.   Professional skills D.   Interpersonal/communication skills
    E.   Diagnostic skills
    37) The basic components of an effective sexual harassment policy include the following EXCEPT:
    A.   To develop an organization wide policy on sexual harassment B.   To establish a means for ongoing training C.   To act immediately when employees complain of sexual harassment
    D.   To establish a performance appraisal system E.   To establish a formal complaint procedure
    38) Teams that operate separately from the regular work structure and exist temporarily are known as:
    A.   Management teams B.   Transnational teams
    C.   Self-managed teams
    D.   Parallel teams E.   Self-designing teams
               
    39) The Aquatic Center, Inc. periodically reviews the goals of the company. During the process, The Aquatic Center managers analyze their current strategies as compared to their competitors, determine goals that they will pursue and decide upon specific actions for each area of the company to take in pursuit of these goals. The Aquatic Center managers have been engaged in the management function of:
    A.   Goal Coordination
    B.   Controlling C.   Organizing D.   Staffing E.   Planning
    40) As related to managing of human resources, diversity refers to:
    A.   Differences in demographics (such as age, race, gender, disability status, lifestyle, veteran status, educational level, etc.)
    B.   Differences in pay methods (such as hourly, salaried, overtime, hazard-pay, commissioned, etc.)
    C.   Differences in employee benefit plans (such as pensions, insurance, vacations, memberships, etc.)
    D.   Differences in retention strategies (such as training, hiring, incentives, etc) E.   Differences in recruiting methods (such as newspapers, schools, flyers, magazines, agencies, etc.)
               
    41) __________ is the process of working with people and resources to accomplish organizational goals.
    A.   Controlling B.   Decision making
    C.   Planning D.   Supervising E.   Management
    42) Twelve randomly-chosen students were asked how many times they had missed class during a certain semester, with this result: 2, 1, 5, 1, 1, 3, 4, 3, 1, 1, 5, 18.
    For this sample, the median is _____.
    A.   3 B.   3.5
    C.   2.5
    D.   2
    43) Use the following table to answer question:
     P(S | W) is approximately _____.
    A.   .40
    B.   .30
    C.   .12
    D.   .58
               
    44) Use the following table to answer question:
     P(M  A) is approximately _____.
    A.   .50 B.   .625
    C.   .125
    D.   .25
    45) Dullco Manufacturing claims that its alkaline batteries last forty hours on average in a certain type of portable CD player. Tests on a random sample of 18 batteries showed a mean battery life of 37.8 hours with a standard deviation of 5.4 hours.
    In determining the p-value for reporting the study's findings, which of the following is true?
    A.   The p-value is equal to .05. B.   The p-value is greater than .05. C.   The p-value cannot be determined without specifying  . D.   The p-value is less than .05.
    46) William used a sample of 68 U.S. cities to estimate the relationship between Crime (annual property crimes per 100,000 persons) and Income (median income per capita). His estimated regression equation was Crime = 428 + .050 Income.
    Which outcomes would be likely in a bivariate regression on 45 randomly chosen U.S. cities in 2005 with
    Y = number of robberies in each city (thousands of robberies) and
    X = size of police force in each city (thousands of police)?
    A.   High R2 (due to city size). B.   Positive slope (due to city size).
    C.   No correlation. D.   Autocorrelation.
    47) Twelve randomly-chosen students were asked how many times they had missed class during a certain semester, with this result: 2, 1, 5, 1, 1, 3, 4, 3, 1, 1, 5, 18.
    For this sample, which measure of central tendency is least representative of the “typical” student?
    A.   Midrange
    B.   Mean C.   Mode D.   Median
               
    48) Likely reasons for inaccurate control limits would include which of the following?
    A.   Process variation was not zero, as expected. B.   The engineering parameter for variance is unknown.
    C.   There was insufficient preliminary sampling. D.   The engineers were underpaid for their work.
    49) You are faced with a linear programming objective function of:
    Max P = $20X + $30Y
    and constraints of:
    3X + 4Y = 24 (Constraint A)
    5X – Y = 18 (Constraint B)
    You discover that the shadow price for Constraint A is 7.5 and the shadow price for Constraint B is 0. Which of these statements is TRUE?
    A.   The most you would want to pay for an additional unit of A would be $7.50.
    B.   You can change quantities of X and Y at no cost for Constraint B. C.   For every additional unit of the objective function you create, the price of A rises by $7.50.
    D.   For every additional unit of the objective function you create, you lose 0 units of B.
               
    50) A project has three paths. A–B–C has a length of 25 days. A–D–C has a length of 15 days. Finally, A–E–C has a length of 20 days. Which one of the following statements is TRUE?
    A.   The expected duration of this project is 25 + 15 + 20 = 60 days.
    B.   A–D–C is the critical path. C.   The expected duration of this project is 25 days. D.   A–B–C has the most slack.
    51) Which one of the following statements concerning production and staffing plans is best?
    A.   A master production schedule is a projected statement of income, costs, and profits.
    B.   Aggregation can be performed along three dimensions: product families, labor, and time.
    C.   Production plans are based primarily on information from the master production plan.
    D.   A staffing plan is the intermediate link between the business plan and the master production schedule.
               
    52) While glancing over the sensitivity report, you note that the stitching labor has a shadow price of $10 and a lower limit of 24 hours with an upper limit of 36 hours. If your original right hand value for stitching labor was 30 hours, you know that:
    A.   you would lose $80 if one of your workers missed an entire 8 hour shift. B.   the next worker that offers to work an extra 8 hours should receive at least $80.
    C.   you would be willing pay up to $60 for someone to work another 6 hours.
    D.   you can send someone home 6 hours early and still pay them the $60 they would have earned while on the clock.

    53) The costs of delivering products in the _____ channel are much higher than delivering products in the _____ channel.
    A.   physical, digital B.   e-commerce, digital
    C.   physical, financial D.   digital, e-commerce
    E.   digital, physical
    54) When customers access a Web site and make purchases, they generate __________.
    A.   Tracking cookies B.   Web data C.   Information D.   Clickstream data
    E.   Hyperlink data
    55) _____ is the integration of economic, social, cultural, and ecological facets of life, enabled by information.
    A.   regionalization B.   globalization C.   nationalization D.   business environment
               
    56) Various organizations that promote fair and responsible use of information systems often develop __________.
    A.   a code of ethics B.   responsibility charters
    C.   a strategic plan D.   a mission statement E.   a goals outline
    57) What is _____ is not necessarily _____.
    A.   Illegal, unethical B.   Unethical, legal C.   Ethical, illegal D.   Unethical, illegal
    E.   Ethical, legal
    58) _____ provides users with a view of what is happening, where _____ addresses why it is happening.
    A.   Multidimensional data analysis, structured query language
    B.   Multidimensional data analysis, neural networks C.   Data mining, multidimensional data analysis D.   Data mining, expert system E.   Multidimensional data analysis, data mining
    59) Computer support is greatest for which of the following problems?
    A.   Semistructured and strategic planning B.   Semistructured and management control
    C.   Unstructured and operational control D.   Structured and operational control E.   Structured and management control
    60) The management cockpit best exemplifies which type of system?
    A.   Decision support system B.   Functional area information system
    C.   Expert system D.   Digital dashboard E.   Group decision support system
    61) _____ is the efficient and effective execution of specific tasks.
    A.   Operational control
    B.   Expertise C.   Management control
    D.   Strategic planning E.   Wisdom
    62) Geocoding is __________.
    A.   accessing geographical information B.   integrating maps with spatially oriented databases and other databases
    C.   integrating organizational transactions with spatially oriented databases D.   programming spatially oriented databases E.   encrypting spatial information
    63) At 8% compounded annually, how long will it take $750 to double?
    A.   48 months
    B.   6.5 years C.   9 years D.   12 years
    64) Which of the following represents an attempt to measure the earnings of the firm’s operations over a given time period?
    A.   Cash flow statement
    B.   Balance sheet C.   Income statement D.   Quarterly statement
               
    65) A machine costs $1,000, has a three-year life, and has an estimated salvage value of $100. It will generate after-tax annual cash flows (ACF) of $600 a year, starting next year. If your required rate of return for the project is 10%, what is the NPV of this investment? (Round your answerwer to the nearest $10.)
    A.   $570 B.   $490 C.   $900 D.   -$150
               
    66) Disadvantages of using current liabilities as opposed to long-term debt include:
    A.   higher cash flow exposure B.   greater risk of illiquidity, and uncertainty of interest costs
    C.   decreased risk of liquidity D.   certainty of interest costs E.   uncertainty of future liabilities
    67) Petrified Forest Skin Care, Inc. pays an annual perpetual dividend of $1.70 per share. If the stock is currently selling for $21.25 per share, what is the expected rate of return on this stock?
    A.   12.5% B.   36.13%
    C.   8.0% D.   13.6%
    68) Which of the following is most consistent with the hedging principle in working capital management?
    A.   Fixed assets should be financed with short-term notes payable. B.   Inventory should be financed with preferred stock. C.   Accounts receivable should be financed with short-term lines of credit.
    D.   Borrow on a floating rate basis to finance investments in permanent assets.
               
    69) An increase in future value can be caused by an increase in the __________.
    A.   original amount invested B.   annual interest rate and number of compounding periods
    C.   rate of return D.   dividends paid E.   starting value
    70) If the quote for a forward exchange contract is greater than the computed price, the forward contract is:
    A.   at equilibrium.
    B.   undervalued. C.   a good buy. D.   overvalued.
    71) Your company is considering an investment in a project which would require an initial outlay of $300,000 and produce expected cash flows in Years 1 through 5 of $87,385 per year. You have determined that the current after-tax cost of the firm’s capital (required rate of return) for each source of financing is as follows:
    Cost of debt     8%
    Cost of preferred stock           12%
    Cost of common stock            16%
    Long-term debt currently makes up 20% of the capital structure, preferred stock 10%, and common stock 70%. What is the net present value of this project?
    A.   $1,568
    B.   $871 C.   $1,241
    D.   $463
    72) Suppose you determine that the NPV of a project is $1,525,855. What does that mean?
    A.   The project’s IRR would have to be less that the firm’s discount rate. B.   The project would add value to the firm. C.   Under all conditions, the project’s payback would be less than the profitability index.
    D.   In all cases, investing in this project would be better than investing in a project that has an NPV of $850,000.
               
    73) The common stockholders are most concerned with:
    A.   the spread between the return generated on new investments and the investor’s required rate of return.
    B.   the size of the firm’s beginning earnings per share. C.   the risk of the investment. D.   the percentage of profits retained.
    74) PepsiCo calculates unlevered betas for each peer group in order to:
    A.   eliminate different financial risks.
    B.   eliminate competitive factors. C.   eliminate judgment factors. D.   eliminate different business risks.
    75) Which of the following best represents operating income?
    A.   Income from discontinued operations
    B.   Earnings before interest and taxes C.   Income from capital gains D.   Income after financing activities
    76) In comparison to the buying of final consumers, the purchasing of organizational buyers:
    A.   is even less predictable. B.   leans basically toward economy, quality, and dependability.
    C.   is always emotional. D.   is strictly economic and not at all emotional. E.   is always based on competitive bids from multiple suppliers.
               
    77) The basic objective of the U.S. market-directed economic system is to:
    A.   achieve an annual growth rate of at least 10 percent. B.   provide each person with an equal share of the economic output.
    C.   make the most efficient use of the country's resources. D.   minimize inflation. E.   satisfy consumer needs as they--the consumers--see them.
    78) Comparing GDP for foreign countries can help a marketing manager evaluate potential markets if the manager remembers that:
    A.   GDP measures show people's tendency to buy particular products. B.   income tends to be evenly distributed among consumers in most countries. C.   GDP estimates may not be very accurate for very different cultures and economies.
    D.   Other countries most likely don’t use the US Dollar as their primary currency.
    E.   GDP measures show the degree of competition in a market.
    79) A firm's "marketing mix" decision areas would NOT include:
    A.   Promotion.
    B.   People. C.   Price. D.   Place. E.   Product.
    80) __________ is a marketing management aid which refers to how customers think about proposed and/or present brands in a market.
    A.   Brand familiarity B.   Positioning
    C.   Market scanning D.   Customer relationship management (CRM)
    E.   Market segmentation
    81) The "four Ps" of a marketing mix are:
    A.   Production, Personnel, Price, and Physical Distribution
    B.   Promotion, Production, Price, and People C.   Potential customers, Product, Price, and Personal Selling
    D.   Product, Price, Promotion, and Profit E.   Product, Place, Promotion, and Price
    82) When evaluating macro-marketing:
    A.   the evaluation is necessarily subjective. B.   the best approach is to consider the profit generated by individual firms within the overall system.
    C.   one must determine how efficiently the society's resources are used. D.   one must consider the society’s role in the marketing system. E.   one must consider each individual firm's role in the marketing system.
    83) A cluster analysis of the "toothpaste market" would probably show that:
    A.   the broad product-market can be served effectively with one marketing mix.
    B.   most consu
              54) When customers access a Web site and make purchases, they generate __________. A. Tracking cookies B. Web data C. Information D. Clickstream data E. Hyperlink data        

    BUS/475 Guide 4


    1) The cost principle requires that when assets are acquired, they be recorded at __________.
    A.   list price B.   selling price C.   exchange price paid D.   appraisal value
    2) "Generally accepted" in the phrase generally accepted accounting principles means that the principles __________.
    A.   have been approved for use by the managements of business firms
    B.   have been approved by the Internal Revenue Service C.   have substantial authoritative support D.   are proven theories of accounting
    3) The standards and rules that are recognized as a general guide for financial reporting are called __________.
    A.   standards of financial reporting B.   operating guidelines C.   generally accepted accounting principles D.   generally accepted accounting standards
    4) Sam's Used Cars uses the specific identification method of costing inventory. During March, Sam purchased three cars for $6,000, $7,500, and $9,750, respectively. During March, two cars are sold for $9,000 each. Sam determines that at March 31, the $9,750 car is still on hand. What is Sam’s gross profit for March?
    A.   $8,250
    B.   $750 C.   $4,500
    D.   $5,250
               
    5) Hess, Inc. sells a single product with a contribution margin of $12 per unit and fixed costs of $74,400 and sales for the current year of $100,000. How much is Hess’s break even point?
    A.   2,133 units
    B.   6,200 units
    C.   $25,600 D.   4,600 units
               
    6) As Plant Controller, you are trying to determine which costs over which you have the most control on a day to day basis. Your goal is to achieve better profitability. The Plant Operations Manager suggests that overhead is the easiest area to directly reduce costs. Which of the following items would be classified as manufacturing overhead?
    A.   The western division’s vice president’s salary
    B.   Cost of landscaping the corporate office C.   General corporate liability insurance D.   Factory janitor
    7) What is the preparation of reports for each level of responsibility in the company’s organization chart called?
    A.   Master budgeting analysis
    B.   Exception reporting C.   Responsibility reporting
    D.   Static reporting
    8) Disney’s variable costs are 30% of sales. The company is contemplating an advertising campaign that will cost $22,000. If sales are expected to increase $40,000, by how much will the company's net income increase?
    A.   $6,000 B.   $12,000
    C.   $28,000
    D.   $18,000
               
    9) The cost of an asset and its fair market value are __________.
    A.   never the same B.   irrelevant when the asset is used by the business in its operations
    C.   the same on the date of acquisition D.   the same when the asset is sold
    10) Which one of the following is a product cost?
    A.   Indirect labor B.   Sales person’s salaries
    C.   Advertising costs D.   Office salaries
    11) What exists when budgeted costs exceed actual results?
    A.   A budgeting error B.   An unfavorable difference
    C.   An excess profit D.   A favorable difference
    12) The income statement and balance sheet columns of Pine Company's worksheet reflects the following totals:
                            Income Statement                  Balance Sheet
                Dr.       Cr.                   Dr.       Cr.
    Totals              $58,000           $48,000                       $34,000           $44,000
               

    Closing entries are necessary for __________.
    A.   permanent accounts only B.   both permanent and temporary accounts
    C.   permanent or real accounts only D.   temporary accounts only
    13) Managerial accounting __________.
    A.   is concerned with costing products B.   pertains to the entity as a whole and is highly aggregated
    C.   places emphasis on special-purpose information D.   is governed by generally accepted accounting principles
               
    14) H55 Company sells two products, beer and wine. Beer has a 10 percent profit margin and wine has a 12 percent profit margin. Beer has a 27 percent contribution margin and wine has a 25 percent contribution margin. If other factors are equal, which product should H55 push to customers?
    A.   Beer B.   Selling either results in the same additional income for the company
    C.   It should sell an equal quantity of both D.   Wine
    15) Lekeisha's income exceeds her expenditures. Lekeisha is a __________.
    A.   saver who demands money from the financial system B.   borrower who demands money from the financial system
    C.   borrower who supplies money to the financial system D.   saver who supplies money to the financial system
    16) Maurice receives $100 as a birthday gift. In deciding how to spend the money, he narrows his options down to four choices: Option A, Option B, Option C, and Option D. Each option costs $100. Finally he decides on Option B. The opportunity cost of this decision is __________.
    A.   the value to Maurice of the option he would have chosen had Option B not been available
    B.   $100 C.   $300 D.   the value to Maurice of Options A, C and D combined
    17) A production possibilities frontier will be a straight line if __________.
    A.   the economy is producing efficiently B.   the economy is engaged in trade with at least one other economy C.   increasing the production of one good by x units entails no opportunity cost in terms of the other good
    D.   increasing the production of one good by x units entails a constant opportunity cost in terms of the other good
               
    18) In economics, the cost of something is __________.
    A.   what you give up to get it B.   often impossible to quantify, even in principle C.   the dollar amount of obtaining it D.   always measured in units of time given up to get it
               
    19) A tax on an imported good is called a __________.
    A.   supply tax
    B.   trade tax C.   quota D.   tariff
    20) Which of the following statements about GDP is correct?
    A.   GDP is to a nation’s economy as household income is to a household. B.   GDP increases if the total population increases. C.   GDP measures two things at once: the total income of everyone in the economy and the unemployment rate.
    D.   Money continuously flows from households to government and then back to households, and GDP measures this flow of money.
               
    21) In computing GDP, market prices are used to value final goods and services because __________.
    A.   if market prices are out of line with how people value goods, the government sets price ceilings and price floors
    B.   Market prices are not used in computing GDP C.   market prices reflect the values of goods and services D.   market prices do not change much over time, so it is easy to make comparisons between years

    22) Which of the following statements about GDP is correct?
    A.   Nominal GDP values production at market prices, whereas real GDP values production at the cost of the resources used in the production process.
    B.   Nominal GDP consistently underestimates the value of production, whereas real GDP consistently overestimates the value of production.
    C.   Nominal GDP values production at current prices, whereas real GDP values production at constant prices.
    D.   Nominal GDP values production at constant prices, whereas real GDP values production at current prices.
               
    23) Which of the following is not correct?
    A.   The U.S. debt per-person is large compared with average lifetime income.
    B.   In 2005, the U.S. government had a deficit. C.   A potential cost of deficits is that they reduce national saving, thereby reducing growth of the capital stock and output growth.
    D.   Deficits give people the opportunity to consume at the expense of their children, but they do not require them to do so.
               
    24) The part of the balance of payments account that lists all long-term flows of payments is called the:
    A.   balance of trade. B.   financial and capital account.
    C.   government financial account.
    D.   current account.
    25) Edward Prescott and Finn Kydland won the Nobel Prize in Economics in 2004. One of their contributions was to argue that if a central bank could convince people to expect zero inflation, then the Fed would be tempted to raise output by increasing inflation. This possibility is known as __________.
    A.   the sacrifice ratio dilemma B.   the monetary policy reaction lag
    C.   the time inconsistency of policy
    D.   inflation targeting
    26) In general, the longest lag for __________.
    A.   fiscal policy is the time it takes to change policy, while for monetary policy the longest lag is the time it takes for policy to affect aggregate demand
    B.   both fiscal and monetary policy is the time it takes for policy to affect aggregate demand
    C.   monetary policy is the time it takes to change policy, while for fiscal policy the longest lag is the time it takes for policy to affect aggregate demand
    D.   both fiscal and monetary policy is the time it takes to change policy
    27) Consider two items that might be included in GDP: (1) The estimated rental value of owner-occupied housing; and (2) purchases of newly-constructed homes. How are these two items accounted for when GDP is calculated?
    A.   Only item (2) is included in GDP and it is included in the investment component.
    B.   Item (1) is included in the consumption component, while item (2) is included in the investment component.
    C.   Item (1) is included in the investment component, while item (2) is included in the consumption component.
    D.   Both item (1) and item (2) are included in the consumption component of GDP.

    28) Managers will utilize __________ skills with increasing frequency as they rise within an organization.
    A.   Professional B.   Interpersonal and communication
    C.   Technical D.   Professional E.   Conceptual and decision
    29) Which of these represent skills that managers need?
    A.   Interpersonal, quantitative, and professional B.   Technical, interpersonal & communication and conceptual & decision making
    C.   Professional, technical and interpersonal & communication D.   Conceptual & decision making, professional and technical E.   Interpersonal & communication, conceptual & decision making and professional
               
    30) Building a dynamic organization is another way of describing which function of management?
    A.   Staffing B.   Organizing
    C.   Leading D.   Controlling
    E.   Planning
    31) Your roommate is interested in starting a business and everybody has been giving him different information about being an entrepreneur. Since you have been studying about entrepreneurship and new ventures, which of these would you tell him is true?
    A.   Anyone can start a business B.   All entrepreneurs need venture capital in order to get started C.   Successful entrepreneurs take very careful, calculated risks D.   Entrepreneurs are their own bosses and completely independent
    E.   Money should not be considered a start-up ingredient
    32) The term used to refer to all kinds of differences including religious affiliation, age, disability status, economic class and lifestyle in addition to gender, race, ethnicity and nationality is:
    A.   Diversity B.   Managerial ethics
    C.   Recruiting D.   Employment E.   Selection
    33) A manager's ability to stimulate people to be high performers is referred to as:
    A.   Planning B.   Supervising
    C.   Controlling
    D.   Organizing E.   Leading
    34) A series of quality standards developed by a committee working under the International Organization for Standardization to improve total quality in all businesses for the benefit of both producers and consumers is:
    A.   Total quality management B.   Customer-based integration C.   Computer-integrated manufacturing (CIM)
    D.   Just-in-time control (JIT)
    E.   ISO 9000
    35) Japanese manufacturers' kaizen (continuous improvement) programs enable them to maintain:
    A.   A strategic alliance B.   A homogeneous workforce C.   Positive working relationships with all employees
    D.   A Learning advantage over their competition E.   Larger, faster facilities
    36) Listening to employee suggestions, gaining support for organizational objectives and fostering an atmosphere of teamwork are all considered:
    A.   Technical skills B.   Conceptual C.   Professional skills D.   Interpersonal/communication skills
    E.   Diagnostic skills
    37) The basic components of an effective sexual harassment policy include the following EXCEPT:
    A.   To develop an organization wide policy on sexual harassment B.   To establish a means for ongoing training C.   To act immediately when employees complain of sexual harassment
    D.   To establish a performance appraisal system E.   To establish a formal complaint procedure
    38) Teams that operate separately from the regular work structure and exist temporarily are known as:
    A.   Management teams B.   Transnational teams
    C.   Self-managed teams
    D.   Parallel teams E.   Self-designing teams
               
    39) The Aquatic Center, Inc. periodically reviews the goals of the company. During the process, The Aquatic Center managers analyze their current strategies as compared to their competitors, determine goals that they will pursue and decide upon specific actions for each area of the company to take in pursuit of these goals. The Aquatic Center managers have been engaged in the management function of:
    A.   Goal Coordination
    B.   Controlling C.   Organizing D.   Staffing E.   Planning
    40) As related to managing of human resources, diversity refers to:
    A.   Differences in demographics (such as age, race, gender, disability status, lifestyle, veteran status, educational level, etc.)
    B.   Differences in pay methods (such as hourly, salaried, overtime, hazard-pay, commissioned, etc.)
    C.   Differences in employee benefit plans (such as pensions, insurance, vacations, memberships, etc.)
    D.   Differences in retention strategies (such as training, hiring, incentives, etc) E.   Differences in recruiting methods (such as newspapers, schools, flyers, magazines, agencies, etc.)
               
    41) __________ is the process of working with people and resources to accomplish organizational goals.
    A.   Controlling B.   Decision making
    C.   Planning D.   Supervising E.   Management
    42) Twelve randomly-chosen students were asked how many times they had missed class during a certain semester, with this result: 2, 1, 5, 1, 1, 3, 4, 3, 1, 1, 5, 18.
    For this sample, the median is _____.
    A.   3 B.   3.5
    C.   2.5
    D.   2
    43) Use the following table to answer question:
     P(S | W) is approximately _____.
    A.   .40
    B.   .30
    C.   .12
    D.   .58
               
    44) Use the following table to answer question:
     P(M  A) is approximately _____.
    A.   .50 B.   .625
    C.   .125
    D.   .25
    45) Dullco Manufacturing claims that its alkaline batteries last forty hours on average in a certain type of portable CD player. Tests on a random sample of 18 batteries showed a mean battery life of 37.8 hours with a standard deviation of 5.4 hours.
    In determining the p-value for reporting the study's findings, which of the following is true?
    A.   The p-value is equal to .05. B.   The p-value is greater than .05. C.   The p-value cannot be determined without specifying  . D.   The p-value is less than .05.
    46) William used a sample of 68 U.S. cities to estimate the relationship between Crime (annual property crimes per 100,000 persons) and Income (median income per capita). His estimated regression equation was Crime = 428 + .050 Income.
    Which outcomes would be likely in a bivariate regression on 45 randomly chosen U.S. cities in 2005 with
    Y = number of robberies in each city (thousands of robberies) and
    X = size of police force in each city (thousands of police)?
    A.   High R2 (due to city size). B.   Positive slope (due to city size).
    C.   No correlation. D.   Autocorrelation.
    47) Twelve randomly-chosen students were asked how many times they had missed class during a certain semester, with this result: 2, 1, 5, 1, 1, 3, 4, 3, 1, 1, 5, 18.
    For this sample, which measure of central tendency is least representative of the “typical” student?
    A.   Midrange
    B.   Mean C.   Mode D.   Median
               
    48) Likely reasons for inaccurate control limits would include which of the following?
    A.   Process variation was not zero, as expected. B.   The engineering parameter for variance is unknown.
    C.   There was insufficient preliminary sampling. D.   The engineers were underpaid for their work.
    49) You are faced with a linear programming objective function of:
    Max P = $20X + $30Y
    and constraints of:
    3X + 4Y = 24 (Constraint A)
    5X – Y = 18 (Constraint B)
    You discover that the shadow price for Constraint A is 7.5 and the shadow price for Constraint B is 0. Which of these statements is TRUE?
    A.   The most you would want to pay for an additional unit of A would be $7.50.
    B.   You can change quantities of X and Y at no cost for Constraint B. C.   For every additional unit of the objective function you create, the price of A rises by $7.50.
    D.   For every additional unit of the objective function you create, you lose 0 units of B.
               
    50) A project has three paths. A–B–C has a length of 25 days. A–D–C has a length of 15 days. Finally, A–E–C has a length of 20 days. Which one of the following statements is TRUE?
    A.   The expected duration of this project is 25 + 15 + 20 = 60 days.
    B.   A–D–C is the critical path. C.   The expected duration of this project is 25 days. D.   A–B–C has the most slack.
    51) Which one of the following statements concerning production and staffing plans is best?
    A.   A master production schedule is a projected statement of income, costs, and profits.
    B.   Aggregation can be performed along three dimensions: product families, labor, and time.
    C.   Production plans are based primarily on information from the master production plan.
    D.   A staffing plan is the intermediate link between the business plan and the master production schedule.
               
    52) While glancing over the sensitivity report, you note that the stitching labor has a shadow price of $10 and a lower limit of 24 hours with an upper limit of 36 hours. If your original right hand value for stitching labor was 30 hours, you know that:
    A.   you would lose $80 if one of your workers missed an entire 8 hour shift. B.   the next worker that offers to work an extra 8 hours should receive at least $80.
    C.   you would be willing pay up to $60 for someone to work another 6 hours.
    D.   you can send someone home 6 hours early and still pay them the $60 they would have earned while on the clock.

    53) The costs of delivering products in the _____ channel are much higher than delivering products in the _____ channel.
    A.   physical, digital B.   e-commerce, digital
    C.   physical, financial D.   digital, e-commerce
    E.   digital, physical
    54) When customers access a Web site and make purchases, they generate __________.
    A.   Tracking cookies B.   Web data C.   Information D.   Clickstream data
    E.   Hyperlink data
    55) _____ is the integration of economic, social, cultural, and ecological facets of life, enabled by information.
    A.   regionalization B.   globalization C.   nationalization D.   business environment
               
    56) Various organizations that promote fair and responsible use of information systems often develop __________.
    A.   a code of ethics B.   responsibility charters
    C.   a strategic plan D.   a mission statement E.   a goals outline
    57) What is _____ is not necessarily _____.
    A.   Illegal, unethical B.   Unethical, legal C.   Ethical, illegal D.   Unethical, illegal
    E.   Ethical, legal
    58) _____ provides users with a view of what is happening, where _____ addresses why it is happening.
    A.   Multidimensional data analysis, structured query language
    B.   Multidimensional data analysis, neural networks C.   Data mining, multidimensional data analysis D.   Data mining, expert system E.   Multidimensional data analysis, data mining
    59) Computer support is greatest for which of the following problems?
    A.   Semistructured and strategic planning B.   Semistructured and management control
    C.   Unstructured and operational control D.   Structured and operational control E.   Structured and management control
    60) The management cockpit best exemplifies which type of system?
    A.   Decision support system B.   Functional area information system
    C.   Expert system D.   Digital dashboard E.   Group decision support system
    61) _____ is the efficient and effective execution of specific tasks.
    A.   Operational control
    B.   Expertise C.   Management control
    D.   Strategic planning E.   Wisdom
    62) Geocoding is __________.
    A.   accessing geographical information B.   integrating maps with spatially oriented databases and other databases
    C.   integrating organizational transactions with spatially oriented databases D.   programming spatially oriented databases E.   encrypting spatial information
    63) At 8% compounded annually, how long will it take $750 to double?
    A.   48 months
    B.   6.5 years C.   9 years D.   12 years
    64) Which of the following represents an attempt to measure the earnings of the firm’s operations over a given time period?
    A.   Cash flow statement
    B.   Balance sheet C.   Income statement D.   Quarterly statement
               
    65) A machine costs $1,000, has a three-year life, and has an estimated salvage value of $100. It will generate after-tax annual cash flows (ACF) of $600 a year, starting next year. If your required rate of return for the project is 10%, what is the NPV of this investment? (Round your answerwer to the nearest $10.)
    A.   $570 B.   $490 C.   $900 D.   -$150
               
    66) Disadvantages of using current liabilities as opposed to long-term debt include:
    A.   higher cash flow exposure B.   greater risk of illiquidity, and uncertainty of interest costs
    C.   decreased risk of liquidity D.   certainty of interest costs E.   uncertainty of future liabilities
    67) Petrified Forest Skin Care, Inc. pays an annual perpetual dividend of $1.70 per share. If the stock is currently selling for $21.25 per share, what is the expected rate of return on this stock?
    A.   12.5% B.   36.13%
    C.   8.0% D.   13.6%
    68) Which of the following is most consistent with the hedging principle in working capital management?
    A.   Fixed assets should be financed with short-term notes payable. B.   Inventory should be financed with preferred stock. C.   Accounts receivable should be financed with short-term lines of credit.
    D.   Borrow on a floating rate basis to finance investments in permanent assets.
               
    69) An increase in future value can be caused by an increase in the __________.
    A.   original amount invested B.   annual interest rate and number of compounding periods
    C.   rate of return D.   dividends paid E.   starting value
    70) If the quote for a forward exchange contract is greater than the computed price, the forward contract is:
    A.   at equilibrium.
    B.   undervalued. C.   a good buy. D.   overvalued.
    71) Your company is considering an investment in a project which would require an initial outlay of $300,000 and produce expected cash flows in Years 1 through 5 of $87,385 per year. You have determined that the current after-tax cost of the firm’s capital (required rate of return) for each source of financing is as follows:
    Cost of debt     8%
    Cost of preferred stock           12%
    Cost of common stock            16%
    Long-term debt currently makes up 20% of the capital structure, preferred stock 10%, and common stock 70%. What is the net present value of this project?
    A.   $1,568
    B.   $871 C.   $1,241
    D.   $463
    72) Suppose you determine that the NPV of a project is $1,525,855. What does that mean?
    A.   The project’s IRR would have to be less that the firm’s discount rate. B.   The project would add value to the firm. C.   Under all conditions, the project’s payback would be less than the profitability index.
    D.   In all cases, investing in this project would be better than investing in a project that has an NPV of $850,000.
               
    73) The common stockholders are most concerned with:
    A.   the spread between the return generated on new investments and the investor’s required rate of return.
    B.   the size of the firm’s beginning earnings per share. C.   the risk of the investment. D.   the percentage of profits retained.
    74) PepsiCo calculates unlevered betas for each peer group in order to:
    A.   eliminate different financial risks.
    B.   eliminate competitive factors. C.   eliminate judgment factors. D.   eliminate different business risks.
    75) Which of the following best represents operating income?
    A.   Income from discontinued operations
    B.   Earnings before interest and taxes C.   Income from capital gains D.   Income after financing activities
    76) In comparison to the buying of final consumers, the purchasing of organizational buyers:
    A.   is even less predictable. B.   leans basically toward economy, quality, and dependability.
    C.   is always emotional. D.   is strictly economic and not at all emotional. E.   is always based on competitive bids from multiple suppliers.
               
    77) The basic objective of the U.S. market-directed economic system is to:
    A.   achieve an annual growth rate of at least 10 percent. B.   provide each person with an equal share of the economic output.
    C.   make the most efficient use of the country's resources. D.   minimize inflation. E.   satisfy consumer needs as they--the consumers--see them.
    78) Comparing GDP for foreign countries can help a marketing manager evaluate potential markets if the manager remembers that:
    A.   GDP measures show people's tendency to buy particular products. B.   income tends to be evenly distributed among consumers in most countries. C.   GDP estimates may not be very accurate for very different cultures and economies.
    D.   Other countries most likely don’t use the US Dollar as their primary currency.
    E.   GDP measures show the degree of competition in a market.
    79) A firm's "marketing mix" decision areas would NOT include:
    A.   Promotion.
    B.   People. C.   Price. D.   Place. E.   Product.
    80) __________ is a marketing management aid which refers to how customers think about proposed and/or present brands in a market.
    A.   Brand familiarity B.   Positioning
    C.   Market scanning D.   Customer relationship management (CRM)
    E.   Market segmentation
    81) The "four Ps" of a marketing mix are:
    A.   Production, Personnel, Price, and Physical Distribution
    B.   Promotion, Production, Price, and People C.   Potential customers, Product, Price, and Personal Selling
    D.   Product, Price, Promotion, and Profit E.   Product, Place, Promotion, and Price
    82) When evaluating macro-marketing:
    A.   the evaluation is necessarily subjective. B.   the best approach is to consider the profit generated by individual firms within the overall system.
    C.   one must determine how efficiently the society's resources are used. D.   one must consider the society’s role in the marketing system. E.   one must consider each individual firm's role in the marketing system.
    83) A cluster analysis of the "toothpaste market" would probably show that:
    A.   the broad product-market can be served effectively with one marketing mix.
    B.   most consu
              55) _____ is the integration of economic, social, cultural, and ecological facets of life, enabled by information. A. regionalization B. globalization C. nationalization D. business environment         

    BUS/475 Guide 4


    1) The cost principle requires that when assets are acquired, they be recorded at __________.
    A.   list price B.   selling price C.   exchange price paid D.   appraisal value
    2) "Generally accepted" in the phrase generally accepted accounting principles means that the principles __________.
    A.   have been approved for use by the managements of business firms
    B.   have been approved by the Internal Revenue Service C.   have substantial authoritative support D.   are proven theories of accounting
    3) The standards and rules that are recognized as a general guide for financial reporting are called __________.
    A.   standards of financial reporting B.   operating guidelines C.   generally accepted accounting principles D.   generally accepted accounting standards
    4) Sam's Used Cars uses the specific identification method of costing inventory. During March, Sam purchased three cars for $6,000, $7,500, and $9,750, respectively. During March, two cars are sold for $9,000 each. Sam determines that at March 31, the $9,750 car is still on hand. What is Sam’s gross profit for March?
    A.   $8,250
    B.   $750 C.   $4,500
    D.   $5,250
               
    5) Hess, Inc. sells a single product with a contribution margin of $12 per unit and fixed costs of $74,400 and sales for the current year of $100,000. How much is Hess’s break even point?
    A.   2,133 units
    B.   6,200 units
    C.   $25,600 D.   4,600 units
               
    6) As Plant Controller, you are trying to determine which costs over which you have the most control on a day to day basis. Your goal is to achieve better profitability. The Plant Operations Manager suggests that overhead is the easiest area to directly reduce costs. Which of the following items would be classified as manufacturing overhead?
    A.   The western division’s vice president’s salary
    B.   Cost of landscaping the corporate office C.   General corporate liability insurance D.   Factory janitor
    7) What is the preparation of reports for each level of responsibility in the company’s organization chart called?
    A.   Master budgeting analysis
    B.   Exception reporting C.   Responsibility reporting
    D.   Static reporting
    8) Disney’s variable costs are 30% of sales. The company is contemplating an advertising campaign that will cost $22,000. If sales are expected to increase $40,000, by how much will the company's net income increase?
    A.   $6,000 B.   $12,000
    C.   $28,000
    D.   $18,000
               
    9) The cost of an asset and its fair market value are __________.
    A.   never the same B.   irrelevant when the asset is used by the business in its operations
    C.   the same on the date of acquisition D.   the same when the asset is sold
    10) Which one of the following is a product cost?
    A.   Indirect labor B.   Sales person’s salaries
    C.   Advertising costs D.   Office salaries
    11) What exists when budgeted costs exceed actual results?
    A.   A budgeting error B.   An unfavorable difference
    C.   An excess profit D.   A favorable difference
    12) The income statement and balance sheet columns of Pine Company's worksheet reflects the following totals:
                            Income Statement                  Balance Sheet
                Dr.       Cr.                   Dr.       Cr.
    Totals              $58,000           $48,000                       $34,000           $44,000
               

    Closing entries are necessary for __________.
    A.   permanent accounts only B.   both permanent and temporary accounts
    C.   permanent or real accounts only D.   temporary accounts only
    13) Managerial accounting __________.
    A.   is concerned with costing products B.   pertains to the entity as a whole and is highly aggregated
    C.   places emphasis on special-purpose information D.   is governed by generally accepted accounting principles
               
    14) H55 Company sells two products, beer and wine. Beer has a 10 percent profit margin and wine has a 12 percent profit margin. Beer has a 27 percent contribution margin and wine has a 25 percent contribution margin. If other factors are equal, which product should H55 push to customers?
    A.   Beer B.   Selling either results in the same additional income for the company
    C.   It should sell an equal quantity of both D.   Wine
    15) Lekeisha's income exceeds her expenditures. Lekeisha is a __________.
    A.   saver who demands money from the financial system B.   borrower who demands money from the financial system
    C.   borrower who supplies money to the financial system D.   saver who supplies money to the financial system
    16) Maurice receives $100 as a birthday gift. In deciding how to spend the money, he narrows his options down to four choices: Option A, Option B, Option C, and Option D. Each option costs $100. Finally he decides on Option B. The opportunity cost of this decision is __________.
    A.   the value to Maurice of the option he would have chosen had Option B not been available
    B.   $100 C.   $300 D.   the value to Maurice of Options A, C and D combined
    17) A production possibilities frontier will be a straight line if __________.
    A.   the economy is producing efficiently B.   the economy is engaged in trade with at least one other economy C.   increasing the production of one good by x units entails no opportunity cost in terms of the other good
    D.   increasing the production of one good by x units entails a constant opportunity cost in terms of the other good
               
    18) In economics, the cost of something is __________.
    A.   what you give up to get it B.   often impossible to quantify, even in principle C.   the dollar amount of obtaining it D.   always measured in units of time given up to get it
               
    19) A tax on an imported good is called a __________.
    A.   supply tax
    B.   trade tax C.   quota D.   tariff
    20) Which of the following statements about GDP is correct?
    A.   GDP is to a nation’s economy as household income is to a household. B.   GDP increases if the total population increases. C.   GDP measures two things at once: the total income of everyone in the economy and the unemployment rate.
    D.   Money continuously flows from households to government and then back to households, and GDP measures this flow of money.
               
    21) In computing GDP, market prices are used to value final goods and services because __________.
    A.   if market prices are out of line with how people value goods, the government sets price ceilings and price floors
    B.   Market prices are not used in computing GDP C.   market prices reflect the values of goods and services D.   market prices do not change much over time, so it is easy to make comparisons between years

    22) Which of the following statements about GDP is correct?
    A.   Nominal GDP values production at market prices, whereas real GDP values production at the cost of the resources used in the production process.
    B.   Nominal GDP consistently underestimates the value of production, whereas real GDP consistently overestimates the value of production.
    C.   Nominal GDP values production at current prices, whereas real GDP values production at constant prices.
    D.   Nominal GDP values production at constant prices, whereas real GDP values production at current prices.
               
    23) Which of the following is not correct?
    A.   The U.S. debt per-person is large compared with average lifetime income.
    B.   In 2005, the U.S. government had a deficit. C.   A potential cost of deficits is that they reduce national saving, thereby reducing growth of the capital stock and output growth.
    D.   Deficits give people the opportunity to consume at the expense of their children, but they do not require them to do so.
               
    24) The part of the balance of payments account that lists all long-term flows of payments is called the:
    A.   balance of trade. B.   financial and capital account.
    C.   government financial account.
    D.   current account.
    25) Edward Prescott and Finn Kydland won the Nobel Prize in Economics in 2004. One of their contributions was to argue that if a central bank could convince people to expect zero inflation, then the Fed would be tempted to raise output by increasing inflation. This possibility is known as __________.
    A.   the sacrifice ratio dilemma B.   the monetary policy reaction lag
    C.   the time inconsistency of policy
    D.   inflation targeting
    26) In general, the longest lag for __________.
    A.   fiscal policy is the time it takes to change policy, while for monetary policy the longest lag is the time it takes for policy to affect aggregate demand
    B.   both fiscal and monetary policy is the time it takes for policy to affect aggregate demand
    C.   monetary policy is the time it takes to change policy, while for fiscal policy the longest lag is the time it takes for policy to affect aggregate demand
    D.   both fiscal and monetary policy is the time it takes to change policy
    27) Consider two items that might be included in GDP: (1) The estimated rental value of owner-occupied housing; and (2) purchases of newly-constructed homes. How are these two items accounted for when GDP is calculated?
    A.   Only item (2) is included in GDP and it is included in the investment component.
    B.   Item (1) is included in the consumption component, while item (2) is included in the investment component.
    C.   Item (1) is included in the investment component, while item (2) is included in the consumption component.
    D.   Both item (1) and item (2) are included in the consumption component of GDP.

    28) Managers will utilize __________ skills with increasing frequency as they rise within an organization.
    A.   Professional B.   Interpersonal and communication
    C.   Technical D.   Professional E.   Conceptual and decision
    29) Which of these represent skills that managers need?
    A.   Interpersonal, quantitative, and professional B.   Technical, interpersonal & communication and conceptual & decision making
    C.   Professional, technical and interpersonal & communication D.   Conceptual & decision making, professional and technical E.   Interpersonal & communication, conceptual & decision making and professional
               
    30) Building a dynamic organization is another way of describing which function of management?
    A.   Staffing B.   Organizing
    C.   Leading D.   Controlling
    E.   Planning
    31) Your roommate is interested in starting a business and everybody has been giving him different information about being an entrepreneur. Since you have been studying about entrepreneurship and new ventures, which of these would you tell him is true?
    A.   Anyone can start a business B.   All entrepreneurs need venture capital in order to get started C.   Successful entrepreneurs take very careful, calculated risks D.   Entrepreneurs are their own bosses and completely independent
    E.   Money should not be considered a start-up ingredient
    32) The term used to refer to all kinds of differences including religious affiliation, age, disability status, economic class and lifestyle in addition to gender, race, ethnicity and nationality is:
    A.   Diversity B.   Managerial ethics
    C.   Recruiting D.   Employment E.   Selection
    33) A manager's ability to stimulate people to be high performers is referred to as:
    A.   Planning B.   Supervising
    C.   Controlling
    D.   Organizing E.   Leading
    34) A series of quality standards developed by a committee working under the International Organization for Standardization to improve total quality in all businesses for the benefit of both producers and consumers is:
    A.   Total quality management B.   Customer-based integration C.   Computer-integrated manufacturing (CIM)
    D.   Just-in-time control (JIT)
    E.   ISO 9000
    35) Japanese manufacturers' kaizen (continuous improvement) programs enable them to maintain:
    A.   A strategic alliance B.   A homogeneous workforce C.   Positive working relationships with all employees
    D.   A Learning advantage over their competition E.   Larger, faster facilities
    36) Listening to employee suggestions, gaining support for organizational objectives and fostering an atmosphere of teamwork are all considered:
    A.   Technical skills B.   Conceptual C.   Professional skills D.   Interpersonal/communication skills
    E.   Diagnostic skills
    37) The basic components of an effective sexual harassment policy include the following EXCEPT:
    A.   To develop an organization wide policy on sexual harassment B.   To establish a means for ongoing training C.   To act immediately when employees complain of sexual harassment
    D.   To establish a performance appraisal system E.   To establish a formal complaint procedure
    38) Teams that operate separately from the regular work structure and exist temporarily are known as:
    A.   Management teams B.   Transnational teams
    C.   Self-managed teams
    D.   Parallel teams E.   Self-designing teams
               
    39) The Aquatic Center, Inc. periodically reviews the goals of the company. During the process, The Aquatic Center managers analyze their current strategies as compared to their competitors, determine goals that they will pursue and decide upon specific actions for each area of the company to take in pursuit of these goals. The Aquatic Center managers have been engaged in the management function of:
    A.   Goal Coordination
    B.   Controlling C.   Organizing D.   Staffing E.   Planning
    40) As related to managing of human resources, diversity refers to:
    A.   Differences in demographics (such as age, race, gender, disability status, lifestyle, veteran status, educational level, etc.)
    B.   Differences in pay methods (such as hourly, salaried, overtime, hazard-pay, commissioned, etc.)
    C.   Differences in employee benefit plans (such as pensions, insurance, vacations, memberships, etc.)
    D.   Differences in retention strategies (such as training, hiring, incentives, etc) E.   Differences in recruiting methods (such as newspapers, schools, flyers, magazines, agencies, etc.)
               
    41) __________ is the process of working with people and resources to accomplish organizational goals.
    A.   Controlling B.   Decision making
    C.   Planning D.   Supervising E.   Management
    42) Twelve randomly-chosen students were asked how many times they had missed class during a certain semester, with this result: 2, 1, 5, 1, 1, 3, 4, 3, 1, 1, 5, 18.
    For this sample, the median is _____.
    A.   3 B.   3.5
    C.   2.5
    D.   2
    43) Use the following table to answer question:
     P(S | W) is approximately _____.
    A.   .40
    B.   .30
    C.   .12
    D.   .58
               
    44) Use the following table to answer question:
     P(M  A) is approximately _____.
    A.   .50 B.   .625
    C.   .125
    D.   .25
    45) Dullco Manufacturing claims that its alkaline batteries last forty hours on average in a certain type of portable CD player. Tests on a random sample of 18 batteries showed a mean battery life of 37.8 hours with a standard deviation of 5.4 hours.
    In determining the p-value for reporting the study's findings, which of the following is true?
    A.   The p-value is equal to .05. B.   The p-value is greater than .05. C.   The p-value cannot be determined without specifying  . D.   The p-value is less than .05.
    46) William used a sample of 68 U.S. cities to estimate the relationship between Crime (annual property crimes per 100,000 persons) and Income (median income per capita). His estimated regression equation was Crime = 428 + .050 Income.
    Which outcomes would be likely in a bivariate regression on 45 randomly chosen U.S. cities in 2005 with
    Y = number of robberies in each city (thousands of robberies) and
    X = size of police force in each city (thousands of police)?
    A.   High R2 (due to city size). B.   Positive slope (due to city size).
    C.   No correlation. D.   Autocorrelation.
    47) Twelve randomly-chosen students were asked how many times they had missed class during a certain semester, with this result: 2, 1, 5, 1, 1, 3, 4, 3, 1, 1, 5, 18.
    For this sample, which measure of central tendency is least representative of the “typical” student?
    A.   Midrange
    B.   Mean C.   Mode D.   Median
               
    48) Likely reasons for inaccurate control limits would include which of the following?
    A.   Process variation was not zero, as expected. B.   The engineering parameter for variance is unknown.
    C.   There was insufficient preliminary sampling. D.   The engineers were underpaid for their work.
    49) You are faced with a linear programming objective function of:
    Max P = $20X + $30Y
    and constraints of:
    3X + 4Y = 24 (Constraint A)
    5X – Y = 18 (Constraint B)
    You discover that the shadow price for Constraint A is 7.5 and the shadow price for Constraint B is 0. Which of these statements is TRUE?
    A.   The most you would want to pay for an additional unit of A would be $7.50.
    B.   You can change quantities of X and Y at no cost for Constraint B. C.   For every additional unit of the objective function you create, the price of A rises by $7.50.
    D.   For every additional unit of the objective function you create, you lose 0 units of B.
               
    50) A project has three paths. A–B–C has a length of 25 days. A–D–C has a length of 15 days. Finally, A–E–C has a length of 20 days. Which one of the following statements is TRUE?
    A.   The expected duration of this project is 25 + 15 + 20 = 60 days.
    B.   A–D–C is the critical path. C.   The expected duration of this project is 25 days. D.   A–B–C has the most slack.
    51) Which one of the following statements concerning production and staffing plans is best?
    A.   A master production schedule is a projected statement of income, costs, and profits.
    B.   Aggregation can be performed along three dimensions: product families, labor, and time.
    C.   Production plans are based primarily on information from the master production plan.
    D.   A staffing plan is the intermediate link between the business plan and the master production schedule.
               
    52) While glancing over the sensitivity report, you note that the stitching labor has a shadow price of $10 and a lower limit of 24 hours with an upper limit of 36 hours. If your original right hand value for stitching labor was 30 hours, you know that:
    A.   you would lose $80 if one of your workers missed an entire 8 hour shift. B.   the next worker that offers to work an extra 8 hours should receive at least $80.
    C.   you would be willing pay up to $60 for someone to work another 6 hours.
    D.   you can send someone home 6 hours early and still pay them the $60 they would have earned while on the clock.

    53) The costs of delivering products in the _____ channel are much higher than delivering products in the _____ channel.
    A.   physical, digital B.   e-commerce, digital
    C.   physical, financial D.   digital, e-commerce
    E.   digital, physical
    54) When customers access a Web site and make purchases, they generate __________.
    A.   Tracking cookies B.   Web data C.   Information D.   Clickstream data
    E.   Hyperlink data
    55) _____ is the integration of economic, social, cultural, and ecological facets of life, enabled by information.
    A.   regionalization B.   globalization C.   nationalization D.   business environment
               
    56) Various organizations that promote fair and responsible use of information systems often develop __________.
    A.   a code of ethics B.   responsibility charters
    C.   a strategic plan D.   a mission statement E.   a goals outline
    57) What is _____ is not necessarily _____.
    A.   Illegal, unethical B.   Unethical, legal C.   Ethical, illegal D.   Unethical, illegal
    E.   Ethical, legal
    58) _____ provides users with a view of what is happening, where _____ addresses why it is happening.
    A.   Multidimensional data analysis, structured query language
    B.   Multidimensional data analysis, neural networks C.   Data mining, multidimensional data analysis D.   Data mining, expert system E.   Multidimensional data analysis, data mining
    59) Computer support is greatest for which of the following problems?
    A.   Semistructured and strategic planning B.   Semistructured and management control
    C.   Unstructured and operational control D.   Structured and operational control E.   Structured and management control
    60) The management cockpit best exemplifies which type of system?
    A.   Decision support system B.   Functional area information system
    C.   Expert system D.   Digital dashboard E.   Group decision support system
    61) _____ is the efficient and effective execution of specific tasks.
    A.   Operational control
    B.   Expertise C.   Management control
    D.   Strategic planning E.   Wisdom
    62) Geocoding is __________.
    A.   accessing geographical information B.   integrating maps with spatially oriented databases and other databases
    C.   integrating organizational transactions with spatially oriented databases D.   programming spatially oriented databases E.   encrypting spatial information
    63) At 8% compounded annually, how long will it take $750 to double?
    A.   48 months
    B.   6.5 years C.   9 years D.   12 years
    64) Which of the following represents an attempt to measure the earnings of the firm’s operations over a given time period?
    A.   Cash flow statement
    B.   Balance sheet C.   Income statement D.   Quarterly statement
               
    65) A machine costs $1,000, has a three-year life, and has an estimated salvage value of $100. It will generate after-tax annual cash flows (ACF) of $600 a year, starting next year. If your required rate of return for the project is 10%, what is the NPV of this investment? (Round your answerwer to the nearest $10.)
    A.   $570 B.   $490 C.   $900 D.   -$150
               
    66) Disadvantages of using current liabilities as opposed to long-term debt include:
    A.   higher cash flow exposure B.   greater risk of illiquidity, and uncertainty of interest costs
    C.   decreased risk of liquidity D.   certainty of interest costs E.   uncertainty of future liabilities
    67) Petrified Forest Skin Care, Inc. pays an annual perpetual dividend of $1.70 per share. If the stock is currently selling for $21.25 per share, what is the expected rate of return on this stock?
    A.   12.5% B.   36.13%
    C.   8.0% D.   13.6%
    68) Which of the following is most consistent with the hedging principle in working capital management?
    A.   Fixed assets should be financed with short-term notes payable. B.   Inventory should be financed with preferred stock. C.   Accounts receivable should be financed with short-term lines of credit.
    D.   Borrow on a floating rate basis to finance investments in permanent assets.
               
    69) An increase in future value can be caused by an increase in the __________.
    A.   original amount invested B.   annual interest rate and number of compounding periods
    C.   rate of return D.   dividends paid E.   starting value
    70) If the quote for a forward exchange contract is greater than the computed price, the forward contract is:
    A.   at equilibrium.
    B.   undervalued. C.   a good buy. D.   overvalued.
    71) Your company is considering an investment in a project which would require an initial outlay of $300,000 and produce expected cash flows in Years 1 through 5 of $87,385 per year. You have determined that the current after-tax cost of the firm’s capital (required rate of return) for each source of financing is as follows:
    Cost of debt     8%
    Cost of preferred stock           12%
    Cost of common stock            16%
    Long-term debt currently makes up 20% of the capital structure, preferred stock 10%, and common stock 70%. What is the net present value of this project?
    A.   $1,568
    B.   $871 C.   $1,241
    D.   $463
    72) Suppose you determine that the NPV of a project is $1,525,855. What does that mean?
    A.   The project’s IRR would have to be less that the firm’s discount rate. B.   The project would add value to the firm. C.   Under all conditions, the project’s payback would be less than the profitability index.
    D.   In all cases, investing in this project would be better than investing in a project that has an NPV of $850,000.
               
    73) The common stockholders are most concerned with:
    A.   the spread between the return generated on new investments and the investor’s required rate of return.
    B.   the size of the firm’s beginning earnings per share. C.   the risk of the investment. D.   the percentage of profits retained.
    74) PepsiCo calculates unlevered betas for each peer group in order to:
    A.   eliminate different financial risks.
    B.   eliminate competitive factors. C.   eliminate judgment factors. D.   eliminate different business risks.
    75) Which of the following best represents operating income?
    A.   Income from discontinued operations
    B.   Earnings before interest and taxes C.   Income from capital gains D.   Income after financing activities
    76) In comparison to the buying of final consumers, the purchasing of organizational buyers:
    A.   is even less predictable. B.   leans basically toward economy, quality, and dependability.
    C.   is always emotional. D.   is strictly economic and not at all emotional. E.   is always based on competitive bids from multiple suppliers.
               
    77) The basic objective of the U.S. market-directed economic system is to:
    A.   achieve an annual growth rate of at least 10 percent. B.   provide each person with an equal share of the economic output.
    C.   make the most efficient use of the country's resources. D.   minimize inflation. E.   satisfy consumer needs as they--the consumers--see them.
    78) Comparing GDP for foreign countries can help a marketing manager evaluate potential markets if the manager remembers that:
    A.   GDP measures show people's tendency to buy particular products. B.   income tends to be evenly distributed among consumers in most countries. C.   GDP estimates may not be very accurate for very different cultures and economies.
    D.   Other countries most likely don’t use the US Dollar as their primary currency.
    E.   GDP measures show the degree of competition in a market.
    79) A firm's "marketing mix" decision areas would NOT include:
    A.   Promotion.
    B.   People. C.   Price. D.   Place. E.   Product.
    80) __________ is a marketing management aid which refers to how customers think about proposed and/or present brands in a market.
    A.   Brand familiarity B.   Positioning
    C.   Market scanning D.   Customer relationship management (CRM)
    E.   Market segmentation
    81) The "four Ps" of a marketing mix are:
    A.   Production, Personnel, Price, and Physical Distribution
    B.   Promotion, Production, Price, and People C.   Potential customers, Product, Price, and Personal Selling
    D.   Product, Price, Promotion, and Profit E.   Product, Place, Promotion, and Price
    82) When evaluating macro-marketing:
    A.   the evaluation is necessarily subjective. B.   the best approach is to consider the profit generated by individual firms within the overall system.
    C.   one must determine how efficiently the society's resources are used. D.   one must consider the society’s role in the marketing system. E.   one must consider each individual firm's role in the marketing system.
    83) A cluster analysis of the "toothpaste market" would probably show that:
    A.   the broad product-market can be served effectively with one marketing mix.
    B.   most consu
              56) Various organizations that promote fair and responsible use of information systems often develop __________. A. a code of ethics B. responsibility charters C. a strategic plan D. a mission statement E. a goals outline        

    BUS/475 Guide 4


    1) The cost principle requires that when assets are acquired, they be recorded at __________.
    A.   list price B.   selling price C.   exchange price paid D.   appraisal value
    2) "Generally accepted" in the phrase generally accepted accounting principles means that the principles __________.
    A.   have been approved for use by the managements of business firms
    B.   have been approved by the Internal Revenue Service C.   have substantial authoritative support D.   are proven theories of accounting
    3) The standards and rules that are recognized as a general guide for financial reporting are called __________.
    A.   standards of financial reporting B.   operating guidelines C.   generally accepted accounting principles D.   generally accepted accounting standards
    4) Sam's Used Cars uses the specific identification method of costing inventory. During March, Sam purchased three cars for $6,000, $7,500, and $9,750, respectively. During March, two cars are sold for $9,000 each. Sam determines that at March 31, the $9,750 car is still on hand. What is Sam’s gross profit for March?
    A.   $8,250
    B.   $750 C.   $4,500
    D.   $5,250
               
    5) Hess, Inc. sells a single product with a contribution margin of $12 per unit and fixed costs of $74,400 and sales for the current year of $100,000. How much is Hess’s break even point?
    A.   2,133 units
    B.   6,200 units
    C.   $25,600 D.   4,600 units
               
    6) As Plant Controller, you are trying to determine which costs over which you have the most control on a day to day basis. Your goal is to achieve better profitability. The Plant Operations Manager suggests that overhead is the easiest area to directly reduce costs. Which of the following items would be classified as manufacturing overhead?
    A.   The western division’s vice president’s salary
    B.   Cost of landscaping the corporate office C.   General corporate liability insurance D.   Factory janitor
    7) What is the preparation of reports for each level of responsibility in the company’s organization chart called?
    A.   Master budgeting analysis
    B.   Exception reporting C.   Responsibility reporting
    D.   Static reporting
    8) Disney’s variable costs are 30% of sales. The company is contemplating an advertising campaign that will cost $22,000. If sales are expected to increase $40,000, by how much will the company's net income increase?
    A.   $6,000 B.   $12,000
    C.   $28,000
    D.   $18,000
               
    9) The cost of an asset and its fair market value are __________.
    A.   never the same B.   irrelevant when the asset is used by the business in its operations
    C.   the same on the date of acquisition D.   the same when the asset is sold
    10) Which one of the following is a product cost?
    A.   Indirect labor B.   Sales person’s salaries
    C.   Advertising costs D.   Office salaries
    11) What exists when budgeted costs exceed actual results?
    A.   A budgeting error B.   An unfavorable difference
    C.   An excess profit D.   A favorable difference
    12) The income statement and balance sheet columns of Pine Company's worksheet reflects the following totals:
                            Income Statement                  Balance Sheet
                Dr.       Cr.                   Dr.       Cr.
    Totals              $58,000           $48,000                       $34,000           $44,000
               

    Closing entries are necessary for __________.
    A.   permanent accounts only B.   both permanent and temporary accounts
    C.   permanent or real accounts only D.   temporary accounts only
    13) Managerial accounting __________.
    A.   is concerned with costing products B.   pertains to the entity as a whole and is highly aggregated
    C.   places emphasis on special-purpose information D.   is governed by generally accepted accounting principles
               
    14) H55 Company sells two products, beer and wine. Beer has a 10 percent profit margin and wine has a 12 percent profit margin. Beer has a 27 percent contribution margin and wine has a 25 percent contribution margin. If other factors are equal, which product should H55 push to customers?
    A.   Beer B.   Selling either results in the same additional income for the company
    C.   It should sell an equal quantity of both D.   Wine
    15) Lekeisha's income exceeds her expenditures. Lekeisha is a __________.
    A.   saver who demands money from the financial system B.   borrower who demands money from the financial system
    C.   borrower who supplies money to the financial system D.   saver who supplies money to the financial system
    16) Maurice receives $100 as a birthday gift. In deciding how to spend the money, he narrows his options down to four choices: Option A, Option B, Option C, and Option D. Each option costs $100. Finally he decides on Option B. The opportunity cost of this decision is __________.
    A.   the value to Maurice of the option he would have chosen had Option B not been available
    B.   $100 C.   $300 D.   the value to Maurice of Options A, C and D combined
    17) A production possibilities frontier will be a straight line if __________.
    A.   the economy is producing efficiently B.   the economy is engaged in trade with at least one other economy C.   increasing the production of one good by x units entails no opportunity cost in terms of the other good
    D.   increasing the production of one good by x units entails a constant opportunity cost in terms of the other good
               
    18) In economics, the cost of something is __________.
    A.   what you give up to get it B.   often impossible to quantify, even in principle C.   the dollar amount of obtaining it D.   always measured in units of time given up to get it
               
    19) A tax on an imported good is called a __________.
    A.   supply tax
    B.   trade tax C.   quota D.   tariff
    20) Which of the following statements about GDP is correct?
    A.   GDP is to a nation’s economy as household income is to a household. B.   GDP increases if the total population increases. C.   GDP measures two things at once: the total income of everyone in the economy and the unemployment rate.
    D.   Money continuously flows from households to government and then back to households, and GDP measures this flow of money.
               
    21) In computing GDP, market prices are used to value final goods and services because __________.
    A.   if market prices are out of line with how people value goods, the government sets price ceilings and price floors
    B.   Market prices are not used in computing GDP C.   market prices reflect the values of goods and services D.   market prices do not change much over time, so it is easy to make comparisons between years

    22) Which of the following statements about GDP is correct?
    A.   Nominal GDP values production at market prices, whereas real GDP values production at the cost of the resources used in the production process.
    B.   Nominal GDP consistently underestimates the value of production, whereas real GDP consistently overestimates the value of production.
    C.   Nominal GDP values production at current prices, whereas real GDP values production at constant prices.
    D.   Nominal GDP values production at constant prices, whereas real GDP values production at current prices.
               
    23) Which of the following is not correct?
    A.   The U.S. debt per-person is large compared with average lifetime income.
    B.   In 2005, the U.S. government had a deficit. C.   A potential cost of deficits is that they reduce national saving, thereby reducing growth of the capital stock and output growth.
    D.   Deficits give people the opportunity to consume at the expense of their children, but they do not require them to do so.
               
    24) The part of the balance of payments account that lists all long-term flows of payments is called the:
    A.   balance of trade. B.   financial and capital account.
    C.   government financial account.
    D.   current account.
    25) Edward Prescott and Finn Kydland won the Nobel Prize in Economics in 2004. One of their contributions was to argue that if a central bank could convince people to expect zero inflation, then the Fed would be tempted to raise output by increasing inflation. This possibility is known as __________.
    A.   the sacrifice ratio dilemma B.   the monetary policy reaction lag
    C.   the time inconsistency of policy
    D.   inflation targeting
    26) In general, the longest lag for __________.
    A.   fiscal policy is the time it takes to change policy, while for monetary policy the longest lag is the time it takes for policy to affect aggregate demand
    B.   both fiscal and monetary policy is the time it takes for policy to affect aggregate demand
    C.   monetary policy is the time it takes to change policy, while for fiscal policy the longest lag is the time it takes for policy to affect aggregate demand
    D.   both fiscal and monetary policy is the time it takes to change policy
    27) Consider two items that might be included in GDP: (1) The estimated rental value of owner-occupied housing; and (2) purchases of newly-constructed homes. How are these two items accounted for when GDP is calculated?
    A.   Only item (2) is included in GDP and it is included in the investment component.
    B.   Item (1) is included in the consumption component, while item (2) is included in the investment component.
    C.   Item (1) is included in the investment component, while item (2) is included in the consumption component.
    D.   Both item (1) and item (2) are included in the consumption component of GDP.

    28) Managers will utilize __________ skills with increasing frequency as they rise within an organization.
    A.   Professional B.   Interpersonal and communication
    C.   Technical D.   Professional E.   Conceptual and decision
    29) Which of these represent skills that managers need?
    A.   Interpersonal, quantitative, and professional B.   Technical, interpersonal & communication and conceptual & decision making
    C.   Professional, technical and interpersonal & communication D.   Conceptual & decision making, professional and technical E.   Interpersonal & communication, conceptual & decision making and professional
               
    30) Building a dynamic organization is another way of describing which function of management?
    A.   Staffing B.   Organizing
    C.   Leading D.   Controlling
    E.   Planning
    31) Your roommate is interested in starting a business and everybody has been giving him different information about being an entrepreneur. Since you have been studying about entrepreneurship and new ventures, which of these would you tell him is true?
    A.   Anyone can start a business B.   All entrepreneurs need venture capital in order to get started C.   Successful entrepreneurs take very careful, calculated risks D.   Entrepreneurs are their own bosses and completely independent
    E.   Money should not be considered a start-up ingredient
    32) The term used to refer to all kinds of differences including religious affiliation, age, disability status, economic class and lifestyle in addition to gender, race, ethnicity and nationality is:
    A.   Diversity B.   Managerial ethics
    C.   Recruiting D.   Employment E.   Selection
    33) A manager's ability to stimulate people to be high performers is referred to as:
    A.   Planning B.   Supervising
    C.   Controlling
    D.   Organizing E.   Leading
    34) A series of quality standards developed by a committee working under the International Organization for Standardization to improve total quality in all businesses for the benefit of both producers and consumers is:
    A.   Total quality management B.   Customer-based integration C.   Computer-integrated manufacturing (CIM)
    D.   Just-in-time control (JIT)
    E.   ISO 9000
    35) Japanese manufacturers' kaizen (continuous improvement) programs enable them to maintain:
    A.   A strategic alliance B.   A homogeneous workforce C.   Positive working relationships with all employees
    D.   A Learning advantage over their competition E.   Larger, faster facilities
    36) Listening to employee suggestions, gaining support for organizational objectives and fostering an atmosphere of teamwork are all considered:
    A.   Technical skills B.   Conceptual C.   Professional skills D.   Interpersonal/communication skills
    E.   Diagnostic skills
    37) The basic components of an effective sexual harassment policy include the following EXCEPT:
    A.   To develop an organization wide policy on sexual harassment B.   To establish a means for ongoing training C.   To act immediately when employees complain of sexual harassment
    D.   To establish a performance appraisal system E.   To establish a formal complaint procedure
    38) Teams that operate separately from the regular work structure and exist temporarily are known as:
    A.   Management teams B.   Transnational teams
    C.   Self-managed teams
    D.   Parallel teams E.   Self-designing teams
               
    39) The Aquatic Center, Inc. periodically reviews the goals of the company. During the process, The Aquatic Center managers analyze their current strategies as compared to their competitors, determine goals that they will pursue and decide upon specific actions for each area of the company to take in pursuit of these goals. The Aquatic Center managers have been engaged in the management function of:
    A.   Goal Coordination
    B.   Controlling C.   Organizing D.   Staffing E.   Planning
    40) As related to managing of human resources, diversity refers to:
    A.   Differences in demographics (such as age, race, gender, disability status, lifestyle, veteran status, educational level, etc.)
    B.   Differences in pay methods (such as hourly, salaried, overtime, hazard-pay, commissioned, etc.)
    C.   Differences in employee benefit plans (such as pensions, insurance, vacations, memberships, etc.)
    D.   Differences in retention strategies (such as training, hiring, incentives, etc) E.   Differences in recruiting methods (such as newspapers, schools, flyers, magazines, agencies, etc.)
               
    41) __________ is the process of working with people and resources to accomplish organizational goals.
    A.   Controlling B.   Decision making
    C.   Planning D.   Supervising E.   Management
    42) Twelve randomly-chosen students were asked how many times they had missed class during a certain semester, with this result: 2, 1, 5, 1, 1, 3, 4, 3, 1, 1, 5, 18.
    For this sample, the median is _____.
    A.   3 B.   3.5
    C.   2.5
    D.   2
    43) Use the following table to answer question:
     P(S | W) is approximately _____.
    A.   .40
    B.   .30
    C.   .12
    D.   .58
               
    44) Use the following table to answer question:
     P(M  A) is approximately _____.
    A.   .50 B.   .625
    C.   .125
    D.   .25
    45) Dullco Manufacturing claims that its alkaline batteries last forty hours on average in a certain type of portable CD player. Tests on a random sample of 18 batteries showed a mean battery life of 37.8 hours with a standard deviation of 5.4 hours.
    In determining the p-value for reporting the study's findings, which of the following is true?
    A.   The p-value is equal to .05. B.   The p-value is greater than .05. C.   The p-value cannot be determined without specifying  . D.   The p-value is less than .05.
    46) William used a sample of 68 U.S. cities to estimate the relationship between Crime (annual property crimes per 100,000 persons) and Income (median income per capita). His estimated regression equation was Crime = 428 + .050 Income.
    Which outcomes would be likely in a bivariate regression on 45 randomly chosen U.S. cities in 2005 with
    Y = number of robberies in each city (thousands of robberies) and
    X = size of police force in each city (thousands of police)?
    A.   High R2 (due to city size). B.   Positive slope (due to city size).
    C.   No correlation. D.   Autocorrelation.
    47) Twelve randomly-chosen students were asked how many times they had missed class during a certain semester, with this result: 2, 1, 5, 1, 1, 3, 4, 3, 1, 1, 5, 18.
    For this sample, which measure of central tendency is least representative of the “typical” student?
    A.   Midrange
    B.   Mean C.   Mode D.   Median
               
    48) Likely reasons for inaccurate control limits would include which of the following?
    A.   Process variation was not zero, as expected. B.   The engineering parameter for variance is unknown.
    C.   There was insufficient preliminary sampling. D.   The engineers were underpaid for their work.
    49) You are faced with a linear programming objective function of:
    Max P = $20X + $30Y
    and constraints of:
    3X + 4Y = 24 (Constraint A)
    5X – Y = 18 (Constraint B)
    You discover that the shadow price for Constraint A is 7.5 and the shadow price for Constraint B is 0. Which of these statements is TRUE?
    A.   The most you would want to pay for an additional unit of A would be $7.50.
    B.   You can change quantities of X and Y at no cost for Constraint B. C.   For every additional unit of the objective function you create, the price of A rises by $7.50.
    D.   For every additional unit of the objective function you create, you lose 0 units of B.
               
    50) A project has three paths. A–B–C has a length of 25 days. A–D–C has a length of 15 days. Finally, A–E–C has a length of 20 days. Which one of the following statements is TRUE?
    A.   The expected duration of this project is 25 + 15 + 20 = 60 days.
    B.   A–D–C is the critical path. C.   The expected duration of this project is 25 days. D.   A–B–C has the most slack.
    51) Which one of the following statements concerning production and staffing plans is best?
    A.   A master production schedule is a projected statement of income, costs, and profits.
    B.   Aggregation can be performed along three dimensions: product families, labor, and time.
    C.   Production plans are based primarily on information from the master production plan.
    D.   A staffing plan is the intermediate link between the business plan and the master production schedule.
               
    52) While glancing over the sensitivity report, you note that the stitching labor has a shadow price of $10 and a lower limit of 24 hours with an upper limit of 36 hours. If your original right hand value for stitching labor was 30 hours, you know that:
    A.   you would lose $80 if one of your workers missed an entire 8 hour shift. B.   the next worker that offers to work an extra 8 hours should receive at least $80.
    C.   you would be willing pay up to $60 for someone to work another 6 hours.
    D.   you can send someone home 6 hours early and still pay them the $60 they would have earned while on the clock.

    53) The costs of delivering products in the _____ channel are much higher than delivering products in the _____ channel.
    A.   physical, digital B.   e-commerce, digital
    C.   physical, financial D.   digital, e-commerce
    E.   digital, physical
    54) When customers access a Web site and make purchases, they generate __________.
    A.   Tracking cookies B.   Web data C.   Information D.   Clickstream data
    E.   Hyperlink data
    55) _____ is the integration of economic, social, cultural, and ecological facets of life, enabled by information.
    A.   regionalization B.   globalization C.   nationalization D.   business environment
               
    56) Various organizations that promote fair and responsible use of information systems often develop __________.
    A.   a code of ethics B.   responsibility charters
    C.   a strategic plan D.   a mission statement E.   a goals outline
    57) What is _____ is not necessarily _____.
    A.   Illegal, unethical B.   Unethical, legal C.   Ethical, illegal D.   Unethical, illegal
    E.   Ethical, legal
    58) _____ provides users with a view of what is happening, where _____ addresses why it is happening.
    A.   Multidimensional data analysis, structured query language
    B.   Multidimensional data analysis, neural networks C.   Data mining, multidimensional data analysis D.   Data mining, expert system E.   Multidimensional data analysis, data mining
    59) Computer support is greatest for which of the following problems?
    A.   Semistructured and strategic planning B.   Semistructured and management control
    C.   Unstructured and operational control D.   Structured and operational control E.   Structured and management control
    60) The management cockpit best exemplifies which type of system?
    A.   Decision support system B.   Functional area information system
    C.   Expert system D.   Digital dashboard E.   Group decision support system
    61) _____ is the efficient and effective execution of specific tasks.
    A.   Operational control
    B.   Expertise C.   Management control
    D.   Strategic planning E.   Wisdom
    62) Geocoding is __________.
    A.   accessing geographical information B.   integrating maps with spatially oriented databases and other databases
    C.   integrating organizational transactions with spatially oriented databases D.   programming spatially oriented databases E.   encrypting spatial information
    63) At 8% compounded annually, how long will it take $750 to double?
    A.   48 months
    B.   6.5 years C.   9 years D.   12 years
    64) Which of the following represents an attempt to measure the earnings of the firm’s operations over a given time period?
    A.   Cash flow statement
    B.   Balance sheet C.   Income statement D.   Quarterly statement
               
    65) A machine costs $1,000, has a three-year life, and has an estimated salvage value of $100. It will generate after-tax annual cash flows (ACF) of $600 a year, starting next year. If your required rate of return for the project is 10%, what is the NPV of this investment? (Round your answerwer to the nearest $10.)
    A.   $570 B.   $490 C.   $900 D.   -$150
               
    66) Disadvantages of using current liabilities as opposed to long-term debt include:
    A.   higher cash flow exposure B.   greater risk of illiquidity, and uncertainty of interest costs
    C.   decreased risk of liquidity D.   certainty of interest costs E.   uncertainty of future liabilities
    67) Petrified Forest Skin Care, Inc. pays an annual perpetual dividend of $1.70 per share. If the stock is currently selling for $21.25 per share, what is the expected rate of return on this stock?
    A.   12.5% B.   36.13%
    C.   8.0% D.   13.6%
    68) Which of the following is most consistent with the hedging principle in working capital management?
    A.   Fixed assets should be financed with short-term notes payable. B.   Inventory should be financed with preferred stock. C.   Accounts receivable should be financed with short-term lines of credit.
    D.   Borrow on a floating rate basis to finance investments in permanent assets.
               
    69) An increase in future value can be caused by an increase in the __________.
    A.   original amount invested B.   annual interest rate and number of compounding periods
    C.   rate of return D.   dividends paid E.   starting value
    70) If the quote for a forward exchange contract is greater than the computed price, the forward contract is:
    A.   at equilibrium.
    B.   undervalued. C.   a good buy. D.   overvalued.
    71) Your company is considering an investment in a project which would require an initial outlay of $300,000 and produce expected cash flows in Years 1 through 5 of $87,385 per year. You have determined that the current after-tax cost of the firm’s capital (required rate of return) for each source of financing is as follows:
    Cost of debt     8%
    Cost of preferred stock           12%
    Cost of common stock            16%
    Long-term debt currently makes up 20% of the capital structure, preferred stock 10%, and common stock 70%. What is the net present value of this project?
    A.   $1,568
    B.   $871 C.   $1,241
    D.   $463
    72) Suppose you determine that the NPV of a project is $1,525,855. What does that mean?
    A.   The project’s IRR would have to be less that the firm’s discount rate. B.   The project would add value to the firm. C.   Under all conditions, the project’s payback would be less than the profitability index.
    D.   In all cases, investing in this project would be better than investing in a project that has an NPV of $850,000.
               
    73) The common stockholders are most concerned with:
    A.   the spread between the return generated on new investments and the investor’s required rate of return.
    B.   the size of the firm’s beginning earnings per share. C.   the risk of the investment. D.   the percentage of profits retained.
    74) PepsiCo calculates unlevered betas for each peer group in order to:
    A.   eliminate different financial risks.
    B.   eliminate competitive factors. C.   eliminate judgment factors. D.   eliminate different business risks.
    75) Which of the following best represents operating income?
    A.   Income from discontinued operations
    B.   Earnings before interest and taxes C.   Income from capital gains D.   Income after financing activities
    76) In comparison to the buying of final consumers, the purchasing of organizational buyers:
    A.   is even less predictable. B.   leans basically toward economy, quality, and dependability.
    C.   is always emotional. D.   is strictly economic and not at all emotional. E.   is always based on competitive bids from multiple suppliers.
               
    77) The basic objective of the U.S. market-directed economic system is to:
    A.   achieve an annual growth rate of at least 10 percent. B.   provide each person with an equal share of the economic output.
    C.   make the most efficient use of the country's resources. D.   minimize inflation. E.   satisfy consumer needs as they--the consumers--see them.
    78) Comparing GDP for foreign countries can help a marketing manager evaluate potential markets if the manager remembers that:
    A.   GDP measures show people's tendency to buy particular products. B.   income tends to be evenly distributed among consumers in most countries. C.   GDP estimates may not be very accurate for very different cultures and economies.
    D.   Other countries most likely don’t use the US Dollar as their primary currency.
    E.   GDP measures show the degree of competition in a market.
    79) A firm's "marketing mix" decision areas would NOT include:
    A.   Promotion.
    B.   People. C.   Price. D.   Place. E.   Product.
    80) __________ is a marketing management aid which refers to how customers think about proposed and/or present brands in a market.
    A.   Brand familiarity B.   Positioning
    C.   Market scanning D.   Customer relationship management (CRM)
    E.   Market segmentation
    81) The "four Ps" of a marketing mix are:
    A.   Production, Personnel, Price, and Physical Distribution
    B.   Promotion, Production, Price, and People C.   Potential customers, Product, Price, and Personal Selling
    D.   Product, Price, Promotion, and Profit E.   Product, Place, Promotion, and Price
    82) When evaluating macro-marketing:
    A.   the evaluation is necessarily subjective. B.   the best approach is to consider the profit generated by individual firms within the overall system.
    C.   one must determine how efficiently the society's resources are used. D.   one must consider the society’s role in the marketing system. E.   one must consider each individual firm's role in the marketing system.
    83) A cluster analysis of the "toothpaste market" would probably show that:
    A.   the broad product-market can be served effectively with one marketing mix.
    B.   most consu
              57) What is _____ is not necessarily _____. A. Illegal, unethical B. Unethical, legal C. Ethical, illegal D. Unethical, illegal E. Ethical, legal        

    BUS/475 Guide 4


    1) The cost principle requires that when assets are acquired, they be recorded at __________.
    A.   list price B.   selling price C.   exchange price paid D.   appraisal value
    2) "Generally accepted" in the phrase generally accepted accounting principles means that the principles __________.
    A.   have been approved for use by the managements of business firms
    B.   have been approved by the Internal Revenue Service C.   have substantial authoritative support D.   are proven theories of accounting
    3) The standards and rules that are recognized as a general guide for financial reporting are called __________.
    A.   standards of financial reporting B.   operating guidelines C.   generally accepted accounting principles D.   generally accepted accounting standards
    4) Sam's Used Cars uses the specific identification method of costing inventory. During March, Sam purchased three cars for $6,000, $7,500, and $9,750, respectively. During March, two cars are sold for $9,000 each. Sam determines that at March 31, the $9,750 car is still on hand. What is Sam’s gross profit for March?
    A.   $8,250
    B.   $750 C.   $4,500
    D.   $5,250
               
    5) Hess, Inc. sells a single product with a contribution margin of $12 per unit and fixed costs of $74,400 and sales for the current year of $100,000. How much is Hess’s break even point?
    A.   2,133 units
    B.   6,200 units
    C.   $25,600 D.   4,600 units
               
    6) As Plant Controller, you are trying to determine which costs over which you have the most control on a day to day basis. Your goal is to achieve better profitability. The Plant Operations Manager suggests that overhead is the easiest area to directly reduce costs. Which of the following items would be classified as manufacturing overhead?
    A.   The western division’s vice president’s salary
    B.   Cost of landscaping the corporate office C.   General corporate liability insurance D.   Factory janitor
    7) What is the preparation of reports for each level of responsibility in the company’s organization chart called?
    A.   Master budgeting analysis
    B.   Exception reporting C.   Responsibility reporting
    D.   Static reporting
    8) Disney’s variable costs are 30% of sales. The company is contemplating an advertising campaign that will cost $22,000. If sales are expected to increase $40,000, by how much will the company's net income increase?
    A.   $6,000 B.   $12,000
    C.   $28,000
    D.   $18,000
               
    9) The cost of an asset and its fair market value are __________.
    A.   never the same B.   irrelevant when the asset is used by the business in its operations
    C.   the same on the date of acquisition D.   the same when the asset is sold
    10) Which one of the following is a product cost?
    A.   Indirect labor B.   Sales person’s salaries
    C.   Advertising costs D.   Office salaries
    11) What exists when budgeted costs exceed actual results?
    A.   A budgeting error B.   An unfavorable difference
    C.   An excess profit D.   A favorable difference
    12) The income statement and balance sheet columns of Pine Company's worksheet reflects the following totals:
                            Income Statement                  Balance Sheet
                Dr.       Cr.                   Dr.       Cr.
    Totals              $58,000           $48,000                       $34,000           $44,000
               

    Closing entries are necessary for __________.
    A.   permanent accounts only B.   both permanent and temporary accounts
    C.   permanent or real accounts only D.   temporary accounts only
    13) Managerial accounting __________.
    A.   is concerned with costing products B.   pertains to the entity as a whole and is highly aggregated
    C.   places emphasis on special-purpose information D.   is governed by generally accepted accounting principles
               
    14) H55 Company sells two products, beer and wine. Beer has a 10 percent profit margin and wine has a 12 percent profit margin. Beer has a 27 percent contribution margin and wine has a 25 percent contribution margin. If other factors are equal, which product should H55 push to customers?
    A.   Beer B.   Selling either results in the same additional income for the company
    C.   It should sell an equal quantity of both D.   Wine
    15) Lekeisha's income exceeds her expenditures. Lekeisha is a __________.
    A.   saver who demands money from the financial system B.   borrower who demands money from the financial system
    C.   borrower who supplies money to the financial system D.   saver who supplies money to the financial system
    16) Maurice receives $100 as a birthday gift. In deciding how to spend the money, he narrows his options down to four choices: Option A, Option B, Option C, and Option D. Each option costs $100. Finally he decides on Option B. The opportunity cost of this decision is __________.
    A.   the value to Maurice of the option he would have chosen had Option B not been available
    B.   $100 C.   $300 D.   the value to Maurice of Options A, C and D combined
    17) A production possibilities frontier will be a straight line if __________.
    A.   the economy is producing efficiently B.   the economy is engaged in trade with at least one other economy C.   increasing the production of one good by x units entails no opportunity cost in terms of the other good
    D.   increasing the production of one good by x units entails a constant opportunity cost in terms of the other good
               
    18) In economics, the cost of something is __________.
    A.   what you give up to get it B.   often impossible to quantify, even in principle C.   the dollar amount of obtaining it D.   always measured in units of time given up to get it
               
    19) A tax on an imported good is called a __________.
    A.   supply tax
    B.   trade tax C.   quota D.   tariff
    20) Which of the following statements about GDP is correct?
    A.   GDP is to a nation’s economy as household income is to a household. B.   GDP increases if the total population increases. C.   GDP measures two things at once: the total income of everyone in the economy and the unemployment rate.
    D.   Money continuously flows from households to government and then back to households, and GDP measures this flow of money.
               
    21) In computing GDP, market prices are used to value final goods and services because __________.
    A.   if market prices are out of line with how people value goods, the government sets price ceilings and price floors
    B.   Market prices are not used in computing GDP C.   market prices reflect the values of goods and services D.   market prices do not change much over time, so it is easy to make comparisons between years

    22) Which of the following statements about GDP is correct?
    A.   Nominal GDP values production at market prices, whereas real GDP values production at the cost of the resources used in the production process.
    B.   Nominal GDP consistently underestimates the value of production, whereas real GDP consistently overestimates the value of production.
    C.   Nominal GDP values production at current prices, whereas real GDP values production at constant prices.
    D.   Nominal GDP values production at constant prices, whereas real GDP values production at current prices.
               
    23) Which of the following is not correct?
    A.   The U.S. debt per-person is large compared with average lifetime income.
    B.   In 2005, the U.S. government had a deficit. C.   A potential cost of deficits is that they reduce national saving, thereby reducing growth of the capital stock and output growth.
    D.   Deficits give people the opportunity to consume at the expense of their children, but they do not require them to do so.
               
    24) The part of the balance of payments account that lists all long-term flows of payments is called the:
    A.   balance of trade. B.   financial and capital account.
    C.   government financial account.
    D.   current account.
    25) Edward Prescott and Finn Kydland won the Nobel Prize in Economics in 2004. One of their contributions was to argue that if a central bank could convince people to expect zero inflation, then the Fed would be tempted to raise output by increasing inflation. This possibility is known as __________.
    A.   the sacrifice ratio dilemma B.   the monetary policy reaction lag
    C.   the time inconsistency of policy
    D.   inflation targeting
    26) In general, the longest lag for __________.
    A.   fiscal policy is the time it takes to change policy, while for monetary policy the longest lag is the time it takes for policy to affect aggregate demand
    B.   both fiscal and monetary policy is the time it takes for policy to affect aggregate demand
    C.   monetary policy is the time it takes to change policy, while for fiscal policy the longest lag is the time it takes for policy to affect aggregate demand
    D.   both fiscal and monetary policy is the time it takes to change policy
    27) Consider two items that might be included in GDP: (1) The estimated rental value of owner-occupied housing; and (2) purchases of newly-constructed homes. How are these two items accounted for when GDP is calculated?
    A.   Only item (2) is included in GDP and it is included in the investment component.
    B.   Item (1) is included in the consumption component, while item (2) is included in the investment component.
    C.   Item (1) is included in the investment component, while item (2) is included in the consumption component.
    D.   Both item (1) and item (2) are included in the consumption component of GDP.

    28) Managers will utilize __________ skills with increasing frequency as they rise within an organization.
    A.   Professional B.   Interpersonal and communication
    C.   Technical D.   Professional E.   Conceptual and decision
    29) Which of these represent skills that managers need?
    A.   Interpersonal, quantitative, and professional B.   Technical, interpersonal & communication and conceptual & decision making
    C.   Professional, technical and interpersonal & communication D.   Conceptual & decision making, professional and technical E.   Interpersonal & communication, conceptual & decision making and professional
               
    30) Building a dynamic organization is another way of describing which function of management?
    A.   Staffing B.   Organizing
    C.   Leading D.   Controlling
    E.   Planning
    31) Your roommate is interested in starting a business and everybody has been giving him different information about being an entrepreneur. Since you have been studying about entrepreneurship and new ventures, which of these would you tell him is true?
    A.   Anyone can start a business B.   All entrepreneurs need venture capital in order to get started C.   Successful entrepreneurs take very careful, calculated risks D.   Entrepreneurs are their own bosses and completely independent
    E.   Money should not be considered a start-up ingredient
    32) The term used to refer to all kinds of differences including religious affiliation, age, disability status, economic class and lifestyle in addition to gender, race, ethnicity and nationality is:
    A.   Diversity B.   Managerial ethics
    C.   Recruiting D.   Employment E.   Selection
    33) A manager's ability to stimulate people to be high performers is referred to as:
    A.   Planning B.   Supervising
    C.   Controlling
    D.   Organizing E.   Leading
    34) A series of quality standards developed by a committee working under the International Organization for Standardization to improve total quality in all businesses for the benefit of both producers and consumers is:
    A.   Total quality management B.   Customer-based integration C.   Computer-integrated manufacturing (CIM)
    D.   Just-in-time control (JIT)
    E.   ISO 9000
    35) Japanese manufacturers' kaizen (continuous improvement) programs enable them to maintain:
    A.   A strategic alliance B.   A homogeneous workforce C.   Positive working relationships with all employees
    D.   A Learning advantage over their competition E.   Larger, faster facilities
    36) Listening to employee suggestions, gaining support for organizational objectives and fostering an atmosphere of teamwork are all considered:
    A.   Technical skills B.   Conceptual C.   Professional skills D.   Interpersonal/communication skills
    E.   Diagnostic skills
    37) The basic components of an effective sexual harassment policy include the following EXCEPT:
    A.   To develop an organization wide policy on sexual harassment B.   To establish a means for ongoing training C.   To act immediately when employees complain of sexual harassment
    D.   To establish a performance appraisal system E.   To establish a formal complaint procedure
    38) Teams that operate separately from the regular work structure and exist temporarily are known as:
    A.   Management teams B.   Transnational teams
    C.   Self-managed teams
    D.   Parallel teams E.   Self-designing teams
               
    39) The Aquatic Center, Inc. periodically reviews the goals of the company. During the process, The Aquatic Center managers analyze their current strategies as compared to their competitors, determine goals that they will pursue and decide upon specific actions for each area of the company to take in pursuit of these goals. The Aquatic Center managers have been engaged in the management function of:
    A.   Goal Coordination
    B.   Controlling C.   Organizing D.   Staffing E.   Planning
    40) As related to managing of human resources, diversity refers to:
    A.   Differences in demographics (such as age, race, gender, disability status, lifestyle, veteran status, educational level, etc.)
    B.   Differences in pay methods (such as hourly, salaried, overtime, hazard-pay, commissioned, etc.)
    C.   Differences in employee benefit plans (such as pensions, insurance, vacations, memberships, etc.)
    D.   Differences in retention strategies (such as training, hiring, incentives, etc) E.   Differences in recruiting methods (such as newspapers, schools, flyers, magazines, agencies, etc.)
               
    41) __________ is the process of working with people and resources to accomplish organizational goals.
    A.   Controlling B.   Decision making
    C.   Planning D.   Supervising E.   Management
    42) Twelve randomly-chosen students were asked how many times they had missed class during a certain semester, with this result: 2, 1, 5, 1, 1, 3, 4, 3, 1, 1, 5, 18.
    For this sample, the median is _____.
    A.   3 B.   3.5
    C.   2.5
    D.   2
    43) Use the following table to answer question:
     P(S | W) is approximately _____.
    A.   .40
    B.   .30
    C.   .12
    D.   .58
               
    44) Use the following table to answer question:
     P(M  A) is approximately _____.
    A.   .50 B.   .625
    C.   .125
    D.   .25
    45) Dullco Manufacturing claims that its alkaline batteries last forty hours on average in a certain type of portable CD player. Tests on a random sample of 18 batteries showed a mean battery life of 37.8 hours with a standard deviation of 5.4 hours.
    In determining the p-value for reporting the study's findings, which of the following is true?
    A.   The p-value is equal to .05. B.   The p-value is greater than .05. C.   The p-value cannot be determined without specifying  . D.   The p-value is less than .05.
    46) William used a sample of 68 U.S. cities to estimate the relationship between Crime (annual property crimes per 100,000 persons) and Income (median income per capita). His estimated regression equation was Crime = 428 + .050 Income.
    Which outcomes would be likely in a bivariate regression on 45 randomly chosen U.S. cities in 2005 with
    Y = number of robberies in each city (thousands of robberies) and
    X = size of police force in each city (thousands of police)?
    A.   High R2 (due to city size). B.   Positive slope (due to city size).
    C.   No correlation. D.   Autocorrelation.
    47) Twelve randomly-chosen students were asked how many times they had missed class during a certain semester, with this result: 2, 1, 5, 1, 1, 3, 4, 3, 1, 1, 5, 18.
    For this sample, which measure of central tendency is least representative of the “typical” student?
    A.   Midrange
    B.   Mean C.   Mode D.   Median
               
    48) Likely reasons for inaccurate control limits would include which of the following?
    A.   Process variation was not zero, as expected. B.   The engineering parameter for variance is unknown.
    C.   There was insufficient preliminary sampling. D.   The engineers were underpaid for their work.
    49) You are faced with a linear programming objective function of:
    Max P = $20X + $30Y
    and constraints of:
    3X + 4Y = 24 (Constraint A)
    5X – Y = 18 (Constraint B)
    You discover that the shadow price for Constraint A is 7.5 and the shadow price for Constraint B is 0. Which of these statements is TRUE?
    A.   The most you would want to pay for an additional unit of A would be $7.50.
    B.   You can change quantities of X and Y at no cost for Constraint B. C.   For every additional unit of the objective function you create, the price of A rises by $7.50.
    D.   For every additional unit of the objective function you create, you lose 0 units of B.
               
    50) A project has three paths. A–B–C has a length of 25 days. A–D–C has a length of 15 days. Finally, A–E–C has a length of 20 days. Which one of the following statements is TRUE?
    A.   The expected duration of this project is 25 + 15 + 20 = 60 days.
    B.   A–D–C is the critical path. C.   The expected duration of this project is 25 days. D.   A–B–C has the most slack.
    51) Which one of the following statements concerning production and staffing plans is best?
    A.   A master production schedule is a projected statement of income, costs, and profits.
    B.   Aggregation can be performed along three dimensions: product families, labor, and time.
    C.   Production plans are based primarily on information from the master production plan.
    D.   A staffing plan is the intermediate link between the business plan and the master production schedule.
               
    52) While glancing over the sensitivity report, you note that the stitching labor has a shadow price of $10 and a lower limit of 24 hours with an upper limit of 36 hours. If your original right hand value for stitching labor was 30 hours, you know that:
    A.   you would lose $80 if one of your workers missed an entire 8 hour shift. B.   the next worker that offers to work an extra 8 hours should receive at least $80.
    C.   you would be willing pay up to $60 for someone to work another 6 hours.
    D.   you can send someone home 6 hours early and still pay them the $60 they would have earned while on the clock.

    53) The costs of delivering products in the _____ channel are much higher than delivering products in the _____ channel.
    A.   physical, digital B.   e-commerce, digital
    C.   physical, financial D.   digital, e-commerce
    E.   digital, physical
    54) When customers access a Web site and make purchases, they generate __________.
    A.   Tracking cookies B.   Web data C.   Information D.   Clickstream data
    E.   Hyperlink data
    55) _____ is the integration of economic, social, cultural, and ecological facets of life, enabled by information.
    A.   regionalization B.   globalization C.   nationalization D.   business environment
               
    56) Various organizations that promote fair and responsible use of information systems often develop __________.
    A.   a code of ethics B.   responsibility charters
    C.   a strategic plan D.   a mission statement E.   a goals outline
    57) What is _____ is not necessarily _____.
    A.   Illegal, unethical B.   Unethical, legal C.   Ethical, illegal D.   Unethical, illegal
    E.   Ethical, legal
    58) _____ provides users with a view of what is happening, where _____ addresses why it is happening.
    A.   Multidimensional data analysis, structured query language
    B.   Multidimensional data analysis, neural networks C.   Data mining, multidimensional data analysis D.   Data mining, expert system E.   Multidimensional data analysis, data mining
    59) Computer support is greatest for which of the following problems?
    A.   Semistructured and strategic planning B.   Semistructured and management control
    C.   Unstructured and operational control D.   Structured and operational control E.   Structured and management control
    60) The management cockpit best exemplifies which type of system?
    A.   Decision support system B.   Functional area information system
    C.   Expert system D.   Digital dashboard E.   Group decision support system
    61) _____ is the efficient and effective execution of specific tasks.
    A.   Operational control
    B.   Expertise C.   Management control
    D.   Strategic planning E.   Wisdom
    62) Geocoding is __________.
    A.   accessing geographical information B.   integrating maps with spatially oriented databases and other databases
    C.   integrating organizational transactions with spatially oriented databases D.   programming spatially oriented databases E.   encrypting spatial information
    63) At 8% compounded annually, how long will it take $750 to double?
    A.   48 months
    B.   6.5 years C.   9 years D.   12 years
    64) Which of the following represents an attempt to measure the earnings of the firm’s operations over a given time period?
    A.   Cash flow statement
    B.   Balance sheet C.   Income statement D.   Quarterly statement
               
    65) A machine costs $1,000, has a three-year life, and has an estimated salvage value of $100. It will generate after-tax annual cash flows (ACF) of $600 a year, starting next year. If your required rate of return for the project is 10%, what is the NPV of this investment? (Round your answerwer to the nearest $10.)
    A.   $570 B.   $490 C.   $900 D.   -$150
               
    66) Disadvantages of using current liabilities as opposed to long-term debt include:
    A.   higher cash flow exposure B.   greater risk of illiquidity, and uncertainty of interest costs
    C.   decreased risk of liquidity D.   certainty of interest costs E.   uncertainty of future liabilities
    67) Petrified Forest Skin Care, Inc. pays an annual perpetual dividend of $1.70 per share. If the stock is currently selling for $21.25 per share, what is the expected rate of return on this stock?
    A.   12.5% B.   36.13%
    C.   8.0% D.   13.6%
    68) Which of the following is most consistent with the hedging principle in working capital management?
    A.   Fixed assets should be financed with short-term notes payable. B.   Inventory should be financed with preferred stock. C.   Accounts receivable should be financed with short-term lines of credit.
    D.   Borrow on a floating rate basis to finance investments in permanent assets.
               
    69) An increase in future value can be caused by an increase in the __________.
    A.   original amount invested B.   annual interest rate and number of compounding periods
    C.   rate of return D.   dividends paid E.   starting value
    70) If the quote for a forward exchange contract is greater than the computed price, the forward contract is:
    A.   at equilibrium.
    B.   undervalued. C.   a good buy. D.   overvalued.
    71) Your company is considering an investment in a project which would require an initial outlay of $300,000 and produce expected cash flows in Years 1 through 5 of $87,385 per year. You have determined that the current after-tax cost of the firm’s capital (required rate of return) for each source of financing is as follows:
    Cost of debt     8%
    Cost of preferred stock           12%
    Cost of common stock            16%
    Long-term debt currently makes up 20% of the capital structure, preferred stock 10%, and common stock 70%. What is the net present value of this project?
    A.   $1,568
    B.   $871 C.   $1,241
    D.   $463
    72) Suppose you determine that the NPV of a project is $1,525,855. What does that mean?
    A.   The project’s IRR would have to be less that the firm’s discount rate. B.   The project would add value to the firm. C.   Under all conditions, the project’s payback would be less than the profitability index.
    D.   In all cases, investing in this project would be better than investing in a project that has an NPV of $850,000.
               
    73) The common stockholders are most concerned with:
    A.   the spread between the return generated on new investments and the investor’s required rate of return.
    B.   the size of the firm’s beginning earnings per share. C.   the risk of the investment. D.   the percentage of profits retained.
    74) PepsiCo calculates unlevered betas for each peer group in order to:
    A.   eliminate different financial risks.
    B.   eliminate competitive factors. C.   eliminate judgment factors. D.   eliminate different business risks.
    75) Which of the following best represents operating income?
    A.   Income from discontinued operations
    B.   Earnings before interest and taxes C.   Income from capital gains D.   Income after financing activities
    76) In comparison to the buying of final consumers, the purchasing of organizational buyers:
    A.   is even less predictable. B.   leans basically toward economy, quality, and dependability.
    C.   is always emotional. D.   is strictly economic and not at all emotional. E.   is always based on competitive bids from multiple suppliers.
               
    77) The basic objective of the U.S. market-directed economic system is to:
    A.   achieve an annual growth rate of at least 10 percent. B.   provide each person with an equal share of the economic output.
    C.   make the most efficient use of the country's resources. D.   minimize inflation. E.   satisfy consumer needs as they--the consumers--see them.
    78) Comparing GDP for foreign countries can help a marketing manager evaluate potential markets if the manager remembers that:
    A.   GDP measures show people's tendency to buy particular products. B.   income tends to be evenly distributed among consumers in most countries. C.   GDP estimates may not be very accurate for very different cultures and economies.
    D.   Other countries most likely don’t use the US Dollar as their primary currency.
    E.   GDP measures show the degree of competition in a market.
    79) A firm's "marketing mix" decision areas would NOT include:
    A.   Promotion.
    B.   People. C.   Price. D.   Place. E.   Product.
    80) __________ is a marketing management aid which refers to how customers think about proposed and/or present brands in a market.
    A.   Brand familiarity B.   Positioning
    C.   Market scanning D.   Customer relationship management (CRM)
    E.   Market segmentation
    81) The "four Ps" of a marketing mix are:
    A.   Production, Personnel, Price, and Physical Distribution
    B.   Promotion, Production, Price, and People C.   Potential customers, Product, Price, and Personal Selling
    D.   Product, Price, Promotion, and Profit E.   Product, Place, Promotion, and Price
    82) When evaluating macro-marketing:
    A.   the evaluation is necessarily subjective. B.   the best approach is to consider the profit generated by individual firms within the overall system.
    C.   one must determine how efficiently the society's resources are used. D.   one must consider the society’s role in the marketing system. E.   one must consider each individual firm's role in the marketing system.
    83) A cluster analysis of the "toothpaste market" would probably show that:
    A.   the broad product-market can be served effectively with one marketing mix.
    B.   most consu
              58) _____ provides users with a view of what is happening, where _____ addresses why it is happening. A. Multidimensional data analysis, structured query language B. Multidimensional data analysis, neural networks C. Data mining, multidimensional data analysis D. Data mining, expert system E. Multidimensional data analysis, data mining        

    BUS/475 Guide 4


    1) The cost principle requires that when assets are acquired, they be recorded at __________.
    A.   list price B.   selling price C.   exchange price paid D.   appraisal value
    2) "Generally accepted" in the phrase generally accepted accounting principles means that the principles __________.
    A.   have been approved for use by the managements of business firms
    B.   have been approved by the Internal Revenue Service C.   have substantial authoritative support D.   are proven theories of accounting
    3) The standards and rules that are recognized as a general guide for financial reporting are called __________.
    A.   standards of financial reporting B.   operating guidelines C.   generally accepted accounting principles D.   generally accepted accounting standards
    4) Sam's Used Cars uses the specific identification method of costing inventory. During March, Sam purchased three cars for $6,000, $7,500, and $9,750, respectively. During March, two cars are sold for $9,000 each. Sam determines that at March 31, the $9,750 car is still on hand. What is Sam’s gross profit for March?
    A.   $8,250
    B.   $750 C.   $4,500
    D.   $5,250
               
    5) Hess, Inc. sells a single product with a contribution margin of $12 per unit and fixed costs of $74,400 and sales for the current year of $100,000. How much is Hess’s break even point?
    A.   2,133 units
    B.   6,200 units
    C.   $25,600 D.   4,600 units
               
    6) As Plant Controller, you are trying to determine which costs over which you have the most control on a day to day basis. Your goal is to achieve better profitability. The Plant Operations Manager suggests that overhead is the easiest area to directly reduce costs. Which of the following items would be classified as manufacturing overhead?
    A.   The western division’s vice president’s salary
    B.   Cost of landscaping the corporate office C.   General corporate liability insurance D.   Factory janitor
    7) What is the preparation of reports for each level of responsibility in the company’s organization chart called?
    A.   Master budgeting analysis
    B.   Exception reporting C.   Responsibility reporting
    D.   Static reporting
    8) Disney’s variable costs are 30% of sales. The company is contemplating an advertising campaign that will cost $22,000. If sales are expected to increase $40,000, by how much will the company's net income increase?
    A.   $6,000 B.   $12,000
    C.   $28,000
    D.   $18,000
               
    9) The cost of an asset and its fair market value are __________.
    A.   never the same B.   irrelevant when the asset is used by the business in its operations
    C.   the same on the date of acquisition D.   the same when the asset is sold
    10) Which one of the following is a product cost?
    A.   Indirect labor B.   Sales person’s salaries
    C.   Advertising costs D.   Office salaries
    11) What exists when budgeted costs exceed actual results?
    A.   A budgeting error B.   An unfavorable difference
    C.   An excess profit D.   A favorable difference
    12) The income statement and balance sheet columns of Pine Company's worksheet reflects the following totals:
                            Income Statement                  Balance Sheet
                Dr.       Cr.                   Dr.       Cr.
    Totals              $58,000           $48,000                       $34,000           $44,000
               

    Closing entries are necessary for __________.
    A.   permanent accounts only B.   both permanent and temporary accounts
    C.   permanent or real accounts only D.   temporary accounts only
    13) Managerial accounting __________.
    A.   is concerned with costing products B.   pertains to the entity as a whole and is highly aggregated
    C.   places emphasis on special-purpose information D.   is governed by generally accepted accounting principles
               
    14) H55 Company sells two products, beer and wine. Beer has a 10 percent profit margin and wine has a 12 percent profit margin. Beer has a 27 percent contribution margin and wine has a 25 percent contribution margin. If other factors are equal, which product should H55 push to customers?
    A.   Beer B.   Selling either results in the same additional income for the company
    C.   It should sell an equal quantity of both D.   Wine
    15) Lekeisha's income exceeds her expenditures. Lekeisha is a __________.
    A.   saver who demands money from the financial system B.   borrower who demands money from the financial system
    C.   borrower who supplies money to the financial system D.   saver who supplies money to the financial system
    16) Maurice receives $100 as a birthday gift. In deciding how to spend the money, he narrows his options down to four choices: Option A, Option B, Option C, and Option D. Each option costs $100. Finally he decides on Option B. The opportunity cost of this decision is __________.
    A.   the value to Maurice of the option he would have chosen had Option B not been available
    B.   $100 C.   $300 D.   the value to Maurice of Options A, C and D combined
    17) A production possibilities frontier will be a straight line if __________.
    A.   the economy is producing efficiently B.   the economy is engaged in trade with at least one other economy C.   increasing the production of one good by x units entails no opportunity cost in terms of the other good
    D.   increasing the production of one good by x units entails a constant opportunity cost in terms of the other good
               
    18) In economics, the cost of something is __________.
    A.   what you give up to get it B.   often impossible to quantify, even in principle C.   the dollar amount of obtaining it D.   always measured in units of time given up to get it
               
    19) A tax on an imported good is called a __________.
    A.   supply tax
    B.   trade tax C.   quota D.   tariff
    20) Which of the following statements about GDP is correct?
    A.   GDP is to a nation’s economy as household income is to a household. B.   GDP increases if the total population increases. C.   GDP measures two things at once: the total income of everyone in the economy and the unemployment rate.
    D.   Money continuously flows from households to government and then back to households, and GDP measures this flow of money.
               
    21) In computing GDP, market prices are used to value final goods and services because __________.
    A.   if market prices are out of line with how people value goods, the government sets price ceilings and price floors
    B.   Market prices are not used in computing GDP C.   market prices reflect the values of goods and services D.   market prices do not change much over time, so it is easy to make comparisons between years

    22) Which of the following statements about GDP is correct?
    A.   Nominal GDP values production at market prices, whereas real GDP values production at the cost of the resources used in the production process.
    B.   Nominal GDP consistently underestimates the value of production, whereas real GDP consistently overestimates the value of production.
    C.   Nominal GDP values production at current prices, whereas real GDP values production at constant prices.
    D.   Nominal GDP values production at constant prices, whereas real GDP values production at current prices.
               
    23) Which of the following is not correct?
    A.   The U.S. debt per-person is large compared with average lifetime income.
    B.   In 2005, the U.S. government had a deficit. C.   A potential cost of deficits is that they reduce national saving, thereby reducing growth of the capital stock and output growth.
    D.   Deficits give people the opportunity to consume at the expense of their children, but they do not require them to do so.
               
    24) The part of the balance of payments account that lists all long-term flows of payments is called the:
    A.   balance of trade. B.   financial and capital account.
    C.   government financial account.
    D.   current account.
    25) Edward Prescott and Finn Kydland won the Nobel Prize in Economics in 2004. One of their contributions was to argue that if a central bank could convince people to expect zero inflation, then the Fed would be tempted to raise output by increasing inflation. This possibility is known as __________.
    A.   the sacrifice ratio dilemma B.   the monetary policy reaction lag
    C.   the time inconsistency of policy
    D.   inflation targeting
    26) In general, the longest lag for __________.
    A.   fiscal policy is the time it takes to change policy, while for monetary policy the longest lag is the time it takes for policy to affect aggregate demand
    B.   both fiscal and monetary policy is the time it takes for policy to affect aggregate demand
    C.   monetary policy is the time it takes to change policy, while for fiscal policy the longest lag is the time it takes for policy to affect aggregate demand
    D.   both fiscal and monetary policy is the time it takes to change policy
    27) Consider two items that might be included in GDP: (1) The estimated rental value of owner-occupied housing; and (2) purchases of newly-constructed homes. How are these two items accounted for when GDP is calculated?
    A.   Only item (2) is included in GDP and it is included in the investment component.
    B.   Item (1) is included in the consumption component, while item (2) is included in the investment component.
    C.   Item (1) is included in the investment component, while item (2) is included in the consumption component.
    D.   Both item (1) and item (2) are included in the consumption component of GDP.

    28) Managers will utilize __________ skills with increasing frequency as they rise within an organization.
    A.   Professional B.   Interpersonal and communication
    C.   Technical D.   Professional E.   Conceptual and decision
    29) Which of these represent skills that managers need?
    A.   Interpersonal, quantitative, and professional B.   Technical, interpersonal & communication and conceptual & decision making
    C.   Professional, technical and interpersonal & communication D.   Conceptual & decision making, professional and technical E.   Interpersonal & communication, conceptual & decision making and professional
               
    30) Building a dynamic organization is another way of describing which function of management?
    A.   Staffing B.   Organizing
    C.   Leading D.   Controlling
    E.   Planning
    31) Your roommate is interested in starting a business and everybody has been giving him different information about being an entrepreneur. Since you have been studying about entrepreneurship and new ventures, which of these would you tell him is true?
    A.   Anyone can start a business B.   All entrepreneurs need venture capital in order to get started C.   Successful entrepreneurs take very careful, calculated risks D.   Entrepreneurs are their own bosses and completely independent
    E.   Money should not be considered a start-up ingredient
    32) The term used to refer to all kinds of differences including religious affiliation, age, disability status, economic class and lifestyle in addition to gender, race, ethnicity and nationality is:
    A.   Diversity B.   Managerial ethics
    C.   Recruiting D.   Employment E.   Selection
    33) A manager's ability to stimulate people to be high performers is referred to as:
    A.   Planning B.   Supervising
    C.   Controlling
    D.   Organizing E.   Leading
    34) A series of quality standards developed by a committee working under the International Organization for Standardization to improve total quality in all businesses for the benefit of both producers and consumers is:
    A.   Total quality management B.   Customer-based integration C.   Computer-integrated manufacturing (CIM)
    D.   Just-in-time control (JIT)
    E.   ISO 9000
    35) Japanese manufacturers' kaizen (continuous improvement) programs enable them to maintain:
    A.   A strategic alliance B.   A homogeneous workforce C.   Positive working relationships with all employees
    D.   A Learning advantage over their competition E.   Larger, faster facilities
    36) Listening to employee suggestions, gaining support for organizational objectives and fostering an atmosphere of teamwork are all considered:
    A.   Technical skills B.   Conceptual C.   Professional skills D.   Interpersonal/communication skills
    E.   Diagnostic skills
    37) The basic components of an effective sexual harassment policy include the following EXCEPT:
    A.   To develop an organization wide policy on sexual harassment B.   To establish a means for ongoing training C.   To act immediately when employees complain of sexual harassment
    D.   To establish a performance appraisal system E.   To establish a formal complaint procedure
    38) Teams that operate separately from the regular work structure and exist temporarily are known as:
    A.   Management teams B.   Transnational teams
    C.   Self-managed teams
    D.   Parallel teams E.   Self-designing teams
               
    39) The Aquatic Center, Inc. periodically reviews the goals of the company. During the process, The Aquatic Center managers analyze their current strategies as compared to their competitors, determine goals that they will pursue and decide upon specific actions for each area of the company to take in pursuit of these goals. The Aquatic Center managers have been engaged in the management function of:
    A.   Goal Coordination
    B.   Controlling C.   Organizing D.   Staffing E.   Planning
    40) As related to managing of human resources, diversity refers to:
    A.   Differences in demographics (such as age, race, gender, disability status, lifestyle, veteran status, educational level, etc.)
    B.   Differences in pay methods (such as hourly, salaried, overtime, hazard-pay, commissioned, etc.)
    C.   Differences in employee benefit plans (such as pensions, insurance, vacations, memberships, etc.)
    D.   Differences in retention strategies (such as training, hiring, incentives, etc) E.   Differences in recruiting methods (such as newspapers, schools, flyers, magazines, agencies, etc.)
               
    41) __________ is the process of working with people and resources to accomplish organizational goals.
    A.   Controlling B.   Decision making
    C.   Planning D.   Supervising E.   Management
    42) Twelve randomly-chosen students were asked how many times they had missed class during a certain semester, with this result: 2, 1, 5, 1, 1, 3, 4, 3, 1, 1, 5, 18.
    For this sample, the median is _____.
    A.   3 B.   3.5
    C.   2.5
    D.   2
    43) Use the following table to answer question:
     P(S | W) is approximately _____.
    A.   .40
    B.   .30
    C.   .12
    D.   .58
               
    44) Use the following table to answer question:
     P(M  A) is approximately _____.
    A.   .50 B.   .625
    C.   .125
    D.   .25
    45) Dullco Manufacturing claims that its alkaline batteries last forty hours on average in a certain type of portable CD player. Tests on a random sample of 18 batteries showed a mean battery life of 37.8 hours with a standard deviation of 5.4 hours.
    In determining the p-value for reporting the study's findings, which of the following is true?
    A.   The p-value is equal to .05. B.   The p-value is greater than .05. C.   The p-value cannot be determined without specifying  . D.   The p-value is less than .05.
    46) William used a sample of 68 U.S. cities to estimate the relationship between Crime (annual property crimes per 100,000 persons) and Income (median income per capita). His estimated regression equation was Crime = 428 + .050 Income.
    Which outcomes would be likely in a bivariate regression on 45 randomly chosen U.S. cities in 2005 with
    Y = number of robberies in each city (thousands of robberies) and
    X = size of police force in each city (thousands of police)?
    A.   High R2 (due to city size). B.   Positive slope (due to city size).
    C.   No correlation. D.   Autocorrelation.
    47) Twelve randomly-chosen students were asked how many times they had missed class during a certain semester, with this result: 2, 1, 5, 1, 1, 3, 4, 3, 1, 1, 5, 18.
    For this sample, which measure of central tendency is least representative of the “typical” student?
    A.   Midrange
    B.   Mean C.   Mode D.   Median
               
    48) Likely reasons for inaccurate control limits would include which of the following?
    A.   Process variation was not zero, as expected. B.   The engineering parameter for variance is unknown.
    C.   There was insufficient preliminary sampling. D.   The engineers were underpaid for their work.
    49) You are faced with a linear programming objective function of:
    Max P = $20X + $30Y
    and constraints of:
    3X + 4Y = 24 (Constraint A)
    5X – Y = 18 (Constraint B)
    You discover that the shadow price for Constraint A is 7.5 and the shadow price for Constraint B is 0. Which of these statements is TRUE?
    A.   The most you would want to pay for an additional unit of A would be $7.50.
    B.   You can change quantities of X and Y at no cost for Constraint B. C.   For every additional unit of the objective function you create, the price of A rises by $7.50.
    D.   For every additional unit of the objective function you create, you lose 0 units of B.
               
    50) A project has three paths. A–B–C has a length of 25 days. A–D–C has a length of 15 days. Finally, A–E–C has a length of 20 days. Which one of the following statements is TRUE?
    A.   The expected duration of this project is 25 + 15 + 20 = 60 days.
    B.   A–D–C is the critical path. C.   The expected duration of this project is 25 days. D.   A–B–C has the most slack.
    51) Which one of the following statements concerning production and staffing plans is best?
    A.   A master production schedule is a projected statement of income, costs, and profits.
    B.   Aggregation can be performed along three dimensions: product families, labor, and time.
    C.   Production plans are based primarily on information from the master production plan.
    D.   A staffing plan is the intermediate link between the business plan and the master production schedule.
               
    52) While glancing over the sensitivity report, you note that the stitching labor has a shadow price of $10 and a lower limit of 24 hours with an upper limit of 36 hours. If your original right hand value for stitching labor was 30 hours, you know that:
    A.   you would lose $80 if one of your workers missed an entire 8 hour shift. B.   the next worker that offers to work an extra 8 hours should receive at least $80.
    C.   you would be willing pay up to $60 for someone to work another 6 hours.
    D.   you can send someone home 6 hours early and still pay them the $60 they would have earned while on the clock.

    53) The costs of delivering products in the _____ channel are much higher than delivering products in the _____ channel.
    A.   physical, digital B.   e-commerce, digital
    C.   physical, financial D.   digital, e-commerce
    E.   digital, physical
    54) When customers access a Web site and make purchases, they generate __________.
    A.   Tracking cookies B.   Web data C.   Information D.   Clickstream data
    E.   Hyperlink data
    55) _____ is the integration of economic, social, cultural, and ecological facets of life, enabled by information.
    A.   regionalization B.   globalization C.   nationalization D.   business environment
               
    56) Various organizations that promote fair and responsible use of information systems often develop __________.
    A.   a code of ethics B.   responsibility charters
    C.   a strategic plan D.   a mission statement E.   a goals outline
    57) What is _____ is not necessarily _____.
    A.   Illegal, unethical B.   Unethical, legal C.   Ethical, illegal D.   Unethical, illegal
    E.   Ethical, legal
    58) _____ provides users with a view of what is happening, where _____ addresses why it is happening.
    A.   Multidimensional data analysis, structured query language
    B.   Multidimensional data analysis, neural networks C.   Data mining, multidimensional data analysis D.   Data mining, expert system E.   Multidimensional data analysis, data mining
    59) Computer support is greatest for which of the following problems?
    A.   Semistructured and strategic planning B.   Semistructured and management control
    C.   Unstructured and operational control D.   Structured and operational control E.   Structured and management control
    60) The management cockpit best exemplifies which type of system?
    A.   Decision support system B.   Functional area information system
    C.   Expert system D.   Digital dashboard E.   Group decision support system
    61) _____ is the efficient and effective execution of specific tasks.
    A.   Operational control
    B.   Expertise C.   Management control
    D.   Strategic planning E.   Wisdom
    62) Geocoding is __________.
    A.   accessing geographical information B.   integrating maps with spatially oriented databases and other databases
    C.   integrating organizational transactions with spatially oriented databases D.   programming spatially oriented databases E.   encrypting spatial information
    63) At 8% compounded annually, how long will it take $750 to double?
    A.   48 months
    B.   6.5 years C.   9 years D.   12 years
    64) Which of the following represents an attempt to measure the earnings of the firm’s operations over a given time period?
    A.   Cash flow statement
    B.   Balance sheet C.   Income statement D.   Quarterly statement
               
    65) A machine costs $1,000, has a three-year life, and has an estimated salvage value of $100. It will generate after-tax annual cash flows (ACF) of $600 a year, starting next year. If your required rate of return for the project is 10%, what is the NPV of this investment? (Round your answerwer to the nearest $10.)
    A.   $570 B.   $490 C.   $900 D.   -$150
               
    66) Disadvantages of using current liabilities as opposed to long-term debt include:
    A.   higher cash flow exposure B.   greater risk of illiquidity, and uncertainty of interest costs
    C.   decreased risk of liquidity D.   certainty of interest costs E.   uncertainty of future liabilities
    67) Petrified Forest Skin Care, Inc. pays an annual perpetual dividend of $1.70 per share. If the stock is currently selling for $21.25 per share, what is the expected rate of return on this stock?
    A.   12.5% B.   36.13%
    C.   8.0% D.   13.6%
    68) Which of the following is most consistent with the hedging principle in working capital management?
    A.   Fixed assets should be financed with short-term notes payable. B.   Inventory should be financed with preferred stock. C.   Accounts receivable should be financed with short-term lines of credit.
    D.   Borrow on a floating rate basis to finance investments in permanent assets.
               
    69) An increase in future value can be caused by an increase in the __________.
    A.   original amount invested B.   annual interest rate and number of compounding periods
    C.   rate of return D.   dividends paid E.   starting value
    70) If the quote for a forward exchange contract is greater than the computed price, the forward contract is:
    A.   at equilibrium.
    B.   undervalued. C.   a good buy. D.   overvalued.
    71) Your company is considering an investment in a project which would require an initial outlay of $300,000 and produce expected cash flows in Years 1 through 5 of $87,385 per year. You have determined that the current after-tax cost of the firm’s capital (required rate of return) for each source of financing is as follows:
    Cost of debt     8%
    Cost of preferred stock           12%
    Cost of common stock            16%
    Long-term debt currently makes up 20% of the capital structure, preferred stock 10%, and common stock 70%. What is the net present value of this project?
    A.   $1,568
    B.   $871 C.   $1,241
    D.   $463
    72) Suppose you determine that the NPV of a project is $1,525,855. What does that mean?
    A.   The project’s IRR would have to be less that the firm’s discount rate. B.   The project would add value to the firm. C.   Under all conditions, the project’s payback would be less than the profitability index.
    D.   In all cases, investing in this project would be better than investing in a project that has an NPV of $850,000.
               
    73) The common stockholders are most concerned with:
    A.   the spread between the return generated on new investments and the investor’s required rate of return.
    B.   the size of the firm’s beginning earnings per share. C.   the risk of the investment. D.   the percentage of profits retained.
    74) PepsiCo calculates unlevered betas for each peer group in order to:
    A.   eliminate different financial risks.
    B.   eliminate competitive factors. C.   eliminate judgment factors. D.   eliminate different business risks.
    75) Which of the following best represents operating income?
    A.   Income from discontinued operations
    B.   Earnings before interest and taxes C.   Income from capital gains D.   Income after financing activities
    76) In comparison to the buying of final consumers, the purchasing of organizational buyers:
    A.   is even less predictable. B.   leans basically toward economy, quality, and dependability.
    C.   is always emotional. D.   is strictly economic and not at all emotional. E.   is always based on competitive bids from multiple suppliers.
               
    77) The basic objective of the U.S. market-directed economic system is to:
    A.   achieve an annual growth rate of at least 10 percent. B.   provide each person with an equal share of the economic output.
    C.   make the most efficient use of the country's resources. D.   minimize inflation. E.   satisfy consumer needs as they--the consumers--see them.
    78) Comparing GDP for foreign countries can help a marketing manager evaluate potential markets if the manager remembers that:
    A.   GDP measures show people's tendency to buy particular products. B.   income tends to be evenly distributed among consumers in most countries. C.   GDP estimates may not be very accurate for very different cultures and economies.
    D.   Other countries most likely don’t use the US Dollar as their primary currency.
    E.   GDP measures show the degree of competition in a market.
    79) A firm's "marketing mix" decision areas would NOT include:
    A.   Promotion.
    B.   People. C.   Price. D.   Place. E.   Product.
    80) __________ is a marketing management aid which refers to how customers think about proposed and/or present brands in a market.
    A.   Brand familiarity B.   Positioning
    C.   Market scanning D.   Customer relationship management (CRM)
    E.   Market segmentation
    81) The "four Ps" of a marketing mix are:
    A.   Production, Personnel, Price, and Physical Distribution
    B.   Promotion, Production, Price, and People C.   Potential customers, Product, Price, and Personal Selling
    D.   Product, Price, Promotion, and Profit E.   Product, Place, Promotion, and Price
    82) When evaluating macro-marketing:
    A.   the evaluation is necessarily subjective. B.   the best approach is to consider the profit generated by individual firms within the overall system.
    C.   one must determine how efficiently the society's resources are used. D.   one must consider the society’s role in the marketing system. E.   one must consider each individual firm's role in the marketing system.
    83) A cluster analysis of the "toothpaste market" would probably show that:
    A.   the broad product-market can be served effectively with one marketing mix.
    B.   most consu
              59) Computer support is greatest for which of the following problems? A. Semistructured and strategic planning B. Semistructured and management control C. Unstructured and operational control D. Structured and operational control E. Structured and management control        

    BUS/475 Guide 4


    1) The cost principle requires that when assets are acquired, they be recorded at __________.
    A.   list price B.   selling price C.   exchange price paid D.   appraisal value
    2) "Generally accepted" in the phrase generally accepted accounting principles means that the principles __________.
    A.   have been approved for use by the managements of business firms
    B.   have been approved by the Internal Revenue Service C.   have substantial authoritative support D.   are proven theories of accounting
    3) The standards and rules that are recognized as a general guide for financial reporting are called __________.
    A.   standards of financial reporting B.   operating guidelines C.   generally accepted accounting principles D.   generally accepted accounting standards
    4) Sam's Used Cars uses the specific identification method of costing inventory. During March, Sam purchased three cars for $6,000, $7,500, and $9,750, respectively. During March, two cars are sold for $9,000 each. Sam determines that at March 31, the $9,750 car is still on hand. What is Sam’s gross profit for March?
    A.   $8,250
    B.   $750 C.   $4,500
    D.   $5,250
               
    5) Hess, Inc. sells a single product with a contribution margin of $12 per unit and fixed costs of $74,400 and sales for the current year of $100,000. How much is Hess’s break even point?
    A.   2,133 units
    B.   6,200 units
    C.   $25,600 D.   4,600 units
               
    6) As Plant Controller, you are trying to determine which costs over which you have the most control on a day to day basis. Your goal is to achieve better profitability. The Plant Operations Manager suggests that overhead is the easiest area to directly reduce costs. Which of the following items would be classified as manufacturing overhead?
    A.   The western division’s vice president’s salary
    B.   Cost of landscaping the corporate office C.   General corporate liability insurance D.   Factory janitor
    7) What is the preparation of reports for each level of responsibility in the company’s organization chart called?
    A.   Master budgeting analysis
    B.   Exception reporting C.   Responsibility reporting
    D.   Static reporting
    8) Disney’s variable costs are 30% of sales. The company is contemplating an advertising campaign that will cost $22,000. If sales are expected to increase $40,000, by how much will the company's net income increase?
    A.   $6,000 B.   $12,000
    C.   $28,000
    D.   $18,000
               
    9) The cost of an asset and its fair market value are __________.
    A.   never the same B.   irrelevant when the asset is used by the business in its operations
    C.   the same on the date of acquisition D.   the same when the asset is sold
    10) Which one of the following is a product cost?
    A.   Indirect labor B.   Sales person’s salaries
    C.   Advertising costs D.   Office salaries
    11) What exists when budgeted costs exceed actual results?
    A.   A budgeting error B.   An unfavorable difference
    C.   An excess profit D.   A favorable difference
    12) The income statement and balance sheet columns of Pine Company's worksheet reflects the following totals:
                            Income Statement                  Balance Sheet
                Dr.       Cr.                   Dr.       Cr.
    Totals              $58,000           $48,000                       $34,000           $44,000
               

    Closing entries are necessary for __________.
    A.   permanent accounts only B.   both permanent and temporary accounts
    C.   permanent or real accounts only D.   temporary accounts only
    13) Managerial accounting __________.
    A.   is concerned with costing products B.   pertains to the entity as a whole and is highly aggregated
    C.   places emphasis on special-purpose information D.   is governed by generally accepted accounting principles
               
    14) H55 Company sells two products, beer and wine. Beer has a 10 percent profit margin and wine has a 12 percent profit margin. Beer has a 27 percent contribution margin and wine has a 25 percent contribution margin. If other factors are equal, which product should H55 push to customers?
    A.   Beer B.   Selling either results in the same additional income for the company
    C.   It should sell an equal quantity of both D.   Wine
    15) Lekeisha's income exceeds her expenditures. Lekeisha is a __________.
    A.   saver who demands money from the financial system B.   borrower who demands money from the financial system
    C.   borrower who supplies money to the financial system D.   saver who supplies money to the financial system
    16) Maurice receives $100 as a birthday gift. In deciding how to spend the money, he narrows his options down to four choices: Option A, Option B, Option C, and Option D. Each option costs $100. Finally he decides on Option B. The opportunity cost of this decision is __________.
    A.   the value to Maurice of the option he would have chosen had Option B not been available
    B.   $100 C.   $300 D.   the value to Maurice of Options A, C and D combined
    17) A production possibilities frontier will be a straight line if __________.
    A.   the economy is producing efficiently B.   the economy is engaged in trade with at least one other economy C.   increasing the production of one good by x units entails no opportunity cost in terms of the other good
    D.   increasing the production of one good by x units entails a constant opportunity cost in terms of the other good
               
    18) In economics, the cost of something is __________.
    A.   what you give up to get it B.   often impossible to quantify, even in principle C.   the dollar amount of obtaining it D.   always measured in units of time given up to get it
               
    19) A tax on an imported good is called a __________.
    A.   supply tax
    B.   trade tax C.   quota D.   tariff
    20) Which of the following statements about GDP is correct?
    A.   GDP is to a nation’s economy as household income is to a household. B.   GDP increases if the total population increases. C.   GDP measures two things at once: the total income of everyone in the economy and the unemployment rate.
    D.   Money continuously flows from households to government and then back to households, and GDP measures this flow of money.
               
    21) In computing GDP, market prices are used to value final goods and services because __________.
    A.   if market prices are out of line with how people value goods, the government sets price ceilings and price floors
    B.   Market prices are not used in computing GDP C.   market prices reflect the values of goods and services D.   market prices do not change much over time, so it is easy to make comparisons between years

    22) Which of the following statements about GDP is correct?
    A.   Nominal GDP values production at market prices, whereas real GDP values production at the cost of the resources used in the production process.
    B.   Nominal GDP consistently underestimates the value of production, whereas real GDP consistently overestimates the value of production.
    C.   Nominal GDP values production at current prices, whereas real GDP values production at constant prices.
    D.   Nominal GDP values production at constant prices, whereas real GDP values production at current prices.
               
    23) Which of the following is not correct?
    A.   The U.S. debt per-person is large compared with average lifetime income.
    B.   In 2005, the U.S. government had a deficit. C.   A potential cost of deficits is that they reduce national saving, thereby reducing growth of the capital stock and output growth.
    D.   Deficits give people the opportunity to consume at the expense of their children, but they do not require them to do so.
               
    24) The part of the balance of payments account that lists all long-term flows of payments is called the:
    A.   balance of trade. B.   financial and capital account.
    C.   government financial account.
    D.   current account.
    25) Edward Prescott and Finn Kydland won the Nobel Prize in Economics in 2004. One of their contributions was to argue that if a central bank could convince people to expect zero inflation, then the Fed would be tempted to raise output by increasing inflation. This possibility is known as __________.
    A.   the sacrifice ratio dilemma B.   the monetary policy reaction lag
    C.   the time inconsistency of policy
    D.   inflation targeting
    26) In general, the longest lag for __________.
    A.   fiscal policy is the time it takes to change policy, while for monetary policy the longest lag is the time it takes for policy to affect aggregate demand
    B.   both fiscal and monetary policy is the time it takes for policy to affect aggregate demand
    C.   monetary policy is the time it takes to change policy, while for fiscal policy the longest lag is the time it takes for policy to affect aggregate demand
    D.   both fiscal and monetary policy is the time it takes to change policy
    27) Consider two items that might be included in GDP: (1) The estimated rental value of owner-occupied housing; and (2) purchases of newly-constructed homes. How are these two items accounted for when GDP is calculated?
    A.   Only item (2) is included in GDP and it is included in the investment component.
    B.   Item (1) is included in the consumption component, while item (2) is included in the investment component.
    C.   Item (1) is included in the investment component, while item (2) is included in the consumption component.
    D.   Both item (1) and item (2) are included in the consumption component of GDP.

    28) Managers will utilize __________ skills with increasing frequency as they rise within an organization.
    A.   Professional B.   Interpersonal and communication
    C.   Technical D.   Professional E.   Conceptual and decision
    29) Which of these represent skills that managers need?
    A.   Interpersonal, quantitative, and professional B.   Technical, interpersonal & communication and conceptual & decision making
    C.   Professional, technical and interpersonal & communication D.   Conceptual & decision making, professional and technical E.   Interpersonal & communication, conceptual & decision making and professional
               
    30) Building a dynamic organization is another way of describing which function of management?
    A.   Staffing B.   Organizing
    C.   Leading D.   Controlling
    E.   Planning
    31) Your roommate is interested in starting a business and everybody has been giving him different information about being an entrepreneur. Since you have been studying about entrepreneurship and new ventures, which of these would you tell him is true?
    A.   Anyone can start a business B.   All entrepreneurs need venture capital in order to get started C.   Successful entrepreneurs take very careful, calculated risks D.   Entrepreneurs are their own bosses and completely independent
    E.   Money should not be considered a start-up ingredient
    32) The term used to refer to all kinds of differences including religious affiliation, age, disability status, economic class and lifestyle in addition to gender, race, ethnicity and nationality is:
    A.   Diversity B.   Managerial ethics
    C.   Recruiting D.   Employment E.   Selection
    33) A manager's ability to stimulate people to be high performers is referred to as:
    A.   Planning B.   Supervising
    C.   Controlling
    D.   Organizing E.   Leading
    34) A series of quality standards developed by a committee working under the International Organization for Standardization to improve total quality in all businesses for the benefit of both producers and consumers is:
    A.   Total quality management B.   Customer-based integration C.   Computer-integrated manufacturing (CIM)
    D.   Just-in-time control (JIT)
    E.   ISO 9000
    35) Japanese manufacturers' kaizen (continuous improvement) programs enable them to maintain:
    A.   A strategic alliance B.   A homogeneous workforce C.   Positive working relationships with all employees
    D.   A Learning advantage over their competition E.   Larger, faster facilities
    36) Listening to employee suggestions, gaining support for organizational objectives and fostering an atmosphere of teamwork are all considered:
    A.   Technical skills B.   Conceptual C.   Professional skills D.   Interpersonal/communication skills
    E.   Diagnostic skills
    37) The basic components of an effective sexual harassment policy include the following EXCEPT:
    A.   To develop an organization wide policy on sexual harassment B.   To establish a means for ongoing training C.   To act immediately when employees complain of sexual harassment
    D.   To establish a performance appraisal system E.   To establish a formal complaint procedure
    38) Teams that operate separately from the regular work structure and exist temporarily are known as:
    A.   Management teams B.   Transnational teams
    C.   Self-managed teams
    D.   Parallel teams E.   Self-designing teams
               
    39) The Aquatic Center, Inc. periodically reviews the goals of the company. During the process, The Aquatic Center managers analyze their current strategies as compared to their competitors, determine goals that they will pursue and decide upon specific actions for each area of the company to take in pursuit of these goals. The Aquatic Center managers have been engaged in the management function of:
    A.   Goal Coordination
    B.   Controlling C.   Organizing D.   Staffing E.   Planning
    40) As related to managing of human resources, diversity refers to:
    A.   Differences in demographics (such as age, race, gender, disability status, lifestyle, veteran status, educational level, etc.)
    B.   Differences in pay methods (such as hourly, salaried, overtime, hazard-pay, commissioned, etc.)
    C.   Differences in employee benefit plans (such as pensions, insurance, vacations, memberships, etc.)
    D.   Differences in retention strategies (such as training, hiring, incentives, etc) E.   Differences in recruiting methods (such as newspapers, schools, flyers, magazines, agencies, etc.)
               
    41) __________ is the process of working with people and resources to accomplish organizational goals.
    A.   Controlling B.   Decision making
    C.   Planning D.   Supervising E.   Management
    42) Twelve randomly-chosen students were asked how many times they had missed class during a certain semester, with this result: 2, 1, 5, 1, 1, 3, 4, 3, 1, 1, 5, 18.
    For this sample, the median is _____.
    A.   3 B.   3.5
    C.   2.5
    D.   2
    43) Use the following table to answer question:
     P(S | W) is approximately _____.
    A.   .40
    B.   .30
    C.   .12
    D.   .58
               
    44) Use the following table to answer question:
     P(M  A) is approximately _____.
    A.   .50 B.   .625
    C.   .125
    D.   .25
    45) Dullco Manufacturing claims that its alkaline batteries last forty hours on average in a certain type of portable CD player. Tests on a random sample of 18 batteries showed a mean battery life of 37.8 hours with a standard deviation of 5.4 hours.
    In determining the p-value for reporting the study's findings, which of the following is true?
    A.   The p-value is equal to .05. B.   The p-value is greater than .05. C.   The p-value cannot be determined without specifying  . D.   The p-value is less than .05.
    46) William used a sample of 68 U.S. cities to estimate the relationship between Crime (annual property crimes per 100,000 persons) and Income (median income per capita). His estimated regression equation was Crime = 428 + .050 Income.
    Which outcomes would be likely in a bivariate regression on 45 randomly chosen U.S. cities in 2005 with
    Y = number of robberies in each city (thousands of robberies) and
    X = size of police force in each city (thousands of police)?
    A.   High R2 (due to city size). B.   Positive slope (due to city size).
    C.   No correlation. D.   Autocorrelation.
    47) Twelve randomly-chosen students were asked how many times they had missed class during a certain semester, with this result: 2, 1, 5, 1, 1, 3, 4, 3, 1, 1, 5, 18.
    For this sample, which measure of central tendency is least representative of the “typical” student?
    A.   Midrange
    B.   Mean C.   Mode D.   Median
               
    48) Likely reasons for inaccurate control limits would include which of the following?
    A.   Process variation was not zero, as expected. B.   The engineering parameter for variance is unknown.
    C.   There was insufficient preliminary sampling. D.   The engineers were underpaid for their work.
    49) You are faced with a linear programming objective function of:
    Max P = $20X + $30Y
    and constraints of:
    3X + 4Y = 24 (Constraint A)
    5X – Y = 18 (Constraint B)
    You discover that the shadow price for Constraint A is 7.5 and the shadow price for Constraint B is 0. Which of these statements is TRUE?
    A.   The most you would want to pay for an additional unit of A would be $7.50.
    B.   You can change quantities of X and Y at no cost for Constraint B. C.   For every additional unit of the objective function you create, the price of A rises by $7.50.
    D.   For every additional unit of the objective function you create, you lose 0 units of B.
               
    50) A project has three paths. A–B–C has a length of 25 days. A–D–C has a length of 15 days. Finally, A–E–C has a length of 20 days. Which one of the following statements is TRUE?
    A.   The expected duration of this project is 25 + 15 + 20 = 60 days.
    B.   A–D–C is the critical path. C.   The expected duration of this project is 25 days. D.   A–B–C has the most slack.
    51) Which one of the following statements concerning production and staffing plans is best?
    A.   A master production schedule is a projected statement of income, costs, and profits.
    B.   Aggregation can be performed along three dimensions: product families, labor, and time.
    C.   Production plans are based primarily on information from the master production plan.
    D.   A staffing plan is the intermediate link between the business plan and the master production schedule.
               
    52) While glancing over the sensitivity report, you note that the stitching labor has a shadow price of $10 and a lower limit of 24 hours with an upper limit of 36 hours. If your original right hand value for stitching labor was 30 hours, you know that:
    A.   you would lose $80 if one of your workers missed an entire 8 hour shift. B.   the next worker that offers to work an extra 8 hours should receive at least $80.
    C.   you would be willing pay up to $60 for someone to work another 6 hours.
    D.   you can send someone home 6 hours early and still pay them the $60 they would have earned while on the clock.

    53) The costs of delivering products in the _____ channel are much higher than delivering products in the _____ channel.
    A.   physical, digital B.   e-commerce, digital
    C.   physical, financial D.   digital, e-commerce
    E.   digital, physical
    54) When customers access a Web site and make purchases, they generate __________.
    A.   Tracking cookies B.   Web data C.   Information D.   Clickstream data
    E.   Hyperlink data
    55) _____ is the integration of economic, social, cultural, and ecological facets of life, enabled by information.
    A.   regionalization B.   globalization C.   nationalization D.   business environment
               
    56) Various organizations that promote fair and responsible use of information systems often develop __________.
    A.   a code of ethics B.   responsibility charters
    C.   a strategic plan D.   a mission statement E.   a goals outline
    57) What is _____ is not necessarily _____.
    A.   Illegal, unethical B.   Unethical, legal C.   Ethical, illegal D.   Unethical, illegal
    E.   Ethical, legal
    58) _____ provides users with a view of what is happening, where _____ addresses why it is happening.
    A.   Multidimensional data analysis, structured query language
    B.   Multidimensional data analysis, neural networks C.   Data mining, multidimensional data analysis D.   Data mining, expert system E.   Multidimensional data analysis, data mining
    59) Computer support is greatest for which of the following problems?
    A.   Semistructured and strategic planning B.   Semistructured and management control
    C.   Unstructured and operational control D.   Structured and operational control E.   Structured and management control
    60) The management cockpit best exemplifies which type of system?
    A.   Decision support system B.   Functional area information system
    C.   Expert system D.   Digital dashboard E.   Group decision support system
    61) _____ is the efficient and effective execution of specific tasks.
    A.   Operational control
    B.   Expertise C.   Management control
    D.   Strategic planning E.   Wisdom
    62) Geocoding is __________.
    A.   accessing geographical information B.   integrating maps with spatially oriented databases and other databases
    C.   integrating organizational transactions with spatially oriented databases D.   programming spatially oriented databases E.   encrypting spatial information
    63) At 8% compounded annually, how long will it take $750 to double?
    A.   48 months
    B.   6.5 years C.   9 years D.   12 years
    64) Which of the following represents an attempt to measure the earnings of the firm’s operations over a given time period?
    A.   Cash flow statement
    B.   Balance sheet C.   Income statement D.   Quarterly statement
               
    65) A machine costs $1,000, has a three-year life, and has an estimated salvage value of $100. It will generate after-tax annual cash flows (ACF) of $600 a year, starting next year. If your required rate of return for the project is 10%, what is the NPV of this investment? (Round your answerwer to the nearest $10.)
    A.   $570 B.   $490 C.   $900 D.   -$150
               
    66) Disadvantages of using current liabilities as opposed to long-term debt include:
    A.   higher cash flow exposure B.   greater risk of illiquidity, and uncertainty of interest costs
    C.   decreased risk of liquidity D.   certainty of interest costs E.   uncertainty of future liabilities
    67) Petrified Forest Skin Care, Inc. pays an annual perpetual dividend of $1.70 per share. If the stock is currently selling for $21.25 per share, what is the expected rate of return on this stock?
    A.   12.5% B.   36.13%
    C.   8.0% D.   13.6%
    68) Which of the following is most consistent with the hedging principle in working capital management?
    A.   Fixed assets should be financed with short-term notes payable. B.   Inventory should be financed with preferred stock. C.   Accounts receivable should be financed with short-term lines of credit.
    D.   Borrow on a floating rate basis to finance investments in permanent assets.
               
    69) An increase in future value can be caused by an increase in the __________.
    A.   original amount invested B.   annual interest rate and number of compounding periods
    C.   rate of return D.   dividends paid E.   starting value
    70) If the quote for a forward exchange contract is greater than the computed price, the forward contract is:
    A.   at equilibrium.
    B.   undervalued. C.   a good buy. D.   overvalued.
    71) Your company is considering an investment in a project which would require an initial outlay of $300,000 and produce expected cash flows in Years 1 through 5 of $87,385 per year. You have determined that the current after-tax cost of the firm’s capital (required rate of return) for each source of financing is as follows:
    Cost of debt     8%
    Cost of preferred stock           12%
    Cost of common stock            16%
    Long-term debt currently makes up 20% of the capital structure, preferred stock 10%, and common stock 70%. What is the net present value of this project?
    A.   $1,568
    B.   $871 C.   $1,241
    D.   $463
    72) Suppose you determine that the NPV of a project is $1,525,855. What does that mean?
    A.   The project’s IRR would have to be less that the firm’s discount rate. B.   The project would add value to the firm. C.   Under all conditions, the project’s payback would be less than the profitability index.
    D.   In all cases, investing in this project would be better than investing in a project that has an NPV of $850,000.
               
    73) The common stockholders are most concerned with:
    A.   the spread between the return generated on new investments and the investor’s required rate of return.
    B.   the size of the firm’s beginning earnings per share. C.   the risk of the investment. D.   the percentage of profits retained.
    74) PepsiCo calculates unlevered betas for each peer group in order to:
    A.   eliminate different financial risks.
    B.   eliminate competitive factors. C.   eliminate judgment factors. D.   eliminate different business risks.
    75) Which of the following best represents operating income?
    A.   Income from discontinued operations
    B.   Earnings before interest and taxes C.   Income from capital gains D.   Income after financing activities
    76) In comparison to the buying of final consumers, the purchasing of organizational buyers:
    A.   is even less predictable. B.   leans basically toward economy, quality, and dependability.
    C.   is always emotional. D.   is strictly economic and not at all emotional. E.   is always based on competitive bids from multiple suppliers.
               
    77) The basic objective of the U.S. market-directed economic system is to:
    A.   achieve an annual growth rate of at least 10 percent. B.   provide each person with an equal share of the economic output.
    C.   make the most efficient use of the country's resources. D.   minimize inflation. E.   satisfy consumer needs as they--the consumers--see them.
    78) Comparing GDP for foreign countries can help a marketing manager evaluate potential markets if the manager remembers that:
    A.   GDP measures show people's tendency to buy particular products. B.   income tends to be evenly distributed among consumers in most countries. C.   GDP estimates may not be very accurate for very different cultures and economies.
    D.   Other countries most likely don’t use the US Dollar as their primary currency.
    E.   GDP measures show the degree of competition in a market.
    79) A firm's "marketing mix" decision areas would NOT include:
    A.   Promotion.
    B.   People. C.   Price. D.   Place. E.   Product.
    80) __________ is a marketing management aid which refers to how customers think about proposed and/or present brands in a market.
    A.   Brand familiarity B.   Positioning
    C.   Market scanning D.   Customer relationship management (CRM)
    E.   Market segmentation
    81) The "four Ps" of a marketing mix are:
    A.   Production, Personnel, Price, and Physical Distribution
    B.   Promotion, Production, Price, and People C.   Potential customers, Product, Price, and Personal Selling
    D.   Product, Price, Promotion, and Profit E.   Product, Place, Promotion, and Price
    82) When evaluating macro-marketing:
    A.   the evaluation is necessarily subjective. B.   the best approach is to consider the profit generated by individual firms within the overall system.
    C.   one must determine how efficiently the society's resources are used. D.   one must consider the society’s role in the marketing system. E.   one must consider each individual firm's role in the marketing system.
    83) A cluster analysis of the "toothpaste market" would probably show that:
    A.   the broad product-market can be served effectively with one marketing mix.
    B.   most consu
              60) The management cockpit best exemplifies which type of system? A. Decision support system B. Functional area information system C. Expert system D. Digital dashboard E. Group decision support system        

    BUS/475 Guide 4


    1) The cost principle requires that when assets are acquired, they be recorded at __________.
    A.   list price B.   selling price C.   exchange price paid D.   appraisal value
    2) "Generally accepted" in the phrase generally accepted accounting principles means that the principles __________.
    A.   have been approved for use by the managements of business firms
    B.   have been approved by the Internal Revenue Service C.   have substantial authoritative support D.   are proven theories of accounting
    3) The standards and rules that are recognized as a general guide for financial reporting are called __________.
    A.   standards of financial reporting B.   operating guidelines C.   generally accepted accounting principles D.   generally accepted accounting standards
    4) Sam's Used Cars uses the specific identification method of costing inventory. During March, Sam purchased three cars for $6,000, $7,500, and $9,750, respectively. During March, two cars are sold for $9,000 each. Sam determines that at March 31, the $9,750 car is still on hand. What is Sam’s gross profit for March?
    A.   $8,250
    B.   $750 C.   $4,500
    D.   $5,250
               
    5) Hess, Inc. sells a single product with a contribution margin of $12 per unit and fixed costs of $74,400 and sales for the current year of $100,000. How much is Hess’s break even point?
    A.   2,133 units
    B.   6,200 units
    C.   $25,600 D.   4,600 units
               
    6) As Plant Controller, you are trying to determine which costs over which you have the most control on a day to day basis. Your goal is to achieve better profitability. The Plant Operations Manager suggests that overhead is the easiest area to directly reduce costs. Which of the following items would be classified as manufacturing overhead?
    A.   The western division’s vice president’s salary
    B.   Cost of landscaping the corporate office C.   General corporate liability insurance D.   Factory janitor
    7) What is the preparation of reports for each level of responsibility in the company’s organization chart called?
    A.   Master budgeting analysis
    B.   Exception reporting C.   Responsibility reporting
    D.   Static reporting
    8) Disney’s variable costs are 30% of sales. The company is contemplating an advertising campaign that will cost $22,000. If sales are expected to increase $40,000, by how much will the company's net income increase?
    A.   $6,000 B.   $12,000
    C.   $28,000
    D.   $18,000
               
    9) The cost of an asset and its fair market value are __________.
    A.   never the same B.   irrelevant when the asset is used by the business in its operations
    C.   the same on the date of acquisition D.   the same when the asset is sold
    10) Which one of the following is a product cost?
    A.   Indirect labor B.   Sales person’s salaries
    C.   Advertising costs D.   Office salaries
    11) What exists when budgeted costs exceed actual results?
    A.   A budgeting error B.   An unfavorable difference
    C.   An excess profit D.   A favorable difference
    12) The income statement and balance sheet columns of Pine Company's worksheet reflects the following totals:
                            Income Statement                  Balance Sheet
                Dr.       Cr.                   Dr.       Cr.
    Totals              $58,000           $48,000                       $34,000           $44,000
               

    Closing entries are necessary for __________.
    A.   permanent accounts only B.   both permanent and temporary accounts
    C.   permanent or real accounts only D.   temporary accounts only
    13) Managerial accounting __________.
    A.   is concerned with costing products B.   pertains to the entity as a whole and is highly aggregated
    C.   places emphasis on special-purpose information D.   is governed by generally accepted accounting principles
               
    14) H55 Company sells two products, beer and wine. Beer has a 10 percent profit margin and wine has a 12 percent profit margin. Beer has a 27 percent contribution margin and wine has a 25 percent contribution margin. If other factors are equal, which product should H55 push to customers?
    A.   Beer B.   Selling either results in the same additional income for the company
    C.   It should sell an equal quantity of both D.   Wine
    15) Lekeisha's income exceeds her expenditures. Lekeisha is a __________.
    A.   saver who demands money from the financial system B.   borrower who demands money from the financial system
    C.   borrower who supplies money to the financial system D.   saver who supplies money to the financial system
    16) Maurice receives $100 as a birthday gift. In deciding how to spend the money, he narrows his options down to four choices: Option A, Option B, Option C, and Option D. Each option costs $100. Finally he decides on Option B. The opportunity cost of this decision is __________.
    A.   the value to Maurice of the option he would have chosen had Option B not been available
    B.   $100 C.   $300 D.   the value to Maurice of Options A, C and D combined
    17) A production possibilities frontier will be a straight line if __________.
    A.   the economy is producing efficiently B.   the economy is engaged in trade with at least one other economy C.   increasing the production of one good by x units entails no opportunity cost in terms of the other good
    D.   increasing the production of one good by x units entails a constant opportunity cost in terms of the other good
               
    18) In economics, the cost of something is __________.
    A.   what you give up to get it B.   often impossible to quantify, even in principle C.   the dollar amount of obtaining it D.   always measured in units of time given up to get it
               
    19) A tax on an imported good is called a __________.
    A.   supply tax
    B.   trade tax C.   quota D.   tariff
    20) Which of the following statements about GDP is correct?
    A.   GDP is to a nation’s economy as household income is to a household. B.   GDP increases if the total population increases. C.   GDP measures two things at once: the total income of everyone in the economy and the unemployment rate.
    D.   Money continuously flows from households to government and then back to households, and GDP measures this flow of money.
               
    21) In computing GDP, market prices are used to value final goods and services because __________.
    A.   if market prices are out of line with how people value goods, the government sets price ceilings and price floors
    B.   Market prices are not used in computing GDP C.   market prices reflect the values of goods and services D.   market prices do not change much over time, so it is easy to make comparisons between years

    22) Which of the following statements about GDP is correct?
    A.   Nominal GDP values production at market prices, whereas real GDP values production at the cost of the resources used in the production process.
    B.   Nominal GDP consistently underestimates the value of production, whereas real GDP consistently overestimates the value of production.
    C.   Nominal GDP values production at current prices, whereas real GDP values production at constant prices.
    D.   Nominal GDP values production at constant prices, whereas real GDP values production at current prices.
               
    23) Which of the following is not correct?
    A.   The U.S. debt per-person is large compared with average lifetime income.
    B.   In 2005, the U.S. government had a deficit. C.   A potential cost of deficits is that they reduce national saving, thereby reducing growth of the capital stock and output growth.
    D.   Deficits give people the opportunity to consume at the expense of their children, but they do not require them to do so.
               
    24) The part of the balance of payments account that lists all long-term flows of payments is called the:
    A.   balance of trade. B.   financial and capital account.
    C.   government financial account.
    D.   current account.
    25) Edward Prescott and Finn Kydland won the Nobel Prize in Economics in 2004. One of their contributions was to argue that if a central bank could convince people to expect zero inflation, then the Fed would be tempted to raise output by increasing inflation. This possibility is known as __________.
    A.   the sacrifice ratio dilemma B.   the monetary policy reaction lag
    C.   the time inconsistency of policy
    D.   inflation targeting
    26) In general, the longest lag for __________.
    A.   fiscal policy is the time it takes to change policy, while for monetary policy the longest lag is the time it takes for policy to affect aggregate demand
    B.   both fiscal and monetary policy is the time it takes for policy to affect aggregate demand
    C.   monetary policy is the time it takes to change policy, while for fiscal policy the longest lag is the time it takes for policy to affect aggregate demand
    D.   both fiscal and monetary policy is the time it takes to change policy
    27) Consider two items that might be included in GDP: (1) The estimated rental value of owner-occupied housing; and (2) purchases of newly-constructed homes. How are these two items accounted for when GDP is calculated?
    A.   Only item (2) is included in GDP and it is included in the investment component.
    B.   Item (1) is included in the consumption component, while item (2) is included in the investment component.
    C.   Item (1) is included in the investment component, while item (2) is included in the consumption component.
    D.   Both item (1) and item (2) are included in the consumption component of GDP.

    28) Managers will utilize __________ skills with increasing frequency as they rise within an organization.
    A.   Professional B.   Interpersonal and communication
    C.   Technical D.   Professional E.   Conceptual and decision
    29) Which of these represent skills that managers need?
    A.   Interpersonal, quantitative, and professional B.   Technical, interpersonal & communication and conceptual & decision making
    C.   Professional, technical and interpersonal & communication D.   Conceptual & decision making, professional and technical E.   Interpersonal & communication, conceptual & decision making and professional
               
    30) Building a dynamic organization is another way of describing which function of management?
    A.   Staffing B.   Organizing
    C.   Leading D.   Controlling
    E.   Planning
    31) Your roommate is interested in starting a business and everybody has been giving him different information about being an entrepreneur. Since you have been studying about entrepreneurship and new ventures, which of these would you tell him is true?
    A.   Anyone can start a business B.   All entrepreneurs need venture capital in order to get started C.   Successful entrepreneurs take very careful, calculated risks D.   Entrepreneurs are their own bosses and completely independent
    E.   Money should not be considered a start-up ingredient
    32) The term used to refer to all kinds of differences including religious affiliation, age, disability status, economic class and lifestyle in addition to gender, race, ethnicity and nationality is:
    A.   Diversity B.   Managerial ethics
    C.   Recruiting D.   Employment E.   Selection
    33) A manager's ability to stimulate people to be high performers is referred to as:
    A.   Planning B.   Supervising
    C.   Controlling
    D.   Organizing E.   Leading
    34) A series of quality standards developed by a committee working under the International Organization for Standardization to improve total quality in all businesses for the benefit of both producers and consumers is:
    A.   Total quality management B.   Customer-based integration C.   Computer-integrated manufacturing (CIM)
    D.   Just-in-time control (JIT)
    E.   ISO 9000
    35) Japanese manufacturers' kaizen (continuous improvement) programs enable them to maintain:
    A.   A strategic alliance B.   A homogeneous workforce C.   Positive working relationships with all employees
    D.   A Learning advantage over their competition E.   Larger, faster facilities
    36) Listening to employee suggestions, gaining support for organizational objectives and fostering an atmosphere of teamwork are all considered:
    A.   Technical skills B.   Conceptual C.   Professional skills D.   Interpersonal/communication skills
    E.   Diagnostic skills
    37) The basic components of an effective sexual harassment policy include the following EXCEPT:
    A.   To develop an organization wide policy on sexual harassment B.   To establish a means for ongoing training C.   To act immediately when employees complain of sexual harassment
    D.   To establish a performance appraisal system E.   To establish a formal complaint procedure
    38) Teams that operate separately from the regular work structure and exist temporarily are known as:
    A.   Management teams B.   Transnational teams
    C.   Self-managed teams
    D.   Parallel teams E.   Self-designing teams
               
    39) The Aquatic Center, Inc. periodically reviews the goals of the company. During the process, The Aquatic Center managers analyze their current strategies as compared to their competitors, determine goals that they will pursue and decide upon specific actions for each area of the company to take in pursuit of these goals. The Aquatic Center managers have been engaged in the management function of:
    A.   Goal Coordination
    B.   Controlling C.   Organizing D.   Staffing E.   Planning
    40) As related to managing of human resources, diversity refers to:
    A.   Differences in demographics (such as age, race, gender, disability status, lifestyle, veteran status, educational level, etc.)
    B.   Differences in pay methods (such as hourly, salaried, overtime, hazard-pay, commissioned, etc.)
    C.   Differences in employee benefit plans (such as pensions, insurance, vacations, memberships, etc.)
    D.   Differences in retention strategies (such as training, hiring, incentives, etc) E.   Differences in recruiting methods (such as newspapers, schools, flyers, magazines, agencies, etc.)
               
    41) __________ is the process of working with people and resources to accomplish organizational goals.
    A.   Controlling B.   Decision making
    C.   Planning D.   Supervising E.   Management
    42) Twelve randomly-chosen students were asked how many times they had missed class during a certain semester, with this result: 2, 1, 5, 1, 1, 3, 4, 3, 1, 1, 5, 18.
    For this sample, the median is _____.
    A.   3 B.   3.5
    C.   2.5
    D.   2
    43) Use the following table to answer question:
     P(S | W) is approximately _____.
    A.   .40
    B.   .30
    C.   .12
    D.   .58
               
    44) Use the following table to answer question:
     P(M  A) is approximately _____.
    A.   .50 B.   .625
    C.   .125
    D.   .25
    45) Dullco Manufacturing claims that its alkaline batteries last forty hours on average in a certain type of portable CD player. Tests on a random sample of 18 batteries showed a mean battery life of 37.8 hours with a standard deviation of 5.4 hours.
    In determining the p-value for reporting the study's findings, which of the following is true?
    A.   The p-value is equal to .05. B.   The p-value is greater than .05. C.   The p-value cannot be determined without specifying  . D.   The p-value is less than .05.
    46) William used a sample of 68 U.S. cities to estimate the relationship between Crime (annual property crimes per 100,000 persons) and Income (median income per capita). His estimated regression equation was Crime = 428 + .050 Income.
    Which outcomes would be likely in a bivariate regression on 45 randomly chosen U.S. cities in 2005 with
    Y = number of robberies in each city (thousands of robberies) and
    X = size of police force in each city (thousands of police)?
    A.   High R2 (due to city size). B.   Positive slope (due to city size).
    C.   No correlation. D.   Autocorrelation.
    47) Twelve randomly-chosen students were asked how many times they had missed class during a certain semester, with this result: 2, 1, 5, 1, 1, 3, 4, 3, 1, 1, 5, 18.
    For this sample, which measure of central tendency is least representative of the “typical” student?
    A.   Midrange
    B.   Mean C.   Mode D.   Median
               
    48) Likely reasons for inaccurate control limits would include which of the following?
    A.   Process variation was not zero, as expected. B.   The engineering parameter for variance is unknown.
    C.   There was insufficient preliminary sampling. D.   The engineers were underpaid for their work.
    49) You are faced with a linear programming objective function of:
    Max P = $20X + $30Y
    and constraints of:
    3X + 4Y = 24 (Constraint A)
    5X – Y = 18 (Constraint B)
    You discover that the shadow price for Constraint A is 7.5 and the shadow price for Constraint B is 0. Which of these statements is TRUE?
    A.   The most you would want to pay for an additional unit of A would be $7.50.
    B.   You can change quantities of X and Y at no cost for Constraint B. C.   For every additional unit of the objective function you create, the price of A rises by $7.50.
    D.   For every additional unit of the objective function you create, you lose 0 units of B.
               
    50) A project has three paths. A–B–C has a length of 25 days. A–D–C has a length of 15 days. Finally, A–E–C has a length of 20 days. Which one of the following statements is TRUE?
    A.   The expected duration of this project is 25 + 15 + 20 = 60 days.
    B.   A–D–C is the critical path. C.   The expected duration of this project is 25 days. D.   A–B–C has the most slack.
    51) Which one of the following statements concerning production and staffing plans is best?
    A.   A master production schedule is a projected statement of income, costs, and profits.
    B.   Aggregation can be performed along three dimensions: product families, labor, and time.
    C.   Production plans are based primarily on information from the master production plan.
    D.   A staffing plan is the intermediate link between the business plan and the master production schedule.
               
    52) While glancing over the sensitivity report, you note that the stitching labor has a shadow price of $10 and a lower limit of 24 hours with an upper limit of 36 hours. If your original right hand value for stitching labor was 30 hours, you know that:
    A.   you would lose $80 if one of your workers missed an entire 8 hour shift. B.   the next worker that offers to work an extra 8 hours should receive at least $80.
    C.   you would be willing pay up to $60 for someone to work another 6 hours.
    D.   you can send someone home 6 hours early and still pay them the $60 they would have earned while on the clock.

    53) The costs of delivering products in the _____ channel are much higher than delivering products in the _____ channel.
    A.   physical, digital B.   e-commerce, digital
    C.   physical, financial D.   digital, e-commerce
    E.   digital, physical
    54) When customers access a Web site and make purchases, they generate __________.
    A.   Tracking cookies B.   Web data C.   Information D.   Clickstream data
    E.   Hyperlink data
    55) _____ is the integration of economic, social, cultural, and ecological facets of life, enabled by information.
    A.   regionalization B.   globalization C.   nationalization D.   business environment
               
    56) Various organizations that promote fair and responsible use of information systems often develop __________.
    A.   a code of ethics B.   responsibility charters
    C.   a strategic plan D.   a mission statement E.   a goals outline
    57) What is _____ is not necessarily _____.
    A.   Illegal, unethical B.   Unethical, legal C.   Ethical, illegal D.   Unethical, illegal
    E.   Ethical, legal
    58) _____ provides users with a view of what is happening, where _____ addresses why it is happening.
    A.   Multidimensional data analysis, structured query language
    B.   Multidimensional data analysis, neural networks C.   Data mining, multidimensional data analysis D.   Data mining, expert system E.   Multidimensional data analysis, data mining
    59) Computer support is greatest for which of the following problems?
    A.   Semistructured and strategic planning B.   Semistructured and management control
    C.   Unstructured and operational control D.   Structured and operational control E.   Structured and management control
    60) The management cockpit best exemplifies which type of system?
    A.   Decision support system B.   Functional area information system
    C.   Expert system D.   Digital dashboard E.   Group decision support system
    61) _____ is the efficient and effective execution of specific tasks.
    A.   Operational control
    B.   Expertise C.   Management control
    D.   Strategic planning E.   Wisdom
    62) Geocoding is __________.
    A.   accessing geographical information B.   integrating maps with spatially oriented databases and other databases
    C.   integrating organizational transactions with spatially oriented databases D.   programming spatially oriented databases E.   encrypting spatial information
    63) At 8% compounded annually, how long will it take $750 to double?
    A.   48 months
    B.   6.5 years C.   9 years D.   12 years
    64) Which of the following represents an attempt to measure the earnings of the firm’s operations over a given time period?
    A.   Cash flow statement
    B.   Balance sheet C.   Income statement D.   Quarterly statement
               
    65) A machine costs $1,000, has a three-year life, and has an estimated salvage value of $100. It will generate after-tax annual cash flows (ACF) of $600 a year, starting next year. If your required rate of return for the project is 10%, what is the NPV of this investment? (Round your answerwer to the nearest $10.)
    A.   $570 B.   $490 C.   $900 D.   -$150
               
    66) Disadvantages of using current liabilities as opposed to long-term debt include:
    A.   higher cash flow exposure B.   greater risk of illiquidity, and uncertainty of interest costs
    C.   decreased risk of liquidity D.   certainty of interest costs E.   uncertainty of future liabilities
    67) Petrified Forest Skin Care, Inc. pays an annual perpetual dividend of $1.70 per share. If the stock is currently selling for $21.25 per share, what is the expected rate of return on this stock?
    A.   12.5% B.   36.13%
    C.   8.0% D.   13.6%
    68) Which of the following is most consistent with the hedging principle in working capital management?
    A.   Fixed assets should be financed with short-term notes payable. B.   Inventory should be financed with preferred stock. C.   Accounts receivable should be financed with short-term lines of credit.
    D.   Borrow on a floating rate basis to finance investments in permanent assets.
               
    69) An increase in future value can be caused by an increase in the __________.
    A.   original amount invested B.   annual interest rate and number of compounding periods
    C.   rate of return D.   dividends paid E.   starting value
    70) If the quote for a forward exchange contract is greater than the computed price, the forward contract is:
    A.   at equilibrium.
    B.   undervalued. C.   a good buy. D.   overvalued.
    71) Your company is considering an investment in a project which would require an initial outlay of $300,000 and produce expected cash flows in Years 1 through 5 of $87,385 per year. You have determined that the current after-tax cost of the firm’s capital (required rate of return) for each source of financing is as follows:
    Cost of debt     8%
    Cost of preferred stock           12%
    Cost of common stock            16%
    Long-term debt currently makes up 20% of the capital structure, preferred stock 10%, and common stock 70%. What is the net present value of this project?
    A.   $1,568
    B.   $871 C.   $1,241
    D.   $463
    72) Suppose you determine that the NPV of a project is $1,525,855. What does that mean?
    A.   The project’s IRR would have to be less that the firm’s discount rate. B.   The project would add value to the firm. C.   Under all conditions, the project’s payback would be less than the profitability index.
    D.   In all cases, investing in this project would be better than investing in a project that has an NPV of $850,000.
               
    73) The common stockholders are most concerned with:
    A.   the spread between the return generated on new investments and the investor’s required rate of return.
    B.   the size of the firm’s beginning earnings per share. C.   the risk of the investment. D.   the percentage of profits retained.
    74) PepsiCo calculates unlevered betas for each peer group in order to:
    A.   eliminate different financial risks.
    B.   eliminate competitive factors. C.   eliminate judgment factors. D.   eliminate different business risks.
    75) Which of the following best represents operating income?
    A.   Income from discontinued operations
    B.   Earnings before interest and taxes C.   Income from capital gains D.   Income after financing activities
    76) In comparison to the buying of final consumers, the purchasing of organizational buyers:
    A.   is even less predictable. B.   leans basically toward economy, quality, and dependability.
    C.   is always emotional. D.   is strictly economic and not at all emotional. E.   is always based on competitive bids from multiple suppliers.
               
    77) The basic objective of the U.S. market-directed economic system is to:
    A.   achieve an annual growth rate of at least 10 percent. B.   provide each person with an equal share of the economic output.
    C.   make the most efficient use of the country's resources. D.   minimize inflation. E.   satisfy consumer needs as they--the consumers--see them.
    78) Comparing GDP for foreign countries can help a marketing manager evaluate potential markets if the manager remembers that:
    A.   GDP measures show people's tendency to buy particular products. B.   income tends to be evenly distributed among consumers in most countries. C.   GDP estimates may not be very accurate for very different cultures and economies.
    D.   Other countries most likely don’t use the US Dollar as their primary currency.
    E.   GDP measures show the degree of competition in a market.
    79) A firm's "marketing mix" decision areas would NOT include:
    A.   Promotion.
    B.   People. C.   Price. D.   Place. E.   Product.
    80) __________ is a marketing management aid which refers to how customers think about proposed and/or present brands in a market.
    A.   Brand familiarity B.   Positioning
    C.   Market scanning D.   Customer relationship management (CRM)
    E.   Market segmentation
    81) The "four Ps" of a marketing mix are:
    A.   Production, Personnel, Price, and Physical Distribution
    B.   Promotion, Production, Price, and People C.   Potential customers, Product, Price, and Personal Selling
    D.   Product, Price, Promotion, and Profit E.   Product, Place, Promotion, and Price
    82) When evaluating macro-marketing:
    A.   the evaluation is necessarily subjective. B.   the best approach is to consider the profit generated by individual firms within the overall system.
    C.   one must determine how efficiently the society's resources are used. D.   one must consider the society’s role in the marketing system. E.   one must consider each individual firm's role in the marketing system.
    83) A cluster analysis of the "toothpaste market" would probably show that:
    A.   the broad product-market can be served effectively with one marketing mix.
    B.   most consu
              61) _____ is the efficient and effective execution of specific tasks. A. Operational control B. Expertise C. Management control D. Strategic planning E. Wisdom        

    BUS/475 Guide 4


    1) The cost principle requires that when assets are acquired, they be recorded at __________.
    A.   list price B.   selling price C.   exchange price paid D.   appraisal value
    2) "Generally accepted" in the phrase generally accepted accounting principles means that the principles __________.
    A.   have been approved for use by the managements of business firms
    B.   have been approved by the Internal Revenue Service C.   have substantial authoritative support D.   are proven theories of accounting
    3) The standards and rules that are recognized as a general guide for financial reporting are called __________.
    A.   standards of financial reporting B.   operating guidelines C.   generally accepted accounting principles D.   generally accepted accounting standards
    4) Sam's Used Cars uses the specific identification method of costing inventory. During March, Sam purchased three cars for $6,000, $7,500, and $9,750, respectively. During March, two cars are sold for $9,000 each. Sam determines that at March 31, the $9,750 car is still on hand. What is Sam’s gross profit for March?
    A.   $8,250
    B.   $750 C.   $4,500
    D.   $5,250
               
    5) Hess, Inc. sells a single product with a contribution margin of $12 per unit and fixed costs of $74,400 and sales for the current year of $100,000. How much is Hess’s break even point?
    A.   2,133 units
    B.   6,200 units
    C.   $25,600 D.   4,600 units
               
    6) As Plant Controller, you are trying to determine which costs over which you have the most control on a day to day basis. Your goal is to achieve better profitability. The Plant Operations Manager suggests that overhead is the easiest area to directly reduce costs. Which of the following items would be classified as manufacturing overhead?
    A.   The western division’s vice president’s salary
    B.   Cost of landscaping the corporate office C.   General corporate liability insurance D.   Factory janitor
    7) What is the preparation of reports for each level of responsibility in the company’s organization chart called?
    A.   Master budgeting analysis
    B.   Exception reporting C.   Responsibility reporting
    D.   Static reporting
    8) Disney’s variable costs are 30% of sales. The company is contemplating an advertising campaign that will cost $22,000. If sales are expected to increase $40,000, by how much will the company's net income increase?
    A.   $6,000 B.   $12,000
    C.   $28,000
    D.   $18,000
               
    9) The cost of an asset and its fair market value are __________.
    A.   never the same B.   irrelevant when the asset is used by the business in its operations
    C.   the same on the date of acquisition D.   the same when the asset is sold
    10) Which one of the following is a product cost?
    A.   Indirect labor B.   Sales person’s salaries
    C.   Advertising costs D.   Office salaries
    11) What exists when budgeted costs exceed actual results?
    A.   A budgeting error B.   An unfavorable difference
    C.   An excess profit D.   A favorable difference
    12) The income statement and balance sheet columns of Pine Company's worksheet reflects the following totals:
                            Income Statement                  Balance Sheet
                Dr.       Cr.                   Dr.       Cr.
    Totals              $58,000           $48,000                       $34,000           $44,000
               

    Closing entries are necessary for __________.
    A.   permanent accounts only B.   both permanent and temporary accounts
    C.   permanent or real accounts only D.   temporary accounts only
    13) Managerial accounting __________.
    A.   is concerned with costing products B.   pertains to the entity as a whole and is highly aggregated
    C.   places emphasis on special-purpose information D.   is governed by generally accepted accounting principles
               
    14) H55 Company sells two products, beer and wine. Beer has a 10 percent profit margin and wine has a 12 percent profit margin. Beer has a 27 percent contribution margin and wine has a 25 percent contribution margin. If other factors are equal, which product should H55 push to customers?
    A.   Beer B.   Selling either results in the same additional income for the company
    C.   It should sell an equal quantity of both D.   Wine
    15) Lekeisha's income exceeds her expenditures. Lekeisha is a __________.
    A.   saver who demands money from the financial system B.   borrower who demands money from the financial system
    C.   borrower who supplies money to the financial system D.   saver who supplies money to the financial system
    16) Maurice receives $100 as a birthday gift. In deciding how to spend the money, he narrows his options down to four choices: Option A, Option B, Option C, and Option D. Each option costs $100. Finally he decides on Option B. The opportunity cost of this decision is __________.
    A.   the value to Maurice of the option he would have chosen had Option B not been available
    B.   $100 C.   $300 D.   the value to Maurice of Options A, C and D combined
    17) A production possibilities frontier will be a straight line if __________.
    A.   the economy is producing efficiently B.   the economy is engaged in trade with at least one other economy C.   increasing the production of one good by x units entails no opportunity cost in terms of the other good
    D.   increasing the production of one good by x units entails a constant opportunity cost in terms of the other good
               
    18) In economics, the cost of something is __________.
    A.   what you give up to get it B.   often impossible to quantify, even in principle C.   the dollar amount of obtaining it D.   always measured in units of time given up to get it
               
    19) A tax on an imported good is called a __________.
    A.   supply tax
    B.   trade tax C.   quota D.   tariff
    20) Which of the following statements about GDP is correct?
    A.   GDP is to a nation’s economy as household income is to a household. B.   GDP increases if the total population increases. C.   GDP measures two things at once: the total income of everyone in the economy and the unemployment rate.
    D.   Money continuously flows from households to government and then back to households, and GDP measures this flow of money.
               
    21) In computing GDP, market prices are used to value final goods and services because __________.
    A.   if market prices are out of line with how people value goods, the government sets price ceilings and price floors
    B.   Market prices are not used in computing GDP C.   market prices reflect the values of goods and services D.   market prices do not change much over time, so it is easy to make comparisons between years

    22) Which of the following statements about GDP is correct?
    A.   Nominal GDP values production at market prices, whereas real GDP values production at the cost of the resources used in the production process.
    B.   Nominal GDP consistently underestimates the value of production, whereas real GDP consistently overestimates the value of production.
    C.   Nominal GDP values production at current prices, whereas real GDP values production at constant prices.
    D.   Nominal GDP values production at constant prices, whereas real GDP values production at current prices.
               
    23) Which of the following is not correct?
    A.   The U.S. debt per-person is large compared with average lifetime income.
    B.   In 2005, the U.S. government had a deficit. C.   A potential cost of deficits is that they reduce national saving, thereby reducing growth of the capital stock and output growth.
    D.   Deficits give people the opportunity to consume at the expense of their children, but they do not require them to do so.
               
    24) The part of the balance of payments account that lists all long-term flows of payments is called the:
    A.   balance of trade. B.   financial and capital account.
    C.   government financial account.
    D.   current account.
    25) Edward Prescott and Finn Kydland won the Nobel Prize in Economics in 2004. One of their contributions was to argue that if a central bank could convince people to expect zero inflation, then the Fed would be tempted to raise output by increasing inflation. This possibility is known as __________.
    A.   the sacrifice ratio dilemma B.   the monetary policy reaction lag
    C.   the time inconsistency of policy
    D.   inflation targeting
    26) In general, the longest lag for __________.
    A.   fiscal policy is the time it takes to change policy, while for monetary policy the longest lag is the time it takes for policy to affect aggregate demand
    B.   both fiscal and monetary policy is the time it takes for policy to affect aggregate demand
    C.   monetary policy is the time it takes to change policy, while for fiscal policy the longest lag is the time it takes for policy to affect aggregate demand
    D.   both fiscal and monetary policy is the time it takes to change policy
    27) Consider two items that might be included in GDP: (1) The estimated rental value of owner-occupied housing; and (2) purchases of newly-constructed homes. How are these two items accounted for when GDP is calculated?
    A.   Only item (2) is included in GDP and it is included in the investment component.
    B.   Item (1) is included in the consumption component, while item (2) is included in the investment component.
    C.   Item (1) is included in the investment component, while item (2) is included in the consumption component.
    D.   Both item (1) and item (2) are included in the consumption component of GDP.

    28) Managers will utilize __________ skills with increasing frequency as they rise within an organization.
    A.   Professional B.   Interpersonal and communication
    C.   Technical D.   Professional E.   Conceptual and decision
    29) Which of these represent skills that managers need?
    A.   Interpersonal, quantitative, and professional B.   Technical, interpersonal & communication and conceptual & decision making
    C.   Professional, technical and interpersonal & communication D.   Conceptual & decision making, professional and technical E.   Interpersonal & communication, conceptual & decision making and professional
               
    30) Building a dynamic organization is another way of describing which function of management?
    A.   Staffing B.   Organizing
    C.   Leading D.   Controlling
    E.   Planning
    31) Your roommate is interested in starting a business and everybody has been giving him different information about being an entrepreneur. Since you have been studying about entrepreneurship and new ventures, which of these would you tell him is true?
    A.   Anyone can start a business B.   All entrepreneurs need venture capital in order to get started C.   Successful entrepreneurs take very careful, calculated risks D.   Entrepreneurs are their own bosses and completely independent
    E.   Money should not be considered a start-up ingredient
    32) The term used to refer to all kinds of differences including religious affiliation, age, disability status, economic class and lifestyle in addition to gender, race, ethnicity and nationality is:
    A.   Diversity B.   Managerial ethics
    C.   Recruiting D.   Employment E.   Selection
    33) A manager's ability to stimulate people to be high performers is referred to as:
    A.   Planning B.   Supervising
    C.   Controlling
    D.   Organizing E.   Leading
    34) A series of quality standards developed by a committee working under the International Organization for Standardization to improve total quality in all businesses for the benefit of both producers and consumers is:
    A.   Total quality management B.   Customer-based integration C.   Computer-integrated manufacturing (CIM)
    D.   Just-in-time control (JIT)
    E.   ISO 9000
    35) Japanese manufacturers' kaizen (continuous improvement) programs enable them to maintain:
    A.   A strategic alliance B.   A homogeneous workforce C.   Positive working relationships with all employees
    D.   A Learning advantage over their competition E.   Larger, faster facilities
    36) Listening to employee suggestions, gaining support for organizational objectives and fostering an atmosphere of teamwork are all considered:
    A.   Technical skills B.   Conceptual C.   Professional skills D.   Interpersonal/communication skills
    E.   Diagnostic skills
    37) The basic components of an effective sexual harassment policy include the following EXCEPT:
    A.   To develop an organization wide policy on sexual harassment B.   To establish a means for ongoing training C.   To act immediately when employees complain of sexual harassment
    D.   To establish a performance appraisal system E.   To establish a formal complaint procedure
    38) Teams that operate separately from the regular work structure and exist temporarily are known as:
    A.   Management teams B.   Transnational teams
    C.   Self-managed teams
    D.   Parallel teams E.   Self-designing teams
               
    39) The Aquatic Center, Inc. periodically reviews the goals of the company. During the process, The Aquatic Center managers analyze their current strategies as compared to their competitors, determine goals that they will pursue and decide upon specific actions for each area of the company to take in pursuit of these goals. The Aquatic Center managers have been engaged in the management function of:
    A.   Goal Coordination
    B.   Controlling C.   Organizing D.   Staffing E.   Planning
    40) As related to managing of human resources, diversity refers to:
    A.   Differences in demographics (such as age, race, gender, disability status, lifestyle, veteran status, educational level, etc.)
    B.   Differences in pay methods (such as hourly, salaried, overtime, hazard-pay, commissioned, etc.)
    C.   Differences in employee benefit plans (such as pensions, insurance, vacations, memberships, etc.)
    D.   Differences in retention strategies (such as training, hiring, incentives, etc) E.   Differences in recruiting methods (such as newspapers, schools, flyers, magazines, agencies, etc.)
               
    41) __________ is the process of working with people and resources to accomplish organizational goals.
    A.   Controlling B.   Decision making
    C.   Planning D.   Supervising E.   Management
    42) Twelve randomly-chosen students were asked how many times they had missed class during a certain semester, with this result: 2, 1, 5, 1, 1, 3, 4, 3, 1, 1, 5, 18.
    For this sample, the median is _____.
    A.   3 B.   3.5
    C.   2.5
    D.   2
    43) Use the following table to answer question:
     P(S | W) is approximately _____.
    A.   .40
    B.   .30
    C.   .12
    D.   .58
               
    44) Use the following table to answer question:
     P(M  A) is approximately _____.
    A.   .50 B.   .625
    C.   .125
    D.   .25
    45) Dullco Manufacturing claims that its alkaline batteries last forty hours on average in a certain type of portable CD player. Tests on a random sample of 18 batteries showed a mean battery life of 37.8 hours with a standard deviation of 5.4 hours.
    In determining the p-value for reporting the study's findings, which of the following is true?
    A.   The p-value is equal to .05. B.   The p-value is greater than .05. C.   The p-value cannot be determined without specifying  . D.   The p-value is less than .05.
    46) William used a sample of 68 U.S. cities to estimate the relationship between Crime (annual property crimes per 100,000 persons) and Income (median income per capita). His estimated regression equation was Crime = 428 + .050 Income.
    Which outcomes would be likely in a bivariate regression on 45 randomly chosen U.S. cities in 2005 with
    Y = number of robberies in each city (thousands of robberies) and
    X = size of police force in each city (thousands of police)?
    A.   High R2 (due to city size). B.   Positive slope (due to city size).
    C.   No correlation. D.   Autocorrelation.
    47) Twelve randomly-chosen students were asked how many times they had missed class during a certain semester, with this result: 2, 1, 5, 1, 1, 3, 4, 3, 1, 1, 5, 18.
    For this sample, which measure of central tendency is least representative of the “typical” student?
    A.   Midrange
    B.   Mean C.   Mode D.   Median
               
    48) Likely reasons for inaccurate control limits would include which of the following?
    A.   Process variation was not zero, as expected. B.   The engineering parameter for variance is unknown.
    C.   There was insufficient preliminary sampling. D.   The engineers were underpaid for their work.
    49) You are faced with a linear programming objective function of:
    Max P = $20X + $30Y
    and constraints of:
    3X + 4Y = 24 (Constraint A)
    5X – Y = 18 (Constraint B)
    You discover that the shadow price for Constraint A is 7.5 and the shadow price for Constraint B is 0. Which of these statements is TRUE?
    A.   The most you would want to pay for an additional unit of A would be $7.50.
    B.   You can change quantities of X and Y at no cost for Constraint B. C.   For every additional unit of the objective function you create, the price of A rises by $7.50.
    D.   For every additional unit of the objective function you create, you lose 0 units of B.
               
    50) A project has three paths. A–B–C has a length of 25 days. A–D–C has a length of 15 days. Finally, A–E–C has a length of 20 days. Which one of the following statements is TRUE?
    A.   The expected duration of this project is 25 + 15 + 20 = 60 days.
    B.   A–D–C is the critical path. C.   The expected duration of this project is 25 days. D.   A–B–C has the most slack.
    51) Which one of the following statements concerning production and staffing plans is best?
    A.   A master production schedule is a projected statement of income, costs, and profits.
    B.   Aggregation can be performed along three dimensions: product families, labor, and time.
    C.   Production plans are based primarily on information from the master production plan.
    D.   A staffing plan is the intermediate link between the business plan and the master production schedule.
               
    52) While glancing over the sensitivity report, you note that the stitching labor has a shadow price of $10 and a lower limit of 24 hours with an upper limit of 36 hours. If your original right hand value for stitching labor was 30 hours, you know that:
    A.   you would lose $80 if one of your workers missed an entire 8 hour shift. B.   the next worker that offers to work an extra 8 hours should receive at least $80.
    C.   you would be willing pay up to $60 for someone to work another 6 hours.
    D.   you can send someone home 6 hours early and still pay them the $60 they would have earned while on the clock.

    53) The costs of delivering products in the _____ channel are much higher than delivering products in the _____ channel.
    A.   physical, digital B.   e-commerce, digital
    C.   physical, financial D.   digital, e-commerce
    E.   digital, physical
    54) When customers access a Web site and make purchases, they generate __________.
    A.   Tracking cookies B.   Web data C.   Information D.   Clickstream data
    E.   Hyperlink data
    55) _____ is the integration of economic, social, cultural, and ecological facets of life, enabled by information.
    A.   regionalization B.   globalization C.   nationalization D.   business environment
               
    56) Various organizations that promote fair and responsible use of information systems often develop __________.
    A.   a code of ethics B.   responsibility charters
    C.   a strategic plan D.   a mission statement E.   a goals outline
    57) What is _____ is not necessarily _____.
    A.   Illegal, unethical B.   Unethical, legal C.   Ethical, illegal D.   Unethical, illegal
    E.   Ethical, legal
    58) _____ provides users with a view of what is happening, where _____ addresses why it is happening.
    A.   Multidimensional data analysis, structured query language
    B.   Multidimensional data analysis, neural networks C.   Data mining, multidimensional data analysis D.   Data mining, expert system E.   Multidimensional data analysis, data mining
    59) Computer support is greatest for which of the following problems?
    A.   Semistructured and strategic planning B.   Semistructured and management control
    C.   Unstructured and operational control D.   Structured and operational control E.   Structured and management control
    60) The management cockpit best exemplifies which type of system?
    A.   Decision support system B.   Functional area information system
    C.   Expert system D.   Digital dashboard E.   Group decision support system
    61) _____ is the efficient and effective execution of specific tasks.
    A.   Operational control
    B.   Expertise C.   Management control
    D.   Strategic planning E.   Wisdom
    62) Geocoding is __________.
    A.   accessing geographical information B.   integrating maps with spatially oriented databases and other databases
    C.   integrating organizational transactions with spatially oriented databases D.   programming spatially oriented databases E.   encrypting spatial information
    63) At 8% compounded annually, how long will it take $750 to double?
    A.   48 months
    B.   6.5 years C.   9 years D.   12 years
    64) Which of the following represents an attempt to measure the earnings of the firm’s operations over a given time period?
    A.   Cash flow statement
    B.   Balance sheet C.   Income statement D.   Quarterly statement
               
    65) A machine costs $1,000, has a three-year life, and has an estimated salvage value of $100. It will generate after-tax annual cash flows (ACF) of $600 a year, starting next year. If your required rate of return for the project is 10%, what is the NPV of this investment? (Round your answerwer to the nearest $10.)
    A.   $570 B.   $490 C.   $900 D.   -$150
               
    66) Disadvantages of using current liabilities as opposed to long-term debt include:
    A.   higher cash flow exposure B.   greater risk of illiquidity, and uncertainty of interest costs
    C.   decreased risk of liquidity D.   certainty of interest costs E.   uncertainty of future liabilities
    67) Petrified Forest Skin Care, Inc. pays an annual perpetual dividend of $1.70 per share. If the stock is currently selling for $21.25 per share, what is the expected rate of return on this stock?
    A.   12.5% B.   36.13%
    C.   8.0% D.   13.6%
    68) Which of the following is most consistent with the hedging principle in working capital management?
    A.   Fixed assets should be financed with short-term notes payable. B.   Inventory should be financed with preferred stock. C.   Accounts receivable should be financed with short-term lines of credit.
    D.   Borrow on a floating rate basis to finance investments in permanent assets.
               
    69) An increase in future value can be caused by an increase in the __________.
    A.   original amount invested B.   annual interest rate and number of compounding periods
    C.   rate of return D.   dividends paid E.   starting value
    70) If the quote for a forward exchange contract is greater than the computed price, the forward contract is:
    A.   at equilibrium.
    B.   undervalued. C.   a good buy. D.   overvalued.
    71) Your company is considering an investment in a project which would require an initial outlay of $300,000 and produce expected cash flows in Years 1 through 5 of $87,385 per year. You have determined that the current after-tax cost of the firm’s capital (required rate of return) for each source of financing is as follows:
    Cost of debt     8%
    Cost of preferred stock           12%
    Cost of common stock            16%
    Long-term debt currently makes up 20% of the capital structure, preferred stock 10%, and common stock 70%. What is the net present value of this project?
    A.   $1,568
    B.   $871 C.   $1,241
    D.   $463
    72) Suppose you determine that the NPV of a project is $1,525,855. What does that mean?
    A.   The project’s IRR would have to be less that the firm’s discount rate. B.   The project would add value to the firm. C.   Under all conditions, the project’s payback would be less than the profitability index.
    D.   In all cases, investing in this project would be better than investing in a project that has an NPV of $850,000.
               
    73) The common stockholders are most concerned with:
    A.   the spread between the return generated on new investments and the investor’s required rate of return.
    B.   the size of the firm’s beginning earnings per share. C.   the risk of the investment. D.   the percentage of profits retained.
    74) PepsiCo calculates unlevered betas for each peer group in order to:
    A.   eliminate different financial risks.
    B.   eliminate competitive factors. C.   eliminate judgment factors. D.   eliminate different business risks.
    75) Which of the following best represents operating income?
    A.   Income from discontinued operations
    B.   Earnings before interest and taxes C.   Income from capital gains D.   Income after financing activities
    76) In comparison to the buying of final consumers, the purchasing of organizational buyers:
    A.   is even less predictable. B.   leans basically toward economy, quality, and dependability.
    C.   is always emotional. D.   is strictly economic and not at all emotional. E.   is always based on competitive bids from multiple suppliers.
               
    77) The basic objective of the U.S. market-directed economic system is to:
    A.   achieve an annual growth rate of at least 10 percent. B.   provide each person with an equal share of the economic output.
    C.   make the most efficient use of the country's resources. D.   minimize inflation. E.   satisfy consumer needs as they--the consumers--see them.
    78) Comparing GDP for foreign countries can help a marketing manager evaluate potential markets if the manager remembers that:
    A.   GDP measures show people's tendency to buy particular products. B.   income tends to be evenly distributed among consumers in most countries. C.   GDP estimates may not be very accurate for very different cultures and economies.
    D.   Other countries most likely don’t use the US Dollar as their primary currency.
    E.   GDP measures show the degree of competition in a market.
    79) A firm's "marketing mix" decision areas would NOT include:
    A.   Promotion.
    B.   People. C.   Price. D.   Place. E.   Product.
    80) __________ is a marketing management aid which refers to how customers think about proposed and/or present brands in a market.
    A.   Brand familiarity B.   Positioning
    C.   Market scanning D.   Customer relationship management (CRM)
    E.   Market segmentation
    81) The "four Ps" of a marketing mix are:
    A.   Production, Personnel, Price, and Physical Distribution
    B.   Promotion, Production, Price, and People C.   Potential customers, Product, Price, and Personal Selling
    D.   Product, Price, Promotion, and Profit E.   Product, Place, Promotion, and Price
    82) When evaluating macro-marketing:
    A.   the evaluation is necessarily subjective. B.   the best approach is to consider the profit generated by individual firms within the overall system.
    C.   one must determine how efficiently the society's resources are used. D.   one must consider the society’s role in the marketing system. E.   one must consider each individual firm's role in the marketing system.
    83) A cluster analysis of the "toothpaste market" would probably show that:
    A.   the broad product-market can be served effectively with one marketing mix.
    B.   most consu
              62) Geocoding is __________. A. accessing geographical information B. integrating maps with spatially oriented databases and other databases C. integrating organizational transactions with spatially oriented databases D. programming spatially oriented databases E. encrypting spatial information        

    BUS/475 Guide 4


    1) The cost principle requires that when assets are acquired, they be recorded at __________.
    A.   list price B.   selling price C.   exchange price paid D.   appraisal value
    2) "Generally accepted" in the phrase generally accepted accounting principles means that the principles __________.
    A.   have been approved for use by the managements of business firms
    B.   have been approved by the Internal Revenue Service C.   have substantial authoritative support D.   are proven theories of accounting
    3) The standards and rules that are recognized as a general guide for financial reporting are called __________.
    A.   standards of financial reporting B.   operating guidelines C.   generally accepted accounting principles D.   generally accepted accounting standards
    4) Sam's Used Cars uses the specific identification method of costing inventory. During March, Sam purchased three cars for $6,000, $7,500, and $9,750, respectively. During March, two cars are sold for $9,000 each. Sam determines that at March 31, the $9,750 car is still on hand. What is Sam’s gross profit for March?
    A.   $8,250
    B.   $750 C.   $4,500
    D.   $5,250
               
    5) Hess, Inc. sells a single product with a contribution margin of $12 per unit and fixed costs of $74,400 and sales for the current year of $100,000. How much is Hess’s break even point?
    A.   2,133 units
    B.   6,200 units
    C.   $25,600 D.   4,600 units
               
    6) As Plant Controller, you are trying to determine which costs over which you have the most control on a day to day basis. Your goal is to achieve better profitability. The Plant Operations Manager suggests that overhead is the easiest area to directly reduce costs. Which of the following items would be classified as manufacturing overhead?
    A.   The western division’s vice president’s salary
    B.   Cost of landscaping the corporate office C.   General corporate liability insurance D.   Factory janitor
    7) What is the preparation of reports for each level of responsibility in the company’s organization chart called?
    A.   Master budgeting analysis
    B.   Exception reporting C.   Responsibility reporting
    D.   Static reporting
    8) Disney’s variable costs are 30% of sales. The company is contemplating an advertising campaign that will cost $22,000. If sales are expected to increase $40,000, by how much will the company's net income increase?
    A.   $6,000 B.   $12,000
    C.   $28,000
    D.   $18,000
               
    9) The cost of an asset and its fair market value are __________.
    A.   never the same B.   irrelevant when the asset is used by the business in its operations
    C.   the same on the date of acquisition D.   the same when the asset is sold
    10) Which one of the following is a product cost?
    A.   Indirect labor B.   Sales person’s salaries
    C.   Advertising costs D.   Office salaries
    11) What exists when budgeted costs exceed actual results?
    A.   A budgeting error B.   An unfavorable difference
    C.   An excess profit D.   A favorable difference
    12) The income statement and balance sheet columns of Pine Company's worksheet reflects the following totals:
                            Income Statement                  Balance Sheet
                Dr.       Cr.                   Dr.       Cr.
    Totals              $58,000           $48,000                       $34,000           $44,000
               

    Closing entries are necessary for __________.
    A.   permanent accounts only B.   both permanent and temporary accounts
    C.   permanent or real accounts only D.   temporary accounts only
    13) Managerial accounting __________.
    A.   is concerned with costing products B.   pertains to the entity as a whole and is highly aggregated
    C.   places emphasis on special-purpose information D.   is governed by generally accepted accounting principles
               
    14) H55 Company sells two products, beer and wine. Beer has a 10 percent profit margin and wine has a 12 percent profit margin. Beer has a 27 percent contribution margin and wine has a 25 percent contribution margin. If other factors are equal, which product should H55 push to customers?
    A.   Beer B.   Selling either results in the same additional income for the company
    C.   It should sell an equal quantity of both D.   Wine
    15) Lekeisha's income exceeds her expenditures. Lekeisha is a __________.
    A.   saver who demands money from the financial system B.   borrower who demands money from the financial system
    C.   borrower who supplies money to the financial system D.   saver who supplies money to the financial system
    16) Maurice receives $100 as a birthday gift. In deciding how to spend the money, he narrows his options down to four choices: Option A, Option B, Option C, and Option D. Each option costs $100. Finally he decides on Option B. The opportunity cost of this decision is __________.
    A.   the value to Maurice of the option he would have chosen had Option B not been available
    B.   $100 C.   $300 D.   the value to Maurice of Options A, C and D combined
    17) A production possibilities frontier will be a straight line if __________.
    A.   the economy is producing efficiently B.   the economy is engaged in trade with at least one other economy C.   increasing the production of one good by x units entails no opportunity cost in terms of the other good
    D.   increasing the production of one good by x units entails a constant opportunity cost in terms of the other good
               
    18) In economics, the cost of something is __________.
    A.   what you give up to get it B.   often impossible to quantify, even in principle C.   the dollar amount of obtaining it D.   always measured in units of time given up to get it
               
    19) A tax on an imported good is called a __________.
    A.   supply tax
    B.   trade tax C.   quota D.   tariff
    20) Which of the following statements about GDP is correct?
    A.   GDP is to a nation’s economy as household income is to a household. B.   GDP increases if the total population increases. C.   GDP measures two things at once: the total income of everyone in the economy and the unemployment rate.
    D.   Money continuously flows from households to government and then back to households, and GDP measures this flow of money.
               
    21) In computing GDP, market prices are used to value final goods and services because __________.
    A.   if market prices are out of line with how people value goods, the government sets price ceilings and price floors
    B.   Market prices are not used in computing GDP C.   market prices reflect the values of goods and services D.   market prices do not change much over time, so it is easy to make comparisons between years

    22) Which of the following statements about GDP is correct?
    A.   Nominal GDP values production at market prices, whereas real GDP values production at the cost of the resources used in the production process.
    B.   Nominal GDP consistently underestimates the value of production, whereas real GDP consistently overestimates the value of production.
    C.   Nominal GDP values production at current prices, whereas real GDP values production at constant prices.
    D.   Nominal GDP values production at constant prices, whereas real GDP values production at current prices.
               
    23) Which of the following is not correct?
    A.   The U.S. debt per-person is large compared with average lifetime income.
    B.   In 2005, the U.S. government had a deficit. C.   A potential cost of deficits is that they reduce national saving, thereby reducing growth of the capital stock and output growth.
    D.   Deficits give people the opportunity to consume at the expense of their children, but they do not require them to do so.
               
    24) The part of the balance of payments account that lists all long-term flows of payments is called the:
    A.   balance of trade. B.   financial and capital account.
    C.   government financial account.
    D.   current account.
    25) Edward Prescott and Finn Kydland won the Nobel Prize in Economics in 2004. One of their contributions was to argue that if a central bank could convince people to expect zero inflation, then the Fed would be tempted to raise output by increasing inflation. This possibility is known as __________.
    A.   the sacrifice ratio dilemma B.   the monetary policy reaction lag
    C.   the time inconsistency of policy
    D.   inflation targeting
    26) In general, the longest lag for __________.
    A.   fiscal policy is the time it takes to change policy, while for monetary policy the longest lag is the time it takes for policy to affect aggregate demand
    B.   both fiscal and monetary policy is the time it takes for policy to affect aggregate demand
    C.   monetary policy is the time it takes to change policy, while for fiscal policy the longest lag is the time it takes for policy to affect aggregate demand
    D.   both fiscal and monetary policy is the time it takes to change policy
    27) Consider two items that might be included in GDP: (1) The estimated rental value of owner-occupied housing; and (2) purchases of newly-constructed homes. How are these two items accounted for when GDP is calculated?
    A.   Only item (2) is included in GDP and it is included in the investment component.
    B.   Item (1) is included in the consumption component, while item (2) is included in the investment component.
    C.   Item (1) is included in the investment component, while item (2) is included in the consumption component.
    D.   Both item (1) and item (2) are included in the consumption component of GDP.

    28) Managers will utilize __________ skills with increasing frequency as they rise within an organization.
    A.   Professional B.   Interpersonal and communication
    C.   Technical D.   Professional E.   Conceptual and decision
    29) Which of these represent skills that managers need?
    A.   Interpersonal, quantitative, and professional B.   Technical, interpersonal & communication and conceptual & decision making
    C.   Professional, technical and interpersonal & communication D.   Conceptual & decision making, professional and technical E.   Interpersonal & communication, conceptual & decision making and professional
               
    30) Building a dynamic organization is another way of describing which function of management?
    A.   Staffing B.   Organizing
    C.   Leading D.   Controlling
    E.   Planning
    31) Your roommate is interested in starting a business and everybody has been giving him different information about being an entrepreneur. Since you have been studying about entrepreneurship and new ventures, which of these would you tell him is true?
    A.   Anyone can start a business B.   All entrepreneurs need venture capital in order to get started C.   Successful entrepreneurs take very careful, calculated risks D.   Entrepreneurs are their own bosses and completely independent
    E.   Money should not be considered a start-up ingredient
    32) The term used to refer to all kinds of differences including religious affiliation, age, disability status, economic class and lifestyle in addition to gender, race, ethnicity and nationality is:
    A.   Diversity B.   Managerial ethics
    C.   Recruiting D.   Employment E.   Selection
    33) A manager's ability to stimulate people to be high performers is referred to as:
    A.   Planning B.   Supervising
    C.   Controlling
    D.   Organizing E.   Leading
    34) A series of quality standards developed by a committee working under the International Organization for Standardization to improve total quality in all businesses for the benefit of both producers and consumers is:
    A.   Total quality management B.   Customer-based integration C.   Computer-integrated manufacturing (CIM)
    D.   Just-in-time control (JIT)
    E.   ISO 9000
    35) Japanese manufacturers' kaizen (continuous improvement) programs enable them to maintain:
    A.   A strategic alliance B.   A homogeneous workforce C.   Positive working relationships with all employees
    D.   A Learning advantage over their competition E.   Larger, faster facilities
    36) Listening to employee suggestions, gaining support for organizational objectives and fostering an atmosphere of teamwork are all considered:
    A.   Technical skills B.   Conceptual C.   Professional skills D.   Interpersonal/communication skills
    E.   Diagnostic skills
    37) The basic components of an effective sexual harassment policy include the following EXCEPT:
    A.   To develop an organization wide policy on sexual harassment B.   To establish a means for ongoing training C.   To act immediately when employees complain of sexual harassment
    D.   To establish a performance appraisal system E.   To establish a formal complaint procedure
    38) Teams that operate separately from the regular work structure and exist temporarily are known as:
    A.   Management teams B.   Transnational teams
    C.   Self-managed teams
    D.   Parallel teams E.   Self-designing teams
               
    39) The Aquatic Center, Inc. periodically reviews the goals of the company. During the process, The Aquatic Center managers analyze their current strategies as compared to their competitors, determine goals that they will pursue and decide upon specific actions for each area of the company to take in pursuit of these goals. The Aquatic Center managers have been engaged in the management function of:
    A.   Goal Coordination
    B.   Controlling C.   Organizing D.   Staffing E.   Planning
    40) As related to managing of human resources, diversity refers to:
    A.   Differences in demographics (such as age, race, gender, disability status, lifestyle, veteran status, educational level, etc.)
    B.   Differences in pay methods (such as hourly, salaried, overtime, hazard-pay, commissioned, etc.)
    C.   Differences in employee benefit plans (such as pensions, insurance, vacations, memberships, etc.)
    D.   Differences in retention strategies (such as training, hiring, incentives, etc) E.   Differences in recruiting methods (such as newspapers, schools, flyers, magazines, agencies, etc.)
               
    41) __________ is the process of working with people and resources to accomplish organizational goals.
    A.   Controlling B.   Decision making
    C.   Planning D.   Supervising E.   Management
    42) Twelve randomly-chosen students were asked how many times they had missed class during a certain semester, with this result: 2, 1, 5, 1, 1, 3, 4, 3, 1, 1, 5, 18.
    For this sample, the median is _____.
    A.   3 B.   3.5
    C.   2.5
    D.   2
    43) Use the following table to answer question:
     P(S | W) is approximately _____.
    A.   .40
    B.   .30
    C.   .12
    D.   .58
               
    44) Use the following table to answer question:
     P(M  A) is approximately _____.
    A.   .50 B.   .625
    C.   .125
    D.   .25
    45) Dullco Manufacturing claims that its alkaline batteries last forty hours on average in a certain type of portable CD player. Tests on a random sample of 18 batteries showed a mean battery life of 37.8 hours with a standard deviation of 5.4 hours.
    In determining the p-value for reporting the study's findings, which of the following is true?
    A.   The p-value is equal to .05. B.   The p-value is greater than .05. C.   The p-value cannot be determined without specifying  . D.   The p-value is less than .05.
    46) William used a sample of 68 U.S. cities to estimate the relationship between Crime (annual property crimes per 100,000 persons) and Income (median income per capita). His estimated regression equation was Crime = 428 + .050 Income.
    Which outcomes would be likely in a bivariate regression on 45 randomly chosen U.S. cities in 2005 with
    Y = number of robberies in each city (thousands of robberies) and
    X = size of police force in each city (thousands of police)?
    A.   High R2 (due to city size). B.   Positive slope (due to city size).
    C.   No correlation. D.   Autocorrelation.
    47) Twelve randomly-chosen students were asked how many times they had missed class during a certain semester, with this result: 2, 1, 5, 1, 1, 3, 4, 3, 1, 1, 5, 18.
    For this sample, which measure of central tendency is least representative of the “typical” student?
    A.   Midrange
    B.   Mean C.   Mode D.   Median
               
    48) Likely reasons for inaccurate control limits would include which of the following?
    A.   Process variation was not zero, as expected. B.   The engineering parameter for variance is unknown.
    C.   There was insufficient preliminary sampling. D.   The engineers were underpaid for their work.
    49) You are faced with a linear programming objective function of:
    Max P = $20X + $30Y
    and constraints of:
    3X + 4Y = 24 (Constraint A)
    5X – Y = 18 (Constraint B)
    You discover that the shadow price for Constraint A is 7.5 and the shadow price for Constraint B is 0. Which of these statements is TRUE?
    A.   The most you would want to pay for an additional unit of A would be $7.50.
    B.   You can change quantities of X and Y at no cost for Constraint B. C.   For every additional unit of the objective function you create, the price of A rises by $7.50.
    D.   For every additional unit of the objective function you create, you lose 0 units of B.
               
    50) A project has three paths. A–B–C has a length of 25 days. A–D–C has a length of 15 days. Finally, A–E–C has a length of 20 days. Which one of the following statements is TRUE?
    A.   The expected duration of this project is 25 + 15 + 20 = 60 days.
    B.   A–D–C is the critical path. C.   The expected duration of this project is 25 days. D.   A–B–C has the most slack.
    51) Which one of the following statements concerning production and staffing plans is best?
    A.   A master production schedule is a projected statement of income, costs, and profits.
    B.   Aggregation can be performed along three dimensions: product families, labor, and time.
    C.   Production plans are based primarily on information from the master production plan.
    D.   A staffing plan is the intermediate link between the business plan and the master production schedule.
               
    52) While glancing over the sensitivity report, you note that the stitching labor has a shadow price of $10 and a lower limit of 24 hours with an upper limit of 36 hours. If your original right hand value for stitching labor was 30 hours, you know that:
    A.   you would lose $80 if one of your workers missed an entire 8 hour shift. B.   the next worker that offers to work an extra 8 hours should receive at least $80.
    C.   you would be willing pay up to $60 for someone to work another 6 hours.
    D.   you can send someone home 6 hours early and still pay them the $60 they would have earned while on the clock.

    53) The costs of delivering products in the _____ channel are much higher than delivering products in the _____ channel.
    A.   physical, digital B.   e-commerce, digital
    C.   physical, financial D.   digital, e-commerce
    E.   digital, physical
    54) When customers access a Web site and make purchases, they generate __________.
    A.   Tracking cookies B.   Web data C.   Information D.   Clickstream data
    E.   Hyperlink data
    55) _____ is the integration of economic, social, cultural, and ecological facets of life, enabled by information.
    A.   regionalization B.   globalization C.   nationalization D.   business environment
               
    56) Various organizations that promote fair and responsible use of information systems often develop __________.
    A.   a code of ethics B.   responsibility charters
    C.   a strategic plan D.   a mission statement E.   a goals outline
    57) What is _____ is not necessarily _____.
    A.   Illegal, unethical B.   Unethical, legal C.   Ethical, illegal D.   Unethical, illegal
    E.   Ethical, legal
    58) _____ provides users with a view of what is happening, where _____ addresses why it is happening.
    A.   Multidimensional data analysis, structured query language
    B.   Multidimensional data analysis, neural networks C.   Data mining, multidimensional data analysis D.   Data mining, expert system E.   Multidimensional data analysis, data mining
    59) Computer support is greatest for which of the following problems?
    A.   Semistructured and strategic planning B.   Semistructured and management control
    C.   Unstructured and operational control D.   Structured and operational control E.   Structured and management control
    60) The management cockpit best exemplifies which type of system?
    A.   Decision support system B.   Functional area information system
    C.   Expert system D.   Digital dashboard E.   Group decision support system
    61) _____ is the efficient and effective execution of specific tasks.
    A.   Operational control
    B.   Expertise C.   Management control
    D.   Strategic planning E.   Wisdom
    62) Geocoding is __________.
    A.   accessing geographical information B.   integrating maps with spatially oriented databases and other databases
    C.   integrating organizational transactions with spatially oriented databases D.   programming spatially oriented databases E.   encrypting spatial information
    63) At 8% compounded annually, how long will it take $750 to double?
    A.   48 months
    B.   6.5 years C.   9 years D.   12 years
    64) Which of the following represents an attempt to measure the earnings of the firm’s operations over a given time period?
    A.   Cash flow statement
    B.   Balance sheet C.   Income statement D.   Quarterly statement
               
    65) A machine costs $1,000, has a three-year life, and has an estimated salvage value of $100. It will generate after-tax annual cash flows (ACF) of $600 a year, starting next year. If your required rate of return for the project is 10%, what is the NPV of this investment? (Round your answerwer to the nearest $10.)
    A.   $570 B.   $490 C.   $900 D.   -$150
               
    66) Disadvantages of using current liabilities as opposed to long-term debt include:
    A.   higher cash flow exposure B.   greater risk of illiquidity, and uncertainty of interest costs
    C.   decreased risk of liquidity D.   certainty of interest costs E.   uncertainty of future liabilities
    67) Petrified Forest Skin Care, Inc. pays an annual perpetual dividend of $1.70 per share. If the stock is currently selling for $21.25 per share, what is the expected rate of return on this stock?
    A.   12.5% B.   36.13%
    C.   8.0% D.   13.6%
    68) Which of the following is most consistent with the hedging principle in working capital management?
    A.   Fixed assets should be financed with short-term notes payable. B.   Inventory should be financed with preferred stock. C.   Accounts receivable should be financed with short-term lines of credit.
    D.   Borrow on a floating rate basis to finance investments in permanent assets.
               
    69) An increase in future value can be caused by an increase in the __________.
    A.   original amount invested B.   annual interest rate and number of compounding periods
    C.   rate of return D.   dividends paid E.   starting value
    70) If the quote for a forward exchange contract is greater than the computed price, the forward contract is:
    A.   at equilibrium.
    B.   undervalued. C.   a good buy. D.   overvalued.
    71) Your company is considering an investment in a project which would require an initial outlay of $300,000 and produce expected cash flows in Years 1 through 5 of $87,385 per year. You have determined that the current after-tax cost of the firm’s capital (required rate of return) for each source of financing is as follows:
    Cost of debt     8%
    Cost of preferred stock           12%
    Cost of common stock            16%
    Long-term debt currently makes up 20% of the capital structure, preferred stock 10%, and common stock 70%. What is the net present value of this project?
    A.   $1,568
    B.   $871 C.   $1,241
    D.   $463
    72) Suppose you determine that the NPV of a project is $1,525,855. What does that mean?
    A.   The project’s IRR would have to be less that the firm’s discount rate. B.   The project would add value to the firm. C.   Under all conditions, the project’s payback would be less than the profitability index.
    D.   In all cases, investing in this project would be better than investing in a project that has an NPV of $850,000.
               
    73) The common stockholders are most concerned with:
    A.   the spread between the return generated on new investments and the investor’s required rate of return.
    B.   the size of the firm’s beginning earnings per share. C.   the risk of the investment. D.   the percentage of profits retained.
    74) PepsiCo calculates unlevered betas for each peer group in order to:
    A.   eliminate different financial risks.
    B.   eliminate competitive factors. C.   eliminate judgment factors. D.   eliminate different business risks.
    75) Which of the following best represents operating income?
    A.   Income from discontinued operations
    B.   Earnings before interest and taxes C.   Income from capital gains D.   Income after financing activities
    76) In comparison to the buying of final consumers, the purchasing of organizational buyers:
    A.   is even less predictable. B.   leans basically toward economy, quality, and dependability.
    C.   is always emotional. D.   is strictly economic and not at all emotional. E.   is always based on competitive bids from multiple suppliers.
               
    77) The basic objective of the U.S. market-directed economic system is to:
    A.   achieve an annual growth rate of at least 10 percent. B.   provide each person with an equal share of the economic output.
    C.   make the most efficient use of the country's resources. D.   minimize inflation. E.   satisfy consumer needs as they--the consumers--see them.
    78) Comparing GDP for foreign countries can help a marketing manager evaluate potential markets if the manager remembers that:
    A.   GDP measures show people's tendency to buy particular products. B.   income tends to be evenly distributed among consumers in most countries. C.   GDP estimates may not be very accurate for very different cultures and economies.
    D.   Other countries most likely don’t use the US Dollar as their primary currency.
    E.   GDP measures show the degree of competition in a market.
    79) A firm's "marketing mix" decision areas would NOT include:
    A.   Promotion.
    B.   People. C.   Price. D.   Place. E.   Product.
    80) __________ is a marketing management aid which refers to how customers think about proposed and/or present brands in a market.
    A.   Brand familiarity B.   Positioning
    C.   Market scanning D.   Customer relationship management (CRM)
    E.   Market segmentation
    81) The "four Ps" of a marketing mix are:
    A.   Production, Personnel, Price, and Physical Distribution
    B.   Promotion, Production, Price, and People C.   Potential customers, Product, Price, and Personal Selling
    D.   Product, Price, Promotion, and Profit E.   Product, Place, Promotion, and Price
    82) When evaluating macro-marketing:
    A.   the evaluation is necessarily subjective. B.   the best approach is to consider the profit generated by individual firms within the overall system.
    C.   one must determine how efficiently the society's resources are used. D.   one must consider the society’s role in the marketing system. E.   one must consider each individual firm's role in the marketing system.
    83) A cluster analysis of the "toothpaste market" would probably show that:
    A.   the broad product-market can be served effectively with one marketing mix.
    B.   most consu
              63) At 8% compounded annually, how long will it take $750 to double? A. 48 months B. 6.5 years C. 9 years D. 12 years        

    BUS/475 Guide 4


    1) The cost principle requires that when assets are acquired, they be recorded at __________.
    A.   list price B.   selling price C.   exchange price paid D.   appraisal value
    2) "Generally accepted" in the phrase generally accepted accounting principles means that the principles __________.
    A.   have been approved for use by the managements of business firms
    B.   have been approved by the Internal Revenue Service C.   have substantial authoritative support D.   are proven theories of accounting
    3) The standards and rules that are recognized as a general guide for financial reporting are called __________.
    A.   standards of financial reporting B.   operating guidelines C.   generally accepted accounting principles D.   generally accepted accounting standards
    4) Sam's Used Cars uses the specific identification method of costing inventory. During March, Sam purchased three cars for $6,000, $7,500, and $9,750, respectively. During March, two cars are sold for $9,000 each. Sam determines that at March 31, the $9,750 car is still on hand. What is Sam’s gross profit for March?
    A.   $8,250
    B.   $750 C.   $4,500
    D.   $5,250
               
    5) Hess, Inc. sells a single product with a contribution margin of $12 per unit and fixed costs of $74,400 and sales for the current year of $100,000. How much is Hess’s break even point?
    A.   2,133 units
    B.   6,200 units
    C.   $25,600 D.   4,600 units
               
    6) As Plant Controller, you are trying to determine which costs over which you have the most control on a day to day basis. Your goal is to achieve better profitability. The Plant Operations Manager suggests that overhead is the easiest area to directly reduce costs. Which of the following items would be classified as manufacturing overhead?
    A.   The western division’s vice president’s salary
    B.   Cost of landscaping the corporate office C.   General corporate liability insurance D.   Factory janitor
    7) What is the preparation of reports for each level of responsibility in the company’s organization chart called?
    A.   Master budgeting analysis
    B.   Exception reporting C.   Responsibility reporting
    D.   Static reporting
    8) Disney’s variable costs are 30% of sales. The company is contemplating an advertising campaign that will cost $22,000. If sales are expected to increase $40,000, by how much will the company's net income increase?
    A.   $6,000 B.   $12,000
    C.   $28,000
    D.   $18,000
               
    9) The cost of an asset and its fair market value are __________.
    A.   never the same B.   irrelevant when the asset is used by the business in its operations
    C.   the same on the date of acquisition D.   the same when the asset is sold
    10) Which one of the following is a product cost?
    A.   Indirect labor B.   Sales person’s salaries
    C.   Advertising costs D.   Office salaries
    11) What exists when budgeted costs exceed actual results?
    A.   A budgeting error B.   An unfavorable difference
    C.   An excess profit D.   A favorable difference
    12) The income statement and balance sheet columns of Pine Company's worksheet reflects the following totals:
                            Income Statement                  Balance Sheet
                Dr.       Cr.                   Dr.       Cr.
    Totals              $58,000           $48,000                       $34,000           $44,000
               

    Closing entries are necessary for __________.
    A.   permanent accounts only B.   both permanent and temporary accounts
    C.   permanent or real accounts only D.   temporary accounts only
    13) Managerial accounting __________.
    A.   is concerned with costing products B.   pertains to the entity as a whole and is highly aggregated
    C.   places emphasis on special-purpose information D.   is governed by generally accepted accounting principles
               
    14) H55 Company sells two products, beer and wine. Beer has a 10 percent profit margin and wine has a 12 percent profit margin. Beer has a 27 percent contribution margin and wine has a 25 percent contribution margin. If other factors are equal, which product should H55 push to customers?
    A.   Beer B.   Selling either results in the same additional income for the company
    C.   It should sell an equal quantity of both D.   Wine
    15) Lekeisha's income exceeds her expenditures. Lekeisha is a __________.
    A.   saver who demands money from the financial system B.   borrower who demands money from the financial system
    C.   borrower who supplies money to the financial system D.   saver who supplies money to the financial system
    16) Maurice receives $100 as a birthday gift. In deciding how to spend the money, he narrows his options down to four choices: Option A, Option B, Option C, and Option D. Each option costs $100. Finally he decides on Option B. The opportunity cost of this decision is __________.
    A.   the value to Maurice of the option he would have chosen had Option B not been available
    B.   $100 C.   $300 D.   the value to Maurice of Options A, C and D combined
    17) A production possibilities frontier will be a straight line if __________.
    A.   the economy is producing efficiently B.   the economy is engaged in trade with at least one other economy C.   increasing the production of one good by x units entails no opportunity cost in terms of the other good
    D.   increasing the production of one good by x units entails a constant opportunity cost in terms of the other good
               
    18) In economics, the cost of something is __________.
    A.   what you give up to get it B.   often impossible to quantify, even in principle C.   the dollar amount of obtaining it D.   always measured in units of time given up to get it
               
    19) A tax on an imported good is called a __________.
    A.   supply tax
    B.   trade tax C.   quota D.   tariff
    20) Which of the following statements about GDP is correct?
    A.   GDP is to a nation’s economy as household income is to a household. B.   GDP increases if the total population increases. C.   GDP measures two things at once: the total income of everyone in the economy and the unemployment rate.
    D.   Money continuously flows from households to government and then back to households, and GDP measures this flow of money.
               
    21) In computing GDP, market prices are used to value final goods and services because __________.
    A.   if market prices are out of line with how people value goods, the government sets price ceilings and price floors
    B.   Market prices are not used in computing GDP C.   market prices reflect the values of goods and services D.   market prices do not change much over time, so it is easy to make comparisons between years

    22) Which of the following statements about GDP is correct?
    A.   Nominal GDP values production at market prices, whereas real GDP values production at the cost of the resources used in the production process.
    B.   Nominal GDP consistently underestimates the value of production, whereas real GDP consistently overestimates the value of production.
    C.   Nominal GDP values production at current prices, whereas real GDP values production at constant prices.
    D.   Nominal GDP values production at constant prices, whereas real GDP values production at current prices.
               
    23) Which of the following is not correct?
    A.   The U.S. debt per-person is large compared with average lifetime income.
    B.   In 2005, the U.S. government had a deficit. C.   A potential cost of deficits is that they reduce national saving, thereby reducing growth of the capital stock and output growth.
    D.   Deficits give people the opportunity to consume at the expense of their children, but they do not require them to do so.
               
    24) The part of the balance of payments account that lists all long-term flows of payments is called the:
    A.   balance of trade. B.   financial and capital account.
    C.   government financial account.
    D.   current account.
    25) Edward Prescott and Finn Kydland won the Nobel Prize in Economics in 2004. One of their contributions was to argue that if a central bank could convince people to expect zero inflation, then the Fed would be tempted to raise output by increasing inflation. This possibility is known as __________.
    A.   the sacrifice ratio dilemma B.   the monetary policy reaction lag
    C.   the time inconsistency of policy
    D.   inflation targeting
    26) In general, the longest lag for __________.
    A.   fiscal policy is the time it takes to change policy, while for monetary policy the longest lag is the time it takes for policy to affect aggregate demand
    B.   both fiscal and monetary policy is the time it takes for policy to affect aggregate demand
    C.   monetary policy is the time it takes to change policy, while for fiscal policy the longest lag is the time it takes for policy to affect aggregate demand
    D.   both fiscal and monetary policy is the time it takes to change policy
    27) Consider two items that might be included in GDP: (1) The estimated rental value of owner-occupied housing; and (2) purchases of newly-constructed homes. How are these two items accounted for when GDP is calculated?
    A.   Only item (2) is included in GDP and it is included in the investment component.
    B.   Item (1) is included in the consumption component, while item (2) is included in the investment component.
    C.   Item (1) is included in the investment component, while item (2) is included in the consumption component.
    D.   Both item (1) and item (2) are included in the consumption component of GDP.

    28) Managers will utilize __________ skills with increasing frequency as they rise within an organization.
    A.   Professional B.   Interpersonal and communication
    C.   Technical D.   Professional E.   Conceptual and decision
    29) Which of these represent skills that managers need?
    A.   Interpersonal, quantitative, and professional B.   Technical, interpersonal & communication and conceptual & decision making
    C.   Professional, technical and interpersonal & communication D.   Conceptual & decision making, professional and technical E.   Interpersonal & communication, conceptual & decision making and professional
               
    30) Building a dynamic organization is another way of describing which function of management?
    A.   Staffing B.   Organizing
    C.   Leading D.   Controlling
    E.   Planning
    31) Your roommate is interested in starting a business and everybody has been giving him different information about being an entrepreneur. Since you have been studying about entrepreneurship and new ventures, which of these would you tell him is true?
    A.   Anyone can start a business B.   All entrepreneurs need venture capital in order to get started C.   Successful entrepreneurs take very careful, calculated risks D.   Entrepreneurs are their own bosses and completely independent
    E.   Money should not be considered a start-up ingredient
    32) The term used to refer to all kinds of differences including religious affiliation, age, disability status, economic class and lifestyle in addition to gender, race, ethnicity and nationality is:
    A.   Diversity B.   Managerial ethics
    C.   Recruiting D.   Employment E.   Selection
    33) A manager's ability to stimulate people to be high performers is referred to as:
    A.   Planning B.   Supervising
    C.   Controlling
    D.   Organizing E.   Leading
    34) A series of quality standards developed by a committee working under the International Organization for Standardization to improve total quality in all businesses for the benefit of both producers and consumers is:
    A.   Total quality management B.   Customer-based integration C.   Computer-integrated manufacturing (CIM)
    D.   Just-in-time control (JIT)
    E.   ISO 9000
    35) Japanese manufacturers' kaizen (continuous improvement) programs enable them to maintain:
    A.   A strategic alliance B.   A homogeneous workforce C.   Positive working relationships with all employees
    D.   A Learning advantage over their competition E.   Larger, faster facilities
    36) Listening to employee suggestions, gaining support for organizational objectives and fostering an atmosphere of teamwork are all considered:
    A.   Technical skills B.   Conceptual C.   Professional skills D.   Interpersonal/communication skills
    E.   Diagnostic skills
    37) The basic components of an effective sexual harassment policy include the following EXCEPT:
    A.   To develop an organization wide policy on sexual harassment B.   To establish a means for ongoing training C.   To act immediately when employees complain of sexual harassment
    D.   To establish a performance appraisal system E.   To establish a formal complaint procedure
    38) Teams that operate separately from the regular work structure and exist temporarily are known as:
    A.   Management teams B.   Transnational teams
    C.   Self-managed teams
    D.   Parallel teams E.   Self-designing teams
               
    39) The Aquatic Center, Inc. periodically reviews the goals of the company. During the process, The Aquatic Center managers analyze their current strategies as compared to their competitors, determine goals that they will pursue and decide upon specific actions for each area of the company to take in pursuit of these goals. The Aquatic Center managers have been engaged in the management function of:
    A.   Goal Coordination
    B.   Controlling C.   Organizing D.   Staffing E.   Planning
    40) As related to managing of human resources, diversity refers to:
    A.   Differences in demographics (such as age, race, gender, disability status, lifestyle, veteran status, educational level, etc.)
    B.   Differences in pay methods (such as hourly, salaried, overtime, hazard-pay, commissioned, etc.)
    C.   Differences in employee benefit plans (such as pensions, insurance, vacations, memberships, etc.)
    D.   Differences in retention strategies (such as training, hiring, incentives, etc) E.   Differences in recruiting methods (such as newspapers, schools, flyers, magazines, agencies, etc.)
               
    41) __________ is the process of working with people and resources to accomplish organizational goals.
    A.   Controlling B.   Decision making
    C.   Planning D.   Supervising E.   Management
    42) Twelve randomly-chosen students were asked how many times they had missed class during a certain semester, with this result: 2, 1, 5, 1, 1, 3, 4, 3, 1, 1, 5, 18.
    For this sample, the median is _____.
    A.   3 B.   3.5
    C.   2.5
    D.   2
    43) Use the following table to answer question:
     P(S | W) is approximately _____.
    A.   .40
    B.   .30
    C.   .12
    D.   .58
               
    44) Use the following table to answer question:
     P(M  A) is approximately _____.
    A.   .50 B.   .625
    C.   .125
    D.   .25
    45) Dullco Manufacturing claims that its alkaline batteries last forty hours on average in a certain type of portable CD player. Tests on a random sample of 18 batteries showed a mean battery life of 37.8 hours with a standard deviation of 5.4 hours.
    In determining the p-value for reporting the study's findings, which of the following is true?
    A.   The p-value is equal to .05. B.   The p-value is greater than .05. C.   The p-value cannot be determined without specifying  . D.   The p-value is less than .05.
    46) William used a sample of 68 U.S. cities to estimate the relationship between Crime (annual property crimes per 100,000 persons) and Income (median income per capita). His estimated regression equation was Crime = 428 + .050 Income.
    Which outcomes would be likely in a bivariate regression on 45 randomly chosen U.S. cities in 2005 with
    Y = number of robberies in each city (thousands of robberies) and
    X = size of police force in each city (thousands of police)?
    A.   High R2 (due to city size). B.   Positive slope (due to city size).
    C.   No correlation. D.   Autocorrelation.
    47) Twelve randomly-chosen students were asked how many times they had missed class during a certain semester, with this result: 2, 1, 5, 1, 1, 3, 4, 3, 1, 1, 5, 18.
    For this sample, which measure of central tendency is least representative of the “typical” student?
    A.   Midrange
    B.   Mean C.   Mode D.   Median
               
    48) Likely reasons for inaccurate control limits would include which of the following?
    A.   Process variation was not zero, as expected. B.   The engineering parameter for variance is unknown.
    C.   There was insufficient preliminary sampling. D.   The engineers were underpaid for their work.
    49) You are faced with a linear programming objective function of:
    Max P = $20X + $30Y
    and constraints of:
    3X + 4Y = 24 (Constraint A)
    5X – Y = 18 (Constraint B)
    You discover that the shadow price for Constraint A is 7.5 and the shadow price for Constraint B is 0. Which of these statements is TRUE?
    A.   The most you would want to pay for an additional unit of A would be $7.50.
    B.   You can change quantities of X and Y at no cost for Constraint B. C.   For every additional unit of the objective function you create, the price of A rises by $7.50.
    D.   For every additional unit of the objective function you create, you lose 0 units of B.
               
    50) A project has three paths. A–B–C has a length of 25 days. A–D–C has a length of 15 days. Finally, A–E–C has a length of 20 days. Which one of the following statements is TRUE?
    A.   The expected duration of this project is 25 + 15 + 20 = 60 days.
    B.   A–D–C is the critical path. C.   The expected duration of this project is 25 days. D.   A–B–C has the most slack.
    51) Which one of the following statements concerning production and staffing plans is best?
    A.   A master production schedule is a projected statement of income, costs, and profits.
    B.   Aggregation can be performed along three dimensions: product families, labor, and time.
    C.   Production plans are based primarily on information from the master production plan.
    D.   A staffing plan is the intermediate link between the business plan and the master production schedule.
               
    52) While glancing over the sensitivity report, you note that the stitching labor has a shadow price of $10 and a lower limit of 24 hours with an upper limit of 36 hours. If your original right hand value for stitching labor was 30 hours, you know that:
    A.   you would lose $80 if one of your workers missed an entire 8 hour shift. B.   the next worker that offers to work an extra 8 hours should receive at least $80.
    C.   you would be willing pay up to $60 for someone to work another 6 hours.
    D.   you can send someone home 6 hours early and still pay them the $60 they would have earned while on the clock.

    53) The costs of delivering products in the _____ channel are much higher than delivering products in the _____ channel.
    A.   physical, digital B.   e-commerce, digital
    C.   physical, financial D.   digital, e-commerce
    E.   digital, physical
    54) When customers access a Web site and make purchases, they generate __________.
    A.   Tracking cookies B.   Web data C.   Information D.   Clickstream data
    E.   Hyperlink data
    55) _____ is the integration of economic, social, cultural, and ecological facets of life, enabled by information.
    A.   regionalization B.   globalization C.   nationalization D.   business environment
               
    56) Various organizations that promote fair and responsible use of information systems often develop __________.
    A.   a code of ethics B.   responsibility charters
    C.   a strategic plan D.   a mission statement E.   a goals outline
    57) What is _____ is not necessarily _____.
    A.   Illegal, unethical B.   Unethical, legal C.   Ethical, illegal D.   Unethical, illegal
    E.   Ethical, legal
    58) _____ provides users with a view of what is happening, where _____ addresses why it is happening.
    A.   Multidimensional data analysis, structured query language
    B.   Multidimensional data analysis, neural networks C.   Data mining, multidimensional data analysis D.   Data mining, expert system E.   Multidimensional data analysis, data mining
    59) Computer support is greatest for which of the following problems?
    A.   Semistructured and strategic planning B.   Semistructured and management control
    C.   Unstructured and operational control D.   Structured and operational control E.   Structured and management control
    60) The management cockpit best exemplifies which type of system?
    A.   Decision support system B.   Functional area information system
    C.   Expert system D.   Digital dashboard E.   Group decision support system
    61) _____ is the efficient and effective execution of specific tasks.
    A.   Operational control
    B.   Expertise C.   Management control
    D.   Strategic planning E.   Wisdom
    62) Geocoding is __________.
    A.   accessing geographical information B.   integrating maps with spatially oriented databases and other databases
    C.   integrating organizational transactions with spatially oriented databases D.   programming spatially oriented databases E.   encrypting spatial information
    63) At 8% compounded annually, how long will it take $750 to double?
    A.   48 months
    B.   6.5 years C.   9 years D.   12 years
    64) Which of the following represents an attempt to measure the earnings of the firm’s operations over a given time period?
    A.   Cash flow statement
    B.   Balance sheet C.   Income statement D.   Quarterly statement
               
    65) A machine costs $1,000, has a three-year life, and has an estimated salvage value of $100. It will generate after-tax annual cash flows (ACF) of $600 a year, starting next year. If your required rate of return for the project is 10%, what is the NPV of this investment? (Round your answerwer to the nearest $10.)
    A.   $570 B.   $490 C.   $900 D.   -$150
               
    66) Disadvantages of using current liabilities as opposed to long-term debt include:
    A.   higher cash flow exposure B.   greater risk of illiquidity, and uncertainty of interest costs
    C.   decreased risk of liquidity D.   certainty of interest costs E.   uncertainty of future liabilities
    67) Petrified Forest Skin Care, Inc. pays an annual perpetual dividend of $1.70 per share. If the stock is currently selling for $21.25 per share, what is the expected rate of return on this stock?
    A.   12.5% B.   36.13%
    C.   8.0% D.   13.6%
    68) Which of the following is most consistent with the hedging principle in working capital management?
    A.   Fixed assets should be financed with short-term notes payable. B.   Inventory should be financed with preferred stock. C.   Accounts receivable should be financed with short-term lines of credit.
    D.   Borrow on a floating rate basis to finance investments in permanent assets.
               
    69) An increase in future value can be caused by an increase in the __________.
    A.   original amount invested B.   annual interest rate and number of compounding periods
    C.   rate of return D.   dividends paid E.   starting value
    70) If the quote for a forward exchange contract is greater than the computed price, the forward contract is:
    A.   at equilibrium.
    B.   undervalued. C.   a good buy. D.   overvalued.
    71) Your company is considering an investment in a project which would require an initial outlay of $300,000 and produce expected cash flows in Years 1 through 5 of $87,385 per year. You have determined that the current after-tax cost of the firm’s capital (required rate of return) for each source of financing is as follows:
    Cost of debt     8%
    Cost of preferred stock           12%
    Cost of common stock            16%
    Long-term debt currently makes up 20% of the capital structure, preferred stock 10%, and common stock 70%. What is the net present value of this project?
    A.   $1,568
    B.   $871 C.   $1,241
    D.   $463
    72) Suppose you determine that the NPV of a project is $1,525,855. What does that mean?
    A.   The project’s IRR would have to be less that the firm’s discount rate. B.   The project would add value to the firm. C.   Under all conditions, the project’s payback would be less than the profitability index.
    D.   In all cases, investing in this project would be better than investing in a project that has an NPV of $850,000.
               
    73) The common stockholders are most concerned with:
    A.   the spread between the return generated on new investments and the investor’s required rate of return.
    B.   the size of the firm’s beginning earnings per share. C.   the risk of the investment. D.   the percentage of profits retained.
    74) PepsiCo calculates unlevered betas for each peer group in order to:
    A.   eliminate different financial risks.
    B.   eliminate competitive factors. C.   eliminate judgment factors. D.   eliminate different business risks.
    75) Which of the following best represents operating income?
    A.   Income from discontinued operations
    B.   Earnings before interest and taxes C.   Income from capital gains D.   Income after financing activities
    76) In comparison to the buying of final consumers, the purchasing of organizational buyers:
    A.   is even less predictable. B.   leans basically toward economy, quality, and dependability.
    C.   is always emotional. D.   is strictly economic and not at all emotional. E.   is always based on competitive bids from multiple suppliers.
               
    77) The basic objective of the U.S. market-directed economic system is to:
    A.   achieve an annual growth rate of at least 10 percent. B.   provide each person with an equal share of the economic output.
    C.   make the most efficient use of the country's resources. D.   minimize inflation. E.   satisfy consumer needs as they--the consumers--see them.
    78) Comparing GDP for foreign countries can help a marketing manager evaluate potential markets if the manager remembers that:
    A.   GDP measures show people's tendency to buy particular products. B.   income tends to be evenly distributed among consumers in most countries. C.   GDP estimates may not be very accurate for very different cultures and economies.
    D.   Other countries most likely don’t use the US Dollar as their primary currency.
    E.   GDP measures show the degree of competition in a market.
    79) A firm's "marketing mix" decision areas would NOT include:
    A.   Promotion.
    B.   People. C.   Price. D.   Place. E.   Product.
    80) __________ is a marketing management aid which refers to how customers think about proposed and/or present brands in a market.
    A.   Brand familiarity B.   Positioning
    C.   Market scanning D.   Customer relationship management (CRM)
    E.   Market segmentation
    81) The "four Ps" of a marketing mix are:
    A.   Production, Personnel, Price, and Physical Distribution
    B.   Promotion, Production, Price, and People C.   Potential customers, Product, Price, and Personal Selling
    D.   Product, Price, Promotion, and Profit E.   Product, Place, Promotion, and Price
    82) When evaluating macro-marketing:
    A.   the evaluation is necessarily subjective. B.   the best approach is to consider the profit generated by individual firms within the overall system.
    C.   one must determine how efficiently the society's resources are used. D.   one must consider the society’s role in the marketing system. E.   one must consider each individual firm's role in the marketing system.
    83) A cluster analysis of the "toothpaste market" would probably show that:
    A.   the broad product-market can be served effectively with one marketing mix.
    B.   most consu
              64) Which of the following represents an attempt to measure the earnings of the firm’s operations over a given time period? A. Cash flow statement B. Balance sheet C. Income statement D. Quarterly statement        

    BUS/475 Guide 4


    1) The cost principle requires that when assets are acquired, they be recorded at __________.
    A.   list price B.   selling price C.   exchange price paid D.   appraisal value
    2) "Generally accepted" in the phrase generally accepted accounting principles means that the principles __________.
    A.   have been approved for use by the managements of business firms
    B.   have been approved by the Internal Revenue Service C.   have substantial authoritative support D.   are proven theories of accounting
    3) The standards and rules that are recognized as a general guide for financial reporting are called __________.
    A.   standards of financial reporting B.   operating guidelines C.   generally accepted accounting principles D.   generally accepted accounting standards
    4) Sam's Used Cars uses the specific identification method of costing inventory. During March, Sam purchased three cars for $6,000, $7,500, and $9,750, respectively. During March, two cars are sold for $9,000 each. Sam determines that at March 31, the $9,750 car is still on hand. What is Sam’s gross profit for March?
    A.   $8,250
    B.   $750 C.   $4,500
    D.   $5,250
               
    5) Hess, Inc. sells a single product with a contribution margin of $12 per unit and fixed costs of $74,400 and sales for the current year of $100,000. How much is Hess’s break even point?
    A.   2,133 units
    B.   6,200 units
    C.   $25,600 D.   4,600 units
               
    6) As Plant Controller, you are trying to determine which costs over which you have the most control on a day to day basis. Your goal is to achieve better profitability. The Plant Operations Manager suggests that overhead is the easiest area to directly reduce costs. Which of the following items would be classified as manufacturing overhead?
    A.   The western division’s vice president’s salary
    B.   Cost of landscaping the corporate office C.   General corporate liability insurance D.   Factory janitor
    7) What is the preparation of reports for each level of responsibility in the company’s organization chart called?
    A.   Master budgeting analysis
    B.   Exception reporting C.   Responsibility reporting
    D.   Static reporting
    8) Disney’s variable costs are 30% of sales. The company is contemplating an advertising campaign that will cost $22,000. If sales are expected to increase $40,000, by how much will the company's net income increase?
    A.   $6,000 B.   $12,000
    C.   $28,000
    D.   $18,000
               
    9) The cost of an asset and its fair market value are __________.
    A.   never the same B.   irrelevant when the asset is used by the business in its operations
    C.   the same on the date of acquisition D.   the same when the asset is sold
    10) Which one of the following is a product cost?
    A.   Indirect labor B.   Sales person’s salaries
    C.   Advertising costs D.   Office salaries
    11) What exists when budgeted costs exceed actual results?
    A.   A budgeting error B.   An unfavorable difference
    C.   An excess profit D.   A favorable difference
    12) The income statement and balance sheet columns of Pine Company's worksheet reflects the following totals:
                            Income Statement                  Balance Sheet
                Dr.       Cr.                   Dr.       Cr.
    Totals              $58,000           $48,000                       $34,000           $44,000
               

    Closing entries are necessary for __________.
    A.   permanent accounts only B.   both permanent and temporary accounts
    C.   permanent or real accounts only D.   temporary accounts only
    13) Managerial accounting __________.
    A.   is concerned with costing products B.   pertains to the entity as a whole and is highly aggregated
    C.   places emphasis on special-purpose information D.   is governed by generally accepted accounting principles
               
    14) H55 Company sells two products, beer and wine. Beer has a 10 percent profit margin and wine has a 12 percent profit margin. Beer has a 27 percent contribution margin and wine has a 25 percent contribution margin. If other factors are equal, which product should H55 push to customers?
    A.   Beer B.   Selling either results in the same additional income for the company
    C.   It should sell an equal quantity of both D.   Wine
    15) Lekeisha's income exceeds her expenditures. Lekeisha is a __________.
    A.   saver who demands money from the financial system B.   borrower who demands money from the financial system
    C.   borrower who supplies money to the financial system D.   saver who supplies money to the financial system
    16) Maurice receives $100 as a birthday gift. In deciding how to spend the money, he narrows his options down to four choices: Option A, Option B, Option C, and Option D. Each option costs $100. Finally he decides on Option B. The opportunity cost of this decision is __________.
    A.   the value to Maurice of the option he would have chosen had Option B not been available
    B.   $100 C.   $300 D.   the value to Maurice of Options A, C and D combined
    17) A production possibilities frontier will be a straight line if __________.
    A.   the economy is producing efficiently B.   the economy is engaged in trade with at least one other economy C.   increasing the production of one good by x units entails no opportunity cost in terms of the other good
    D.   increasing the production of one good by x units entails a constant opportunity cost in terms of the other good
               
    18) In economics, the cost of something is __________.
    A.   what you give up to get it B.   often impossible to quantify, even in principle C.   the dollar amount of obtaining it D.   always measured in units of time given up to get it
               
    19) A tax on an imported good is called a __________.
    A.   supply tax
    B.   trade tax C.   quota D.   tariff
    20) Which of the following statements about GDP is correct?
    A.   GDP is to a nation’s economy as household income is to a household. B.   GDP increases if the total population increases. C.   GDP measures two things at once: the total income of everyone in the economy and the unemployment rate.
    D.   Money continuously flows from households to government and then back to households, and GDP measures this flow of money.
               
    21) In computing GDP, market prices are used to value final goods and services because __________.
    A.   if market prices are out of line with how people value goods, the government sets price ceilings and price floors
    B.   Market prices are not used in computing GDP C.   market prices reflect the values of goods and services D.   market prices do not change much over time, so it is easy to make comparisons between years

    22) Which of the following statements about GDP is correct?
    A.   Nominal GDP values production at market prices, whereas real GDP values production at the cost of the resources used in the production process.
    B.   Nominal GDP consistently underestimates the value of production, whereas real GDP consistently overestimates the value of production.
    C.   Nominal GDP values production at current prices, whereas real GDP values production at constant prices.
    D.   Nominal GDP values production at constant prices, whereas real GDP values production at current prices.
               
    23) Which of the following is not correct?
    A.   The U.S. debt per-person is large compared with average lifetime income.
    B.   In 2005, the U.S. government had a deficit. C.   A potential cost of deficits is that they reduce national saving, thereby reducing growth of the capital stock and output growth.
    D.   Deficits give people the opportunity to consume at the expense of their children, but they do not require them to do so.
               
    24) The part of the balance of payments account that lists all long-term flows of payments is called the:
    A.   balance of trade. B.   financial and capital account.
    C.   government financial account.
    D.   current account.
    25) Edward Prescott and Finn Kydland won the Nobel Prize in Economics in 2004. One of their contributions was to argue that if a central bank could convince people to expect zero inflation, then the Fed would be tempted to raise output by increasing inflation. This possibility is known as __________.
    A.   the sacrifice ratio dilemma B.   the monetary policy reaction lag
    C.   the time inconsistency of policy
    D.   inflation targeting
    26) In general, the longest lag for __________.
    A.   fiscal policy is the time it takes to change policy, while for monetary policy the longest lag is the time it takes for policy to affect aggregate demand
    B.   both fiscal and monetary policy is the time it takes for policy to affect aggregate demand
    C.   monetary policy is the time it takes to change policy, while for fiscal policy the longest lag is the time it takes for policy to affect aggregate demand
    D.   both fiscal and monetary policy is the time it takes to change policy
    27) Consider two items that might be included in GDP: (1) The estimated rental value of owner-occupied housing; and (2) purchases of newly-constructed homes. How are these two items accounted for when GDP is calculated?
    A.   Only item (2) is included in GDP and it is included in the investment component.
    B.   Item (1) is included in the consumption component, while item (2) is included in the investment component.
    C.   Item (1) is included in the investment component, while item (2) is included in the consumption component.
    D.   Both item (1) and item (2) are included in the consumption component of GDP.

    28) Managers will utilize __________ skills with increasing frequency as they rise within an organization.
    A.   Professional B.   Interpersonal and communication
    C.   Technical D.   Professional E.   Conceptual and decision
    29) Which of these represent skills that managers need?
    A.   Interpersonal, quantitative, and professional B.   Technical, interpersonal & communication and conceptual & decision making
    C.   Professional, technical and interpersonal & communication D.   Conceptual & decision making, professional and technical E.   Interpersonal & communication, conceptual & decision making and professional
               
    30) Building a dynamic organization is another way of describing which function of management?
    A.   Staffing B.   Organizing
    C.   Leading D.   Controlling
    E.   Planning
    31) Your roommate is interested in starting a business and everybody has been giving him different information about being an entrepreneur. Since you have been studying about entrepreneurship and new ventures, which of these would you tell him is true?
    A.   Anyone can start a business B.   All entrepreneurs need venture capital in order to get started C.   Successful entrepreneurs take very careful, calculated risks D.   En