BUSI 100 FINAL EXAM V.2 QUESTIONS & ANSWERS
John Burr Williams defines investment value of company stock as the present worth of
that company's future revenues. - Answers - False
Williams Group started a new business on September 1, 2021. That same day, Williams
Group also received $430,000 of cash from issuing common stock and borrowed
$230,000 from a friend. On September 1, 2021 Williams Group also purchased
equipment for $230,400. The equipment has a useful life of 72 months. On September
1, 2021, Williams also paid $150,000 of cash to rent office space for a 60 month period.
During 2021, the Company provided services valued at $158,400 and had collected
$126,720 of that amount at year-end. The company will collect the remaining portion in
the following year. The company's payroll for 2021 was $83,800, which was paid in full
during 2021.
Use this information to find the company's net income in 2021? - Answers - 51,800
During lecture, we watched a brief interview exchange between David Letterman and
former President Barack Obama. In that exchange, former President Obama indicated
that the use of Twitter, Facebook, and other social media sites to get news and other
information is creating a common information base for society, thus resulting in less
polarization of individual beliefs. - Answers - False
Pacioli would agree that every merchant's main purpose is to arrange all business
transactions in such a systematic way that one may understand each one of them at a
glance. - Answers - False
In The Souls of Black Folk, W.E.B. Du Bois writes, "The keynote of the Black Belt is
debt." What does he describe this debt to be? - Answers - The continued inability for the
population to have their income cover their expenses
What does Thoreau argue we have become as a society? - Answers - Underbred, low-
lived, and Illiterate
An example of Adam Smith's "invisible hand" is a statesman, council, or senate who
directs private people in what manner they ought to employ their capital. - Answers -
False
Who said: "So long as men live together on earth and need means to deal with one
another- their only substitute, if they abandon money, is the muzzle of a gun" - Answers
- Ayn Rand
Who says: "The manager is the ___________ of the individuals who own the
corporation and the primary responsibility is to them" and fill in the blank - Answers -
Friedman, Agent
,According to Ayn Rand, what is wealth the product of? - Answers - Man's capacity to
think
Michael Porter's Five Forces Model - Answers - Identifies the fundamental factors that
determine the level of competition and long-term profitability of an industry by analyzing
an organization, its position in the marketplace, and how information systems could be
used to make it more competitive
Intangible Assets - Answers - Long-term assets (e.g., patents, trademarks, copyrights)
that have no real physical form but do have value
The process of systematically collecting, analyzing, and reporting financial information is
called - Answers - Accounting
Present Value (PV) - Answers - Future value divided by (1 + required rate of return)
raised to the power of the number of periods.
What does Pacioli indicate as being the most important factor in carrying on business? -
Answers - Cash
Who believes that there is a connection between the exactness of a trade person's
bookkeeping and the tradesperson's prosperity. - Answers - Daniel Defoe
Who said: "A tailor won't try and make his own shoes he will buy from a shoemaker" -
Answers - Adam Smith, good trade benefits both people in different way
Andrew Carnegie believes that the people with extraordinary wealth have a duty to: -
Answers - Administer their wealth while alive "to produce the most beneficial results for
the community"
Who believes money is symbolic of a society's moral values? - Answers - Ayn Rand
Who argues that justice is not only desirable but is also necessary for the well-being of
individuals and society as a whole? - Answers - Plato
Who says people who invest money and take business risks should be rewarded with
profits? - Answers - John Stuart Mill
Who thinks government should only intervene to promote the well-being of society as a
whole? - Answers - John Stuart Mill
Who says government has a responsibility to ensure a level playing field to prevent
monopolies but no excessive regulation? - Answers - Daniel Defoe
, Who says the primary responsibility of a business is to maximize profits for its
shareholders? - Answers - Friedman
Who thinks education is imperative for African Americans to achieve equality and social
mobility? - Answers - WEB Du Bois
Who thinks people should be free to pursue their own goals and values without
interference from the government or society? - Answers - Ayn Rand
Who says: "The works of the great poets have never yet been read by mankind, for only
great poets can read them" - Answers - Thoreau
What are 3 things needed by any one who wishes to carry on business carefully
according to Pacioli? - Answers - Arranging transactions in a systematic ways, cash,
and being a good bookkeeper and ready mathematician
In Plato's The Republic, who or what is the "true creator" of a State? - Answers -
Necessity
Francis Bacon says the pros of usury (charging an illegal rate of interest) is... - Answers
- It facilitates debt capital because it would be foolish to think of borrowing without
making a profit
What do Smith and Plato agree on? - Answers - The foundations of trade and
specialization
Who believes humans are never satisfied and humans always want more? - Answers -
Smith
Who thinks increased specialization leads to greater productivity and efficiency? -
Answers - Smith
Who thinks the division of labor is a natural consequence of self-interest and market
forces, as individuals seek to maximize their own well-being? - Answers - Smith
Who says the division of labor should not driven by individual choice but dictated by the
state's authority and its vision of the common good. - Answers - Plato
Who thinks a stock derives its value from its dividends, not its earnings? - Answers -
John Burr Williams
According to John Burr Williams, what do all prices ultimately depend on? - Answers -
Someone else's future income
John Burr Williams defines investment value of company stock as the present worth of
that company's future revenues. - Answers - False
Williams Group started a new business on September 1, 2021. That same day, Williams
Group also received $430,000 of cash from issuing common stock and borrowed
$230,000 from a friend. On September 1, 2021 Williams Group also purchased
equipment for $230,400. The equipment has a useful life of 72 months. On September
1, 2021, Williams also paid $150,000 of cash to rent office space for a 60 month period.
During 2021, the Company provided services valued at $158,400 and had collected
$126,720 of that amount at year-end. The company will collect the remaining portion in
the following year. The company's payroll for 2021 was $83,800, which was paid in full
during 2021.
Use this information to find the company's net income in 2021? - Answers - 51,800
During lecture, we watched a brief interview exchange between David Letterman and
former President Barack Obama. In that exchange, former President Obama indicated
that the use of Twitter, Facebook, and other social media sites to get news and other
information is creating a common information base for society, thus resulting in less
polarization of individual beliefs. - Answers - False
Pacioli would agree that every merchant's main purpose is to arrange all business
transactions in such a systematic way that one may understand each one of them at a
glance. - Answers - False
In The Souls of Black Folk, W.E.B. Du Bois writes, "The keynote of the Black Belt is
debt." What does he describe this debt to be? - Answers - The continued inability for the
population to have their income cover their expenses
What does Thoreau argue we have become as a society? - Answers - Underbred, low-
lived, and Illiterate
An example of Adam Smith's "invisible hand" is a statesman, council, or senate who
directs private people in what manner they ought to employ their capital. - Answers -
False
Who said: "So long as men live together on earth and need means to deal with one
another- their only substitute, if they abandon money, is the muzzle of a gun" - Answers
- Ayn Rand
Who says: "The manager is the ___________ of the individuals who own the
corporation and the primary responsibility is to them" and fill in the blank - Answers -
Friedman, Agent
,According to Ayn Rand, what is wealth the product of? - Answers - Man's capacity to
think
Michael Porter's Five Forces Model - Answers - Identifies the fundamental factors that
determine the level of competition and long-term profitability of an industry by analyzing
an organization, its position in the marketplace, and how information systems could be
used to make it more competitive
Intangible Assets - Answers - Long-term assets (e.g., patents, trademarks, copyrights)
that have no real physical form but do have value
The process of systematically collecting, analyzing, and reporting financial information is
called - Answers - Accounting
Present Value (PV) - Answers - Future value divided by (1 + required rate of return)
raised to the power of the number of periods.
What does Pacioli indicate as being the most important factor in carrying on business? -
Answers - Cash
Who believes that there is a connection between the exactness of a trade person's
bookkeeping and the tradesperson's prosperity. - Answers - Daniel Defoe
Who said: "A tailor won't try and make his own shoes he will buy from a shoemaker" -
Answers - Adam Smith, good trade benefits both people in different way
Andrew Carnegie believes that the people with extraordinary wealth have a duty to: -
Answers - Administer their wealth while alive "to produce the most beneficial results for
the community"
Who believes money is symbolic of a society's moral values? - Answers - Ayn Rand
Who argues that justice is not only desirable but is also necessary for the well-being of
individuals and society as a whole? - Answers - Plato
Who says people who invest money and take business risks should be rewarded with
profits? - Answers - John Stuart Mill
Who thinks government should only intervene to promote the well-being of society as a
whole? - Answers - John Stuart Mill
Who says government has a responsibility to ensure a level playing field to prevent
monopolies but no excessive regulation? - Answers - Daniel Defoe
, Who says the primary responsibility of a business is to maximize profits for its
shareholders? - Answers - Friedman
Who thinks education is imperative for African Americans to achieve equality and social
mobility? - Answers - WEB Du Bois
Who thinks people should be free to pursue their own goals and values without
interference from the government or society? - Answers - Ayn Rand
Who says: "The works of the great poets have never yet been read by mankind, for only
great poets can read them" - Answers - Thoreau
What are 3 things needed by any one who wishes to carry on business carefully
according to Pacioli? - Answers - Arranging transactions in a systematic ways, cash,
and being a good bookkeeper and ready mathematician
In Plato's The Republic, who or what is the "true creator" of a State? - Answers -
Necessity
Francis Bacon says the pros of usury (charging an illegal rate of interest) is... - Answers
- It facilitates debt capital because it would be foolish to think of borrowing without
making a profit
What do Smith and Plato agree on? - Answers - The foundations of trade and
specialization
Who believes humans are never satisfied and humans always want more? - Answers -
Smith
Who thinks increased specialization leads to greater productivity and efficiency? -
Answers - Smith
Who thinks the division of labor is a natural consequence of self-interest and market
forces, as individuals seek to maximize their own well-being? - Answers - Smith
Who says the division of labor should not driven by individual choice but dictated by the
state's authority and its vision of the common good. - Answers - Plato
Who thinks a stock derives its value from its dividends, not its earnings? - Answers -
John Burr Williams
According to John Burr Williams, what do all prices ultimately depend on? - Answers -
Someone else's future income
