ACCT 3309 Exam 1 Questions And
Accurate Answers
1. What is the primary purpose of any business? - answer Maximize value
2. In the context of a management process in a business, which of the following involves
using systems to compare the desired outcomes to the actual results. - answer
Reviewing
3. Because the business world is constantly changing, a business has to ___ in order to
gain a sustainable advantage. - answer innovate
4. James has a cold. Although the brand name drug is more expensive than the generic,
he buys the brand-name product. James is familiar with the brand-name drug and
knows exactly what to expect when taking the drug. James chooses to purchase the
more expensive brand name drug because, in his opinion, it has ___. - answer less risk
5. Little Emily's lemonade stand has a net income of $7 and an interest expense of $14.
What is her operating profit? - answer $21
6. A(n) ___ is an economic resource that a business owns and can use to operate a
business. - answer asset
7. In a free market environment, when suppliers create more product than buyers
demand, prices ___. - answer fall
8. When demand and supply do not react to price changes, we say the demand and
supply functions are which of the following? - answer price inelastic
9. Which managerial function in a business's management process involves envisioning
the future, finding opportunities, setting goals, determining the best alternative(s) to
achieve these goals, and developing systems that will enable the business to execute
the selected alternatives. - answer planning
10. Exports less imports is often called the ___. - answer balance of trade and/or trade
account
11. Which of the following explains that when one spends money, income is created for
someone else. - answer multiplier effect
12. Managers at Proctor & Gamble need accurate and timely financial information to
operate the business. They need to be accountable to the providers of money to the
business. P&G's ___ adds value to the organization by meeting these information needs.
- answer accounting department
Accurate Answers
1. What is the primary purpose of any business? - answer Maximize value
2. In the context of a management process in a business, which of the following involves
using systems to compare the desired outcomes to the actual results. - answer
Reviewing
3. Because the business world is constantly changing, a business has to ___ in order to
gain a sustainable advantage. - answer innovate
4. James has a cold. Although the brand name drug is more expensive than the generic,
he buys the brand-name product. James is familiar with the brand-name drug and
knows exactly what to expect when taking the drug. James chooses to purchase the
more expensive brand name drug because, in his opinion, it has ___. - answer less risk
5. Little Emily's lemonade stand has a net income of $7 and an interest expense of $14.
What is her operating profit? - answer $21
6. A(n) ___ is an economic resource that a business owns and can use to operate a
business. - answer asset
7. In a free market environment, when suppliers create more product than buyers
demand, prices ___. - answer fall
8. When demand and supply do not react to price changes, we say the demand and
supply functions are which of the following? - answer price inelastic
9. Which managerial function in a business's management process involves envisioning
the future, finding opportunities, setting goals, determining the best alternative(s) to
achieve these goals, and developing systems that will enable the business to execute
the selected alternatives. - answer planning
10. Exports less imports is often called the ___. - answer balance of trade and/or trade
account
11. Which of the following explains that when one spends money, income is created for
someone else. - answer multiplier effect
12. Managers at Proctor & Gamble need accurate and timely financial information to
operate the business. They need to be accountable to the providers of money to the
business. P&G's ___ adds value to the organization by meeting these information needs.
- answer accounting department
