PEREGRINE UPDATED TEST EXAM QUESTIONS AND
ANSWERS SURE A+
✔✔When a business erroneously records expenses as assets, it has violated the
measurement issue of - ✔✔classification
✔✔A dividend will reduce which of the following accounts? - ✔✔Retained Earnings
✔✔Lying by omission involves intentionally - ✔✔withholding material facts.
✔✔Conflicts of interest exist when employees must choose whether to - ✔✔advance
their own interests, those of the organization, or those of some other group.
✔✔Which of the following statements is CORRECT? - ✔✔Free cash flow (FCF) is,
essentially, the cash flow that is available for interest and dividends after the company
has made the investments in current and fixed assets that are necessary to sustain
ongoing operations.
✔✔A corporate bond currently yields 8.3%. Municipal bonds with the same risk,
maturity, and liquidity currently yield 5.5%. At what tax rate would investors be
indifferent between the two bonds? - ✔✔33.73%
✔✔When the costs of supplies increase in an industry, the low-cost leader - ✔✔be the
only firm able to pay the higher prices and continue to earn average or above- average
returns.
✔✔TQM is most helpful to firms following the ____ business strategy. - ✔✔integrated
cost-leadership differentiation
✔✔All of the following are considered extrinsic motivators in Herzberg's two-factor
theory EXCEPT: - ✔✔Work itself
✔✔Which of the following is NOT one of the process motivation theories? - ✔✔Acquired
needs theory
✔✔An individual who purchases a computer later decides to acquire a new
motherboard. In terms of computing GDP, this new motherboard would be a(n) -
✔✔Final good
✔✔The largest component of GDP is - ✔✔consumption
✔✔In economics, firms are assumed to - ✔✔Maximize profits
, ✔✔Holding everything else equal, total revenue increases - ✔✔when either price or
quantity increase
✔✔Government tactics that include removing incentives, demanding a higher share of
profits and taxes, and confiscating foreign assets are known as: - ✔✔Expropriation
✔✔"People of the same trade seldom meet together, even for merriment and diversion,
but their conversation often ends in conspiracy against the public." This quote from
Adam Smith is referring to which of the following business relationship terms: -
✔✔Collusion
✔✔____ is a collection of facts organized so that they have additional value beyond the
value of the facts themselves. - ✔✔Information
✔✔____ is the simulation of a real or imagined environment that can be experienced
visually in three dimensions. - ✔✔Virtual reality
✔✔The Federal Highway Administration uses notice-and-comment rulemaking. This
process begins with - ✔✔the publication of a notice of proposed rulemaking.
✔✔Kip opens an account at a Lotsa Goodies Store, and buys a digital music player and
other items, but makes no payments on the account. To collect the debt, Mako, the
manager, contacts Kip's parents. This violates - ✔✔No federal law
✔✔The process of setting major organization objectives and developing plans to
achieve them is called: - ✔✔Strategic planning
✔✔One way human resource planning links to strategic planning is by providing a set of
inputs into the: - ✔✔strategy formulation process
✔✔In the SERVQUAL instrument for measuring service quality, the concept of
assurance is associated with - ✔✔The ability to convey trust and confidence
✔✔Which of the following is not one of W. Edwards Deming's 14 points? - ✔✔The only
performance standard is Zero Defects
✔✔A leading force currently driving change at work is: - ✔✔Global competition
✔✔A questioning, probing attitude is at the core of: - ✔✔critical thinking
✔✔Which of the following IS NOT a purpose of a marketing plan? - ✔✔It explains how
marketing activities mesh with other functional areas
ANSWERS SURE A+
✔✔When a business erroneously records expenses as assets, it has violated the
measurement issue of - ✔✔classification
✔✔A dividend will reduce which of the following accounts? - ✔✔Retained Earnings
✔✔Lying by omission involves intentionally - ✔✔withholding material facts.
✔✔Conflicts of interest exist when employees must choose whether to - ✔✔advance
their own interests, those of the organization, or those of some other group.
✔✔Which of the following statements is CORRECT? - ✔✔Free cash flow (FCF) is,
essentially, the cash flow that is available for interest and dividends after the company
has made the investments in current and fixed assets that are necessary to sustain
ongoing operations.
✔✔A corporate bond currently yields 8.3%. Municipal bonds with the same risk,
maturity, and liquidity currently yield 5.5%. At what tax rate would investors be
indifferent between the two bonds? - ✔✔33.73%
✔✔When the costs of supplies increase in an industry, the low-cost leader - ✔✔be the
only firm able to pay the higher prices and continue to earn average or above- average
returns.
✔✔TQM is most helpful to firms following the ____ business strategy. - ✔✔integrated
cost-leadership differentiation
✔✔All of the following are considered extrinsic motivators in Herzberg's two-factor
theory EXCEPT: - ✔✔Work itself
✔✔Which of the following is NOT one of the process motivation theories? - ✔✔Acquired
needs theory
✔✔An individual who purchases a computer later decides to acquire a new
motherboard. In terms of computing GDP, this new motherboard would be a(n) -
✔✔Final good
✔✔The largest component of GDP is - ✔✔consumption
✔✔In economics, firms are assumed to - ✔✔Maximize profits
, ✔✔Holding everything else equal, total revenue increases - ✔✔when either price or
quantity increase
✔✔Government tactics that include removing incentives, demanding a higher share of
profits and taxes, and confiscating foreign assets are known as: - ✔✔Expropriation
✔✔"People of the same trade seldom meet together, even for merriment and diversion,
but their conversation often ends in conspiracy against the public." This quote from
Adam Smith is referring to which of the following business relationship terms: -
✔✔Collusion
✔✔____ is a collection of facts organized so that they have additional value beyond the
value of the facts themselves. - ✔✔Information
✔✔____ is the simulation of a real or imagined environment that can be experienced
visually in three dimensions. - ✔✔Virtual reality
✔✔The Federal Highway Administration uses notice-and-comment rulemaking. This
process begins with - ✔✔the publication of a notice of proposed rulemaking.
✔✔Kip opens an account at a Lotsa Goodies Store, and buys a digital music player and
other items, but makes no payments on the account. To collect the debt, Mako, the
manager, contacts Kip's parents. This violates - ✔✔No federal law
✔✔The process of setting major organization objectives and developing plans to
achieve them is called: - ✔✔Strategic planning
✔✔One way human resource planning links to strategic planning is by providing a set of
inputs into the: - ✔✔strategy formulation process
✔✔In the SERVQUAL instrument for measuring service quality, the concept of
assurance is associated with - ✔✔The ability to convey trust and confidence
✔✔Which of the following is not one of W. Edwards Deming's 14 points? - ✔✔The only
performance standard is Zero Defects
✔✔A leading force currently driving change at work is: - ✔✔Global competition
✔✔A questioning, probing attitude is at the core of: - ✔✔critical thinking
✔✔Which of the following IS NOT a purpose of a marketing plan? - ✔✔It explains how
marketing activities mesh with other functional areas
