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BUS 475 Capstone Final Examination Part 2

Final capstone exam covering key business strategies and applications.

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    BUS 475 Capstone Final Examination Part 2 1. Which of the following is the most important factor that affects a firm's financing mix? a) The predictability of cash flows b) the number of shares that are outstanding c) The amount of EPS d) the amount of operating income 2. When an accountant makes an adjusting entry for accrued expenses, which statement best reflects what the accounts look like before the adjustment? a) Assets overstated; expenses understated b) Assets understated; revenues understated c) Expenses understated; liabilities understated d) Liabilities overstated; revenues understated 3. Which account will have a zero balance after a company has journalized and posted closing entries? a) Accumulated Depreciation b) Prepaid Insurance c) Service Revenue d) Supplies 4. A __________ is an articulation of a simple criterion or characterization of what the leader sees the company must become to establish and sustain global leadership. a) Mission b) leader's principle c) leader's vision d) strategic intent 5. The market opportunities most relevant to a particular company are those that a) Offer the best growth and profitability. b) Provide avenues for taking market share away from close rivals. c) Hold the most potential for product innov ation. d) Provide a strong defense against threats to the company's profitability.. 6. Internal control is used in a business to enhance the accuracy and reliability of its accounting records and to a) Analyze financial statements. b) Create a system of audit review. c) Safeguard its assets. d) Protect investments by the public. 7. What principle dictates that efforts (expenses) be recorded with results (revenues)? a) Periodicity principle b) Expense recognition principle c) Cost principle d) Reven ue recognition principle 8. The Oviedo Thespians are planning to present performances of their Florida Revue on two

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    consecutive nights in January. It will cost them $5,000 per night for theater rental, event insurance, and professional musicians. The theater will also take 10% of gross ticket sales. How many tickets must they sell at $10.00 per ticket to break even? a) 1,223 tickets b) 1,112 tickets c) 1000 tickets d) There is not enough information. 9. Which of the four basic financial statements adds net income and subtracts dividends to arrive at its key data element at the end of each period? a) Balance Statemen t b) Retained Earnings Statement c) Income Statement d) Statement of Cash Flows 10. H&R Block wants to analyze its clients’ tax returns over the past 10 years for each of the client’s tax filings. The type of data generated will be ______________. a) time series data b) observation data c) meta data d) cross - sectional data 11. A distribution center for a chain of electronics supply stores fills and ships orders to retail outlets. A random sample of orders is selected as they are received and the doll ar amount of the order (in thousands of dollars) is recorded, and then the time (in hours) required to fill the order and have it ready for shipping is determined. A scatterplot showing the times as the response variable and the dollar amounts (in thousands of dollars) as the predictor shows a linear trend. The least squares regression line is determined to be: yˆ= 0.76 +1.8x. A plot of the residuals versus the dollar amounts showed no pattern, and the following values were reported: Correlation r + 0.90; R 2 = 0.81; standard deviation of the residuals is 0.48. What percentage of the variation in the times required to prepare an order for shipping is accounted for by the fitted line? a) 48% b) 81% c) 90% d) 76% 12. National Printing Equipment (NPE) produces equipment that helps to print newspapers and magazines. The company sells directly to printers and through wholesalers. Its salespeople negotiate prices with individual customers and often have to match competitors' prices. NPE has a new product, the G utenberg NP201, with some competitive advantages now, but competitors are expected to follow quickly with similar products. The new product is being introduced into a market with elastic demand. In regard to freight charges for its equipment, NPE's invoice reads, "Seller pays the cost of loading equipment onto a common carrier. At the point of loading, title to such products passes to the buyer, who assumes responsibility for damage in transit, except as covered by the transportation agency." National Print ing Equipment's new Gutenberg NP201 should probably use ________________.

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    a) introductory pricing b) price fixing c) penetration pricing d) skimming pricing 13. __________ is the intentional coordination of every communication from a firm to a target customer to convey a consistent and complete message. a) Integrated marketing communications b) Online marketing c) Product positioning d) Digital marketing 14. Identifying and assessing a company's resource strengths and weaknesses and its external opportunities and threats is called a __________________. a) strategic resource assessment b) competitive asset/liability analysis c) SWOT analysis d) competiti ve positioning analysis 15. Suppose Stock A has had a mean price of $6.58 per share with a standard deviation of $1.88, while Stock B has had a mean price of $10.57 per share with a standard deviation of $3.02. Which stock shows a higher coefficient of variation or volatility? a) Stock B b) Stock A c) Both stocks have the same coefficient of variation. d) The coefficients are incomparable. 16. Which of the following will decrease the nominal deficit? a) An increase in the debt b) An increase in intere st rates c) An increase in government expenditures d) An increase in taxes 17. When predicting grade point average from the number of hours spent studying per week, the equation for the best fit line was found to be yˆ = 0.0855x + 0.944. What is the predicted grade point average of a student that studies 26 hours per week? a) 25 b) 2.99 c) 3.17 d) 24.63 18. The main reason that vertical marketing systems are becoming more common is that a) Firms increasingly understand that competition among channel members is profitable. b) It is easy for multiple firms to coordinate a single marketing mix for a common target market. c) Firms realize that working independently has advantages for channel members. d) Firms recognize that coordination among channel members can increase sales for each channel member. 19. The appropriate alternative hypothesis for a two - tail test to determine if mean body

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