BUS 475 Capstone Final Examination Part 2

Final capstone exam covering key business strategies and applications.

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BUS 475Capstone Final Examination Part 21. Which of the following is the most important factor that affects a firm's financing mix?a) The predictability of cash flowsb)thenumber of shares that are outstandingc) The amount of EPSd)theamount of operating income2. When an accountant makes an adjusting entry for accrued expenses, which statement bestreflects what the accounts look like before the adjustment?a) Assets overstated; expenses understatedb) Assets understated; revenues understatedc) Expenses understated; liabilities understatedd) Liabilities overstated; revenues understated3. Which account will have a zero balance after a company has journalized and postedclosing entries?a) Accumulated Depreciationb) Prepaid Insurancec) Service Revenued) Supplies4. A __________ is an articulation of a simple criterion or characterization of what the leadersees the company must become to establish and sustain global leadership.a)Missionb) leader's principlec) leader's visiond) strategic intent5. The market opportunities most relevant to a particular company are those thata) Offer the best growth and profitability.b) Provide avenues for taking market share away from close rivals.c) Hold the most potential for product innovation.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 itsaccounting records and toa) 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 principleb) Expense recognition principlec) Cost principled) Revenue recognition principle8. 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, eventinsurance, 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 ticketsb) 1,112 ticketsc) 1000 ticketsd) There is not enough information.9. Which of the four basic financial statements adds net income and subtracts dividends toarrive at its key data element at the end of each period?a) Balance Statementb) Retained Earnings Statementc) Income Statementd) Statement of Cash Flows10. H&R Block wants to analyze its clients’ tax returns over the past 10 years for each of theclient’s tax filings. The type of data generated will be ______________.a) time series datab) observation datac) meta datad) cross-sectional data11. A distribution center for a chain of electronics supply stores fills and ships orders to retailoutlets. A random sample of orders is selected as they are received and the dollar amount ofthe order (in thousands of dollars) is recorded, and then the time (in hours) required to fill theorder and have it ready for shipping is determined. A scatterplot showing the times as theresponse variable and the dollar amounts (in thousands of dollars) as the predictor shows alinear trend. The least squares regression line is determined to be: yˆ= 0.76 +1.8x. A plot ofthe residuals versus the dollar amounts showed no pattern, and the following values werereported: Correlation r + 0.90; R2 = 0.81; standard deviation of the residuals is 0.48. Whatpercentage of the variation in the times required to prepare an order for shipping is accountedfor by the fitted line?a) 48%b) 81%c) 90%d) 76%12. National Printing Equipment (NPE) produces equipment that helps to print newspapersand magazines. The company sells directly to printers and through wholesalers. Itssalespeople negotiate prices with individual customers and often have to match competitors'prices. NPE has a new product, the Gutenberg NP201, with some competitive advantagesnow, but competitors are expected to follow quickly with similar products. The new productis being introduced into a market with elastic demand. In regard to freight charges for itsequipment, NPE's invoice reads, "Seller pays the cost of loading equipment onto a commoncarrier. At the point of loading, title to such products passes to the buyer, who assumesresponsibility for damage in transit, except as covered by the transportation agency."National Printing Equipment's new Gutenberg NP201 should probably use________________.

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a) introductory pricingb) price fixingc) penetration pricingd) skimming pricing13. __________ is the intentional coordination of every communication from a firm to atarget customer to convey a consistent and complete message.a) Integrated marketing communicationsb) Online marketingc) Product positioningd) Digital marketing14. Identifying and assessing a company's resource strengths and weaknesses and its externalopportunities and threats is called a __________________.a) strategic resource assessmentb) competitive asset/liability analysisc) SWOT analysisd) competitive positioning analysis15. 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 Bb) Stock Ac) 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 debtb) An increase in interest ratesc) An increase in government expendituresd) An increase in taxes17. 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 predictedgrade point average of a student that studies 26 hours per week?a) 25b) 2.99c) 3.17d) 24.6318. The main reason that vertical marketing systems are becoming more common is thata) Firms increasingly understand that competition among channelmembers is profitable.b) It is easy for multiple firms to coordinate a single marketing mix for a common targetmarket.c) Firms realize that working independently has advantages for channel members.d) Firms recognize that coordination among channel members can increase sales for eachchannel member.19. The appropriate alternative hypothesis for a two-tail test to determine if mean body
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