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You work in marketing for a company that produces work boots. Quality
control has sent you a memo detailing the length of time before the boots
wear out under heavy use. They find that the boots wear out in an average of
208 days, but the exact amount of time varies, following a normal distribution
with a standard deviation of 14 days. For an upcoming ad campaign, you
need to know the percent of the pairs that last longer than six months-that is,
180 days. Use the empirical rule to approximate this percent.
97.5%
95%
2.5%
5%
According to the text, the triple bottom line approach to corporate accounting
includes three components:
financial, environmental, and social
financial, organizational, and customer
financial, environmental, and customer
financial, organizational, and psychological
An analyst believes the probability that U.S. stock returns exceed long-term
corporate bond returns over a 5-year period is based on personal
assessment. This type of probability is best characterized as a(n)
____________.
Subjective probability
Objectivity probability
Empirical probability
A priori probability
Green, Inc. had 200,000 shares of common stock outstanding before a stock
split occurred and 800,000 shares outstanding after the stock split. The stock
split was:
2-for-8
1-for-8
8-for-1
4-for-1
Firms must be aware of goals other than short-term profit maximization. One
area of concern should be social responsibility which is:
the expectation that business will strive to improve the overall welfare of
society
the fact that court costs could impact the financial bottom line
the idea that organizations are solely responsible to local citizens
the idea that businesses are responsible to maintain a healthy social
climate for their employees
For both qualitative and quantitative data, what is the difference between the
relative frequency and the percent frequency?
The relative frequency equals the percent frequency multiplied by 100.
The percent frequency equals the relative frequency multiplied by 100
As opposed to the relative frequency, the percent frequency is divided by
the number of observations in the data set.
As opposed to the percent frequency, the relative frequency is divided by
the number of observations in the data set.
Shaw Industries, a giant carpet manufacturer, increases its control over raw
materials by producing much of its own polypropylene fiber, a key input to its
manufacturing process. This is an example of _______________.
using related diversification to achieve value by leveraging core
competencies to achieve economies of scope
using related diversification to achieve value by pooling negotiating power
to achieve market power
using related diversification to achieve value by integrating vertically in
order to attain economies of scope
Which of the following controls would best help detect the removal of a blank
check by an employee from the back of a company's checkbook for
subsequent misappropriation of funds?
An accounting policies manual
Tracing any debit memorandums from the bank to the company's records
A review of the cash budget
The use of pre-numbered checks
30 units at
$120
180 units at
$112
120 units
90 units at
$115
84 units
Assuming that a periodic inventory system is used, what is the cost of goods sold on
a FIFO basis?
$23,088
$11,022
$10,992
$23,118
WellPoint Health Network states: WellPoint will redefine our industry: through
a new generation of consumer-friendly products that put individuals back in
control of their future. This is an example of a:
Vision statement
Vague statement of direction
Strategic objective
Line mangers individual goal
Assume that the Fitzgerald Corporation uses the indirect method to depict
cash flows. Indicate where, if at all, accounts receivable collected would be
classified on the statement of cash flows.
Does not represent a cash flow.
Operating activities section.
Financing activities section.
Investing activities section.
Shaw Industries, a giant carpet manufacturer, increases its control over raw
materials by producing much of its own polypropylene fiber, a key input to its
manufacturing process. This is an example of _______________.
using related diversification to achieve value by integrating vertically in
order to acquire market power
using related diversification to achieve value by leveraging core
competencies to achieve economies of scope
using related diversification to achieve value by pooling negotiating power
to achieve market power
On March 1st, Candy, Inc. had supplies on hand of $1,500. During the month,
Candy purchased supplies of $2,900 and used supplies of $2,800. The March
31st balance sheet should report what balance in their supplies account?
$2,800
$1,500
$1,600
$2,900
The four key attributes of strategic management include the idea that:
Strategy must be focused on competitor strengths.
Strategy must be directed toward overall organizational goals and
objectives.
Strategy must be focused on one specific area of an organization.
Strategy must be focused on long-term objectives.
Which financial statement would best indicate whether the company relies on
debt or stockholders equity to finance its assets?
Statement of cash flows
Retained earnings statement
Income statement
Balance sheet
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