1. A company purchased a machine that was installed and placed in service on January 2, 2004, at a total cost of $120,000. Residual value was estimated at $20,000. The machine is being depreciated over ten years using the straight-line method. After the financial statements are prepared for 2006, the total amount of accumulated depreciation on this machine would be:

a. $10,000

b. $20,000

c. $30,000

d. $90,000

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2. The number of shares of stock a corporation has sold to its stockholders is referred to as the number of shares:

a. issued

b. callable

c. authorized

d. outstanding

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3. Which of the following is an example of a liability?

a. The amount contributed to the business by your partner

b. The obligation to transfer the net assets of the business to its owners

c. Equipment purchased by the business on a long-term payment plan

d. An amount which must be paid to a business that sold you some supplies

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4. The roll of a die has 6 distinct outcomes, {1,2,3,4,5,6}. If the die is fair, what is the probability that the number you get on a given roll of the die will be even?

a. 1/6

b. 1/3

c.

d. 0

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5. Demand shows the

a. quantity that buyers will buy at a given price.

b. quantities that buyers will buy at all possible prices.

c. quantity that sellers will sell at a given price.

d. quantities that sellers will sell at all possible prices.

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6. ___________ are financial securities that represent partial ownership of a firm.

a. Treasury bills

b. Bonds

c. Stocks

d. Certificates of deposit

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7. What is outsourcing?

a. Importing a manufactured good made by a foreign firm.

b. Exporting a good or service to buyers in other countries.

c. Foreign workers are hired by a domestic firm to produce something sold domestically.

d. None of these correctly describes outsourcing.

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8. If the federal governments expenditures are less than its tax revenues, then

a. a budget surplus results.

b. a budget deficit results.

c. the budget is balanced.

d. the government is deficit spending.

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9. ______________ is the least complex form of global corporate expansion.

a. Importing-exporting

b. Licensing

c. franchising

d. foreign direct investment

e. strategic alliances

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10. Marketing discovers consumer needs by a. Using the marketing program. b. Using the 4 Ps. c. Using extensive research. d. Advertising. e. Promotion.