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Which concept ensures that companies make the best use of their limited resources?

Select one:

a.Assets

b.Liabilities

c.Expenses

d.Profits

Question2

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What is the most well-known form of profits?

Select one:

a.Financial

b.Managerial

c.Analytical

d.Accounting

Question3

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When a company needs to determine its breakdown in the market, its leaders consider which of the following questions?

Select one:

a.What is the segregation in the market?

b.What are the company's hiring and staffing needs?

c.How does the company produce its goods?

d.What type of product does the company produce?

Question4

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Which of the five forces refers to when suppliers agree to satisfactory conditions for their efforts, yet their profits decrease?

Select one:

a.Force 2: Power of input suppliers

b.Force 3: Power of buyers

c.Force 1: Entry

d.Force 4: Industry rivalry

Question5

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The five forces are not meant to replace __________ and __________ economic philosophies, which are part of making thorough decisions from a business perspective.

Select one:

a.checking; balancing

b.trial; error

c.analyzing; accepting

d.balancing; analyzing

Question6

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Which of the following is the most important step in the decision-making process?

Select one:

a.Determine the objective.

b.Explore the alternatives.

c.Define the problem.

d.Make a choice.

Question7

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Based on the formula PV=FV/(1+i)^n, what is the present value of $500 in 20 years when the interest is 8%?

Select one:

a.$40

b.$107.27

c.$462.96

d.$6,250

Question8

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Of the six steps in decision making, which one requires managers to ask questions to identify the problem?

Select one:

a.Step 6: Perform sensitivity analysis.

b.Step 1: Define the problem.

c.Step 3: Explore the alternatives.

d.Step 5: Make a choice.

Question9

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Which type of rivalry can direct market practice?

Select one:

a.Consumer-producer rivalry

b.Producer-producer rivalry

c.Consumer-consumer rivalry

Question10

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In marginal analysis, what does B(Q) signify?

Select one:

a.Costs

b.Profits

c.Units

d.Benefits

Question11

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A sunk cost is a cost already __________ that the company cannot __________.

Select one:

a.paid; earn

b.incurred; recover

c.refunded; return

d.paid; deliver

Question12

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What is the percentage adjustment in output that results from a 1% growth in all inputs?

Select one:

a.Economies of scope

b.Continuous profit

c.Growing profit

d.Output resistance

Question13

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The opportunity cost related to choosing a specific conclusion is determined through its __________.

Select one:

a.decisions

b.expenses

c.effort

d.profits

Question14

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Short run is the period of time in which __________ elements of production exist.

Select one:

a.fixed

b.average

c.variable

d.marginal

Question15

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A production process has economies of scope when the cost of producing multiple goods is __________ the aggregate cost of producing each item separately.

Select one:

a.less than

b.greater than

c.equal to

Question16

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Which of the following does not affect the own-price elasticity of a good?

Select one:

a.Time

b.Expenditure share

c.Available substitutes

d.Retained earnings

Question17

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Which of the following is not a demand shifter?

Select one:

a.Advertising

b.Increase in profits

c.Consumer income

d.Population

Question18

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Which of the following does affect the own-price elasticity of a good?

Select one:

a.Expenditure share

b.Time

c.Available substitutes

d.All of the above

Question19

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What is the adjustment in total revenue based on a variation in output?

Select one:

a.Total revenue

b.Marginal analysis

c.Marginal revenue

d.Profit analysis

Question20

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Which of the following qualitative tools enables managers to see the entire picture of a company?

Select one:

a.Marginal analysis

b.Profit analysis

c.Demand analysis

d.Supply analysis

Question21

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Customers will often buy an extra unit of a good if the price __________.

Select one:

a.decreases

b.increases

c.stays the same

Question22

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Monopoly describes a situation in which a single company serves an entire __________.

Select one:

a.market

b.profit

c.product

d.supply

Question23

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Which of the following does not contribute to monopoly power?

Select one:

a.Economies of profit

b.Economies of scale

c.Cost complementarities

d.Patents and other legal barriers

Question24

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To sell more of its product, a company must __________ its price.

Select one:

a.charge back

b.increase

c.supplement

d.decrease

Question25

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Which of the following is not a primary element of perfect competition?

Select one:

a.No operation costs exist.

b.Consumers and suppliers have identical material.

c.No profits exist.

d.Every company in the market creates a similar product.

Question26

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Which of the following is not a characteristic of a monopolistically competitive industry?

Select one:

a.Companies have restricted entry into the industry.

b.Companies have unrestricted entry into and exit out of the industry.

c.Every company in the industry creates a specific product.

d.Several consumers and suppliers exist.

Question27

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Diseconomies of scale occur when long-run average __________ increase as output increases.

Select one:

a.expenses

b.costs

c.profits

d.inputs

Question28

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Which of the following is not needed to participate in capital plans?

Select one:

a.Expenses

b.Dividend growth model

c.Debts

d.Equity

Question29

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What is the act of placing restrictions on the amount of new investments or projects a company undertakes?

Select one:

a.Capital rationing

b.Capital controlling

c.Capital budgeting

d.Capital revenue

Question30

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Which of the following is not a type of capital budgeting decision?

Select one:

a.Enhanced products

b.Lease or buy

c.Extension of amenities

d.Replacement standards

Question31

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Which of the following is not a form of cash flow?

Select one:

a.Primary cash flow

b.Budgeting cash flow

c.Noncash investment

d.Operating cash flow

Question32

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Capital budgeting refers to decisions about __________ and __________ during a designated time period.

Select one:

a.capital; profits

b.expenses; revenues

c.profits; costs

d.budgets; surpluses

Question33

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Which of the following refers to decisions about where expenses and revenues for a specific activity should remain over a designated time period?

Select one:

a.Capital profits

b.Capital sales

c.Capital budgeting

d.Capital revenue

Question34

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The best price choice for a new product depends on which of the following?

Select one:

a.The possibility of a successful launch in the first market

b.A decrease in profits from other products made by the same company

c.An increase in competitor prices of similar products

d.The cost to produce and market the product

Question35

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Which form of business risk might not continuously correspond with the inclusive economy?

Select one:

a.Economic conditions

b.Variations in categorical businesses

c.Competition and technological change

d.Changes in consumer preferences

Question36

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What is probability distribution?

Select one:

a.An increase in a company's sales that occurs because a competitor stops production

b.The possibility that a certain task will end in a loss

c.The event that occurs when a company throws away last year's product

d.A function that designates the probabilities of all potential events by percentage

Question37

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With risk, a specific __________ exists that shows how likely it is that each outcome will occur.

Select one:

a.profit

b.event

c.probability

d.distribution

Question38

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Which of the following is not a source of business risk?

Select one:

a.Profit and loss

b.Economic condition

c.Competition and technological change

d.Cost and expenses

Question39

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In a fiscal or economic model, what are two important positions?

Select one:

a.Risk and possibilities

b.Risk and reward

c.Risk and uncertainty

d.Risk and replication

Question40

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If vendors are unresponsive to __________, the reduction in the cost of providing goods or services will not persuade them to sell additional products.

Select one:

a.cost

b.expense

c.profit

d.supply

Question41

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A misconception about supply shifts is that if vendors' costs __________ by a specific amount, the market price will ultimately __________ by the same amount.

Select one:

a.increase; decrease

b.decrease; increase

c.increase; increase

d.decrease; decrease

Question42

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When a company achieves total capacity utilization, __________ can increase.

Select one:

a.expenses

b.supply

c.sales

d.costs

Question43

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A misconception is that ________ frequently generate large returns. Gains

Select one:

a.variables

b.supplies

c.demands

d.monopolies

Question44

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Which type of shift refers to influences (other than price) that lead to a shift?

Select one:

a.Supply

b.Demand

c.Expense

d.Revenue

Question45

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As __________ reaches unit elasticity, the ideal markup reaches an infinite factor.

Select one:

a.demand

b.supply

c.profit

d.expense