Question

All else equal, an increase in customers' reservation prices will have what effect on the value generated by a business?

Group of answer choices

It will decrease

It will be unaffected

It will increase

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Question 2

3pts

An increase in the value of resources in an alternate use will have what effect on the ability of a company to generate value using those resources?

Group of answer choices

it will be unaffected

It will increase

It will decrease

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Question 3

3pts

Which sequence of planning communication is most appropriate?

Group of answer choices

Analyze the audience, organize the talk, prepare the presentation

Analyze the audience, determine the purpose, prepare the presentation

Prepare the presentation, analyze the audience, make the presentation

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Question 4

3pts

Customers of Company Y become frustrated with Company Y's poor customer service and so switch to Company Z.Using the Supply and Demand model, what happens to price and sales of Company Y's product?

Group of answer choices

Price increases but sales decrease

Price decreases but sales increase

Price and sales decrease

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Question 5

3pts

Company X sees a disruption in its supply chain at the same time it sees a decrease in customer demand.What do we know for certain?

Group of answer choices

Price will decrease

Sales will decrease

Price will increase

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Question 6

3pts

An increase in product price, all else equal, will have what effect on producer surplus?

Group of answer choices

Producer surplus will increase

Producer surplus will decrease

Producer surplus will be unaffected

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Question 7

3pts

At what price is consumer surplus maximized, at least in the short run?

Group of answer choices

At price equal to zero

At price equal to total cost

At price equal to marginal cost

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Question 8

3pts

For a business to remain viable, it must price high enough to cover...

Group of answer choices

Marginal (i.e. variable) costs

Marginal (i.e. variable) and fixed costs

Fixed costs

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Question 9

3pts

All else equal, increased product elasticity will have what effect on product profitability?

Group of answer choices

Allow the firm to increase price and so increase profit

Impair the ability to increase price and so decrease profitability

Allow the firm to decrease price and so increase profit

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Question 10

3pts

Increasing positive brand perception should have what effect on the elasticity of a product?

Group of answer choices

Elasticity will decrease decreasing price sensitivity

Elasticity will increase increasing price sensitivity

Elasticity will decrease increasing price sensitivity

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Question 11

3pts

A hinderance to creative problem solving is...

Group of answer choices

brainstorming

mental rigidity

unstructured thinking

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Question 12

3pts

A good value proposition identifies a market problem, offers a solution, and provides a basis for trust.What is the missing step?

Group of answer choices

describes the pricing schema

fully defines the promotion strategy

articulates points of distinction from other solutions

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Question 13

3pts

Firm X increases inventory in anticipation of a supply chain disruption during the next reporting period.What effect does this have on assets in the current reporting period?

Group of answer choices

increases total assets if they use debt to pay for it

increases total assets if they use cash to pay for it

Decreases total assets if they use debt to pay for it

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Question 14

3pts

Assets are worth $50 million and owner's equity is $20 million.Debt is...

Group of answer choices

$50 million

$30 million

$70 million

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Question 15

3pts

A decrease in depreciation expense will have what impact on net income in the current reporting period?

Group of answer choices

Net income increases

Net income decrease

Net income is unaffected

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Question 16

3pts

Firm X increases inventory in anticipation of a supply chain disruption during the next reporting period.What effect does this have on cash flow in current reporting period?

Group of answer choices

Increases cash balances

Cash balances is unaffected

Decrease cash balances

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Question 17

3pts

Firm Y issues new debt in order to finance the acquisition of a new piece of equipment.What effect does this have on the cash flow in the current reporting period?

Group of answer choices

Cash balances increase

Overall cash balance is unaffected

Cash balances decrease

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Question 18

3pts

Firm Z managed to increase sales revenue without a proportionate increase in operating cost.What is the impact on Return on Equity?

Group of answer choices

Return on Equity is unaffected

Return on Equity decreases

Return on Equity increases

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Question 19

3pts

Adam borrows $10,000 against his home equity at 4% interest.He combines this with another $5,000 he has in cash in order to invest in an investment with expected return of 7%.His overall expected return on the investment is...

Group of answer choices

Less than 4%

Between 4% and 7%

Greater than 7%

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Question 20

3pts

Which of the following will result from decreasing the amount of financial leverage?

Group of answer choices

Increase in expected return and an increase in risk

Decrease in expected return but an increase in risk

Decrease in expected return and a decrease in risk

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Question 21

3pts

Firm A has increased its Debt-to-Asset ratio.All else equal, what should be the effect on the expected Return on Equity?

Group of answer choices

Expected Return on Equity will be unaffected

Expected Return on Equity will decrease

Expected Return on Equity will increase

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Question 22

3pts

Firm B sold off unused assets and the proceeds to pay off some debt.All else equal, what is the effect on Total Asset Turnover.

Group of answer choices

Total Asset Turnover will increase

Total Asset Turnover will decrease

Total Asset Turnover is unaffected

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Question 23

3pts

Firm C paid cash for new equipment.The equipment doesn't become operational during the current reporting period.What is the effect on Total Asset Turnover?

Group of answer choices

Total Asset Turnover will increase

Total Asset Turnover will decrease

Total Asset Turnover is unaffected

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Question 24

3pts

An increase in Total Asset Turnover, all else equal, will have what effect on Return on Equity?

Group of answer choices

Return on Equity will increase

Return on Equity will be unaffected

Return on Equity will decrease

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Question 25

3pts

According to the article on the ESG framework, one reason for the superior performance of socially conscious firms is...

Group of answer choices

Increased productivity

Increase in regulatory cost

Decrease in labor force size