The ________ is the value of a country's exports compared to the value of its imports over a particular period of time.

Multiple Choice

• trade surplus
• trade deficit
• export/import ratio
• equilibrium price
• balance of trade

The ________ allowed the growth of manufacturing facilities that enable the United States to outsource labor to Mexico, which reduces high labor costs.

Multiple Choice

• IMF
• WTO
• NAFTA
• Mercosur
• APEC

One of the disadvantages of owning a corporation is that

Multiple Choice

• may have limited financial resources and few fringe benefits.
• creditors will not be able to hold you personally responsible for the corporation's debts.
• you will likely experience personality conflicts or other disagreements among partners.
• you must publicly disclose financial information.
• you will need discipline, putting the company's needs before your own desires.

A(n) ________ is a company that invests in new businesses in return for part ownership of them.

Multiple Choice

• angel investor
• financial institution
• venture capitalist
• mentor
• capital investor

Ashley Cano purchased a bottle of salad dressing that broke apart when she tried to open it. She cut her hand and had to get stitches. Her buyers' rights are protected under ________ laws.

Multiple Choice

• food and beverage
• defective packaging
• manufacturing
• consumer protection
• factory liability

A firm's fiscal year is defined as

Multiple Choice

• the period from January 1 through December 31.
• the period of time between trial balance reports.
• any 12-month period chosen for annual financial reporting.
• the 12-month period designated by the firm's board of directors.
• the total of two six-month statements of cash flows.

Which of the following would most likely be a part of the first step in the accounting process?

Multiple Choice

• recording all single-entry transactions in the ledger
• completing the acid-test ratio
• gathering all invoices and receipts
• preparing a trial balance
• analyzing the statement of cash flows

The essential characteristic of current assets is their

Multiple Choice

• liquidity.
• tangibility.
• value.
• cost.
• commonality.

The end goal of financial management is

Multiple Choice

• solvency.
• efficiency.
• effectiveness.
• profitability.
• viability.

Dex is the CFO for Trask Enterprises. He is meeting with the CEO and other members of the leadership team to formal plan for helping Trask to meet its financial objectives. Dex is most likely assisting with a

Multiple Choice

• financial plan.
• credit index.
• balance sheet.
• treasury index.
• capital budget.