Question 1

Synergy means that the whole is greater than the sum of its parts.

Accepted Answer

A) True 
 B)False

Question 2

The consumer arrives at a choice by considering all of the attributes of a product and mentally trading off the alternative's perceived weakness on one or more attributes for its perceived strength on other attributes in:

Accepted Answer

A)  Non-compensatory model 
B)  Compensatory model 
C)  Post-purchase model 
D)  House-holding decision making model 
A)  Non-compensatory model 
B)  Compensatory model 
C)  Post-purchase model 
D)  House-holding decision making model

Question 3

The contracts by which the holder of intellectual property will grant certain rights in that property to a foreign firm under specified conditions and for a specified time are known as:

Accepted Answer

A)  Protecting Intellectual rights Agreements 
B)  International Intellectual franchising 
C)  International licensing agreements 
D)  None of the above 
A)  Protecting Intellectual rights Agreements 
B)  International Intellectual franchising 
C)  International licensing agreements 
D)  None of the above

Question 4

Which of the following events triggers dissolution?

Accepted Answer

A)  expiration of the time period 
B)  withdrawal of a general partner, unless all partners agree to continue the business 
C)  decree of judicial dissolution 
D)  All of the above 
A)  expiration of the time period 
B)  withdrawal of a general partner, unless all partners agree to continue the business 
C)  decree of judicial dissolution 
D)  All of the above

Question 5

Effective leadership requires which core leadership skills?

Accepted Answer

A)  vision, empowerment, intuition, self-understanding, and value congruence 
B)  vision, mission, intuition, process-control, and value congruence 
C)  mission, empowerment, perception, self-understanding, and value congruence 
D)  mission, presentiment, intuition, self-understanding, and correspondence 
A)  vision, empowerment, intuition, self-understanding, and value congruence 
B)  vision, mission, intuition, process-control, and value congruence 
C)  mission, empowerment, perception, self-understanding, and value congruence 
D)  mission, presentiment, intuition, self-understanding, and correspondence

Question 6

An extension of the humanistic perspective in which the successful resolution of organizational; problems is thought to depend on managers' identification of key variations in the situation at hand is known as:

Accepted Answer

A)  Universal view 
B)  Contingency view 
C)  Case view 
D)  Business view 
A)  Universal view 
B)  Contingency view 
C)  Case view 
D)  Business view

Question 7

The annual accounting period adopted by a business is known as its:

Accepted Answer

A)  Natural business year 
B)  Fiscal year 
C)  Final year 
D)  Monetary year 
A)  Natural business year 
B)  Fiscal year 
C)  Final year 
D)  Monetary year

Question 8

Creditors lend funds to the firm at rates that are based on:

Accepted Answer

A)  riskiness of the firm's existing assets 
B)  expectations concerning the riskiness of future asset additions 
C)  firm's existing capital structure 
D)  All of the above 
A)  riskiness of the firm's existing assets 
B)  expectations concerning the riskiness of future asset additions 
C)  firm's existing capital structure 
D)  All of the above

Question 9

After transactions have been recorded and summarized, reports are prepared for users; the accounting reports that provide this information are called:

Accepted Answer

A)  income statement 
B)  financial statements 
C)  cash flow statement 
D)  accounting statement 
A)  income statement 
B)  financial statements 
C)  cash flow statement 
D)  accounting statement

Question 10

Political risks can be broken down into which of the following risks?

Accepted Answer

A)  Systematic risks, Country risks, Foreign-Exchange risks 
B)  Credit risks, operating risks, ownership risks 
C)  Market Risks, Liquidity Risks, ownership risks 
D)  transfer risks, operating risks, ownership risks 
A)  Systematic risks, Country risks, Foreign-Exchange risks 
B)  Credit risks, operating risks, ownership risks 
C)  Market Risks, Liquidity Risks, ownership risks 
D)  transfer risks, operating risks, ownership risks

Question 11

What is computed by dividing the average cost of workers by their average levels of output?

Accepted Answer

A)  cost of productivity 
B)  labor cost of conduct 
C)  Total cost of conduct 
D)  unit labor cost 
A)  cost of productivity 
B)  labor cost of conduct 
C)  Total cost of conduct 
D)  unit labor cost

Question 12

To be considered reliable, accounting information must NOT posses which of the following quality?

Accepted Answer

A)  Verifiability 
B)  Comparability 
C)  Faithfulness 
D)  Neutrality 
A)  Verifiability 
B)  Comparability 
C)  Faithfulness 
D)  Neutrality

Question 13

A field whose values identify records either for display or for processing is called:

Accepted Answer

A)  key 
B)  model 
C)  structure 
D)  element 
A)  key 
B)  model 
C)  structure 
D)  element

Question 14

The ability of a business to meet its financial obligations is called:

Accepted Answer

A)  Position analysis 
B)  Glass seizing 
C)  Nominal Concealing 
D)  Solvency 
A)  Position analysis 
B)  Glass seizing 
C)  Nominal Concealing 
D)  Solvency

Exam 1: Certified Business Manager