Question 1

The formation of a partnership requires which of the following?

Accepted Answer

A)  Association two or more persons with legal capacity who agree to become partners 
B)  Business for profit 
C)  Co-ownership includes sharing of profits, losses and control of the business 
D)  All of the above 
A)  Association two or more persons with legal capacity who agree to become partners 
B)  Business for profit 
C)  Co-ownership includes sharing of profits, losses and control of the business 
D)  All of the above

Question 2

Software that is programmed to cause damage at a specified time to specific applications and data files is called:

Accepted Answer

A)  Malicious mishap 
B)  Logic bomb 
C)  Malevolent 
D)  Wicked Logic 
A)  Malicious mishap 
B)  Logic bomb 
C)  Malevolent 
D)  Wicked Logic

Question 3

The transfer of ownership by the host government to a domestic entity with payment of compensation is called:

Accepted Answer

A)  Expropriation 
B)  Domestication 
C)  Local content 
D)  All of the above 
A)  Expropriation 
B)  Domestication 
C)  Local content 
D)  All of the above

Question 4

The system which is designed to deny or at least delay the acquisition of strategically important goods by adversaries is called:

Accepted Answer

A)  Export-control system 
B)  Export-licensing system 
C)  Dual-use system 
D)  None of the above 
A)  Export-control system 
B)  Export-licensing system 
C)  Dual-use system 
D)  None of the above

Question 5

Worker Adjustment and Retaining Notification Act states that:

Accepted Answer

A)  Employers to give a 20 day notice before a layoff or facility closing involving more than 10 people 
B)  Employers to give a 40 day notice before a layoff or facility closing involving more than 30 people 
C)  Employers to give a 50 day notice before a layoff or facility closing involving more than 40 people 
D)  Employers to give a 60 day notice before a layoff or facility closing involving more than 50 people 
A)  Employers to give a 20 day notice before a layoff or facility closing involving more than 10 people 
B)  Employers to give a 40 day notice before a layoff or facility closing involving more than 30 people 
C)  Employers to give a 50 day notice before a layoff or facility closing involving more than 40 people 
D)  Employers to give a 60 day notice before a layoff or facility closing involving more than 50 people

Question 6

What strategy is appropriate in a relatively stable business environment because its approaches competition on the basis of low price and high quality of product or service?

Accepted Answer

A)  cost-leadership 
B)  external staffing 
C)  business innovation 
D)  staffing growth 
A)  cost-leadership 
B)  external staffing 
C)  business innovation 
D)  staffing growth

Question 7

Product decisions, distribution decisions, and promotion decisions are all the element of:

Accepted Answer

A)  Product activities 
B)  Internal marketing 
C)  Marketing mix 
D)  Technological developments 
A)  Product activities 
B)  Internal marketing 
C)  Marketing mix 
D)  Technological developments

Question 8

A firm uses more short-term sources, its debt costs are low, profits are high and solvency is low with:

Accepted Answer

A)  Aggressive strategy 
B)  Conservative financing strategy 
C)  Moderate financing strategy 
D)  Excess Liquidity strategy 
A)  Aggressive strategy 
B)  Conservative financing strategy 
C)  Moderate financing strategy 
D)  Excess Liquidity strategy

Question 9

A contingency approach to leadership that links leader's behavioral style with the task readiness of subordinates is known as:

Accepted Answer

A)  Contingency theory 
B)  Situational theory 
C)  Assignment theory 
D)  None of the above 
A)  Contingency theory 
B)  Situational theory 
C)  Assignment theory 
D)  None of the above

Question 10

If subsidiaries are granted a high degree of autonomy, the system is called:

Accepted Answer

A)  Coordination 
B)  Incorporation 
C)  Centralization 
D)  Decentralization 
A)  Coordination 
B)  Incorporation 
C)  Centralization 
D)  Decentralization

Question 11

Measuring expected revenue gains against expected costs associated with quality efforts is known as:

Accepted Answer

A)  effective quality gains 
B)  return on quality 
C)  quality index 
D)  None of the above 
A)  effective quality gains 
B)  return on quality 
C)  quality index 
D)  None of the above

Question 12

What are spreadsheets that graphically display relationships between ideas, activities, or other dimensions in such a way as to provide logical connecting points between each item?

Accepted Answer

A)  Matrix diagrams 
B)  Matrix data analyzed charts 
C)  Arrow diagrams 
D)  Process diagrams 
A)  Matrix diagrams 
B)  Matrix data analyzed charts 
C)  Arrow diagrams 
D)  Process diagrams

Question 13

The ability in object-oriented structures to automatically create a new object by replicating all or some of the characteristics of a previously developed object is called:

Accepted Answer

A)  Heritage 
B)  Inheritance 
C)  Polymorphism 
D)  Legacy 
A)  Heritage 
B)  Inheritance 
C)  Polymorphism 
D)  Legacy

Question 14

The activities required to physically moving materials into the company's operations facility and to move finished products to customers is called:

Accepted Answer

A)  Distribution 
B)  Logistics 
C)  Allotment 
D)  Dissemination 
A)  Distribution 
B)  Logistics 
C)  Allotment 
D)  Dissemination

Question 15

Cash flow to creditors is computed from the interest paid minus net new borrowings and cash flow to owners is computed from the dividends paid minus net new equity.

Accepted Answer

A) True 
 B)False

Question 16

Which authority is reasonably deduced from the nature of the partnership, the terms of the partnership agreement, or the relations of the partners?

Accepted Answer

A)  Actual Express Authority 
B)  Actual Applied Authority 
C)  Apparent Authority 
D)  Formal Account Authority 
A)  Actual Express Authority 
B)  Actual Applied Authority 
C)  Apparent Authority 
D)  Formal Account Authority

Question 17

The average length of time between the purchase of raw materials and labor and the payment of cash for them is called:

Accepted Answer

A)  Accounts payable period 
B)  Capital investment cycle 
C)  Payable deferral period 
D)  Purchase goods duration 
A)  Accounts payable period 
B)  Capital investment cycle 
C)  Payable deferral period 
D)  Purchase goods duration

Question 18

The formula to calculate the Cash conversion cycle is:

Accepted Answer

A)  Cash Conversion Cycle = (Cash conversion period) + (Receivables conversion period) - (Payable deferral period) 
B)  Cash Conversion Cycle = (Inventory conversion period) + (payables conversion period) - (receivables deferral period) 
C)  Cash Conversion Cycle = (Receivables conversion period) + (Payable deferral period) - (Inventory conversion period) 
D)  Cash Conversion Cycle = (Inventory conversion period) + (Receivables conversion period) - (Payable deferral period) 
A)  Cash Conversion Cycle = (Cash conversion period) + (Receivables conversion period) - (Payable deferral period) 
B)  Cash Conversion Cycle = (Inventory conversion period) + (payables conversion period) - (receivables deferral period) 
C)  Cash Conversion Cycle = (Receivables conversion period) + (Payable deferral period) - (Inventory conversion period) 
D)  Cash Conversion Cycle = (Inventory conversion period) + (Receivables conversion period) - (Payable deferral period)

Question 19

By which reason organizations use a competency approach?

Accepted Answer

A)  to communicate valued behaviors throughout the organization 
B)  to raise the competency levels of the organization 
C)  to emphasize the capabilities of people to enhance organizational competitive advantage 
D)  All of the above 
A)  to communicate valued behaviors throughout the organization 
B)  to raise the competency levels of the organization 
C)  to emphasize the capabilities of people to enhance organizational competitive advantage 
D)  All of the above

Question 20

A comparison of the number of applicants at one stage of the recruiting process to the number at the next stage is called:

Accepted Answer

A)  Labor ratios 
B)  Surrender ratios 
C)  Yield ratios 
D)  Revenue ratios 
A)  Labor ratios 
B)  Surrender ratios 
C)  Yield ratios 
D)  Revenue ratios

Exam 1: Certified Business Manager