Question 1

What requires customers to send their payments to a post office box located in the are near where they live rather than directly to the firm is called:

Accepted Answer

A)  bolt-box system 
B)  padlock system 
C)  lockbox arrangement 
D)  intertwine arrangement

Question 2

An unincorporated business association of two or more persons to carry on as co-owners of a business for profit is called:

Accepted Answer

A)  General partnership 
B)  Limited partnership 
C)  Limited Liability partnership 
D)  Limited Liability Limited partnership

Question 3

According to _______________, quality is innate excellence and can be recognized only through experience.

Accepted Answer

A)  Awe-inspiring view 
B)  Transcendent view 
C)  Magnificent view 
D)  Uplifting view

Question 4

Which of the following is NOT used in analysis in accessing profitability?

Accepted Answer

A)  Rate earned on total assets 
B)  Earnings per share on common stock 
C)  Price-earnings ratio 
D)  Time interest earned charges

Question 5

The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational goals is called:

Accepted Answer

A)  Marketing 
B)  Promotion 
C)  Selling 
D)  Advertising

Question 6

What composed of product, pricing, distribution, and promotion decisions, is then tailored to meet the needs and wants of specific target markets and to carve out a position in the marketplace?

Accepted Answer

A)  Marketing segments 
B)  Target markets 
C)  Marketing mix 
D)  Marketing strategy

Question 7

Which mechanism is used to motivate managers to act in the shareholder's best interest?

Accepted Answer

A)  threat of firing 
B)  threat of takeover 
C)  managerial compensation plans 
D)  All of the above

Question 8

A line graph in which data are plotted over time is known as:

Accepted Answer

A)  run chart 
B)  flowchart 
C)  streamline chart 
D)  horizontal chart

Question 9

What is a measure of operating cash flow available for corporate purposes after providing sufficient fixed asset additions to maintain current productive capacity and dividends?

Accepted Answer

A)  Venture cash flow 
B)  Free cash flow 
C)  Rigid cash flow 
D)  Permanent cash flow

Question 10

In which quality model, whole philosophy is summarized in three steps to quality, which include quality leadership, modern quality technology, and organizational commitments to continuous training and motivation of the entire workforce?

Accepted Answer

A)  Ishikawa Model 
B)  Crosbyy Model 
C)  Taguchiy Model 
D)  Feigenbaum Quality Model

Question 11

Which of the following s NOT the category of quality costs?

Accepted Answer

A)  Training cost 
B)  Prevention cost 
C)  Internal cost 
D)  Appraisal cost

Question 12

What limits the economic data in the accounting system to data related directly to the activities of the business?

Accepted Answer

A)  Business entity concept 
B)  Business cost concept 
C)  Business data concept 
D)  Business line concept

Question 13

The risks stem from government policies and procedures that directly constrain the international management and performance of local business activities is known as:

Accepted Answer

A)  Foreign-Exchange risks 
B)  Operating risks 
C)  Market risks 
D)  Functional risks

Question 14

What translate into maximizing the value of the firm as measured by the price of the firm's common stock?

Accepted Answer

A)  Stockholder wealth maximization 
B)  maximize goal achievement 
C)  Stock price maximization 
D)  Maximize profit investments

Question 15

The firm's stock price is dependent on which of the following factors?

Accepted Answer

A)  Projected earnings per share 
B)  Riskiness of the projected earnings 
C)  Dividend Policy 
D)  All of the above

Question 16

The set of products a firm targets to one general market is known as:

Accepted Answer

A)  Market development 
B)  Product diversification 
C)  Packaging line 
D)  Product line

Question 17

Sometimes cash balances are held to enable the firm to take advantage of bargain purchases that might arise, these funds are called:

Accepted Answer

A)  Speculative balances 
B)  Cash flow balances 
C)  Check-clearing balances 
D)  Tentative balances

Question 18

The formula used to calculate the Contribution Margin Ratio is:

Accepted Answer

A)  Contribution Margin Ratio = (purchases - fixed costs) / sales 
B)  Contribution Margin Ratio = (purchases - variable costs) / sales 
C)  Contribution Margin Ratio = (sales - fixed costs) / sales 
D)  Contribution Margin Ratio = (sales - variable costs) / sales

Question 19

A legal entity separate and distinct from its owners is called:

Accepted Answer

A)  Government firm 
B)  Non-profit organization 
C)  Corporation 
D)  Business trustee

Question 20

The heart of __________________ is the security agreement, a standardized document on which the specific pledged assets are listed.

Accepted Answer

A)  Uniform Commercial Code 
B)  Factoring Account Code 
C)  Pledged Account Code 
D)  Crediting Resource Code

Exam 1: Certified Business Manager