Download BBA Exit Exam Study Questions: Economics, Accounting, and Law and more Exams Business Statistics in PDF only on Docsity!
BBA Exit Exam Study Questions.
What occurs when the price level rises? - correct answer People need to hold more money, so interest rates rise, making firms borrow and invest less The federal government enacted regulation in the 1960's requiring people to wear seatbelts in their cars. All of the following resulted from this regulation except: - correct answer Fewer pedestrians were killed in car accidents Which of the following is true regarding the production possibilities frontier model of the economy? - correct answer Any point along it represents an efficient level of production If the price in a market happens to be above equilibrium, there will be a ____ in the market, and the price will tend to ____ - correct answer surplus, drop The price elasticity of demand tends to be more elastic... - correct answer At points further up and to the left along D curve If a tax imposed on a good and the incident of the tax ends up falling more heavily on the sellers, this will be because - correct answer Demand is less elastic than supply for that good If the quantity traded in a market less the equilibrium quantity... - correct answer value to consumers for additional units is greater than the cost to sellers of producing those units Economics: A given tax will cause a bigger deadweight loss if demand and supply are: - correct answer Elastic What statement is true regarding international Trade? - correct answer Gains from international trade outweigh losses for importing country What statement is true regarding the revenues of a firm? - correct answer Marginal revenue and average revenue are equal to price.
Suppose the price of fish increases, so households now buy less fish and more chicken. This will cause the... - correct answer CPI to measure more inflation than there really is The unemployment that results because it takes time for workers to search for the jobs that best suit their tastes and skills is called? - correct answer Frictional unemployment What occurs when the fed reduces the reserve requirement? - correct answer Money multiplier gets bigger In a housing bust what would an economist expect the price of homes to do? - correct answer Go down because of excess supply What does balance of payment (BOP) mean? - correct answer Method countries use to monitor all international monetary transactions at a specific period of time. What is an example of events that would decrease the supply of money? - correct answer Banks increase amount of excess reserve What is money? - correct answer Store of value and medium of exchange What market types describe most modern economics? - correct answer Mixed Rational people make decisions on the margins. Which statement would not result in a purchase of the product being analyzed? - correct answer Marginal Cost > Marginal Benefit How does the Federal Reserve control the money supply? - correct answer Prints more as needed Which statement is false? - correct answer Tariffs generate tax revenue for the firms that hold an import license What two terms are used to describe the aggregate supply curve? - correct answer Long & Short run
A profit making business operating as a separate legal entity and in which ownership is divided into share of stock is known as a - correct answer corporation A debt may slightly.. - correct answer increase an asset account What would be classified as a current asset on a balance sheet? - correct answer Accounts receivable What are the elements of internal control? - correct answer Control environment, monitoring, control procedures 3 conditions corporation must meet to pay a cash dividend - correct answer sufficient retained earnings, sufficient cash and formal action Factors in computing depreciation? - correct answer Initial cost + residual value The cash flows report provides useful information about a company's ability to do the following - correct answer meet financial obligations, generate cash from operations, maintain and expand its operating capacity Notes recievable - correct answer amounts that customers owe for which a formal, written instrument of credit has been issued. >yr =investment The excess of current assets of a business over its current liabilities is called? - correct answer Working Capital What categories are considered under period costs - correct answer Selling & Admin expenses The effect of a difference in the number of units sold assuming no change in units sold, assuming no change in unit sales price or cost is? - correct answer Quantity factor A cost that will not be affected by a decision latter is called a - correct answer Sunk cost
The unfavorable volume variance may be due to all but the following - correct answer Unexpected increases in the cost of utilities What budget allows for adjustments in activity levels? - correct answer Flexible budget A budget that summarizes future plans for the acquisition of fixed assets is the? - correct answer Capital Expenditures Shat are the standard framework of guidelines for financial accounting used in any given jurisdiction also known as accounting standards? - correct answer GAAP More frequent the compounding, the higher the _____ all other things being equal. - correct answer Future value Which statement is false? - correct answer For a given amount, lower the discount rate, less the present value Under which of the following conditions will a future value calculated with simple interest exceed a future value calculated with compound interest at the same rate? - correct answer Not possible with positive interest rate A level stream of cash payments that continues indefinitely is known as a perpetuity; one that continues for a limited number of years is called an annuity. What type of statement is this? - correct answer Regarding present and future values of streams of cash payments The decision rule for net present value is to? - correct answer Accept all projects with positive NPV One common reason for issuing 2 distinct classes of common stock is to - correct answer restrict voting priveleges from some shareholders Which statement is false? - correct answer Treasury bills have a beta of zero
Sherman act protected consumers from? - correct answer Trade and commerce against unlawful restraints and monopolies Violations of OSHA can result in - correct answer Crime penalties, fines, termination Fair debt collection practices protect consumers from? - correct answer harrassment Violations of the clean water act can result in - correct answer Criminal charges, cleaning up, fines What are requirements of all contracts? - correct answer consideration, legality, capacity, agreement What type of damage that would be used to recognize wrong doing when no monetary loss is shown? - correct answer punitive Which statement is false? - correct answer A partner in an LLC can be held liable for the debts of firm. Which statement is false? - correct answer A plaintiff in a lawsuit is not responsible for minimizing the damages they suffer as a result of the defendants actions. Example of intangible personal property - correct answer Copyrights Stock certificate issued by a ______ that evidences ownership of a specified number of shares. - correct answer Corporation Which statement is false? - correct answer A corporation is a legal entity created and recognized by state law. It can only consist of one natural person identified under a common name. Legal defenses of a criminal's culpability - correct answer Mistake of fact, statute of limitations, duress
_____ deals with the rights and duties exiting between individual persons, and person and the government, and the relief available when rights are violated. - correct answer Civil law In an _______ principal owes a duty to the agent - correct answer agency relationship Our fundamental rights include - correct answer marriage and procreation, interstate travel, first amendment rights, privacy and voting If a person who is sufficiently intoxicated to lack ________ enters into a contract, voiding the contract is an option to the person. - correct answer capacity Which statement is false? - correct answer All contracts must be in writing even those contracts to be performed within one year. A defense to product liability - correct answer comparative negligence and liab _______ damages are awarded to punish the breaching party. - correct answer Punitive Which statement is false? - correct answer Negligence per se is an example of an intentional tort against a person. The amount of data that can be transferred from one point to another in a certain time period usually within one second is? - correct answer Bandwidth What are the benefits that an extranet offers an organization? - correct answer Coordination, Feedback, Cost reduction Companies sell directly to customers are - correct answer business to Customer Structure manages highly centralized information systems - correct answer global
