Peregrine Business Exam Test Questions With
100% Verified Solutions
Civil Rights Act - ANSWER -1964; Secured the rights of freedmen., it gave
citizenship to African- Americans
Equal Employment Opportunity - ANSWER -The equal right of all citizens to the
opportunity to obtain employment regardless of their gender, age, race, country of
origin, religion, or disabilities.
Whistleblowing - ANSWER -Activity of a person, often an employee, revealing
information about activity within a private or public organization that is deemed
illegal, immoral, illicit, unsafe or fraudulent.
Group Think - ANSWER -A phenomenon that occurs when a group of
individuals reaches a consensus without critical reasoning or evaluation of the
consequences or alternatives.
Which of the following statements is CORRECT?
A. Free cash flow (FCF) is, essentially, the cash flow that is available for interest
and dividends after the company has made the investments in current and fixed
assets that are necessary to sustain ongoing operations.
B. After-tax operating income is calculated as EBIT (1 - T) + Depreciation.
C. Two firms with identical sales and operating costs but with different amounts of
debt and tax rates will have different operating incomes by definition.
D. If a firm is reporting its income in accordance with generally accepted
accounting principles, then its net income as reported on the income statement
should be equal to its free cash flow. - ANSWER -A. Free cash flow (FCF) is,
essentially, the cash flow that is available for interest and dividends after the
company has made the investments in current and fixed assets that are necessary to
sustain ongoing operations.
, A corporate bond currently yields 8.3%. Municipal bonds with the same risk,
maturity, and liquidity currently yield 5.5%. At what tax rate would investors be
indifferent between the two bonds?
A. 33.73%
B. 28.24%
C. 25.98%
D. 42.17% - ANSWER -A. 33.73%
When the costs of supplies increase in an industry, the low-cost leader:
A. may continue competing with rivals on the basis of product features.
B. will lose customers as a result of price increases.
C. will be unable to absorb higher costs because cost-leaders operate on very
narrow profit margins.
D. may be the only firm able to pay the higher prices and continue to earn average
or above- average returns. - ANSWER -D. may be the only firm able to pay the
higher prices and continue to earn average or above- average returns.
TQM is most helpful to firms following the business strategy.
A. cost-leadership
B. integrated cost-leadership/differentiation
C. focused cost-leadership
D. focused differentiation - ANSWER -B. integrated cost-
leadership/differentiation
Diversification - ANSWER -Spreading out investments to reduce risk
Stakeholders - ANSWER -All the people who stand to gain or lose by the policies
and activities of a business and whose concerns the business needs to address.
Shareholders - ANSWER -Investors who purchase shares of stock in a
corporation.
100% Verified Solutions
Civil Rights Act - ANSWER -1964; Secured the rights of freedmen., it gave
citizenship to African- Americans
Equal Employment Opportunity - ANSWER -The equal right of all citizens to the
opportunity to obtain employment regardless of their gender, age, race, country of
origin, religion, or disabilities.
Whistleblowing - ANSWER -Activity of a person, often an employee, revealing
information about activity within a private or public organization that is deemed
illegal, immoral, illicit, unsafe or fraudulent.
Group Think - ANSWER -A phenomenon that occurs when a group of
individuals reaches a consensus without critical reasoning or evaluation of the
consequences or alternatives.
Which of the following statements is CORRECT?
A. Free cash flow (FCF) is, essentially, the cash flow that is available for interest
and dividends after the company has made the investments in current and fixed
assets that are necessary to sustain ongoing operations.
B. After-tax operating income is calculated as EBIT (1 - T) + Depreciation.
C. Two firms with identical sales and operating costs but with different amounts of
debt and tax rates will have different operating incomes by definition.
D. If a firm is reporting its income in accordance with generally accepted
accounting principles, then its net income as reported on the income statement
should be equal to its free cash flow. - ANSWER -A. Free cash flow (FCF) is,
essentially, the cash flow that is available for interest and dividends after the
company has made the investments in current and fixed assets that are necessary to
sustain ongoing operations.
, A corporate bond currently yields 8.3%. Municipal bonds with the same risk,
maturity, and liquidity currently yield 5.5%. At what tax rate would investors be
indifferent between the two bonds?
A. 33.73%
B. 28.24%
C. 25.98%
D. 42.17% - ANSWER -A. 33.73%
When the costs of supplies increase in an industry, the low-cost leader:
A. may continue competing with rivals on the basis of product features.
B. will lose customers as a result of price increases.
C. will be unable to absorb higher costs because cost-leaders operate on very
narrow profit margins.
D. may be the only firm able to pay the higher prices and continue to earn average
or above- average returns. - ANSWER -D. may be the only firm able to pay the
higher prices and continue to earn average or above- average returns.
TQM is most helpful to firms following the business strategy.
A. cost-leadership
B. integrated cost-leadership/differentiation
C. focused cost-leadership
D. focused differentiation - ANSWER -B. integrated cost-
leadership/differentiation
Diversification - ANSWER -Spreading out investments to reduce risk
Stakeholders - ANSWER -All the people who stand to gain or lose by the policies
and activities of a business and whose concerns the business needs to address.
Shareholders - ANSWER -Investors who purchase shares of stock in a
corporation.
