BUS 6600 Final Exam questions with
|\ |\ |\ |\ |\ |\
answers
Accounting versus other business functions - CORRECT|\ |\ |\ |\ |\ |\ |\
ANSWERS ✔✔Recording, classifying, summarizing and
|\ |\ |\ |\ |\
interpreting of financial events and transactions in an |\ |\ |\ |\ |\ |\ |\ |\
organization to provide interested parties needed |\ |\ |\ |\ |\ |\
financial information |\
Adam Smith and the Invisible Hand Theory - CORRECT
|\ |\ |\ |\ |\ |\ |\ |\ |\
ANSWERS ✔✔The unobservable market force that helps
|\ |\ |\ |\ |\ |\ |\
the demand and supply of goods in a free market to reach
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
equilibrium automatically.
|\ |\
Benefits and rights in different economic systems -
|\ |\ |\ |\ |\ |\ |\ |\
CORRECT ANSWERS ✔✔Free-Market Economics - the
|\ |\ |\ |\ |\ |\
market largely determines what goods and services are
|\ |\ |\ |\ |\ |\ |\ |\
produced, who gets them, and how the economy grows
|\ |\ |\ |\ |\ |\ |\ |\
Command Economics - the government largely |\ |\ |\ |\ |\ |\
determines what goods and services are produced, who|\ |\ |\ |\ |\ |\ |\ |\
gets them and how the economy will grow
|\ |\ |\ |\ |\ |\ |\
Mixed Economy - some allocation of resources is made by
|\ |\ |\ |\ |\ |\ |\ |\ |\
the target and some by the government
|\ |\ |\ |\ |\ |\ |\
,Bond financing - CORRECT ANSWERS ✔✔is a type of long-
|\ |\ |\ |\ |\ |\ |\ |\ |\
term borrowing that state and local governments
|\ |\ |\ |\ |\ |\ |\
frequently use to raise money, primarily for long-lived |\ |\ |\ |\ |\ |\ |\ |\
infrastructure assets. They obtain this money by selling |\ |\ |\ |\ |\ |\ |\ |\
bonds to investors. In exchange, they promise to repay
|\ |\ |\ |\ |\ |\ |\ |\ |\
this money, with interest, according to specified
|\ |\ |\ |\ |\ |\ |\
schedules.
Branding & brand names - CORRECT ANSWERS ✔✔brand - |\ |\ |\ |\ |\ |\ |\ |\
name, symbol or design that identified the goods or
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
services and distinguishes them from competitors'
|\ |\ |\ |\ |\ |\
offerings
trademark - a brand that has exclusive legal protections |\ |\ |\ |\ |\ |\ |\ |\ |\
for both its brand name and design
|\ |\ |\ |\ |\ |\
Manufacturers' brands - brand names of manufacturers |\ |\ |\ |\ |\ |\ |\
that distribute products nationally
|\ |\ |\
Dealer (private-label) Brands - products that carry a
|\ |\ |\ |\ |\ |\ |\ |\
retailer's or distributor's brand name instead of a|\ |\ |\ |\ |\ |\ |\ |\
manufacturer's |\
Generic Goods - non-branded products that sell at a
|\ |\ |\ |\ |\ |\ |\ |\ |\
discount compared to manufacturers' or dealers' brands
|\ |\ |\ |\ |\ |\
Knockoff Brands - illegal copies or national brands
|\ |\ |\ |\ |\ |\ |\
Budget - CORRECT ANSWERS ✔✔sets forth
|\ |\ |\ |\ |\ |\
management's expectations for revenues and allocates |\ |\ |\ |\ |\ |\
the use of specific resources through the firm... depend
|\ |\ |\ |\ |\ |\ |\ |\ |\
, heavily on the balance sheet, income statement,
|\ |\ |\ |\ |\ |\ |\
statement of cash flows and financial forecasts. |\ |\ |\ |\ |\ |\
Business era - CORRECT ANSWERS ✔✔production era,
|\ |\ |\ |\ |\ |\ |\
selling era, marketing concept era, customer relationship
|\ |\ |\ |\ |\ |\ |\
era
Buying stock on margin - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\
✔✔borrowing some of the stock's purchase cost from the |\ |\ |\ |\ |\ |\ |\ |\ |\
brokerage firm. |\
Margin is the portion of the stock's purchase price that
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
the investor must pay with their own money. If a broker
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
issues a margin call, the investor has to come up with
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
money to cover losses |\ |\ |\
Capitalism, Socialism, Communism, Nationalism - |\ |\ |\ |\ |\
CORRECT ANSWERS ✔✔Capitalism - all or most of the |\ |\ |\ |\ |\ |\ |\ |\ |\
land, factories and stores are owned by individuals, not
|\ |\ |\ |\ |\ |\ |\ |\ |\
the government, and operated for profit
|\ |\ |\ |\ |\
Socialism - an economic system based on the premise |\ |\ |\ |\ |\ |\ |\ |\ |\
that some basic businesses, like utilites, should be owned
|\ |\ |\ |\ |\ |\ |\ |\ |\
by the government in order to more evenly distribute
|\ |\ |\ |\ |\ |\ |\ |\ |\
profits among the people |\ |\ |\
Communism - an economic and political system in which |\ |\ |\ |\ |\ |\ |\ |\ |\
the government makes almost all economic decisions and
|\ |\ |\ |\ |\ |\ |\
owns almost all the major factors on production
|\ |\ |\ |\ |\ |\ |\ |\
|\ |\ |\ |\ |\ |\
answers
Accounting versus other business functions - CORRECT|\ |\ |\ |\ |\ |\ |\
ANSWERS ✔✔Recording, classifying, summarizing and
|\ |\ |\ |\ |\
interpreting of financial events and transactions in an |\ |\ |\ |\ |\ |\ |\ |\
organization to provide interested parties needed |\ |\ |\ |\ |\ |\
financial information |\
Adam Smith and the Invisible Hand Theory - CORRECT
|\ |\ |\ |\ |\ |\ |\ |\ |\
ANSWERS ✔✔The unobservable market force that helps
|\ |\ |\ |\ |\ |\ |\
the demand and supply of goods in a free market to reach
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
equilibrium automatically.
|\ |\
Benefits and rights in different economic systems -
|\ |\ |\ |\ |\ |\ |\ |\
CORRECT ANSWERS ✔✔Free-Market Economics - the
|\ |\ |\ |\ |\ |\
market largely determines what goods and services are
|\ |\ |\ |\ |\ |\ |\ |\
produced, who gets them, and how the economy grows
|\ |\ |\ |\ |\ |\ |\ |\
Command Economics - the government largely |\ |\ |\ |\ |\ |\
determines what goods and services are produced, who|\ |\ |\ |\ |\ |\ |\ |\
gets them and how the economy will grow
|\ |\ |\ |\ |\ |\ |\
Mixed Economy - some allocation of resources is made by
|\ |\ |\ |\ |\ |\ |\ |\ |\
the target and some by the government
|\ |\ |\ |\ |\ |\ |\
,Bond financing - CORRECT ANSWERS ✔✔is a type of long-
|\ |\ |\ |\ |\ |\ |\ |\ |\
term borrowing that state and local governments
|\ |\ |\ |\ |\ |\ |\
frequently use to raise money, primarily for long-lived |\ |\ |\ |\ |\ |\ |\ |\
infrastructure assets. They obtain this money by selling |\ |\ |\ |\ |\ |\ |\ |\
bonds to investors. In exchange, they promise to repay
|\ |\ |\ |\ |\ |\ |\ |\ |\
this money, with interest, according to specified
|\ |\ |\ |\ |\ |\ |\
schedules.
Branding & brand names - CORRECT ANSWERS ✔✔brand - |\ |\ |\ |\ |\ |\ |\ |\
name, symbol or design that identified the goods or
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
services and distinguishes them from competitors'
|\ |\ |\ |\ |\ |\
offerings
trademark - a brand that has exclusive legal protections |\ |\ |\ |\ |\ |\ |\ |\ |\
for both its brand name and design
|\ |\ |\ |\ |\ |\
Manufacturers' brands - brand names of manufacturers |\ |\ |\ |\ |\ |\ |\
that distribute products nationally
|\ |\ |\
Dealer (private-label) Brands - products that carry a
|\ |\ |\ |\ |\ |\ |\ |\
retailer's or distributor's brand name instead of a|\ |\ |\ |\ |\ |\ |\ |\
manufacturer's |\
Generic Goods - non-branded products that sell at a
|\ |\ |\ |\ |\ |\ |\ |\ |\
discount compared to manufacturers' or dealers' brands
|\ |\ |\ |\ |\ |\
Knockoff Brands - illegal copies or national brands
|\ |\ |\ |\ |\ |\ |\
Budget - CORRECT ANSWERS ✔✔sets forth
|\ |\ |\ |\ |\ |\
management's expectations for revenues and allocates |\ |\ |\ |\ |\ |\
the use of specific resources through the firm... depend
|\ |\ |\ |\ |\ |\ |\ |\ |\
, heavily on the balance sheet, income statement,
|\ |\ |\ |\ |\ |\ |\
statement of cash flows and financial forecasts. |\ |\ |\ |\ |\ |\
Business era - CORRECT ANSWERS ✔✔production era,
|\ |\ |\ |\ |\ |\ |\
selling era, marketing concept era, customer relationship
|\ |\ |\ |\ |\ |\ |\
era
Buying stock on margin - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\
✔✔borrowing some of the stock's purchase cost from the |\ |\ |\ |\ |\ |\ |\ |\ |\
brokerage firm. |\
Margin is the portion of the stock's purchase price that
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
the investor must pay with their own money. If a broker
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
issues a margin call, the investor has to come up with
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
money to cover losses |\ |\ |\
Capitalism, Socialism, Communism, Nationalism - |\ |\ |\ |\ |\
CORRECT ANSWERS ✔✔Capitalism - all or most of the |\ |\ |\ |\ |\ |\ |\ |\ |\
land, factories and stores are owned by individuals, not
|\ |\ |\ |\ |\ |\ |\ |\ |\
the government, and operated for profit
|\ |\ |\ |\ |\
Socialism - an economic system based on the premise |\ |\ |\ |\ |\ |\ |\ |\ |\
that some basic businesses, like utilites, should be owned
|\ |\ |\ |\ |\ |\ |\ |\ |\
by the government in order to more evenly distribute
|\ |\ |\ |\ |\ |\ |\ |\ |\
profits among the people |\ |\ |\
Communism - an economic and political system in which |\ |\ |\ |\ |\ |\ |\ |\ |\
the government makes almost all economic decisions and
|\ |\ |\ |\ |\ |\ |\
owns almost all the major factors on production
|\ |\ |\ |\ |\ |\ |\ |\
