AREC 212 FINAL EXAM QUESTIONS AND CORRECT ANSWERS!!
The CHANGE in output that occurs as the result of a change in the level of input is
known as ___________ ____________. - ANSWER Marginal Product
Profit - ANSWER TR-TVC-TFC
A ______________ _______________ is owned and managed by a single individual, who
thereby assumes all the risks and derives all the profits. - ANSWER Sole Proprietorship
A limited partnership has two kinds of partners. They are __________ partners and
____________ partners. - ANSWER General and Limited
Business Corporations or C corps are taxed ____________ - ANSWER Twice
Closely Held Corporations or S Corps are taxed like a _____________ - ANSWER
Partnership
Access to capital is potentially ______________ for a partnership than a sole
proprietorship - ANSWER Greater
Limited Liability Companies (LLC) are a hybrid between a _____________ and a
_______________ - ANSWER Corporation and Partnership
Organizing around divisions such as warehouse, sales, advertising, inventory, and
accounting is an example of organizing by _______________ _______________. - ANSWER
Business Function
________________ - __________________ analysis determines the combination of costs,
, output, and selling price that will permit the form to cover all costs with no profit or loss.
- ANSWER Break-Even
Overhead or Operating expenses is another term used to describe _______________
costs. - ANSWER Fixed
Variable input should continue to be added as long as MVP is _____________ than MFC -
ANSWER Greater than
The Principle of ____________________ ____________________ returns states that as more
units of a variable input are added to production, holding at least one other input
constant, eventually total product will begin to decline. - ANSWER Diminishing
Marginal
Given a contribution margin of 45%, how many cents of each dollar of sales are being
used to pay variable costs. - ANSWER 0.55
The contribution margin is the portion of the selling price left to cover ______________
________________ and __________________. - ANSWER Fixed Costs and Profit
Two similarly-sized competitive firms in the same industry have the following current
ratios:
Firm A = 1.5
Firm B = 2.2
Which firm has more liquid assets? - ANSWER Firm B
An increase in a firm's Debt to Asset ratio indicates that more equity capital is being
used for operations (T/F). - ANSWER True
Return on investment or Return on Assets measures the rate of return on all invested
capital in a business. This investment includes both __________ and __________ capital. -
ANSWER Debt and Equity
The CHANGE in output that occurs as the result of a change in the level of input is
known as ___________ ____________. - ANSWER Marginal Product
Profit - ANSWER TR-TVC-TFC
A ______________ _______________ is owned and managed by a single individual, who
thereby assumes all the risks and derives all the profits. - ANSWER Sole Proprietorship
A limited partnership has two kinds of partners. They are __________ partners and
____________ partners. - ANSWER General and Limited
Business Corporations or C corps are taxed ____________ - ANSWER Twice
Closely Held Corporations or S Corps are taxed like a _____________ - ANSWER
Partnership
Access to capital is potentially ______________ for a partnership than a sole
proprietorship - ANSWER Greater
Limited Liability Companies (LLC) are a hybrid between a _____________ and a
_______________ - ANSWER Corporation and Partnership
Organizing around divisions such as warehouse, sales, advertising, inventory, and
accounting is an example of organizing by _______________ _______________. - ANSWER
Business Function
________________ - __________________ analysis determines the combination of costs,
, output, and selling price that will permit the form to cover all costs with no profit or loss.
- ANSWER Break-Even
Overhead or Operating expenses is another term used to describe _______________
costs. - ANSWER Fixed
Variable input should continue to be added as long as MVP is _____________ than MFC -
ANSWER Greater than
The Principle of ____________________ ____________________ returns states that as more
units of a variable input are added to production, holding at least one other input
constant, eventually total product will begin to decline. - ANSWER Diminishing
Marginal
Given a contribution margin of 45%, how many cents of each dollar of sales are being
used to pay variable costs. - ANSWER 0.55
The contribution margin is the portion of the selling price left to cover ______________
________________ and __________________. - ANSWER Fixed Costs and Profit
Two similarly-sized competitive firms in the same industry have the following current
ratios:
Firm A = 1.5
Firm B = 2.2
Which firm has more liquid assets? - ANSWER Firm B
An increase in a firm's Debt to Asset ratio indicates that more equity capital is being
used for operations (T/F). - ANSWER True
Return on investment or Return on Assets measures the rate of return on all invested
capital in a business. This investment includes both __________ and __________ capital. -
ANSWER Debt and Equity
